Question 25:
|
Welprint Ltd. has
given the following information: |
₹ |
|
Machinery
as on 1st April, 2024 |
50,000 |
|
Machinery
as on 31st March, 2025 |
60,000 |
|
Accumulated
Depreciation on 1st April, 2024 |
25,000 |
|
Accumulated
Depreciation on 31st march, 2025 |
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 26:
From
the following extracts of a company, calculate Cash Flow from Investing
Activities:
|
Particular |
31st March, 2025 (₹) |
31st March, 2024 (₹) |
|
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 |
... |
Addition Information: Investment is sold at book value on 31st
March, 2025.
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 27:
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 |
|
|
|
|
|
Question 28:
From
the following particulars, calculate Cash Flow from Investing Activities
|
|
|
|
|
Particulars |
Purchased
(₹) |
Sold (₹) |
|
Machinery |
6,20,000 |
2,00,000 |
|
Investments |
2,40,000 |
80,000 |
|
Goodwill |
1,00,000 |
... |
|
Patents |
... |
1,50,000 |
|
|
|
|
|
|
|
|
Additional Information:
1. Interest received on debentures
held as investment ₹ 8,000.
2. Interest paid on debentures
issued ₹ 20,000.
3. Dividend received on shares held
as investment ₹ 20,000.
4. Dividend paid on Equity Share
Capital ₹ 30,000.
5. A plot of land was purchased out
of the surplus funds for investment purposes and was let out for commercial
use. Rent received ₹
50,000 during the year.
Answer:
|
Cash Flow from
Investing Activities |
|||
|
|
Particulars |
(₹) |
(₹) |
|
|
Purchase of Machinery |
(6,20,000) |
|
|
|
Purchase of Investments |
(2,40,000) |
|
|
|
Purchase of Goodwill |
(1,00,000) |
|
|
|
Sale of Machinery |
2,00,000 |
|
|
|
Rent Received |
50,000 |
|
|
|
Dividend Received |
20,000 |
|
|
|
Sale of Investments |
80,000 |
|
|
|
Interest on Debentures |
8,000 |
|
|
|
Sale of Patents |
1,50,000 |
|
|
|
Net Cash Used in Investing Activities |
|
(4,52,000) |
Note: Dividend paid and interest paid is a part of
Financing Activities.
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Ts Grewal Solution 2025-2026
Class 12 / Volume – 3
Chapter 5 – Cash Flow Statements