Question 28 Chapter 5 of +2-B
Table of Contents
28. From the following extracts of a company, calculate Cash Flow from Investing Activities:
| Particulars | 31st March, | 31st March, |
| 2019 | 2018 | |
| Goodwill | 75,000 | 1,00,000 |
| Patents | 1,00,000 | 75,000 |
| Land | 90,000 | 1,00,000 |
| Furniture | 2,46,000 | 21,000 |
| Plant and Machinery Net | 2,00,000 | 2,00,000 |
| 10% Investments | 1,60,000 | 2,00,000 |
| Accrued Interest on Investments | 6,000 |
The solution of Question 28 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 Investment* | 14,000 | |
| Sale of Investment* | 20,000 | |
| Sale of Land | 10,000 | |
| Less: Purchase of Patents | 25,000 | |
| Less: Purchase of Furniture | 2,25,000 | 2,06,000 |
| Net Cash Used in Investing Activities | 2,06,000 | |
* Sale of Investment has been assumed that investment sold at the end of the accounting year.
*Interest on Investment:-
| Interest on Investment | = | 10% |
| = | Rs 2,00,000 X 10% | |
| = | Rs 20,000 | |
| Less: Accrued Interest | = | Rs 6,000 |
| Interest Received | = | Rs 14,000 |
Thanks, Please Like and share with your friends
Comment if you have any question.
Also, Check out the solved question of previous Chapters: –
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
Advertisement-X
