Question : Sumit Ltd had the following balances:
| PARTICULARS | Rs |
| Investments in the beginning of the period | 34,000 |
| Investments at the end of the period | 28,000 |
During the year, the company sold 40% of its investments held in the beginning of the period at a profit of Rs 8,400. Cash Flow from Investing Activities are ______.
Option 1: Cash flow from investing Activities Rs 14,400
Option 2: Cash flow from investing Activities Rs (14,400)
Option 3: Cash flow from investing Activities Rs 25,000
Option 4: None of the above
Correct Answer: Cash flow from investing Activities Rs 14,400
Solution : Answer = Cash flow from investing activities Rs 14,400
| Investment a/c | |||
| To Bal b/d | 34,000 | By Bank(sale) | 22,000 |
| To Profit on sale of investments | 8,400 | (13,600+8400) | |
| To Bank(investment) | 7,600 | By bal c/d | 28,000 |
| 50,000 | 50,000 | ||
| Cash flow from investing activities | ||
| Sale of investments | 22,000 | |
| Investment purchased | (7,600) | |
| Cash flow from investing activities | 14,400 | |
Hence, the correct option is 1.
Related Questions
Question : Sumit Ltd had the following balances:
| PARTICULARS | Rs |
| Investments in the beginning of the period | 34,000 |
| Investments at the end of the period | 28,000 |
During the year, the company sold 40% of its investments held in the beginning of the period at a profit of Rs 8,400. Cash Flow from Investing Activities are ______.
Option 1: Cash flow from investing Activities Rs 14,400
Option 2: Cash flow from investing Activities Rs (14,400)
Option 3: Cash flow from investing Activities Rs 25,000
Option 4: None of the above
Question : From the following information, calculate Cash Flow from Financing Activities:
| 1st April, 2019 | 31st March, 2020 | |
| Long term loan | 4,00,000 | 5,50,000 |
During the year, the company repaid a Loan of Rs. 1,00,000.
Option 1: Cash flow from financing activities is Rs 1,00,000
Option 2: Cash flow from financing activities Nil
Option 3: Cash used in investing activities Rs 1,50,000
Option 4: Cash flow from financing activities Rs 1,50,000
Question : From the following information, calculate Cash Flow from Financing Activities:
| 1st April, 2019 | 31st March, 2020 | |
| Long term loan | 4,00,000 | 5,50,000 |
During the year, the company repaid a Loan of Rs. 1,00,000.
Option 1: Cash flow from financing activities is Rs 1,00,000
Option 2: Cash flow from financing activities Nil
Option 3: Cash used in investing activities Rs 1,50,000
Option 4: Cash flow from financing activities Rs 1,50,000
Question : From the following information,
| Net Prof-it before Tax and Extraordinary Items | 2,23,500 |
| Depreciation | 42,000 |
| Interest on Borrowings | 8,400 |
| Goodwill Amortised | 9,300 |
| Loss on Sale of Machinery | 9,000 |
| Premium on Redemption of Debentures | 3,000 |
| Interest and Dividend Received on Investments | 13,800 |
| Profit on Sale of Investments | 6,000 |
Operating profit before change in working capital is------------.
Option 1: Rs 2,92,400
Option 2: Rs 2,72,400
Option 3: Rs 3,00,000
Option 4: None of the above
Question : From the following information,
| Net Prof-it before Tax and Extraordinary Items | 2,23,500 |
| Depreciation | 42,000 |
| Interest on Borrowings | 8,400 |
| Goodwill Amortised | 9,300 |
| Loss on Sale of Machinery | 9,000 |
| Premium on Redemption of Debentures | 3,000 |
| Interest and Dividend Received on Investments | 13,800 |
| Profit on Sale of Investments | 6,000 |
Operating profit before change in working capital is------------.
Option 1: Rs 2,92,400
Option 2: Rs 2,72,400
Option 3: Rs 3,00,000
Option 4: None of the above
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