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hardik dave

student

221 Points Posted on 06 October 2012

hello friends. please help me. i am not able to solve two questions. i am writting the questioins and and sekking for the correct answers from you along with explaination.

Q1) A company has the following balances-

Rs. 68,000 investment as on 31.3.2008

Rs. 56,000 investment as on 31.3.2009

During the year the company has sold 40% of its investment held in the beginning of the period at a profit of Rs. 16,800.

Calculate cash flow from investing activities.

Q2) The Share Capital of X Ltd. stood at Rs. 20,00,000 in 2008 and at Rs. 26,00,000 in 2009. It is gathered from the records that the company purchased assets of another company for Rs. 6,00,000 payable in fully paid share. These assets consist of the stock Rs. 2,16,400 , machinery Rs. 1,83,600 and goodwil Rs. 2,00,000.

Find out the fund from issue of shares.

friends your help is required. kindly resolve my queries soon.

thanks.

regards,

hardik dave.

Replies (2)

ashisha

Practising CA

252 Points Posted on 06 October 2012

answer to ques 1:

Cash inflow from sale of investment is Rs. 44000

Cash Outlow due to purchase of investment is Rs. 15200 (balancing figure)

68000*40/100= 27200+16800= 44000

MD. RAFI

Manager Accounts (future CA)

505 Points Posted on 08 October 2012

Cash flow from investing activities
Sale of investment	44,000.00
Purchase of investment	(15,200.00)
Net cash flow from investing activities	28,800.00

Opening Balance of Investment 31/03/2008	68,000.00
Sold 40%	27,200.00
Balance	40,800.00
Balance on 31/03/2009	56,000.00
New addition (cash out flow)	(15,200.00)
Investment sold (Book Value)	27,200.00
Add: Profit earned on sale of investment	16,800.00
Cash inflow from sale of investment	44,000.00


Cash flow from financing activities
No cash generated from issue of shares as the shares were issued for consideration other than cash