Question 38 Chapter 15 of Class 12 Part – 2 – 2024
Cash Flow From Investing Activities
38. From following particulars, calculate cash from investing activities :
| Assets | 31-12-2016 ₹ | 31-12-2017 ₹ |
| Goodwill | 2,500 | 7,500 |
| Patents | 7,000 | 4,000 |
| Plant and Machinery | 25,500 | 31,000 |
| 10% Long term investments | 1,500 | 4,000 |
| Shares of X Ltd. | 2,500 | 2,500 |
| Investment in Land | 2,500 | 2,500 |
Additional Information
1. Patents were written off to the extent of ₹ 1,000 and some patents were sold at a profit of ₹ 500.
2. A machine costing ₹ 3,500 (Depreciation charges ₹ 1500) was sold for ₹ 1,250. Depreciation charged during the year was ₹ 3,500.
3. On 31st December, 2017, 10% Investments were purchased for investments were sold at a profit of ₹ 500. Interest on investments was received on 31st 4,500 and some December, 2017.
4. X Ltd. paid dividend @ 10% on its shares.
5. A plot of land was purchased out of surplus funds for investment purpose and let out for commercial use and rent received 750.
The solution of Question 38 Chapter 15 of Class 12 Part – 2 – 2024: –
Cash Flow from Investing Activities |
||
| Particulars |
Rs |
|
| The inflow of Cash | ||
| Sale of Patents | 2,500 | |
| Sale of Machinery | 1,250 | |
| Sale of Investment | 2,500 | |
| Interest Received on Investment | 750 | |
| Dividend Received | 250 | |
| Rent Received | 750 | 7,400 |
| Less: Purchase of Plant | ||
| Purchase of Goodwill | 5,000 | |
| Purchase of Machinery | 11,000 | |
| Purchase of Investment | 4,500 | (20,500) |
| Net Cash used in investing activities | (13,100) | |
Working Note
Plant Account |
|||
| Particulars |
Amount ₹ |
Particulars |
Amount ₹ |
| To Balance b/d | 25,500 | By Bank A/c (Sale) | 1,250 |
| By Profit and Loss A/c (Loss) | 750 | ||
| By Depreciation A/c | 3,500 | ||
| To Bank –Purchase (Bal. fig.) | 11,000 |
By Balance c/d | 31,000 |
| 36,500 |
36,500 | ||
Investment Account |
|||
| Particulars |
Amount ₹ |
Particulars |
Amount ₹ |
| To Balance b/d | 1,500 | By Bank (Sale) (Bal. fig.) | 2,500 |
| To Bank (Purchase) | 1,500 | ||
| To Profit & Loss A/c | 4,500 | ||
| By Balance c/d | 4,500 | ||
| 6,500 |
6,500 | ||