Question 27 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 27 Chapter 5 of +2-B

Table of Contents

The solution of Question 27 Chapter 4 of +2-B: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

27. From the following information, calculate Cash Flow from Investing Activities

Particulars	31st March,	31st March,
	2019	2018
Plant and Machinery	10,00,000	8,50,000
Investment (Long −term)	1,00,000	40,000
Land (At cost)	1,00,000	2,00,000

Additional Information:
1. Depreciation charged on Plant and Machinery Rs 50,000.
2. Plant and Machinery with a Book Value of Rs 60,000 was sold for Rs 40,000.
3. Land was sold at a profit of Rs 60,000.
4. No investment was sold during the year

The solution of Question 27 Chapter 4 of +2-B: –

Cash Flow From for the year ended 31st March, 2019
Particulars		Rs
I. Cash Flow from Investing Activities
Sale of Plant and Machinery (WN 1)	40,000
Sale of Land (WN 2)	1,60,000
Less: Purchase of Plant and Machinery (WN 1)	2,60,000
Less: Purchase of Investments	60,000	1,20,000
Net Cash Used in Investing Activities		1,20,000

Plant and Machinery Account
Particulars	Rs	Particular	Rs
To Balance b/d	8,50,000	By Depreciation A/c	50,000
To Bank A/c (Purchase) (Bal. Fig.)	2,60,000	By Bank A/c (Sale)	40,000
		By Loss on Sale (Profit and Loss A/c)	20,000
		By Balance c/d	10,00,000
	11,10,000		11,10,000

Land Account
Particulars	Rs	Particular	Rs
To Balance b/d	2,00,000	By Bank A/c (Sale) (Bal. fig.)	1,60,000
To Bank A/c (Purchase) (Bal. Fig.)	60,000	By Balance c/d	1,00,000
	2,60,000		2,60,000