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Question 23 Chapter 5 of +2-B
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Table of Contents
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.
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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)
- 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)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
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
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