1. Financial activities in a cash flow statement as
per AS-7 do not include
a. Issue of shares
b. Buy back of shares
c. Purchase of building
d. Dividend paid
Answers
Answer:
Explanation:
From the following information, calculate Cash Flow from Investing Activities:
Particulars
31st March,
2019 (₹) 31st March,
2018 (₹)
Machinery (At cost) 5,50,000 5,00,000
Accumulated Depreciation 1,70,000 1,00,000
During the year, a machinery costing ₹ 50,000 (accumulated depreciation provided thereon ₹ 20,000) was sold for ₹ 26,000.
ANSWER:
Cash Flow from Investing Activities
Particulars
Amount
(₹)
Amount
(₹)
Purchase of Machinery
(1,00,000)
Sale of Machinery
26,000
Net Cash Used in Investing Activities
(74,000)
Working Notes:
Machinery Account
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
To Balance b/d
5,00,000
Accumulated Depreciation A/c
20,000
To Bank A/c (Purchase- Bal. Fig.)
1,00,000
Bank A/c (Sale)
26,000
Profit and Loss A/c (Loss on Sale)
4,000
Balance c/d
5,50,000
6,00,000
6,00,000
Accumulated Depreciation Account
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
To Machinery A/c
20,000
Balance b/d
1,00,000
Balance c/d
1,70,000
Profit and Loss A/c (Dep. charged during the year- Bal. Fig.)
90,000
1,90,000
1,90,000