Question 25:
The following information has been extracted from the books of Lata Ltd.:
|
Particulars |
31st March, 2024 (₹) |
31st March, 2023 (₹) |
|
Machinery (Cost) |
70,00,000 |
50,00,000 |
|
Accumulated Depreciation |
10,00,000 |
8,00,000 |
Additional information:
(i) During the year, a piece of machinery costing ₹1,40,000 on which accumulated depreciation was ₹90,000, was sold at a gain of ₹10,000.
(ii) Depreciation charged during the year amounted to ₹2,90,000.
Calculate Cash Flows from Investing Activities.
(CBSE 2025)
Answer:
|
Cash Flow from Investing Activities |
||||
|
|
Particulars |
(₹) |
(₹) |
|
|
|
|
Purchase of Machinery (WN1) |
(21,40,000) |
|
|
|
|
Sale of Machinery |
60,000 |
|
|
|
|
|||
|
|
Net Cash Used in Investing Activities |
|
20,80,000 |
|
|
Machinery Account |
|||||
|
Dr. |
|
Cr. |
|||
|
Particulars |
(₹) |
Particulars |
(₹) |
||
|
Balance b/d |
50,00,000 |
Provision for Depreciation A/c |
90,000 |
||
|
Profit and Loss A/c (Profit on Sale) |
10,000 |
Bank A/c (Sale) |
60,000 |
||
|
Bank A/c (Purchase) |
21,40,000 |
Balance c/d |
70,00,000 |
||
|
|
71,50,000 |
|
71,50,000 |
||
|
|
|
|
|
||
WN2:
|
Provision for Depreciation Account |
|||||
|
Dr. |
|
Cr. |
|||
|
Particulars |
(₹) |
Particulars |
(₹) |
||
|
Asset A/c |
90,000 |
Balance b/d |
8,00,000 |
||
|
Balance c/d |
10,00,000 |
Profit and Loss A/c (Depreciation charged during the year) |
2,90,000 |
||
|
|
10,90,000 |
|
10,90,000 |
||
|
|
|
|
|
||
Question 26:
From the following extracts of a company, calculate Cash Flow from Investing Activities:
|
Particular |
31st March, 2026 (₹) |
31st March, 2025 (₹) |
|
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, 2026.
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.
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