Q 12. Mukesh purchased 100 shares @ Rs. 120 per share and paid a brokerage of 0.5%. Find out the
total amount spent by him. Give journal entry for this investment.
Q 13. Ram was good at making designs. He started making designer garments. He bought a sewing machine for Rs. 50,000, spent Rs. 2,00,000 on its renewal and purchased fabric for Rs 5,00,000. Find out net Cash Flow from investing and operating activities and identify the accounts involved.
Dear Student,
A.12 The total amount spent by Mukesh is Rs 12,060 and the entry is journalised below.
A.13
Accounts Involved:
(a) Asset A/c: Machine
(b) Purchases A/c: Fabric purchased
A.12 The total amount spent by Mukesh is Rs 12,060 and the entry is journalised below.
| Journal | ||||
| Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
| Shares A/c | Dr. | 10,000 | ||
| Securities Premium Paid A/c | Dr. | 2,000 | ||
| Brokerage A/c | Dr. | 60 | ||
| To Bank A/c | 12,060 | |||
| (100 shares purchases @ Rs 120 per share, paid brokerage 0.5%) | ||||
A.13
| Particulars | Amount (Rs) |
| Cash Flow from Operating Activities | |
| Purchase of Fabric | (5,00,000) |
| Cash Outflows from Operating Activities | (5,00,000) |
| Cash Flow from Investing Activities | |
| Purchased machine | (50,000) |
| Renewals on machine | (2,00,000) |
| Cash Outflows from Investing Activities | (2,50,000) |
Accounts Involved:
(a) Asset A/c: Machine
(b) Purchases A/c: Fabric purchased