Question 30 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 30 Chapter 5 of +2-B

Table of Contents

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

During the year, a machinery costing 50,000 accumulated depreciation provided thereon Rs 20,000 was sold for Rs 26,000.

Cash Flow From for the year ended 31st March, 2019
Particulars		Rs
I. Cash Flow from Investing Activities
Sale of Machinery	1,00,000
Less: Purchase of Machinery	26,000	74,000
Net Cash Used in Investing Activities		74,000

Working Notes :- 1.

Plant and Machinery Account
Particulars	Rs	Particular	Rs
To Balance b/d	5,00,000	By Depreciation A/c	20,000
To Bank A/c (Purchase) (Bal. Fig.)	1,00,000	By Bank A/c (Sale)	26,000
		By Loss on Sale (Profit and Loss A/c)	4,000
		By Balance c/d	5,50,000
	6,00,000		6,00,000

Investments Account
Particulars	Rs	Particular	Rs
To Balance b/d	50,000	By Bank A/c (Sale)	80,000
To Bank A/c (Purchase) (Bal. Fig.)	1,00,000	By Balance c/d	80,000
To Profit on sale (Profit and Loss A/c)	10,000

	1,60,000		1,60,000

Accumulated Depreciation Account
Particulars	Rs	Particular	Rs
To Machinery A/c	20,0000	By Balance b/d	1,00,000
To Balance c/d	1,70,000	By Profit and Loss A/c	90,000

	1,90,000		1,90,000

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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

Question 30 Chapter 5 of +2-B – T.S. Grewal 12 Class