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Page No 5.100:
Answer:
|
|
Cash Flow Statement |
|||
|
|
Particulars |
Amount (₹) |
Amount (₹) |
|
|
|
Cash Flow from Financing Activities |
|
|
|
|
|
Loan Repaid |
(1,00,000) |
|
|
|
|
New Loan Raised |
1,50,000 |
50,000 |
|
|
|
Cash Flows from Financing Activity |
|
50,000 |
|
Working Notes:
|
Long Term Loan Account |
|||
| Dr. |
Cr. |
||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
| Bank A/c (Repayment of Loan) |
1,00,000 |
Balance b/d |
2,00,000 |
| Balance c/d |
2,50,000 |
Bank A/c (Loan Raised) |
1,50,000 |
|
3,50,000 |
3,50,000 |
||
Page No 5.100:
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 5.100:
Answer:
|
Cash Flow from Financing Activities for the year ended March 31, 2018 |
|||
|
|
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 5.100:
Answer:
|
Cash Flow Statement for the year ended March 31, 2018 |
|||
|
|
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 5.101:
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 5.101:
Answer:
|
Cash Flow Statement |
||||
|
|
Particulars |
Amount (₹) |
Amount (₹) |
|
|
|
Cash Flow from Operating Activities |
|
|
|
|
|
Profit as per Statement of Profit and Loss |
|
7,25,000 |
|
|
|
Items to be Added: |
|
|
|
|
|
Dividend on Equity Shares |
90,000 |
|
|
|
|
Dividend on Preference Shares |
37,500 |
|
|
|
|
Interest on Debentures |
41,000 |
|
|
|
|
Interest on Bank Loan |
9,000 |
|
|
|
|
Provision for Tax |
1,12,500 |
|
|
|
|
Transfer to General Reserve |
75,000 |
3,65,000 |
|
|
|
Operating Profit before Working Capital Adjustments |
|
10,90,000 |
|
|
|
Less: Increase in Current Assets |
|
|
|
|
|
Trade Receivables& Inventories |
(1,50,000) |
|
|
|
|
Add:Increase in Current Liabilities |
|
|
|
|
|
Trade Payables |
2,50,000 |
1,00,000 |
|
|
|
Cash Generated from Operations |
|
11,90,000 |
|
|
|
Less: Taxes Paid |
|
62,500 |
|
|
|
Cash Flow from Operating Activities |
|
11,27,500 |
|
|
Cash Flow Statement |
|||
|
|
Particulars |
Amount (₹) |
Amount (₹) |
|
|
Cash Flow from Financing Activities |
|
|
|
|
Dividend on Equity Shares |
(90,000) |
|
|
|
Dividend on Preference Shares |
(37,500) |
|
|
|
Interest on Debentures |
(41,000) |
|
|
|
Interest on Bank Loan |
(9,000) |
|
|
|
Increase in Securities Premium Reserve |
25,000 |
|
|
|
Proceeds from Issue of Equity Shares |
2,50,000 |
|
|
|
Proceeds from Issue of Debentures |
2,75,000 |
|
|
|
Redemption of Preference Shares |
(2,50,000) |
|
|
|
Repayment of Bank Loan |
(25,000) |
|
|
|
Cash Flows from Financing Activity |
|
97,500 |
Working Notes:
|
Provision for Tax Account |
|||
| Dr. |
Cr. |
||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
| Bank A/c (Bal. fig.) |
62,500 |
Balance b/d |
50,000 |
| Balance c/d |
1,00,000 |
Profit & Loss A/c |
1,12,500 |
|
1,62,500 |
1,62,500 |
||
Calculation of Interest on Debentures
Calculation of Interest on Bank Loan
Page No 5.102:
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 5.102:
Answer:
|
Cash Flow Statement for the year ended March 31, 2018 |
|||
|
|
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 5.103:
Answer:
|
