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Calculate cash flow from Investing Activities on the basis of the following information provided by Muneesh Ltd.

Particulars Opening Balance Closing Balance
Building 1,00,000 1,20,000
Accumulated Depreciation  30,000 50,000

During the year, a portion of building costing Rs. 50,000 with accumulated depreciation of Rs. 30,000 was sold for Rs. 26,000. 

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Cash Flows from Investing Activities 

Sale of Building 26,000 

Purchase of Building (70,000) 

Net cash used in Investing Activities (44,000)

Working Notes

Building Account

Particulars Amount (Rs.) Particulars Amount (Rs.)
Balance b/d 1,00,000 Cash (proceeds from sale of building) 26,000
Profit and Loss (profit on sale of building)  6,000 Accumulated Depreciation 30,000
Cash (balancing figure–new building purchased) 70,000 Balance c/d 1,20,000
1,76,000 1,76,000

Accumulated Depreciation Account 

Particulars Amount (Rs.) Particulars Amount (Rs.)
Building 30,000 Balance b/d 50,000
Balance c/d 30,000 Profit and Loss (depreciation provided during the year) 10,000
60,000 60,000

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