solve please solve plese

solve please solve plese Q. 17. The Balance Sheet of Rama Ltd. is as follows : l. Equity & Liabilities : Equity Capital General Reserve Profit & IÅ)S.s A/c Non-Current Liabilities Loan from Associate Company Loan from Bank Current Liabilities II. Assets : Non-Current Assets I -and Building Machinery Current Assets Cash Debtors Stock 7S,ooo 75, ooo 72.000 46,500 54,000 322,500 30,000 75,000 1,20.ooo 7,500 52,500 37,500 4 75.000 73.500 37.500! 45.000 82,5 1,29, 5, 57,6 33, During the year e 39,000 was paid as dividends. The provision for depreciation against Machinery as on 1.1.2016 was and on 31.12.2016 e 54,000. You are required to prepare the Cash Flow Statement. 8

Dear Student

 
Cash Flow Statement
  Particulars Amount Amount
A Cash Flow From Operating Activities    
  Net Profit (Loss) Before Tax and extra ordinary items   1,500
   Add : Non cash expenses and non operating expenses    
  Proposed Dividend 39,000  
  Loss on Sale of Machinery 0  
  Depreciation  13,500  
  Goodwill Writtenoff 0 52,500
     Less : Non operating income    
           Profit on Sale of Fixed Assets 0 0
  Operating profit Before working capital changes   54,000
  Add : Decrease in Current Assets  (Stock) 4,500  
            Increase in Current Liabilities 7,500  
  Less : Increase in Current Assets (Debtors) (5,100)  
            Decrease in Current Liabilities  0 6,900
  Cash Generated from operating activities   60,900
  Less : Income Tax Paid   0
  Cash Flow before extra ordinary items   60,900
  Add / less Extra ordinary items   0
  Net Cash Flow from operating activities   60,900
       
B. Cash Flow from investing activties    
       
  Sale of Machinery    
  Less : Purchase of Building (7,500)  
  Less : Purchase of Land (15,000)  
    Less : Purchase of Machinery (22,500) (45,000)
  Net Cash from Investing Activities   (45,000)
       
C. Cash Flow from Finacing activities    
  Proceeds from issue of shares    
  Proceeds of Loan from associate company 30,000  
     Less : Repayment of Loan from bank (9,000)  
     Less : Interest Paid  
     Less : Dividend Paid (39,000) (18,000)
  Net Cash Flow From Financing activities   (18,000)
  Net Increase or Decrease in cash and cash equivalents (A+B+C)   (2,100)
  Cash and Cash Equivalents at the beginning   7,500
  Cash and Cash Equivalents at the end    5,400
 
 Provision for Depreciation A/c
          Cr.
Date Particulars Amount Date Particulars Amount
(Rs) (Rs)
        Bal b/d 40,500
           
        Depreciation A/c(B.Fig) 13,500
  Bal C/d 54,000      
           
    54,000     54,000
           

Machinery A/c (Cost)
          Cr.
Date Particulars Amount Date Particulars Amount
(Rs) (Rs)
  Bal B/d 160,500      
           
           
  Bank A/c (B. Fig) 22,500      
           
        Bal C/d 183,000
           
    183,000     183,000
           


Note: Machinery at cost simply means Accumulated Depreciation (Opening and Closing Balances) are added in the WDV balance given in the balance sheet of the machinery.

Regards

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