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12th | Cash Flow Statement | Question No. 21 To 24 | Ts Grewal Solution 2023-2024

Cash flow from Investing Activities

Question 21:

From the following information, calculate the amount of Cash Flow from Investing Activities Acquired machinery for ` 10,00,000, paying 10% immediately in cash and accepting a draft for the balance in favour of the vendor, payable after three months. (CBSE 2020)

Answer:

Cash Flow From Investing Activity

Particulars

`

Payment for purchase of Machinery

1,00,000

Cash Used in Investing Activity

1,00,000

 

 

Question 22:

Mars Ltd. has Plant and Machinery whose written down value on 1st April, 2022 was  `9,60,000 and on 31st March, 2023 was  `10,50,000. Depreciation for the year was  `35,000. In the beginning of the year, a part of plant was sold for  `45,000 which had a written down value of  `30,000.
Calculate Cash Flow from Investing Activities

Answer:

Cash Flow from Investing Activities

for the year ended March 31, 2023

 

Particulars

 (`)

 (`)

 

 

Purchase of Plant and Machinery

(1,55,000)

 

 

 

Sale of Plant and Machinery

45,000

 

 

Net Cash Used in Investing Activities

 

(1,10,000)

 

 

Working Notes:

Plant and Machinery Account

Dr.

 

Cr.

Particulars

(`)

Particulars

 (`)

Balance b/d

9,60,000

Depreciation

35,000

Profit and Loss A/c (Profit on Sale)

15,000

Bank A/c (Sale)

45,000

Bank A/c (Purchase)

1,55,000

Balance c/d

10,50,000

 

11,30,000

 

11,30,000

 

 

 

 

 

Question 23:

From the following details. Calculate Cash Flow from Investing Activities

 

 

 

Particulars

31st March,
2023 (
`)

31st March,
2022 (
`)

Investment in 10% Debentures

10,00,000

5,00,000

Land and Building

15,00,000

9,00,000

Additional Information:
1. Half of the investment held in the beginning of the year were sold at 10% profit.
2. Depreciation on Land and Building was `50,000 for the year.
3. Interest received on investments `75,000.

Answer:

Cash Flow from Investing Activities

for the year ended March 31, 2023

 

Particulars

 (`)

 (`)

 

 

Purchase of Land and Building (WN1)

(6,50,000)

 

 

 

Interest received on Investments

75,000

 

 

 

Sale of Debentures (WN2)

2,75,000

 

 

 

Purchase of Debentures (WN2)

(7,50,000)

(10,50,000)

 

Net Cash Used in Investing Activities

 

(10,50,000)

 

Working Notes:

WN1:

Land and Building Account

Dr.

 

Cr.

Particulars

 (`)

Particulars

 (`)

Balance b/d

9,00,000

Depreciation A/c

50,000

Bank A/c (Purchase)

6,50,000

Balance c/d

15,00,000

 

15,50,000

 

15,50,000

 

WN2:

Investment in Debentures Account

Dr.

 

Cr.

Particulars

 (`)

Particulars

 (`)

Balance b/d

5,00,000

Bank A/c (Sale)

2,75,000

Profit and Loss A/c (Profit on sale)

25,000

Balance c/d

10,00,000

Bank A/c (Purchase)

7,50,000

 

 

 

12,75,000

 

12,75,000

 

 

 

 

 

 

Question 24:

From the following details. Calculate Cash Flow from Investing Activities

 

 

 

Particulars

Closing

(`)

Opening

 (`)

Machinery (At Cost)

10,00,000

9,50,000

Accumulated Depreciation

1,50,000

1,10,000

Patents

2,00,000

3,00,000

 

 

 

 

 

 

Additional Information:

  1. During the year, machine costing  ` 90,000 with accumulated depreciation of  ` 60,000 was sold for  ` 50,000.
  2. Patents written off were  ` 50,000 while a part of patents were sold at a profit of  ` 40,000.

Answer:

Cash Flow from Investing Activities

 

Particulars

 (`)

 (`)

 

 

Purchase of Machinery (WN1)

(1,40,000)

 

 

 

Sale of Machinery

50,000

 

 

 

Sale of Patents (WN3)

90,000

Nil

 

Net Cash Used in Investing Activities

 

Nil

 

Working Notes:

 

WN1:

 

Machinery Account

Dr.

 

Cr.

Particulars

 (`)

Particulars

 (`)

Balance b/d

9,50,000

Provision for Depreciation A/c

60,000

Profit and Loss A/c

(Profit on Sale)

20,000

Bank A/c (Sale)

50,000

Bank A/c (Purchase)

1,40,000

Balance c/d

10,00,000

 

11,10,000

 

11,10,000

 

 

 

 

 

 

 

WN2:

 

Provision for Depreciation Account

Dr.

 

Cr.

Particulars

 (`)

Particulars

 (`)

Asset A/c

60,000

Balance b/d

1,10,000

Balance c/d

1,50,000

Profit and Loss A/c

(Depreciation charged during the year)

1,00,000

 

2,10,000

 

2,10,000

 

 

 

 

 

 

 WN3:

 

Patents Account

Dr.

 

Cr.

Particulars

 (`)

Particulars

 (`)

Balance b/d

3,00,000

Patents Written off

50,000

Profit and Loss A/c

(Profit on Sale)

40,000

Bank A/c (Sale) (Balancing Figure)

90,000

 

 

Balance c/d

2,00,000

 

3,40,000

 

3,40,000

 

 

 

 

 

Ts Grewal Solution 2023-2024

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Class 12 / Volume – II

Chapter 4 – Cash Flow Statement

Question No. 1 To 4

Question No. 5 To 8

Question No. 9 To 12

Question No. 13 To 16

Question No. 17 To 20

Question No. 21 To 24

Question No. 25 To 28

Question No. 29 To 32

Question No. 33 To 36

Question No. 37 To 40

Question No. 41 To 44

Question No. 45 To 48

Question No. 49 To 52

Question No. 53 To 56