2. Classification of various activities under the head operating, investing and financing activity. {Cash flow from Operating Activity. Purchase of raw materials (® 50,000) Purchase of Tools and implements (® 35,000) Sale of Jewellery 28,000 (if) Cash flow from Investing Activity Purchase of Building. & 15,00,000) (ii) Cash flow from Financing Activity. Borrowing of Bank loan % 15,00,000 3. Shirts purchased 300 pieces @ & 500 each. Number of shirts sold 225 pieces @ & 600 each. Calculation of total profit earned on sale of shirts Selling price = 225 shirts @ 600 each =% 1,35,000 Purchase price = 225 shirts @ ® 500 each %1,12,500 Profit 22,500 22500 Profit % Ta 500 * 10 The profit on sale of shirts will be credited to Sales Account, 18,00,000, Cash Sales = 25% of Total sales 4. Credit Sales Let Total Sales Cash Sale = 25% of & x Credit Sale = Total Sale ~ Cash Sale 5 18,00000=*-709% 30 X= 18,00,000 Total sale = € 24,00,000 25 Therefore, Cash Sale = 24,00,000 x 5%; = € 6,00,000, Accountancy ~ 12 a4)