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Page No 5.100:

Answer:

Cash Flow from Investing Activities

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Purchase of Machine

(2,50,000)

 

 

Purchase of Goodwill

(1,00,000)

 

 

Purchase of Investments

(1,50,000)

 

 

Sale of Machine

35,000

 

 

Sale of Investment

50,000

 

 

Sale of Patents

40,000

 

 

Interest and Dividend Received

10,000

 

 

Rent Received

20,000

 

 

Net Cash Used in Investing Activities

 

(3,45,000)

 

Page No 5.100:

Answer:

 

Cash Flow Statement

for the year ended March 31, 2017

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Sale of Machinery

1,50,000

 

 

 

Purchase of Machinery

(1,50,000)

 

 

 

Purchase of Non-Current Investments

(2,00,000)

 

 

Net Cash Used in Investing Activities

 

(2,00,000)

 

 

 

 

Working Notes:

Plant & Machinery Account

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

5,00,000

Bank A/c (Sale)

1,50,000

Bank A/c (Purchase- Bal. Fig.)

1,50,000

Balance c/d

5,00,000

 

 

 

 

 

6,50,000

 

6,50,000

 

 

 

 

 

Page No 5.100:

Answer:

Cash Flow from Investing Activities

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Purchase of Plant and Machinery (WN1)

(2,60,000)

 

 

Purchase of Investments

(60,000)

 

 

Sale of Plant and Machinery (WN1)

40,000

 

 

Sale of Land (WN2)

1,60,000

 

 

Net Cash Used in Investing Activities

 

(1,20,000)

Working Notes:

WN1

Plant and Machinery Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

8,50,000

Depreciation A/c

50,000

Bank A/c (Purchases- Bal. Fig.)

2,60,000

Bank A/c (Sale)

40,000

 

 

Profit and Loss A/c (Loss on Sale)

20,000

 

 

Balance c/d

10,00,000

 

11,10,000

 

11,10,000

 

 

 

 

WN2

Land Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

2,00,000

Bank A/c (Sale- Bal. Fig.)

1,60,000

Profit and Loss A/c (Profit on Sale)

60,000

Balance c/d

1,00,000

 

2,60,000

 

2,60,000

 

 

 

 

 



Page No 5.101:

Answer:

Cash Flow from Investing Activities

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Purchase of Patents

(25,000)

 

 

Purchase of Furniture

(2,25,000)

 

 

Interest received on Investment

14,000

 

 

Sale of Investment

20,000

 

 

Sale of Land

10,000

 

 

Net Cash Used in Investing Activities

 

(2,06,000)

Note: It has been assumed that Investments have been sold at their Book Value at the end of the accounting period.

Working Notes:

Computation of Interest on Investments

Page No 5.101:

Question 34:

  

Answer:

Cash Flow from Investing Activities

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Purchase of Plant and Machinery

(2,70,000)

 

 

Purchase of Investment

(1,00,000)

 

 

Purchase of Goodwill

(50,000)

 

 

Rent Received

20,000

 

 

Dividend Received (1,50,000 × 12%)

18,000

 

 

Sale of Plant and Machinery

35,000

 

 

Sale of Investment

80,000

 

 

Interest on Investments

6,000

 

 

Sale of Patents

20,000

 

 

Net Cash Used in Investing Activities

 

(2,41,000)

Working Notes:

WN1 Computation of Interest on Investments

Interest on 12% Long-term Investments =

WN2

Patents Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

1,00,000

Profit and Loss A/c (Written-off)

20,000

Profit and Loss A/c (Profit on Sale)

10,000

Bank A/c (Sale- Bal. Fig.)

20,000

 

 

Balance c/d

70,000

 

1,10,000

 

1,10,000

 

 

 

 

WN3

12% Long-Term Investments Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

50,000

Bank A/c (Sale- Bal. Fig.)

