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

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 Profitand 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: –