6. From the following particulars of Bharat Gas Limited, calculate Cash Flows from Investing Activities. Also, show the workings clearly preparing the ledger accounts:
Balance Sheet of Bharat Gas Ltd.
as on 31 Mar. 2016 and 31 Mar. 2017
| Particulars | Note No. | Figures as the end of 2017 (Rs) | Figures as at the end of reporting 2016 (Rs) |
| II) Assets | |||
| 1. Non-current Assets | |||
| a) Fixed assets | |||
| i) Tangible assets | 1 | 12,40,000 | 10,20,000 |
| ii) Intangible assets | 2 | 4,60,000 | 3,80,000 |
| b) Non-current investments | 3 | 3,60,000 | 2,60,000 |
Notes
1. tangible assets = Machinery
2. Intangible assets = Patents
Notes to accounts:
| Figures of current year | Figures of previous year | |
| 1. Tangible Assets | ||
| Machinery | 12,40,000 | 10,20,000 |
| 2. Intangible Assets | ||
| Goodwill | 3,00,000 | 1,00,000 |
| Patents | 1,60,000 | 2,80,000 |
| 4,60,000 | 3,80,000 | |
| 3. Non-current Investments | ||
| 10% long term investments | 1,60,000 | 60,000 |
| Investment in land | 1,00,000 | 1,00,000 |
| Shares of Amartex Ltd. | 1,00,000 | 1,00,000 |
| 3,60,000 | 2,60,000 | |
Additional Information:
(a) Patents were written-off to the extent of Rs. 40,000 and some Patents were sold at a profit of Rs. 20,000.
(b) A Machine costing Rs. 1,40,000 (Depreciation provided thereon Rs. 60,000) was sold for Rs. 50,000. Depreciation charged during the year was Rs. 1,40,000.
(c) On March 31, 2016, 10% Investments were purchased for Rs. 1,80,000 and some Investments were sold at a profit of Rs. 20,000. Interest on Investment was received on March 31, 2017.
(d) Amartax Ltd. paid Dividend @ 10% on its shares.
(e) A plot of Land had been purchased for investment purposes and let out for commercial use and rent received Rs. 30,000.
Cash Flow from Investing Activities
| Particulars | Amount (Rs.) | Amount (Rs.) |
| Cash Inflow | ||
| Proceeds from Sale of Patents | 1,00,000 | |
| Proceeds from Sale of Machinery | 50,000 | |
| Proceeds from Sale of 10% Long-term Investment | 1,00,000 | |
| Interest received on 10% Long-term Investment | 6,000 | |
| Dividend Received from Amartax Ltd. | 10,000 | |
| Rent Received | 30,000 | 2,96,000 |
| Cash Outflow | ||
| Purchase of Goodwill | (2,00,000) | |
| Purchase of Machinery | (4,40,000) | |
| Purchase of 10% Long-term Investment | (1,80,000) | 8,20,000 |
| Net Cash used in Investing Activities | (5,24,000) | |
Patents Account
| Date | Particulars | J.F. | Amount (Rs.) | Date | Particulars | J.F. | Amount (Rs.) |
| Balance b/d | 2,80,000 | Profit and Loss (written off) | 40,000 | ||||
| Profit and Loss (Profit on sale) | 20,000 | Bank (sale: Balancing figure) | 1,00,000 | ||||
| Balance c/d | 1,60,000 | ||||||
| 3,00,000 | 3,00,000 | ||||||
Machinery Account
| Date | Particulars | J.F. | Amount (Rs.) | Date | Particulars | J.F. | Amount (Rs.) |
| Balance b/d | 10,20,000 | Depreciation | 1,40,000 | ||||
| Bank (Purchases: Balancing figure) | 4,40,000 | Bank | 50,000 | ||||
| Profit and Loss | 30,000 | ||||||
| Balance c/d | 12,40,000 | ||||||
| 14,60,000 | 14,60,000 | ||||||
10% Long-term Investment Account
| Date | Particulars | J.F. | Amount (Rs.) | Date | Particulars | J.F. | Amount (Rs.) |
| Balance b/d | 60,000 | Bank (Balancing figure) | 1,00,000 | ||||
| Bank | 1,80,000 | ||||||
| Profit and Loss (Profit on sale) | 20,000 | Balance c/d | 1,60,000 | ||||
| 2,60,000 | 2,60,000 | ||||||