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, 2025 was ₹9,60,000
and on 31st March, 2026 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, 2026 |
||||
|
|
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, |
31st March, |
|
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, 2026 |
||||
|
|
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 |
||
|
|
|
|
|
||
Click below for more Questions
Ts Grewal Solution 2026-2027
Class 12 / Volume – 3
Chapter 5 – Cash Flow Statements
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