Q 434 Dont send any links please.

​Q434. Following is the extract from the Balance Sheet of Atlas Ltd:
   
Particulars  31st  March 2015 (Rs.) 31st March 2016 (Rs.)
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;

         Cash used in Investing Activities –Rs. 10,95,000.
 

Dear Student,
 
A Cash Flow from Operating Activities  
  Profit as per Statement of Profit and Loss 4,00,000
  Depreciation on Machinery 50,000
  Goodwill Amortised 5,00,000
  Patents Amortised 2,50,000
  Loss on Sale of Investments 2,00,000
  Interest on Investments (1,05,000)
  Cash Flow from Operating Activities 12,95,000
     
B Cash Flow from Investing Activities  
  Purchase of Machinery (2,50,000)
  Purchase of Goodwill (2,50,000)
  Purchase of Patents (5,00,000)
  Purchase of Land (8,00,000)
  Sale of Investment 8,00,000
  Purchase of Investment (2,00,000)
  Interest on Investments 1,05,000
  Cash used in Investing Activities (10,95,000)

Working Notes
 
Machinery Account
Dr. Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d  10,00,000 Depreciation A/c  50,000
Bank A/c (Purchase- Bal. Fig.)  2,50,000 Balance c/d  12,00,000
   12,50,000    12,50,000
 
Goodwill Account
Dr. Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d  11,50,000 Amortisation A/c  5,00,000
Bank A/c (Purchase- Bal. Fig.)  2,50,000 Balance c/d  9,00,000
   14,00,000    14,00,000
 
Patents Account
Dr. Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d  9,00,000 Amortisation A/c (Bal. Fig.)  2,50,000
Bank A/c (Purchase)  5,00,000 Balance c/d  11,50,000
   14,00,000    14,00,000
 
Investments Account
Dr. Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d  10,50,000 Bank A/c (80%)  8,00,000
Bank A/c (Purchase)   2,00,000 Profit & Loss A/c (Loss-20%)  2,00,000
    Balance c/d  2,50,000
   12,50,000    12,50,000
 

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