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Question 23 Chapter 8 -Unimax Publication Class 12 Part 2 – 2021

Question no 23 Chapter no 8 unimax class12 part 2
Question no 23 Chapter no 8 unimax class12 part 2

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Question 23 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021

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23. from the following information calculate the amount of cash flows from investing activities:

Particulars31.3.2021 ₹31.3.2022 ₹
Plant and machinery8,50,00010,00,000
Non-current investment40,0001,00,000
Land (at cost)2,00,0001,00,000

Additional information:
(i)depreciation charged on plant and machinery was 50,000.
(ii) plant and machinery with a book value of 60,000 was sold for 40,000.
(iii)land was sold at a gain of 60,000.

The solution of Question 23 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –

 Calculation of cash from investing activities

Particulars
Sale of plant and machinery40,000
Sale of land *(W. note 1)1,60,000
Purchased of plant & machinery (W. note 2)(2,60,000)
Purchase of non-current investments(60,000)
Net cash flow from investing activities(1,20,000)

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Working notes:

Plant & machinery account

Particulars Particulars
To balance b/d8,50,000By depreciation50,000
To bank By bank (sale of machinery)40,000
(Purchase of machinery) (bal. fig.)2,60,000By loss on sale of machinery20,000
  By balance c/d10,00,000
 11,10,000 11,10,000

Land account

Particulars Particulars
To balance b/d2,00,000By bank (sale of land) (b. fig.1,60,000
To gain on sale of land60,000By balance c/d1,00,000
 2,60,000 2,60,000

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Unimax Publication – Accountancy PSEB Class 12 – Volume I – Solution

Unimax Publication – Accountancy PSEB (Class 12) – Part – II – Solution

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