80,000

Bank A/c (Purchase)

1,00,000

Balance c/d

80,000

Profit and Loss A/c (Profit on Sale)

10,000

 

 

 

1,60,000

 

1,60,000

 

 

 

 

WN3

Plant and Machinery Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

6,00,000

Depreciation A/c

70,000

Bank A/c (Purchase- Bal. Fig.)

2,70,000

Bank A/c  (Sale)

35,000

 

 

Profit and Loss A/c (Loss on Sale)

15,000

 

 

Balance c/d

7,50,000

 

8,70,000

 

8,70,000

 

 

 

 

 



Page No 5.102:

Answer:

Cash Flow from Investing Activities

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Purchase of Machinery

(1,00,000)

 

 

Sale of Machinery

26,000

 

 

Net Cash Used in Investing Activities

 

(74,000)

Working Notes:

Machinery Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

To Balance b/d

5,00,000

Accumulated Depreciation A/c

20,000

To Bank A/c (Purchase- Bal. Fig.)

1,00,000

Bank A/c (Sale)

26,000

 

 

Profit and Loss A/c (Loss on Sale)

4,000

 

 

Balance c/d

5,50,000

 

6,00,000

 

6,00,000

 

 

 

 

 

Accumulated Depreciation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

To Machinery A/c

20,000

Balance b/d

1,00,000

Balance c/d

1,70,000

Profit and Loss A/c (Dep. charged during the year- Bal. Fig.)

90,000

 

1,90,000

 

1,90,000

 

 

 

 

 

Page No 5.102:

Answer:

Cash Flow from Investing Activities

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Purchase of Machinery

(6,20,000)

 

 

Purchase of Investments

(2,40,000)

 

 

Purchase of Goodwill

(1,00,000)

 

 

Sale of Machinery

2,00,000

 

 

Rent Received

50,000

 

 

Dividend Received

20,000

 

 

Sale of Investments

80,000

 

 

Interest on Debentures

8,000

 

 

Sale of Patents

1,50,000

 

 

Net Cash Used in  Investing Activities

 

(4,52,000)

Note: Dividend paid and interest paid is a part of Financing Activities.

Page No 5.102:

Answer:

Cash Flow from Financing Activities

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Proceeds from Issue of Equity Shares

1,10,000

 

 

Redemption of 12% Debentures

(50,000)

 

 

Interest Paid

(18,000)

 

 

Net Cash Flows from Financing Activities

 

42,000

 

Page No 5.102:

Answer:

Cash Flow from Financing Activities

for the year ended March 31, 2017

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Issue of Shares

1,25,000

 

 

Transfer to Securities Premium Reserve

1,25,000

 

 

Issue of Debentures

1,00,000

 

 

Premium on redemption of Preference Shares (5% of 1,50,000)

(7,500)

 

 

Interim Dividend Paid(15% of 4,00,000)

(60,000)

 

 

Redemption of Preference Share Capital

(1,50,000)

 

 

Interest on Debentures (12% of 3,00,000)

(36,000)

 

 

Interest on Preference Share Capital

(55,000)

 

 

Net Cash Flow from Financing Activities

 

41,500

 

 

 

 

 



Page No 5.103:

Answer:

Cash Flow Statement

for the year ended March 31, 2017

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Cash Flow from Investing Activities

 

 

 

Purchase of Machinery

(20,000)

 

 

Sale of Machine

4,000

 

 

Net Cash from (used in) Investing Activities

 

(16,000)

 

 

 

 

 

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of Equity Shares

5,000

 

 

Repayment of Bank Loan

(10,000)

 

 

Net Cash from (used in) Financing Activities

 

(5,000)

 

 

 

 

Working Notes:

Machinery Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

40,000

Accumulated Depreciation A/c

4,000

Bank A/c (Purchase- Bal. Fig.)

20,000

Bank A/c (Sale)

4,000

 

 

Profit and Loss A/c (Loss on Sale)

2,000

 

 

Balance c/d

50,000

 

60,000

 

60,000

 

 

 

 

 

Accumulated Depreciation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

To Machinery A/c (Bal. Fig.)

