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Accountancy · 2026 · 6 marks
Cash Flow StatementAscertainment of Cash Flow from Investing and Financing Activities6 markslong answer
CBSE 2026 · Region 4 · Set 2 · Q34
(a) From the following information, calculate Cash Flows from Investing Activities: Additional Information: During the year, a machine costing ₹…
(a)
From the following information, calculate Cash Flows from
Investing Activities :
| Particulars | $\displaystyle 31.03.2025$ (₹) | $\displaystyle 31.03.2024$ (₹) |
| Machinery (At Cost) | $\displaystyle 6,00,000$ | $\displaystyle 2,60,000$ |
| Accumulated Depreciation | $\displaystyle 1,00,000$ | $\displaystyle 35,000$ |
Additional Information : During the year, a machine costing ₹ $\displaystyle 80,000$ on which accumulated depreciation was ₹ $\displaystyle 20,000$, was sold at a loss of $\displaystyle 20$%. (b) From the following information, calculate Cash Flows from
Financing Activities :
| Particulars | $\displaystyle 31.03.2025$ (₹) | $\displaystyle 31.03.2024$ (₹) |
| Equity Share Capital | $\displaystyle 15,00,000$ | $\displaystyle 10,00,000$ |
| $\displaystyle 10$% Debentures | $\displaystyle 11,00,000$ | $\displaystyle 8,00,000$ |
| Bank Overdraft | $\displaystyle 3,00,000$ | $\displaystyle 2,00,000$ |
| Cash at Bank | $\displaystyle 78,000$ | $\displaystyle 54,000$ |
Additional Information : $\displaystyle 3,00,000$, $\displaystyle 10$% Debentures were issued on 1st October, 2024.
Marking-scheme solution
Calculation of Cash Flows from Investing Activities
Particulars (₹) (₹)
Sale of Machinery $\displaystyle 48,000$
Purchase of Machinery (Working Note $\displaystyle 1$) ($\displaystyle 4,20,000$)
Net Cash flow from Investing Activities ($\displaystyle 3,72,000$)
Working Note $\displaystyle 1$:
Dr. Machinery A/c Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Balance b/d $\displaystyle 2,60,000$ By Bank/Cash A/c (sale) $\displaystyle 48,000$
To Bank/ Cash A/c $\displaystyle 4,20,000$ By Accumulated Depreciation $\displaystyle 20,000$
(purchase)… A/c
By Statement of Profit & Loss- $\displaystyle 12,000$
(loss on sale)
By Balance c/d $\displaystyle 6,00,000$
$\displaystyle 6,80,000$ $\displaystyle 6,80,000$
(b)
From the following information…
Calculation of Cash Flows from Financing Activities
Particulars (₹) (₹)
Issue of Equity Share Capital $\displaystyle 5,00,000$
Issue of $\displaystyle 10$% Debentures $\displaystyle 3,00,000$
Raising Bank Overdraft $\displaystyle 1,00,000$
Interest paid on Debentures $\displaystyle (95,000)$
Net Cash flow from Financing Activities $\displaystyle 8,05,000$
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CBSE Class 12 Accountancy past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.