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

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

Comment if you have any Doubts.

What is the cash flow statement? why do we need to prepare?