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

₹ ₹

Purchase of Machine 2,50,000 Purchase of Investments 1,60,000

Purchase of Goodwill 1,00,000 Sale of Patents 40,000

Sale of Machine 35,000 Interest and Dividend Received 10,000

Sale of Investment 50,000

A building was purchased as investment out of surplus which was let out for commercial purposes.
Rent Received ₹20,000.

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Solution

Cash Flow from Investing Activities

Particulars

Amount

(Rs)

Amount

(Rs)

Purchase of Machine

(2,50,000)

Purchase of Goodwill

(1,00,000)

Purchase of Investments

(1,50,000)

Sale of Machine

35,000

Sale of Investment

50,000

Sale of Patents

40,000

Interest and Dividend Received

10,000

Rent Received

20,000

Net Cash Used in Investing Activities

(3,45,000)

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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.

Q. Calculate Cash Flow from Investing Activities from the following information:

Particular	31^st March, 2019 (₹)	31^st March, 2018 (₹)
Investment in Land	3,00,000	3,00,000
Shares in Damodar Ltd.	1,50,000	1,50,000
12% Long-term Investments	80,000	50,000
Plant and Machinery	7,50,000	6,00,000
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Goodwill	1,50,000	1,00,000

Additional Information:
1. A piece of land was purchased as an investment out of surplus. It was let out for commercial purpose and the rent received was ₹ 20,000.
2. Dividend received from Damodar Ltd. @ 12%.
3. Patents written off to the extent of ₹ 20,000. Some patents were sold at a profit of ₹ 10,000.
4. A machine costing ₹ 80,000 (depreciation provided thereon ₹ 30,000) was sold for ₹ 35,000. Depreciation charged during the year was ₹ 70,000.
5. During the year 12% investments were purchased for ₹ 1,00,000 and some investments were sold at a profit of ₹ 10,000. Interest on investments for the year was duly received.

From the following particulars of Bharat Gas Limited, calculate cash flows from investing activities. Also show the workings clearly preparing the ledger accounts.
$\begin{matrix} Assets & 31 - 03 - 2015 & 31 - 03 - 2016 Goodwill & 1, 00, 000 & 3, 00, 000 Patents & 2, 80, 000 & 1, 60, 000 Machinery & 10, 20, 000 & 12, 40, 000 10 % Long term Investment & 60, 000 & 1, 60, 000 Investment in Land & 1, 00, 000 & 1, 00, 000 Shares of Amartax Ltd. & 1, 00, 000 & 1, 00, 000 \end{matrix}$
Additional Information:
1. Patents were written off to the extent of Rs. 40,000 and some patents were sold at a profit of Rs. 20,000.
2. A Machine Cosing Rs. 1,40,000 (Depreciation provided thereon Rs. 60,000) was sold for Rs. 50,000. Depreciation charged during the year was Rs. 1,40,000.
3. On March 31, 2016, 10% Investments were purchased for Rs. 1,80,000 and some investments were sold at a profit of Rs. 20,000. Interest on Invsetment was received on March 31, 2016.
4. Amartax Ltd. Paid Dividend @ 10% on its shares.
5. A plot of land was purchased out of surplus fund for investment purposes and let out for commercial use and rent received Rs. 30,000.

Q. From the following particulars Bharat Gas Limited, calculate cash flows from investing activities. Also show the workings clearly preparing the ledger accounts.

Balance Sheet of Bharat Gas Limited.
as on…………….

\begin{matrix} Capital and Liabilities & 2010 (Rs.) & 2011 (Rs.) & Assets & 2010 (Rs.) & 2011 (Rs.) Goodwill & 1, 00, 000 & 3, 00, 000 Patents & 2, 80, 000 & 1, 60, 000 Machinery & 10, 20, 000 & 12, 40, 000 10 % Long Term Investment & 60, 000 & 1, 60, 000 Investment in Land & 1, 00, 000 & 1, 00, 000 Shares of Amartax Ltd. & 1, 00, 000 & 1, 00, 000 \end{matrix}

Additional Information:
(a) Patents were written-off to the extent of Rs. 40,000 and some patents were sold at a profit of Rs. 20,000.
(b) A machine costing Rs. 1,40,000 (depreciation provided thereon Rs. 60,000) was sold for Rs. 50,000. Depreciations charged during the year was Rs 1,40,000.
(c) On March 31, 2007,

10 %

investments were purchased for Rs. 1,80,000 and some investments were sold at a profit of Rs. 20,000. Interest on investment was received on March 31, 2011.
(d) Amartax Ltd paid dividend @

10 %

on its shares.
(e) A plot of land had been purchased for investment purposes and let out for commercial use and rent received Rs. 30,000.

Q. Prepare Accounting Equation from the following :−
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4. Goods costing ₹ 50,000 sold at a profit of 25%, out of which ₹ 27,500 received in Cash.
5. Purchased a Motor-cycle for personal use ₹ 20,000.

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	₹		₹
Purchase of Machine	2,50,000	Purchase of Investments	1,60,000
Purchase of Goodwill	1,00,000	Sale of Patents	40,000
Sale of Machine	35,000	Interest and Dividend Received	10,000
Sale of Investment	50,000

Cash Flow from Investing Activities
	Particulars	Amount (Rs)	Amount (Rs)
	Purchase of Machine	(2,50,000)
	Purchase of Goodwill	(1,00,000)
	Purchase of Investments	(1,50,000)
	Sale of Machine	35,000
	Sale of Investment	50,000
	Sale of Patents	40,000
	Interest and Dividend Received	10,000
	Rent Received	20,000
	Net Cash Used in Investing Activities		(3,45,000)