4,000

Balance b/d

10,000

Balance c/d

12,000

By Profit and Loss A/c (Dep. charged during the year)

6,000

 

16,000

 

16,000

 

 

 

 

 

Page No 5.103:

Answer:

Cash Flow from Financing Activities

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Proceeds from Issue of 12% Debentures

1,00,000

 

 

Interest Paid

(19,000)

 

 

Dividend Paid

(50,000)

 

 

Net Cash Flows from Financing Activities

 

31,000

Note: Amount of Equity Share Capital has been increased due to the issue of Bonus Shares which does not involve any flow of cash. Therefore, it is not considered in the Financing Activities.

Page No 5.103:

Answer:

Cash Flow Statement

 

Particulars

Amount

(Rs)

Amount

(Rs)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss (Net Profit)

2,000

 

 

Profit Before Taxation

2,000

 

 

Items to be Added:

 

 

Operating Profit before Working Capital Adjustments

2,000

 

 

Add: Decrease in Current Assets

 

 

 

Stock

8,000

 

 

Add: Increase in Current Liabilities

 

 

 

Bills Payable

12,000

 

 

Cash Generated from Operations

22,000

 

 

Less: Tax Paid

 

 

Net Cash Flow from Operating Activities

 

22,000

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Sale of Fixed Assets

30,000

 

 

Net Cash Flows from Investing Activities

 

30,000

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

Repayment of Long-Term Loan

(50,000)

 

 

Net Cash Used in Financing Activities

 

(50,000)

 

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

2,000

 

 

Add: Cash and Cash Equivalent in the beginning of the period

 

15,000

 

Cash and Cash Equivalents at the end of the period

 

17,000

 

 

 

 

 

Page No 5.103:

Answer:

Cash Flow Statement

for the year ended March 31, 2017

 

Particulars

Amount

(Rs)

Amount

(Rs)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss (1,83,000 – 82,000)

1,01,000

 

 

Profit Before Taxation

1,01,000

 

 

Items to be Added:

 

 

 

Interest on Debentures

7,500

 

 

Operating Profit before Working Capital Adjustments

1,08,500

 

 

Less: Increase in Current Assets

 

 

 

Inventories

(56,000)

 

 

Add: Increase in Current Liabilities

 

 

 

Trade Payables

40,000

 

 

Less: Decrease in Current Liabilities

 

 

 

Other Current Liabilities

(8,000)

 

 

Add: Decrease in Current Assets

 

 

 

Trade Receivables

38,000

 

 

Cash Generated from Operations

1,22,500

 

 

Less: Tax Paid

 

 

Net Cash Flows from Operating Activities

 

1,22,500

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

Purchase of Fixed Assets

(1,57,000)

 

 

Purchase of Investments

(13,000)

 

 

Net Cash Used in Investing Activities

 

(1,70,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of Equity Share Capital

50,000

 

 

Proceeds from Issue of 15% Debentures

30,000

 

 

Interest on Debentures (50,000 × 15%)

(7,500)

 

 

Net Cash Flow from Financing Activities

 

72,500

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

25,000

 

Add: Cash and Cash Equivalent in the beginning of the period

 

70,000

 

Cash and Cash Equivalents at the end of the period

 

95,000

 

 

 

 

Note: It has been assumed that Debentures were issued at the end of the accounting period. Therefore, interest on Debentures is computed on the opening balance of the Debenture.



