Question 36 Chapter 15 of Class 12 Part – 2 – 2024

Question 36 Chapter 15 of Class 12 Part – 2 – 2024

Cash Flow From investing Activities

36. (Cash Flow from Investing Activities/Sale of Plant at Profit) A company had the following balances :

	₹
Plant Opening	5,00,000
Plant Closing	7,00,000

During the year 30% of the plant was sold at 30% profit on cost.
Calculate cash flow from investing activities.

The solution of Question 36 Chapter 15 of Class 12 Part – 2 – 2024: – 

Cash Flow from investing activities
Particulars		Rs
Inflow from Sale of Plant		1,95,000
Less: Outflow from the purchase of Plant*		(3,50,000)
Cash Flow from Operating activities		(1,55,000)

Working Note

Plant Account
Particulars	Amount ₹	Particulars	Amount ₹
To Balance b/d	5,00,000	By Bank A/c -Sale	1,95,000
To Statement of Profit and Loss -Profit on Sale	45,000		(3,50,000)
To Bank –Purchase (Bal. fig.)	3,50,000	By Balance c/d	7,00,000
	8,95,000		8,95,000

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