Mars Ltd. has Plant and Machinery whose written down value on 1st April, 2017 was ₹9,60,000 and on 31st March, 2018 was ₹10,50,000. Depreciation for the year was ₹35,000. In the beginning of the year, a part of plant was sold for ₹45,000 which had a written down value of ₹30,000.
Calculate Cash Flow from Investing Activities

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Solution

Cash Flow from Investing Activities

for the year ended March 31, 2017

Particulars

Amount

(Rs)

Amount

(Rs)

Purchase of Plant and Machinery

(1,55,000)

Sale of Plant and Machinery

45,000

Net Cash Used in Investing Activities

(1,10,000)

Working Notes:

Plant and Machinery Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

9,60,000

Depreciation

35,000

Profit and Loss A/c (Profit on Sale)

15,000

Bank A/c (Sale)

45,000

Bank A/c (Purchase)

1,55,000

Balance c/d

10,50,000

11,30,000

11,30,000

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Similar questions

Calculate Cash Flow from Investing Activities from the following particulars:
$\begin{matrix} 1st April, 2014 & 31st March, 2015 Rs. & Rs. Plant and Machinery & 7, 20, 000 & 8, 60, 000 \end{matrix}$

Additional Information:
(i) Depreciation charged during the year Rs. 85,000.
(ii) Plant and machinery having a written down value of Rs. 1,10,000 was sold for Rs. 1,25,000

From the following information, calculate Cash Flow from Investing Activities

Particular	31^st March, 2019 (₹)	31^st March, 2018 (₹)
Plant and Machinery	10,00,000	8,50,000
Investment (Long-term)	1,00,000	40,000
Land (At Cost)	1,00,000	2,00,000

Additional Information:
1. Depreciation charged on Plant and Machinery ₹ 50,000.
2. Plant and Machinery with a Book Value of ₹ 60,000 was sold for ₹ 40,000.
3. Land was sold at a profit of ₹ 60,000.
4. No investment was sold during the year.

Q. On 1st April 2012, Banglore Silk Ltd. purchased a machinery for ₹ 20,00,000. It provides depreciation at 10% p.a. on the Written Down Value Method and closes its books on 31st March every year. On 1st July 2014, a part of the machinery purchased on 1st April 2012 for ₹ 4,00,000 was sold for ₹ 3,20,000. On 1st November 2014, a new machinery was purchased for ₹ 4,80,000. You are required to prepare Machinery Account, Depreciation Account and Provision for Depreciation Account for three years ending 31st March 2015.

Q. A machine was purchased on 1st April 2007 for Rs 5,00,000 and 1st October 2007 for Rs 2,00,000. Calculate depreciation @ 20% p.a. on written down value method for the year ending 31st March 2008.

Q. A Limited has the following balances on 1st April, 2017:

	₹
Machinery A/c	2,00,000
Provision for Depreciation A/c	90,000

The company charged depreciation @ 10% p.a. on Straight Line Method. Accounts are closed on 31st March every year. On 1st October, 2017, a part of machinery purchased on 1st July, 2014 for ₹ 40,000 was sold for ₹ 18,400, charging CGST and SGST @ 6% each and on the same date a new plant was purchased for ₹ 1,00,000 plus IGST @ 12%.
Prepare 'Machinery Account' and 'Provision for Depreciation Account' for the year ended 31st March, 2018.

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Cash Flow from Investing Activities for the year ended March 31, 2017
	Particulars		Amount (Rs)	Amount (Rs)
		Purchase of Plant and Machinery	(1,55,000)
		Sale of Plant and Machinery	45,000
	Net Cash Used in Investing Activities			(1,10,000)

Plant and Machinery Account
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Balance b/d	9,60,000	Depreciation	35,000
Profit and Loss A/c (Profit on Sale)	15,000	Bank A/c (Sale)	45,000
Bank A/c (Purchase)	1,55,000	Balance c/d	10,50,000
	11,30,000		11,30,000