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Question 29 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 29 Chapter 5 of +2-B
Question No.29 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution

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Question 29 Chapter 5 of +2-B

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29. Calculate Cash Flow from Investing Activities from the following information:

Particulars31st March,31st March,
 2019 Rs2018 Rs 
Investment in Land3,00,0003,00,000
Shares in Damodar Ltd. 1,50,0001,50,000
12% Long-term Investments80,00050,000
Plant and Machinery7,50,0006,00,000
Patents70,0001,00,000
Goodwill1,50,0001,00,000

Additional Information:
1. A piece of land was purchased as an investment out of surplus. It was let out for commercial
purpose and the rent received was Rs 20,000.
2. Dividend received from Damodar Ltd. @ 12%.
3. Patents written off to the extent of Rs 20,000. Some patents were sold at a profit of Rs 10,000.
4. A machine costing Rs 80,000 (depreciation provided thereon Rs 30, 000) was sold for 35,000.
Depreciation charged during the year was Rs 70,000.
5. During the year 12% investments were purchased for Rs 1,00,000 and some investments
were sold at a profit of Rs 10,000. Interest on investments for the year was duly received.

 

The solution of Question 29 Chapter 4 of +2-B: –

 


Cash Flow From for the year ended 31st March, 2019
Particulars
Rs
I. Cash Flow from Investing Activities  
Rent Received20,000 
Dividend Received18,000 
Sale of Plant and Machinery (WN 1)35,000 
Sale of Investment (WN 2)80,000 
Interest on Investments*6,000 
Sale of Patents (WN 3)20,000 
Less: Purchase of Plant and Machinery2,70,000 
Less: Purchase of Investment1,00,000 
Less: Purchase of Goodwill50,0002,41,000
Net Cash Used in Investing Activities 2,41,000

 

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*Interest on Investment:-

Interest on Investment=12%
 =Rs 2,00,000 X 12%
 =Rs 6,000

 

Plant and Machinery Account
Particulars
RsParticularRs
To Balance b/d6,00,000By Depreciation A/c70,000
To Bank A/c (Purchase) (Bal. Fig.)2,70,000By Bank A/c (Sale)35,000
  By Loss on Sale (Profit and Loss A/c)15,000
  By Balance c/d7,50,000
 8,70,000 8,70,000

 

Investments Account
Particulars
RsParticularRs
To Balance b/d50,000By Bank A/c (Sale)80,000
To Bank A/c (Purchase) (Bal. Fig.)1,00,000By Balance c/d80,000
To Profit on sale (Profit and Loss A/c)10,000  
    
 1,60,000 1,60,000

 

Investments Account
Particulars
RsParticularRs
To Balance b/d1,00,000By Profit & loss A/c (Written-off)20,000
To Profit on sale (Profit and Loss A/c)10,000By Bank A/c (Sale) (Bal. fig.)20,000
  By Balance c/d70,000
    
 1,10,000 1,10,000


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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

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements

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