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Question No 21 Chapter 8 – UNIMAX Class 12 Part 2 – 2021
21. the following information exist in books.
| Particulars | Opening ₹ | closing ₹ |
| Investments | 34,000 | 28,000 |
The company sold (40% of investments held in the beginning of the year at a profit of 8,400. calculate ash from investing activities.
The solution of Question No 21 Chapter 8 – UNIMAX Class 12 Part 2 – 2021: –
Calculation of cash flows from investing activities.
| Particulars | ₹ | ₹ |
| In flow from sale of investment: | ||
| Cost of investing sold (40, of 34,000) | 13,600 | |
| Add: profit on sale of investment | 8,400 | |
| 22,000 | ||
| Outflow on purchase of investing | (7,600) | |
| Net cash flow from investing activities | 14,400 |
Working note:
Investment Account
| Particulars | ₹ | Particulars | ₹ |
| To balance b/d | 34,000 | By bank A/c | 22,000 |
| To profit and loss A/c | 8,400 | (Sale of investment) | |
| (Profit on sale of inv.) | (13,600+8,400) | ||
| To bank A/c | 7,600 | ||
| (Purchase of investments) (BF.) | By balance c/d | 28,000 | |
| 50,000 | 50,000 |
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