Question

Cash flow from Investing Activities
23. Mars Ltd. has plant and Machinery whose written down value on 1st April, 2019 was 9,60,000 and on
31st March, 2020 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. ​

Answer 1

Answer:

umulated 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