From the following extracts of a company, calculate Cash Flow from Investing Activities:

Particular

31^st March,

2019

(₹)

31^st March,

2018
(₹)

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
...

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Solution

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

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Particular	31^st March, 2019 (₹)	31^st March, 2018 (₹)
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	...

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)