# Question 33 Chapter 8 -Unimax Publication Class 12 Part 2 – 2021

Question 33 Chapter 8 -Unimax Publication Class 12 Part 2 - 2021

Question 33 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021

. XYZ Ltd. had the following balance:
Non-current investment on 31st march 2021= 3,40,000
Noncurrent investment on 31st march 2022 = 2,80,000
During the year the company had sold 40% of its original investment at a profit of 84, 000.
Calculate sources and uses of cash.

## The solution of Question 33 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –

 Sources ₹ 40% of 3,40,000= 1,36,000 Add profit = 84,000 2,20,000

Uses: non-current investment A/c should be prepared to find out the uses of cash.

Non-current investments A/C

 Date Particulars Amount Date Particulars Amount 1-4-2021 To balance b/d 3,40,000 During By bank A/c 2,20,000 During 2021-22 2021-22 To profit on sale 31-3-2022 By balance c/d (given) 2,80,000 Of non-current investment 84,000 To bank A/c (B. fig., purchase) 76,000 5,00,000 5,00,000

Therefore, uses of cash (purchases of non-cash investment) = 76,000.

Comment if you have any Doubts.

What is the cash flow statement? why do we need to prepare?