Cash flow from investing activities example | Class 12

Cash Flow from Investing Activities includes flow of cash which arises due to purchase or sale of fixed assets like land, building, plant & machinery etc. It is an important aspect of growth and capital. It includes only cash transactions and not any credit transactions. Cash flow from investing activities examples are:

  1. Cash receipts from sale of fixed assets
  2. Payment made in cash to acquire fixed assets
  3. Cash advances and loans made to third parties
  4. Payments made in cash to acquire shares, warrants or debt instruments of other enterprises
  5. Cash received on account of interests and dividends
  6. Receipts in cash of insurance claims of third parties
  7. Cash receipt from sale of fixed assets




Cash Flow from Investing Activities Example: 1

Following is the information available from the books of Akash Ltd.

Cash flow from investing activities will be:

Explanation : –

Cash Flow from Investing Activities Example: 2

Cash flow from investing activities from the following information will be:

Explanation : –




Cash Flow from Investing Activities Example: 3

Following is the information available from ABC Ltd

Additional information:
1 Half of the investment held in the beginning of the year was sold at a profit of 2 %.
2 Depreciation on fixed Assets was Rs 100000 for the year
3 Interest received on investment was Rs 90000
4 Dividend received on investment Rs 70000
Cash flow from Investing activities will be:

Explanation : –




Cash Flow from Investing Activities Example: 4

AB Ltd had the following balances

During the year, the company had sold 20 % of its investment at a profit of Rs 21000 .Calculate cash flow from operating activity and cash flow from investing activity if company earned a profit of Rs 50000 during the year will be:

Explanation : –




Cash Flow from Investing Activities Example: 5

Following is the information relating to Akash Ltd

During the year a Machine sold for Rs 45000 On which Accumulated depreciation was Rs 67500 .
Depreciation charged on machinery during the year is:

Explanation : –

Cash Flow from Investing Activities Example: 6

From the following information what will be the amount of asset purchased during the year

Additional information
1 During the year a machine costing Rs 30000 accumulated deprecation Rs 22000 was sold for Rs 9500

Explanation : –




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