Question 25:
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:
- During
the year, machine costing `
90,000 with accumulated depreciation of `
60,000 was sold for ` 50,000.
- 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 |
||
|
|
|
|
|
||
Question 26:
|
Welprint Ltd. has given the following information: |
` |
|
Machinery as on
1st April, 2021 |
50,000 |
|
Machinery as on
31st March, 2022 |
60,000 |
|
Accumulated
Depreciation on 1st April, 2021 |
25,000 |
|
Accumulated Depreciation
on 31st march, 2022 |
15,000 |
During the year, a machine costing ` 25,000 (accumulated depreciation thereon ` 15,000) was sold for ` 13,000.
Calculate Cash Flow from Investing Activities on the basis of the above information.
Answer:
|
Cash Flow Statement |
|||
|
|
Particulars |
(`) |
(`) |
|
|
Cash Flow
from Investing Activities |
|
|
|
|
Purchase of
Machinery |
(35,000) |
|
|
|
Sale of Machinery |
13,000 |
(22,000) |
|
|
Cash Used in Investing Activity |
|
(22,000) |
Working Notes:
|
Machinery Account |
|||||
|
Dr. |
|
Cr. |
|||
|
Particulars |
(`) |
Particulars |
(`) |
||
|
Balance b/d |
50,000 |
Bank A/c |
13,000 |
||
|
Profit and Loss
A/c |
3,000 |
Accumulated
Depreciation A/c |
15,000 |
||
|
Bank A/c (Bal.
Fig.) |
35,000 |
Balance c/d |
60,000 |
||
|
|
88,000 |
|
88,000 |
||
|
|
|
|
|
||
|
Accumulated Depreciation Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
(`) |
Particulars |
(`) |
|
Machinery A/c |
15,000 |
Balance b/d |
25,000 |
|
Balance c/d |
15,000 |
Profit and Loss A/c |
5,000 |
|
|
30,000 |
|
30,000 |
|
|
|
|
|
Question 27:
From the following extracts of a company, calculate Cash Flow from Investing Activities:
|
Particular |
31st March, 2022 (`) |
31st March, 2021 (`) |
|
Goodwill |
75,000 |
1,00,000 |
|
Patents |
1,00,000 |
75,000 |
|
Land |
90,000 |
1,00,000 |
|
Furniture |
2,46,000 |
21,000 |
|
Plant and
Machinery (Net) |
2,00,000 |
2,00,000 |
|
10% Investments |
1,80,000 |
2,00,000 |
|
Accrued Interest
on Investments |
6,000 |
... |
Answer:
|
Cash Flow from Investing Activities |
|||
|
|
Particulars |
Amount (`) |
Amount (`) |
|
|
Purchase of
Patents |
(25,000) |
|
|
|
Purchase of
Furniture |
(2,25,000) |
|
|
|
Interest
received on Investment |
14,000 |
|
|
|
Sale of
Investment |
20,000 |
|
|
|
Sale of
Land |
10,000 |
|
|
|
Net
Cash Used in Investing Activities |
|
(2,06,000) |
Note: It has been assumed that Investments have been sold at their Book Value at the end of the accounting period.
Working Notes:
Computation of Interest on
Investments
|
Interest on
Investments=2,00,000×10/100 Less: Interest Accrued |
=20,000 =
6,000 |
|
Interest Received On
Investment |
=
14,000 |
Question 28:
From the following information, calculate Cash Flow from Investing Activities
|
Particular |
31st
March, (`) |
31st
March, (`) |
|
Plant and
Machinery |
10,00,000 |
8,50,000 |
|
Investment
(Long-term) |
1,00,000 |
40,000 |
|
Land (At Cost) |
1,00,000 |
2,00,000 |
Additional Information:
1. Depreciation charged on Plant and Machinery `
50,000.
2. Plant and Machinery with a Book Value of `
60,000 was sold for `
40,000.
3. Land was sold at a profit of `
60,000.
4. No investment was sold during the year.
Answer:
|
Cash Flow from Investing Activities |
|||
|
|
Particulars |
(`) |
(`) |
|
|
Purchase of
Plant and Machinery (WN1) |
(2,60,000) |
|
|
|
Purchase of
Investments |
(60,000) |
|
|
|
Sale of
Plant and Machinery (WN1) |
40,000 |
|
|
|
Sale of
Land (WN2) |
1,60,000 |
|
|
|
Net
Cash Used in Investing Activities |
|
(1,20,000) |
Working Notes:
WN1
|
Plant
and Machinery Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
(`) |
Particulars |
(`) |
|
Balance b/d |
8,50,000 |
Depreciation A/c |
50,000 |
|
Bank A/c (Purchases- Bal.
Fig.) |
2,60,000 |
Bank A/c (Sale) |
40,000 |
|
|
|
Profit and Loss A/c (Loss on
Sale) |
20,000 |
|
|
|
Balance c/d |
10,00,000 |
|
|
11,10,000 |
|
11,10,000 |
|
|
|
|
|
WN2
|
Land
Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
(`) |
Particulars |
(`) |
|
Balance b/d |
2,00,000 |
Bank A/c (Sale- Bal. Fig.) |
1,60,000 |
|
Profit and Loss A/c (Profit
on Sale) |
60,000 |
Balance c/d |
1,00,000 |
|
|
2,60,000 |
|
2,60,000 |
|
|
|
|
|
Click below for more Questions
Ts Grewal Solution 2022-2023
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
Question No. 53 To 56
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