Simple problem on cash flow statement with explaination

1. Cash Flow Statement
Prepared by
Mr. Basavaraj M. Naik
Teaching Assistant,
Rani Channamma University,Belagavi
Post Graduate Centre, Jamkhandi.
Mail:basunaik221@gmail.com

5. Hints:
● Accumulated depreciation is the total amount an asset has been depreciated up until a single point. In
Simple it’s the total depreciation made on particular fixed assets
● Accumulated depreciation is Rs. 3000 and sold it for 5000. obviously 2000 is the loss of sale which we
need to show in machinery account credit side and which we need to add in cash from operating activities. (
remember all the loss on sale of fixed assets we need to add and profit on sale of fixed assets we need to
deduct from operating activities, and any proceeds from sale of fixed assets you need to show in cash flow
from investing activities.) for reference see the pdf on AS 3 specimen of CFS (indirect method) which I sent
in group.
● 18000 you will get as balancing figure which you need to add with operating activities
● Rs. 5000 ( Machinery account credit side by bank account )it’s the sale of Machinery which you need to
add in investing activities.