Question 21 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 21 Chapter 5 of +2-B

Cash Flow from Investing Activities

21. Mars Ltd. has Plant and Machinery whose written down value on 1st April, 2017 was 9,60,000 and on31st March, 2018 was 10,50,000. Depreciation for the year was 35,000. In the beginning of the year, a part of plant was sold for 45,000 which had a written down value of 30,000.
Calculate Cash Flow from Investing Activities

The solution of Question 21 Chapter 4 of +2-B: –

 Cash Flow From for the year ended 31st March, 2019 Particulars Rs I. Cash Flow from Investing Activities Purchase of Plant and Machinery (WN) 1,55,000 Less: Sale of Plant and Machinery 45,000 Net Cash Used in Investing Activities 1,10,000

Working Note:

 Plant and Machinery Account Particulars Rs Particular Rs To Balance b/d 9,60,000 By Depreciation 35,000 To Profit on Sale ( Statement Profitand Loss ) 15,000 By Bank A/c (Sale) 45,000 To Bank A/c (Purchase) (Bal. fig.) 1,55,000 By Balance c/d 10,50,000 11,30,000 11,30,000