Question 24 Chapter 5 of +2-B
Table of Contents
Cash Flow from Investing Activities
24. From the following details. Calculate Cash Flow from Investing Activities
| Particulars | 31st March, | 31st March, |
| 2019 | 2018 | |
| Investment in 10% Debentures | 10,00,000 | 5,00,000 |
| Land and Building | 15,00,000 | 9,00,000 |
Additional Information:
1. Half of the investment held in the beginning of the year were sold at 10% profit.
2. Depreciation on Land and Building was Rs 50,000 for the year.
3. Interest received on investments Rs 75,000.
The solution of Question 24 Chapter 4 of +2-B: –
Cash Flow From for the year ended 31st March, 2019 |
||
| Particulars |
Rs |
|
| I. Cash Flow from Investing Activities | ||
| Interest received on Investments | 75,000 | |
| Sale of Debentures (WN 1) | 2,75,000 | |
| Less: Purchase of Land and Building (WN 2) | 6,50,000 | |
| Less: Purchase of Debentures | 7,50,000 | 10,50,000 |
| Net Cash Used in Investing Activities | 10,50,000 | |
Working Note:- 1
10% Debentures Account |
|||
| Particulars |
Rs | Particular | Rs |
| To Balance b/d | 5,00,000 | By Bank A/c (Sale) | 2,75,000 |
| To Profit on Sale ( Statement Profit and Loss ) |
25,000 | By Balance c/d | 10,00,000 |
| To Bank A/c (Purchase) (Bal. fig.) | 7,50,000 | ||
| 12,75,000 | 12,75,000 | ||
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