Question 28 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 28 Chapter 5 of +2-B

Question 28 Chapter 5 of +2-B

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


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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)

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

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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 28 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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