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

Question 27 Chapter 5 of +2-B

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

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