Page No 5.104:

Answer:

Cash Flow Statement

for the year ended March 31, 2017

 

Particulars

Amount

(Rs)

Amount

(Rs)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss (58,000 – 50,000)

8,000

 

 

Profit Before Taxation

8,000

 

 

Items to be Added:

 

 

 

Goodwill Written-off

15,000

 

 

Operating Profit before Working Capital Adjustments

23,000

 

 

Less: Increase in Current Assets

 

 

 

Inventories

(80,000)

 

 

Add: Increase in Current Liabilities

 

 

 

Trade Payables

23,000

 

 

Add: Decrease in Current Assets

 

 

 
  Prepaid Expenses
3,000  

 

Trade Receivables

23,000

 

 

Cash Generated from Operations

(8,000)

 

 

Less: Tax Paid

 

 

Net Cash Used in Operating Activities

 

(8,000)

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

Purchase of Plant

(1,24,000)

 

 

Net Cash Used in Investing Activities

 

(1,24,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of Equity Share Capital

1,00,000

 

 

Repayment of Long-term Borrowings

(30,000)

 

 

Net Cash Flow from Financing Activities

 

70,000

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

(62,000)

 

Add: Cash and Cash Equivalent in the beginning of the period

 

80,000

 

Cash and Cash Equivalents at the end of the period

 

18,000

 

 

 

 

 



Page No 5.105:

Answer:

Cash Flow Statement

for the year ended March 31, 2017

 

Particulars

Amount

(Rs)

Amount

(Rs)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss (1,25,000 – 20,000)

1,05,000

 

 

Proposed Dividend

28,000

 

 

Provision for Taxation

15,000

 

 

Profit Before Taxation

1,48,000

 

 

Items to be Added:

 

 

 

Depreciation

16,000

 

 

Operating Profit before Working Capital Adjustments

1,64,000

 

 

Less: Increase in Current Assets

 

 

 

Inventories

(22,000)

 

 

Less: Decrease in Current Liabilities

 

 

 

Trade Payables

(34,000)

 

 

Add: Decrease in Current Assets

 

 

 

Bills Receivables

15,000

 

 

Prepaid Expenses

2,000

 

 

Trade Receivables

9,000

 

 

Cash Generated from Operations

1,34,000

 

 

Less: Tax Paid

(10,000)

 

 

Net Cash Flow from Operating Activities

 

1,24,000

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

Purchase of Fixed Assets

(1,55,000)

 

 

Net Cash Used in Investing Activities

 

(1,55,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of Mortgage Loan

25,000

 

 

Dividend Paid

(20,000)

 

 

Net Cash Flow from Financing Activities

 

5,000

 

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

(26,000)

 

Add: Cash and Cash Equivalent in the beginning of the period

 

59,000

 

Cash and Cash Equivalents at the end of the period

 

33,000

 

 

 

 

 



Page No 5.106:

Answer:

 

Cash Flow Statement 

for the year ended March 31, 2014

 

Particulars

Amount

(Rs)

Amount

(Rs)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

2,00,000

 

 

Profit Before Taxation

 

2,00,000

 

Items to be Added:

 

 

 

Amortisation of Goodwill

1,44,000

 

 

Depreciation

1,32,000

 

 

Loss on Sale of Fixed Assets

4,000

2,80,000

 

Operating Profit before Working Capital Adjustments

 

4,80,000

 

Less: Increase in Current Assets

 

 

 

 

Inventories      

16,000

 

 

 

Trade Receivables

54,000

 

 

Less: Decrease in Current Liabilities

 

 

 

     Trade Payables

50,000

 

 

Short-Term Provisions

54,000

1,74,000

 

Net Cash Generated from Operating Activities

 

3,06,000

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Sale of Machinery

12,000

 

    Purchase of Machinery (5,88,000)  

 

Net Cash Used in Investing Activities

 

(5,76,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of Share Capital

2,00,000

 

 

Proceeds from Long Term Borrowings

1,40,000

 

 

Net Cash Flow from Financing Activities

 

3,40,000

 

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

70,000

 

 

Add: Cash and Cash Equivalent in the beginning of the 

period

 

10,50,000

 

Cash and Cash Equivalents at the end of the period

 

11,20,000

 

 

 

 

 

Working Notes:

 

Machinery Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

20,00,000

Bank A/c (Sale)

12,000

Bank A/c (Purchase- Bal. Fig.)

