Question

Calculate Cash Flow from Investing Activities form the following information:

Additional Information:
1. A piece of land was purchased as an investment of out of surpuls. It was let out for commerical purpose and the rent recived was ₹ 20,000.
2. Divident recived form Damodar Ltd. @ 12%.
3. Patents wirtten off to the extent of ₹20,000. Some patents were sold at a profit of ₹ 10,000.
4. Machine costing ₹80,000 (derpection provided thereon ₹ 30,000) was sold ₹ 35,000 Deprection charged during ther year was ₹ 70,000.
5. Durimg the years 12% investment were purchase for ₹ 1,00,000 and some investments were sold at a profit of ₹ 10,000. Interest of investments for the years was duly recived.

Answer 1

Correct Answer - Cash Used in Investing Activities = ₹ 2,41,000
1. Interest on Investments = `₹ 50,000 xx 12//100= ₹ 6,000`.
2. Dividend from Damodar Ltd = `₹ 1,50,000 xx 12//100 = ₹ 18,000`.
3. Sale of Investment = Cost of Investment Sold + Profit on Sale
`= ₹ 70,000 + ₹ 10,000 = ₹ 80,000`.
4. Sale of Patents `= ₹ 10,000 ("Cost") + ₹ 10,000 = ₹ 20,000.`