Question 22 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 22 Chapter 5 of +2-B

Question 22 Chapter 5 of +2-B

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:

  1. During the year, machine costing Rs 90,000 with accumulated depreciation of Rs 60,000 was sold for Rs 50,000.
  2. Patents written off were Rs 50,000 while a part of patents were sold at a profit of Rs 40,000.

 

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)

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

2 Book 3 min 225x300 - Question 22 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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