5,88,000

Depreciation on Part of Machinery

32,000

 

 

Profit and Loss A/c (Loss on Sale)

4,000

 

 

Balance c/d

25,40,000

 

25,88,000

 

25,88,000

 

 

 

 

 

Accumulated Depreciation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Machinery A/c

32,000

Balance b/d

3,00,000

Balance c/d

4,00,000

Profit and Loss A/c (Dep. charged during the year- Bal. Fig.)

1,32,000

 

4,32,000

 

4,32,000

 

 

 

 

 



Page No 5.107:

Answer:

 

Cash Flow Statement

for the year ended March 31, 2013

 

Particulars

Details

(Rs)

Amount

(Rs)

A

Cash from Operating Activities

 

 

 

Net Profit

 

1,00,000

 

Operating Profit Before Working Capital Changes

 

1,00,000

 

Add: Decrease in Current Assets

 

 

 

            Inventories

6,000

 

 

            Trade Receivables

54,000

 

 

Less: Decrease in Current Liabilities

 

 

 

            Trade Payables

(8,000)

52,000

 

 

 

 

 

Cash Generated from Operations

 

1,52,000

 

Less: Tax Paid

 

-

 

Net Cash Flow from Operating Activities

 

1,52,000

 

 

 

 

B

Cash From Investing  Activities

 

 

 

Purchase of Tangible Assets

(2,90,000)

 

 

Purchase on Non Current Investment

(72,000)

 

 

 

 

 

 

Net Cash Used in Investing Activities

 

(3,62,000)

 

 

 

 

C

Cash From Financing Activities

 

 

 

Issue of Share Capital

2,00,000

 

 

Long Term Borrowings

(50,000)

 

 

 

 

 

 

Net Cash Flow from Financing Activities

 

1,50,000

 

 

 

 

D

Net Decrease in Cash and Cash Equivalents 

 

(60,000)

 

Add: Cash and Cash Equivalents in the beginning of the period (70,000 + 1,34,000)

 

2,04,000

 

 Cash and Cash Equivalents at the end of the period (94,000 + 50,000)

 

1,44,000

 

 

 

 

 

 

 

 

 



Page No 5.108:

Answer:

Cash Flow Statement

for the year ended March 31, 2017

 

Particulars

Amount

(Rs)

Amount

(Rs)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss (80,000 – 30,000)

50,000

 

 

Proposed Dividend

30,000

 

 

Provision for Taxation

15,000

 

 

Profit Before Taxation

95,000

 

 

Items to be Added:

 

 

 

Depreciation

10,000

 

 

Operating Profit before Working Capital Adjustments

1,05,000

 

 

Less: Increase in Current Assets

 

 

 

Inventories

(40,000)

 

 

Debtors

(36,000)

 

 

Add: Increase in Current Liabilities

 

 

 

Trade Payables

44,000

 

 

Add: Decrease in Current Assets

 

 

 

Bills Receivable

4,000

 

 

Cash Generated from Operations

77,000

 

 

Less: Tax Paid

(12,000)

 

 

Net Cash Flow from Operating Activities

 

65,000

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

Sale of Plant and Machinery

50,000

 

 

Net Cash Flow from Investing Activities

 

50,000

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

Repayment of 10% Loan

(75,000)

 

  Bank Overdraft (12,000)  

 

Dividend Paid

(20,000)

 

 

Net Cash Used in Financing Activities

 

(1,07,000)

 

 

 

 

D

Net Increase in Cash and Cash Equivalents

 

8,000

 

Add: Cash and Cash Equivalent in the beginning of the period

 

5,000

 

Cash and Cash Equivalents at the end of the period

 

13,000

 

 

 

 

Note: It has been assumed that 10% loan is repaid in the beginning of the accounting period, therefore, no interest on loan is provided.



