Additional Information:
Included in the fixed assets was a piece of machineiy costing 70,000 on which
depreciation charged was ‘40,000 and it was sold for 30,000. During the year Rs. 1,40,000 depreciation was charged on fixed assets.
Prepare the Cash Flow Statement.
Equity and Liabilities
Shareholders 'Funds
Reserves and Surplus [Surplus, i.e, Balance in Statement of Profit and loss)
Assets
Goodwill
Patents
Land
Machinery
10% investment
5,00,000
11,50,000
9,00,000
2,50,000
10,00,000
10,50,000
9,00,000
9,00,000
11,50,000
10,50,000
12,00,000
2,50,000
Additional Information :
(i) Amount of Goodwill amortised was Rs.5,00,000 and the amount of Patents Purchased was Rs. 5,00,000.
(ii) Investment costing Rs.2,00,000 was purchased and some investments were sold at a loss of 20% on 31st March, 2016.
(iii) Depreciation provided on machinery was Rs. 50,000.
(iv) No Investments were sold during the year.
Calculate Cash Flow from Operating Activities and Cash Flow from Investing Activities.
Ans . Cash Flow from Operating Activities – Rs.12,95,000;
Equity Share Capital
8% Pref. Share Capital
Long-term Borrowings (10% Debentures)
Securities Premium Reserve
Discount on Debentures
Underwriting Commission on issue of Shares
Underwriting Commission on issue of Debentures
Additional Information:
Included in the fixed assets was a piece of machineiy costing 70,000 on which
depreciation charged was ‘40,000 and it was sold for 30,000. During the year Rs. 1,40,000 depreciation was charged on fixed assets.
Prepare the Cash Flow Statement.
10% Debentures
Securities Premium Reserve
Bank Overdraft
Interest of Bank Overdraft
1,00,000
50,000
2,00,000
15,000
1,50,000
40,000
1,50,000
10,000
In previous query you told that while getting profit on sale of machinery we pass the entry
Machinery a/c .....dr
To profit on sale of machinery
But here why we are debiting machinery a/c as machinery is sold off? Plz explain with reason
Q434. Following is the extract from the Balance Sheet of Atlas Ltd:
Shareholders 'Funds
Reserves and Surplus [Surplus, i.e, Balance in Statement of Profit and loss)
Assets
Goodwill
Patents
Land
Machinery
10% investment
5,00,000
11,50,000
9,00,000
2,50,000
10,00,000
10,50,000
9,00,000
9,00,000
11,50,000
10,50,000
12,00,000
2,50,000
Additional Information :
(i) Amount of Goodwill amortised was Rs.5,00,000 and the amount of Patents Purchased was Rs. 5,00,000.
(ii) Investment costing Rs.2,00,000 was purchased and some investments were sold at a loss of 20% on 31st March, 2016.
(iii) Depreciation provided on machinery was Rs. 50,000.
(iv) No Investments were sold during the year.
Calculate Cash Flow from Operating Activities and Cash Flow from Investing Activities.
Ans . Cash Flow from Operating Activities – Rs.12,95,000;
Cash used in Investing Activities –Rs. 10,95,000.
Q23. Calculate Cash flows from financing activities from the following particulars:
8% Pref. Share Capital
Long-term Borrowings (10% Debentures)
Securities Premium Reserve
Discount on Debentures
Underwriting Commission on issue of Shares
Underwriting Commission on issue of Debentures
1,50,000
4,00,000
10,000
5,000
5,000
2,500
2,00,000
3,00,000
–
3,000
–
–
Additional Information :
(i) New shares and debentures were issued on March 31, 2016.
(ii) Dividend on preference shares and an interim dividend @20% on equity shares was paid on March 31,2016.
(iii) Preference shares were redeemed on March 31, 2016 at a premium of 4%. Premium on redemption was provided out of profit.
Bank a/c......dr.
To machinery a/c
To profit on sale of machinery
Then how do we transfer this profit on sale of machinery in machinery account while maintaining accumulated depreciation along with it? Plz explain with reason
Q14. X Ltd. made a profit of Rs1,00,000 after considering the following items:
(i) Depreciation on Fixed Assets Rs20,000
(ii) Writing off Preliminary Expenses Rs10,000
(iii) Loss on Sale of Furniture Rs1,000.
(iv) Provision for Taxation Rs1,60,000
(v) Transfer to General Reserve Rs 14,000
(vi) Profit on Sale of Machinery Rs6,000
The following additional information is available to you:
Ans, Cash Flow from Operating Activities=Rs 1,41,800
Depreciation a/c dr.
To prov for depreciation
So the word should be "depreciation a/c"