From the following details. Calculate Cash Flow from Investing Activities

Particulars
31st March,
2019 (₹) 31st March,
2018 (₹)

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.

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Solution

Cash Flow from Investing Activities

for the year ended March 31, 2019

Particulars

Amount

(₹)

Amount

(₹)

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

Amount

(₹)

Particulars

Amount

(₹)

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

Amount

(₹)

Particulars

Amount

(₹)

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

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Similar questions

Q. From the following information, calculate Cash Flow from Investing Activities:


Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
Machinery (At cost)	5,50,000	5,00,000
Accumulated Depreciation	1,70,000	1,00,000

During the year, a machinery costing ₹ 50,000 (accumulated depreciation provided thereon ₹ 20,000) was sold for ₹ 26,000.

From the following information, calculation Cash Flow from Operating Activities and Investing Activities:

Particular	31st, March, 2018, (₹)	31st, March, 2019, (₹)
Surplus, i.e., Balance in Statement of Profit and Loss	2,50,000	10,00,000
Provision for Tax	75,000	75,000
Trade Payables	1,00,000	3,75,000
Current Assets (Trade Receivables and Inventories)	11,50,000	13,00,000
Fixed Assets (Tangible)	21,25,000	23,30,000
Accumulated Depreciation	10,62,500	11,00,000

Additional Information:
1. A machine having book value of ₹ 1,00,000 (Depreciation provided thereon ₹ 1,62,500) was sold at a loss of ₹ 20,000.
2. Tax paid during the year ₹ 75,000.

Q. 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:

Q. Grand Hospitality Ltd., reported Net Profit after Tax of ₹ 6,40,000 for the year ended 31st March, 2019. The relevant extract from Balance Sheet as at 31st March, 2019 is:


Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
Inventories	1,15,000	1,25,000
Trade Receivables	1,50,000	1,10,000
Prepaid Expenses	20,000	6,000
Trade Payables	1,10,000	80,000
Provision for Tax	20,000	15,000

Depreciation charged on Plant and Machinery ₹ 55,000, insurance claim received ₹ 50,000, gain (profit) on sale of investment ₹ 20,000 appeared in the Statement of Profit and Loss for the year ended 31st March, 2019. Calculate Cash Flow from Operating Activities.

XYZ. Ltd. provided the following information, calculate Net Cash Flow from Financing Activities:

Particular

31^st March,

2019 (₹)

31^st March,

2018 (₹)

2,00,000

Additional Information:
1.Interest paid on debentures ₹ 19,000.
2. Dividend paid in the year ₹ 50,000.
3. During the year, XYZ Ltd. issued bonus shares in the ratio of 5 : 1 by captialising reserve.

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Cash Flow from Investing Activities for the year ended March 31, 2019
	Particulars		Amount (₹)	Amount (₹)
		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)

Land and Building Account
Dr.				Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
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

Investment in Debentures Account
Dr.				Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
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