Cash Flow Statement Page 13
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30MODULE - 6A
Cash Flow Statement
Analysis of Financial Statements
Additional Information :
(i) During the year a machine costing Rs 40,000 with this accumulated
depreciation Rs 24000 was sold for Rs 20,000
(ii) Patents were written off to the extent of Rs 40,000 and some patents
were sold at a profit of Rs 20,000
Notes
Solution.
Cash Flow from Investing Activities
Particulars
Rs
Inflow from sale of machinery
20,000
Inflow from sale of patent (2)
100000
120000
Outflow on purchase of machinery (1)
(60000)
Net cash flow from investing activities
60000
Working notes
Machinery A/c
Balance b/d
400000
Bank (Inflow)
20,000
Profit and Loss A/c
4000
Accumulated depreciation
24000
(Profit on sale of machine)
(Depreciation on machinery sold)
Bank A/c
60000
Balance c/d
420000
464000
464000
Patent A/c
Balance b/d
280000
Bank A/c (Inflow)
100000
Profit and Loss A/c
20000
Balancing figure
40000
(Profit)
Profit and Loss A/c
160000
Balance c/d
300000
300000
Step- III
Financing Activities
The third section of the cash flow statement reports the cash paid and
received from activities with non-current or long term liabilities and
74
ACCOUNTANCY
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