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

Question 23 Chapter 5 of +2-B

Question 23 Chapter 5 of +2-B

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

 


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

 


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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)

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)

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 23 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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