(ash FloW Statement 4.

103
24. Frromthe following information, calculate Cash Flowfrom Investing Activities:
Particulars
Closing Opening
Balances ( Balances (
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:
1, During the year, machine costing ? 90,000 with accumulated depreciation of 60,000 was sold
for 50,000.
2. Patents written off were 50,000 while a part of patents were sold at a profit of 40,000.
[Ans.: Cash Flow from Investing Activities = Nil.]
25. Welprint Ltd. has given the following information:
Machinery as on 1st April, 2022 50,000
Machinery as on 31st March, 2023 60,000
Accumulated Depreciation on 1st April, 2022 25,000
Accumulated Depreciation on 31st March, 2023 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. (NCERT, Modified)
[Ans.: Cash Used in Investing Activities = 22,000.]
26. From the following extracts of a company, calculate Cash Flow from Investing Activities:
Particulars 31st March, 31st March,
2023 () 2022()
75,000 1,00,000
Goodwill
1,00,000 75,000
Patents
90,000 1,00,000
Land
2,46,000 21,000
Furniture 2,00,000 2,00,000
Plant and Machinery (Net) 1,80,000 2,00,000
10% Investments
6,000
Accrued Interest on Investments
31st March, 2023.
Additional Information: Investment is sold at book value on
[Ans.: Cash Used in Investing Activities =2,06,000.]
there is neither gain (profit) nor loss.
nints: 1. Since investment is sold at book value,
10% of 2,00,000 - 6,000 = 14,000.]
2. Interest received on Investments =
from Investing Activities:
rom the following information, calculate Cash Flow 31st March, 31st March,
Particulars 2023 () 2022 (3)
10,00,000 8,50,000
Plant and Machinery 1,00,000 40,000
Investment (Long-term) 1,00,000 2,00,000
Land (At cost)
Additional Information:
Depreciation charged on Plant and Machinery R 50,000.
40,000.
Book Value of ? 60,000 was sold for
Plànt and Machinerv with a
D. Land was sold at a proft of 60,000. 1,20,000.1
[Ans.: Cash Used in InvestingActivities =
T NO investment was sold during the year.
 Analysis of Financial Statements---CBSE XII
4.104
calculate Cash Flow from Investing Activities:
26. rom the following particulars. Purchased
Particulars Sold
6,20,000
Machinery 2,40,000 2,00,000
Investments
Goodwill 1,00,000 80,000
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. Aplot of land was purchased out of the surplus funds for investment purposes and was let ous
for commercial use. Rent received 50,000 during the year.
[Ans.: Cash Used in Investing Activities =4,52,000.1
29. Calculate Cash Flow from Investing Activities from the following information:
Particulars 31st March, 31st March,
2023 ®) 2022 ()
Investments in Land
Shares in Damodar Ltd. 3,00,000 3,00,000
1,50,000 1,50,000
12% Long-term Investrments
80,000 50,000
Plant and Machinery
Patents 7,50,000 6,00,00
Goodwill 70,000 1,00,000
1,50,000 1,00,000
Additional Information:
1. Apiece of land was
purchased as an investment out of surplus. It was let
purpose and the rent received was 20,000. out for commerca
2. Dividend received
from Damodar Ltd. @12%.
3. Patents writtern off to
the extent of ? 20,000.
Some patents were sold at a
4. A
machine costing ? 80,000 profit of ? 10,000:
Depreciation charged during the(depreciation provided
year was 70,000. thereon 30,000) was sold for
35,000.
5. Duringthe year
12% investments were
at aprofht of ?
10,000. Interest on purchased for ? 1,00,000 and some investments weresold
investments for the year was duly received.
[Hints:1. Interest [Ans.: Cash Used in Investing Activities =24,000]
on
2. Investments 50,000x 12/100 =6,000.
=
Dividend from Damodar Ltd. = 1,50,000 x
3. Sale of
Investment = Cost of Investment Sold12/100 =
18,000.
+ Profit on
Sale
4. Sale of
Patents =
=70,000 +
10,000 =
80,000.
10,000 (Cost) + 10,000 =
CashFlowStatement 4.105

PLANT AND MACHINERY ACCOUNT Cr.

5.Dr.
ParticularsS
Particulars
To Balanceb/d

To Bank A/c
(Purchase)
6,00,000By Bank AWc (Sale)
2,70,000By Loss on Sale of Machinery A/c*
| 35,000
15,000
(Balancing Figure) (Statement of Profit &Loss)
By Depreciation A/c 70,000
By Balance c/d 7,50,000
8,70,000 8,70,000

s0.000 (Book Value, i.e., 80,000- 30,000) -35,000 (Sale Value) = 15,000 (Loss).]

Cash Flow from Operating and Investing Activities

Activities:
30. From the following information, calculate Cash Flow from Operating Activities and Investing
Particulars
31st March, 31st March,
2022 ) 2023 )
1,00,000 4,00,000
Surplus, i.e, Balance in Statement of Profit &Loss
30,000 30,000
Provision for Tax
40,000 1,50,000
Trade Payables 5,20,000
4,60,000
Current Assets (Inventories and Trade Receivables)
3,25,000 3,92,000
Fxed Assets (Net)

Additional Information:
machine costing 1,05,000 (Depreciation provided
1. Depreciation of 80,000 was provided and a
thereon65,000) was sold at aloss of 8,000.
2. Tax paid during the year? 30,000.
Cash Used in Investing Activities = 1,55,000.)
Ans.: Cash Flow from Operating Activities = 4,38,000.
from Operating Activities and Investing Activities:
31. From the following information, calculate Cash Flow 31st March, 31st March,
Particulars 2022 () 2023 ()
2,50,000 10,00,000
Surplus, i.e, Balance in Statement of Profit &Loss 75,000
75,000
Provision for Tax 1,00,000 3,75,000
Trade Payables 11,50,000 13,00,000
Current Assets (Trade Receivables and Inventories)
Property, Plant and Equipment and Intangible Assets: 21,25,000 23,30,000
Property, Plant and Equipment 10,62,500 11,00,000
Accumulated Depreciation
Additional Information: was sold
value of 1,00,000 (Depreciation provided thereon ? 1,62,500)
I. A machine having book
at a loss of 20,000.
2. Tax paid during the year ? 75,000.
10,95,000; Cash Used in Investing Activities = 3,87,500.)
Activities =
Cash Flow from Operatina