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From the following particulars of Bharat Gas Limited, calculate Cash Flows from Investing Activities- Bharat Gas Limited

From the following particulars of Bharat Gas Limited, calculate Cash Flows from Investing Activities. Also, show the workings clearly preparing the
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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  

ParticularsNote 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 assets112,40,00010,20,000
ii) Intangible assets24,60,0003,80,000
b) Non-current investments33,60,0002,60,000

Notes 

1. tangible assets = Machinery 

2. Intangible assets = Patents
Notes to accounts:

 Figures of current yearFigures of previous year
1. Tangible Assets  
Machinery12,40,00010,20,000
2. Intangible Assets        
Goodwill3,00,0001,00,000
Patents1,60,0002,80,000
   4,60,0003,80,000
3. Non-current Investments        
10% long term investments  1,60,00060,000
Investment in land  1,00,0001,00,000
Shares of Amartex Ltd.  1,00,0001,00,000
   3,60,0002,60,000
         


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

ParticularsAmount (Rs.)Amount (Rs.)
 Cash Inflow 
Proceeds from Sale of Patents1,00,000
Proceeds from Sale of Machinery50,000
Proceeds from Sale of 10% Long-term Investment1,00,000
Interest received on 10% Long-term Investment6,000
Dividend Received from Amartax Ltd.10,000
Rent Received30,0002,96,000
 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

DateParticularsJ.F.Amount (Rs.)DateParticularsJ.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

DateParticularsJ.F.Amount (Rs.)DateParticularsJ.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

DateParticularsJ.F.Amount (Rs.)DateParticularsJ.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

Chapter-6 Cash Flow Statement



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