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.

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Solution

Cash Flow from Investing Activities

Particulars

Amount

(₹)

Amount

(₹)

Purchase of Machinery

(1,00,000)

Sale of Machinery

26,000

Net Cash Used in Investing Activities

(74,000)

Working Notes:

Machinery Account

Dr.

Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

To Balance b/d

5,00,000

Accumulated Depreciation A/c

20,000

To Bank A/c (Purchase- Bal. Fig.)

1,00,000

Bank A/c (Sale)

26,000

Profit and Loss A/c (Loss on Sale)

4,000

Balance c/d

5,50,000

6,00,000

6,00,000

Accumulated Depreciation Account

Dr.

Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

To Machinery A/c

20,000

Balance b/d

1,00,000

Balance c/d

1,70,000

Profit and Loss A/c (Dep. charged during the year- Bal. Fig.)

90,000

1,90,000

1,90,000

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Similar questions

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. 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.

Welprint Ltd. has given the following information:	₹
Machinery as on 1st April, 2018	50,000
Machinery as on 31st March, 2019	60,000
Accumulated Depreciation on 1st April, 2018	25,000
Accumulated Depreciation on 31st march, 2019	15,000

During the year, a machine costing ₹ 25,000 (accumulated depreciation thereon ₹ 15,000) was sold for ₹ 13,000.

Calculate Cash Flow from Investing Activities on the basis of the above information.

Welprint Ltd. has given you the following information:

Machinery as on April 01, 2012 : Rs.50,000

Machinery as on March 31, 2013 : Rs.60,000

Accumulated Depreciation on April 01, 2012 : Rs.25,000

Accumulated Depreciation on March 31, 2013 : Rs.15,000

During the year, a Machine costing Rs 25,000 with Accumulated Depreciation of Rs. 15,000 was sold for Rs. 13,000.

Calculate cash flow from Investing Activities on the basis of the above information.

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Cash Flow from Investing Activities
	Particulars	Amount (₹)	Amount (₹)
	Purchase of Machinery	(1,00,000)
	Sale of Machinery	26,000
	Net Cash Used in Investing Activities		(74,000)

Machinery Account
Dr.		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Balance b/d	5,00,000	Accumulated Depreciation A/c	20,000
To Bank A/c (Purchase- Bal. Fig.)	1,00,000	Bank A/c (Sale)	26,000
		Profit and Loss A/c (Loss on Sale)	4,000
		Balance c/d	5,50,000
	6,00,000		6,00,000

Accumulated Depreciation Account
Dr.		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Machinery A/c	20,000	Balance b/d	1,00,000
Balance c/d	1,70,000	Profit and Loss A/c (Dep. charged during the year- Bal. Fig.)	90,000
	1,90,000		1,90,000