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

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

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 Profitand 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 Profitand Loss ) 40,000 By Bank A/c (Sale) 90,000 By Balance c/d 2,00,000 3,40,000 3,40,000