Question 23 Chapter 8 -Unimax Publication Class 12 Part 2

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

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

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

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

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

Particulars	31.3.2021 ₹	31.3.2022 ₹
Plant and machinery	8,50,000	10,00,000
Non-current investment	40,000	1,00,000
Land (at cost)	2,00,000	1,00,000

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 machinery	40,000
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)

Working notes:

Plant & machinery account

Particulars	₹	Particulars	₹
To balance b/d	8,50,000	By depreciation	50,000
To bank		By bank (sale of machinery)	40,000
(Purchase of machinery) (bal. fig.)	2,60,000	By loss on sale of machinery	20,000
		By balance c/d	10,00,000
	11,10,000		11,10,000

Land account

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