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Question No 23 Chapter 8 – UNIMAX Class 12 Part 2 – 2021
23. from the following information calculate the amount of cash flows from investing activities:
| Particulars | 31.3.2021 ₹ | 31.3.2022 ₹ |
| Plant and machinery | 8,50,000 | 10,00,000 |
| Non-current investment | 40,000 | 1,00,000 |
| Land (at cost) | 2,00,000 | 1,00,000 |
Additional information:
(i)depreciation charged on plant and machinery was 50,000.
(ii) plant and machinery with a book value of 60,000 was sold for 40,000.
(iii)land was sold at a gain of 60,000.
The solution of Question No 23 Chapter 8 – UNIMAX Class 12 Part 2 – 2021: –
Calculation of cash from investing activities
| Particulars | ₹ |
| Sale of plant and machinery | 40,000 |
| Sale of land *(W. note 1) | 1,60,000 |
| Purchased of plant & machinery (W. note 2) | (2,60,000) |
| Purchase of non-current investments | (60,000) |
| Net cash flow from investing activities | (1,20,000) |
Working notes:
Plant & machinery account
| Particulars | ₹ | Particulars | ₹ |
| To balance b/d | 8,50,000 | By depreciation | 50,000 |
| To bank | By bank (sale of machinery) | 40,000 | |
| (Purchase of machinery) (bal. fig.) | 2,60,000 | By loss on sale of machinery | 20,000 |
| By balance c/d | 10,00,000 | ||
| 11,10,000 | 11,10,000 |
Land account
| Particulars | ₹ | Particulars | ₹ |
| To balance b/d | 2,00,000 | By bank (sale of land) (b. fig. | 1,60,000 |
| To gain on sale of land | 60,000 | By balance c/d | 1,00,000 |
| 2,60,000 | 2,60,000 |
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