|
|
|
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:
Cash Flow from Investing Activities |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
|
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 |
Amount (Rs) |
Particulars |
Amount (Rs) |
||
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:
Patents Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
||
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 |
||
|
|
|
|
WN3:
Provision for Depreciation Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
||
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 |
||
|
|
|
|