Question 21 Chapter 8 -Unimax Publication Class 12 Part 2 – 2021

Question no 21 Chapter no 8 unimax class12 part 2
Question no 21 Chapter no 8 unimax class12 part 2

Question 21 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021

21. the following information exist in books.

Particulars Opening ₹ closing ₹
Investments 34,000 28,000

The company sold (40% of investments held in the beginning of the year at a profit of 8,400. calculate ash from investing activities.

The solution of Question 21 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –

Calculation of cash flows from investing activities.

Particulars
In flow from sale of investment:    
Cost of investing sold (40, of 34,000) 13,600  
Add: profit on sale of investment 8,400  
    22,000
Outflow on purchase of investing   (7,600)
Net cash flow from investing activities   14,400

Working note:

Investment Account 

Particulars Particulars
To balance b/d 34,000 By bank A/c 22,000
To profit and loss A/c 8,400 (Sale of investment)   
(Profit on sale of inv.)   (13,600+8,400)  
To bank A/c 7,600    
(Purchase of investments) (BF.)   By balance c/d 28,000
  50,000   50,000

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Unimax Publication – Accountancy PSEB Class 12 – Volume I – Solution

Unimax Publication – Accountancy PSEB (Class 12) – Part – II – Solution

Check out T.S. Grewal +2 Book 2023@ Official Website of Sultan Chand Publication

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