[DK Goel] Q. 19 Cash Flow Statement Solutions Class 12 CBSE (2026-27)
Solution of question number 19 of Cash Flow Statement chapter 7 of DK Goel Class 12 CBSE (2026-27).
The balance in Plant & Machinery account and Accumulated depreciation account as on March 31, 2023 and 2024 stood as follows:
| 31st March, 2023 | 31st March, 2024 | |
| Plant & Machinery | 48,00,000 | 65,40,000 |
| Accumulated Depreciation | 14,05,000 | 22,10,000 |
Plant & Machinery costing ₹ 12,80,000 accumulated depreciation thereon ₹ 5,30,000 was sold at a loss of ₹ 2,60,000.
You are required to :
(i) Compute the amount of plant and machinery purchased, sold and depreciation charged for the year.
(ii) How each of the item related to plant & machinery will be reported in the statement of cash flows.
[Ans. (i) Inflow from sale of plant & machinery ₹ 4,90,000 and outflow on purchase of plant & machinery ₹ 30,20,000 will be reported under the head ‘Cash flow from investing activities’.
(ii) Loss on sale of plant & machinery ₹ 2,60,000 and current year’s depreciation ₹ 13,35,000 will be added to net profit while computing cash flow from operating activities.]
Solution:-