Page No 5.109:

Answer:

Cash Flow Statement 

for the year ended March 31, 2014

 

Particulars

Amount

(Rs)

Amount

(Rs)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

4,00,000

 

 

Provision for Tax

1,40,000

 

 

Profit Before Taxation

5,40,000

 

 

Items to be Added:

 

 

 

Depreciation

1,30,000

 

 

Loss on Sale of Machinery

1,000

 

 

Operating Profit before Working Capital Adjustments

6,71,000

 

 

 

Less: Increase in Current Assets

 

 

 

 

      Inventories

(1,80,000)

 

 

 

Less: Decrease in Current Liabilities

 

 

 

 

      Trade Payables

(1,00,000)

 

 

Cash Generated from Operations

3,91,000

 

 

 

Less: Tax Paid

1,20,000

 

 

Net Cash Flows from Operating Activities

 

2,71,000

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

Sale of Machinery

9,000

 

 

Purchase of Machinery

(9,40,000)

 

 

Purchase of Goodwill

(4,00,000)

 

 

Net Cash Used in Investing Activities

 

(13,31,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

 Proceeds from Issue of Share Capital

10,00,000

 

 

Proceeds from Long-term Borrowings

2,00,000

 

 

Net Cash Flow from Financing Activities

 

12,00,000

D

Net Increase or Decrease in Cash and Cash Equivalents

 

1,40,000

 

Add: Cash and Cash Equivalent in the beginning of the period

 

2,40,000

 

Cash and Cash Equivalents at the end of the period

 

3,80,000

 

 

 

 

Working Notes:

Machinery Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

33,00,000

Bank A/c (Sale)

9,000

Bank A/c (Purchase- Bal. Fig.)

9,40,000

Accumulated Depreciation

30,000

 

 

Profit and Loss A/c (Loss on Sale)

1,000

 

 

Balance c/d

42,00,000

 

42,40,000

 

42,40,000

 

 

 

 

 

Accumulated Depreciation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Machinery A/c

30,000

Balance b/d

3,00,000

Balance c/d

4,00,000

Profit and Loss A/c (Dep. charged during the year- Bal. Fig.)

1,30,000

 

4,30,000

 

4,30,000

 

 

 

 

 



Page No 5.110:

Answer:

Cash Flow Statement

for the year ended March 31, 2016

 

Particulars

Amount

(Rs)

Amount

(Rs)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss (1,50,000 – 2,00,000)

(50,000)

 

 

Transfer to General Reserve

3,40,000

 

 

Dividend Paid

50,000

 

 

Profit Before Taxation

3,40,000

 

 

Items to be Added:

 

 

 

Interest Paid

54,000

 

 

Loss on Sale of Machinery

14,000

 

 

Operating Profit before Working Capital Adjustments

4,08,000

 

 

Less: Increase in Current Assets

 

 

 

Inventories

(1,00,000)

 

 

Trade Receivables

(1,00,000)

 

 

Add: Increase in Current Liabilities

 

 

 

Trade Payables

3,50,000

 

 

Cash Generated from Operations

5,58,000

 

 

Less: Tax Paid

 

 

Net Cash Flow from Operating Activities

 

5,58,000

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

Sale of Machinery

6,000

 

 

Purchase of Fixed Assets

(5,20,000)

 

 

Net Cash Used in Investing Activities

 

(5,14,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of Equity Share Capital

5,00,000

 

 

Proceeds from 7% Preference Share Capital

60,000

 

 

Dividend Paid

(50,000)

 

 

Redemption of 9% Debentures

(2,00,000)

 

 

Interest Paid (6,00,000 × 9%)

(54,000)

 

 

Net Cash Flow from Financing Activities

 

2,56,000

 

 

 

 

D

Net Increase in Cash and Cash Equivalents

 

3,00,000

 

Add: Cash and Cash Equivalent in the beginning of the period

 

2,00,000

 

Cash and Cash Equivalents at the end of the period

 

5,00,000

 

 

 

 

Working Notes:

Fixed Assets Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

15,00,000

Bank A/c (Sale)

6,000

Bank A/c (Purchase- Bal. Fig.)

