Question 23 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 23 Chapter 5 of +2-B

Table of Contents

The solution of Question 23 Chapter 4 of +2-B: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Cash Flow from Investing Activities

23. Welprint Ltd. has given the following information:

Particulars	Opening (Rs)
Machinery as on 1st April, 2018	50,000
Machinery as on 31st March, 2019	60,000
Accumulated Depreciation on 1st April, 2018	25,000
Accumulated Depreciation on 31st march, 2019	15,000

During the year, a machine costing Rs 25,000 accumulated depreciation there on Rs 15, 000 was sold for Rs 13,000.
Calculate Cash Flow from Investing Activities on the basis of the above information.

The solution of Question 23 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 Machinery (WN 1)	35,000
Less: Sale of Machinery	13,000
Net Cash Used in Investing Activities		22,000

Working Note:- 1

Machinery Account
Particulars	Rs	Particular	Rs
To Balance b/d	50,000	By Provision for Depreciation A/c	15,000
To Profit on Sale ( Statement Profit and Loss )	3,000	By Bank A/c (Sale)	13,000
To Bank A/c (Purchase) (Bal. fig.)	35,000	By Balance c/d	60,000
	80,000		80,000

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Accumulated Depreciation Account
Particulars	Rs	Particular	Rs
To Machinery A/c	15,000	By Patents Written off	25,000
To Balance c/d	15,000	By Profit and Loss A/c (Bal. Fig.)	5,000
	30,000		30,000