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, 2024 was ₹9,60,000
and on 31st March, 2025 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, 2025 |
||||
|
|
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, 2025 |
||||
|
|
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 2025-2026
Class 12 / Volume – 3
Chapter 5 – Cash Flow Statements