Question 35 Chapter 5 of +2-B
Table of Contents
Cash Flow from Financing Activities
35. From the following information, calculate Cash Flow from Investing and Financing Activities:
| Particulars | 31st March, | 31st March, |
| 2019 Rs | 2018 Rs | |
| Machinery (At cost) | 50,000 | 40,000 |
| Accumulated Depreciation | 12,000 | 10,000 |
| Capital | 35,000 | 30,000 |
| Bank Loan | — | 10,000 |
During the year, a machine costing Rs 10,000 was sold at a loss of Rs 2,000. Depreciation on machinery charged during the year amounted to Rs 6,000.
The solution of Question 35 Chapter 4 of +2-B: –
Cash Flow From for the year ended 31st March, 2019 |
||
| Particulars |
Rs |
|
| I. Cash Flow from Financing Activities | ||
| Sale of Machine | 4,000 | |
| Less: Purchase of Machinery (WN 1) | 20,000 | 16,000 |
| Net Cash from used in Investing Activities | 16,000 | |
| II. Cash Flow from Financing Activities | ||
| Proceeds from Issue of Equity Shares | 5,000 | |
| Less: Repayment of Bank Loan | 10,000 | 5,000 |
| Net Cash Flow from Financing Activities | 5,000 | |
| Machinery Account |
|||
| Particulars |
Rs | Particular | Rs |
| To Balance b/d | 40,000 | By Accumulated Depreciation A/c* | 4,000 |
| To Bank A/c (Purchase) (Bal. Fig.) | 20,000 | By Bank A/c (Sale) | 4,000 |
| By Loss on Sale (Profit and Loss A/c) | 2,000 | ||
| By Balance c/d | 50,000 | ||
| 60,000 | 60,000 | ||
| Accumulated Depreciation Account* |
|||
| Particulars |
Rs | Particular | Rs |
| To Machinery A/c (Bal. Fig.) | 4,000 | By Balance b/d | 10,000 |
| To Balance c/d | 12,000 | By Profit and Loss A/c (Dep. charged during the year) | 6,000 |
| 16,000 | 16,000 | ||
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T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- 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
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