CBSE 2025, Set 2

Question

(b) The following information has been extracted from the books of Lata Ltd.:
| Particulars | 31.3.2024 (₹) | 31.3.2023 (₹) | |---|---|---| | Machinery (Cost) | 70,00,000 | 50,00,000 | | Accumulated Depreciation | 10,00,000 | 8,00,000 |

Additional Information:
(i) During the year a piece of machinery costing ₹1,40,000 on which accumulated depreciation was ₹90,000, was sold at a gain of ₹10,000.
(ii) Depreciation charged during the year amounted to ₹2,90,000.
Calculate Cash Flows from Investing Activities.

Edvaya · Accepted Answer

The correct answer is Subjective. **Cash Flows from Investing Activities (Lata Ltd.)** | Particulars | Amount (₹) | |---|---| | Purchase of Machinery | (21,40,000) | | Sale of Machinery (1,40,000 - 90,000 + 10,000) | 60,000 | | **Net Cash used in Investing Activities** | **(20,80,000)** | *Working Note (Machinery A/c):* | Dr. Particulars | ₹ | Cr. Particulars | ₹ | |---|---|---|---| | To Balance b/d | 50,00,000 | By Accumulated Dep A/c | 90,000 | | To Statement of P&L (Gain) | 10,000 | By Bank A/c (Sale) | 60,000 | | To Bank A/c (Bal Fig - Purchase) | 21,40,000 | By Balance c/d | 70,00,000 | | **Total** | **71,50,000** | **Total** | **71,50,000** | *Note: Accumulated Dep A/c matches perfectly (8L + 2.9L current year - 90k transferred = 10L closing bal).*

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Particulars	31.3.2024 (₹)	31.3.2023 (₹)
Machinery (Cost)	70,00,000	50,00,000
Accumulated Depreciation	10,00,000	8,00,000