5,20,000

Profit and Loss A/c (Loss on Sale)

14,000

 

 

Balance c/d

20,00,000

 

20,20,000

 

20,20,000

 

 

 

 

 



Page No 5.111:

Answer:

 

Cash Flow Statement 

for the year ended 31st March, 2015

 

Particulars

Amount

(Rs)

Amount

(Rs)

I

Cash Flow from Operating Activities

 

 

 

A. Net Profit before Tax and Extraordinary items*

 

2,50,000

 

Adjustments for Non-cash and Non-operating items

 

 

 

B. Add: Items to be Added

 

 

 

Depreciation

99,000

 

 

Intangible Assets Written off

10,000

 

 

Interest on Debentures (12% of 5,00,000)

60,000

 

 

Provision for Tax

50,000

2,19,000

 

C. Less: Items to be Deducted

 

 

 

 

 

 

 

D.Operating Profit before Working Capital Adjustments (A + B – C)

 

4,69,000

 

E. Add: Decrease in Current Assets and Increase in Current Liabilities

 

 

 

F. Less: Increase in Current Assets and Decrease in Current Liabilities

 

 

 

Inventories

62,000

(62,000)

 

Cash Generated from Operations (D + E – F)

 

4,07,000

 

Less: Income Tax Paid (Net of Refund)

70,000

(70,000)

 

Net Cash Flows from (or used in) Operating Activities

 

3,37,000

 

 

 

 

 

II

Cash Flow from Investing Activities

 

 

 

Purchase of Fixed Assets (12,03,000 – 8,21,000)

(3,82,000)

 

 

Purchase of Non-Current Investments

(25,000)

 

 

Net Cash Flows from (or used in) Investing Activities

 

(4,07,000)

 

 

 

 

III

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of Share Capital

1,00,000

 

 

Redemption of Debentures

(50,000)

 

 

Interest Paid on Debentures

(60,000)

 

 

Increase in Bank Overdraft

1,00,000

 

 

Net Cash Flow from Financing Activities

 

90,000

 

 

 

 

 

IV

Net Increase or Decrease in Cash and Cash Equivalents (I + II + III)

 

20,000

 

 

Add: Cash and Cash Equivalent in the beginning of the period

 

1,20,000

 

 

(Includes Current Investments of Rs 60,000)

 

 

 

Cash and Cash Equivalents at the end of the period

 

1,40,000

 

(Includes Current Investments of Rs 50,000)

 

 

           

 

Provision for Tax Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Bank A/c

70,000

Balance b/d

90,000

Balance c/d

70,000

Statement of Profit and Loss

50,000

 

1,40,000

 

1,40,000

 

 

 

 

 

 



Page No 5.112:

Answer:

Cash Flow Statement

for the year ended March 31, 2017

 

Particulars

Amount

(Rs)

Amount

(Rs)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss (4,80,000 – 3,75,000)

1,05,000

 

 

Interim Dividend

75,000

 

 

Profit Before Taxation

1,80,000

 

 

Items to be Added:

 

 

 

Interest Paid on Debentures

27,000

 

 

Depreciation

60,000

 

 

Operating Profit before Working Capital Adjustments

2,67,000

 

 

Less: Increase in Current Assets

 

 

 

Trade Receivables

(75,000)

 

 

Add: Increase in Current Liabilities

 

 

 

Trade Payables

30,000

 

 

Add: Decrease in Current Assets

 

 

 

Inventories

60,000

 

 

Cash Generated from operations

2,82,000

 

 

Less: Tax Paid

 

 

Net Cash Flow from Operating Activities

 

2,82,000

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

Sale of Land

60,000

 

 

Purchase of Machinery

(1,50,000)

 

 

Net Cash Used in Investing Activities

 

(90,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of Share Capital

1,20,000

 

 

Redemption of 10% Debentures

(1,80,000)

 

 

Interim Dividend Paid