Question 31 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 31 Chapter 5 of +2-B

Table of Contents

The solution of Question 31 Chapter 4 of +2-B: –

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)

31. From the following particulars, calculate Cash Flow from Investing Activities

Particulars	Purchased	Sold
	Rs	Rs
Machinery	6,20,000	2,00,000
Investments	2,40,000	80,000
Goodwill	1,00,000	—
Patents	—	1,50,000

Additional Information:
1. Interest received on debentures held as investment Rs 8,000.
2. Interest paid on debentures issued Rs 20,000.
3. Dividend received on shares held as investment Rs 20,000.
4. Dividend paid on Equity Share Capital Rs 30,000.
5. A plot of land was purchased out of the surplus funds for investment purposes and was let out
for commercial use. Rent received Rs 50,000 during the year.

The solution of Question 31 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 Machinery	2,00,000
Rent Received	50,000
Dividend Received	20,000
Sale of Investments	80,000
Interest on Debentures	8,000
Sale of Patents	1,50,000
Less: Purchase of Machinery	6,20,000
Less: Purchase of Investments	2,40,000
Less: Purchase of Goodwill	1,00,000	4,52,000
Net Cash Used in Investing Activities		4,52,000