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Question 22 Chapter 5 of +2-B
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Table of Contents
Cash Flow from Investing Activities
22. From the following details. calculate Cash Flow from Investing Activities:
| Particulars | Closing (Rs) | Opening (Rs) |
| Machinery At Cost) | 10,00,000 | 9,50,000 |
| Accumulated Depreciation | 1,50,000 | 1,10,000 |
| Patents | 2,00,000 | 3,00,000 |
Additional Information:
- During the year, machine costing Rs 90,000 with accumulated depreciation of Rs 60,000 was sold for Rs 50,000.
- Patents written off were Rs 50,000 while a part of patents were sold at a profit of Rs 40,000.
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The solution of Question 22 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) | 1,40,000 | |
| Less: Sale of Machinery | 50,000 | |
| Less: Sale of Patents (WN 2) | 90,000 | Nil |
| Net Cash Used in Investing Activities | Nil | |
Working Note:- 1
Machinery Account | |||
| Particulars | Rs | Particular | Rs |
| To Balance b/d | 9,50,000 | By Provision for Depreciation A/c | 60,000 |
| To Profit on Sale ( Statement Profit and Loss ) | 20,000 | By Bank A/c (Sale) | 50,000 |
| To Bank A/c (Purchase) (Bal. fig.) | 1,40,000 | By Balance c/d | 10,00,000 |
| 11,10,000 | 11,10,000 | ||
Patents Account | |||
| Particulars | Rs | Particular | Rs |
| To Balance b/d | 3,00,000 | By Patents Written off | 50,000 |
| To Profit on Sale ( Statement Profit and Loss ) | 40,000 | By Bank A/c (Sale) | 90,000 |
| By Balance c/d | 2,00,000 | ||
| 3,40,000 | 3,40,000 | ||
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Also, Check out the solved question of previous Chapters: –
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