Cash Flow Statement for the year ended March 31, 2018 |
||||
|
|
Particulars |
Amount (₹) |
Amount (₹) |
|
|
A |
Cash Flow from Operating Activities |
|
|
|
|
|
Profit as per Statement of Profit and Loss |
|
9,000 |
|
|
|
Items to be Added: |
|
|
|
|
|
General Reserve |
10,000 |
|
|
|
|
Goodwill |
10,000 |
|
|
|
|
Provision for Taxation |
32,000 |
|
|
|
|
Proposed Dividend |
45,000 |
97,000 |
|
|
|
Operating Profit before Working Capital Adjustments |
|
1,06,000 |
|
|
|
Less: Increase in Current Assets |
|
|
|
|
|
Trade Receivables |
(33,000) |
|
|
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
|
Other Current Liabilities |
(2,000) |
|
|
|
|
Add:Decrease in Current Assets |
|
|
|
|
|
Inventories |
18,000 |
|
|
|
|
Add:Increase in CurrentLiabilities |
|
|
|
|
|
Trade Payables |
18,000 |
1,000 |
|
|
|
Cash Generated from Operations |
|
1,07,000 |
|
|
|
Less: Tax Paid |
|
(28,000) |
|
|
|
Net Cash Flows from Operating Activities |
|
79,000 |
|
|
|
|
|
||
|
B |
Cash Flow from Investing Activities |
|
|
|
|
|
Purchase of Non-Current Investments |
|
(25,000) |
|
|
|
Purchase of Plant & Machinery |
|
(1,01,000) |
|
|
|
Sale of Land & Building |
|
53,000 |
|
|
|
Net Cash Used in Investing Activities |
|
(73,000) |
|
|
|
|
|
||
|
C |
Cash Flow from Financing Activities |
|
|
|
|
|
Dividend Paid |
|
(39,000) |
|
|
|
Proceeds from Issue of Share Capital |
|
50,000 |
|
|
|
Net Cash Flow from Financing Activities |
|
11,000 |
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
11,000 |
|
|
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
17,000 |
|
|
|
Cash and Cash Equivalents at the end of the period |
|
28,000 |
|
|
|
|
|
||
Page No 5.104:
Question 44:
Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheet of Libra Ltd. as at 31st March, 2013 and 31st March 2012:
|
Particulars |
Note No. |
31st March, 2013
(₹)
|
31st March, 2012
(₹)
|
| I. EQUITY AND LIABILITIES | |||
|
1. Shareholders' Funds
|
|||
|
(a) Share Capital
|
8,00,000 | 6,00,000 | |
|
(b) Reserves and Surplus
|
1 | 4,00,000 | 3,00,000 |
|
2. Non-Current Liabilities
|
|||
|
Long-term Borrowings
|
1,00,000 | 1,50,000 | |
|
3. Current Liabilities
|
|||
|
(a) Trade Payables
|
40,000 | 48,000 | |
|
Total
|
13,40,000 | 10,98,000 | |
| II. ASSETS | |||
|
1, Non-Current Assets
|
|||
|
(a) Fixed Assets:
|
|||
|
Tangible Assets
|
8,50,000 | 5,60,000 | |
|
(b) Non-Current Investments
|
2,32,000 | 1,60,000 | |
|
2. Current Assets
|
|||
|
(a) Current Investments
|
50,000 | 1,34,000 | |
|
(b) Inventories
|
76,000 | 82,000 | |
|
(c) Trade Receivables
|
38,000 | 92,000 | |
|
(d) Cash and Cash Equivalents
|
94,000 | 70,000 | |
|
Total
|
13,40,000 | 10,98,000 | |
|
Particulars |
31st March, 2013
(₹)
|
31st March, 2012
(₹)
|
| I. Reserves and Surplus | ||
|
Surplus, i.e., Balance in Statement of Profit and Loss
|
4,00,000 | 3,00,000 |
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 5.105:
Question 45:
Following are the Balance Sheets of Solar Power Ltd. as at 31st March, 2014 and 2013:
| Solar Power Ltd. |
| BALANCE SHEET |
|
Particulars |
Note No. |
31st March, 2014
(₹)
|
31st March, 2013
(₹)
|
| I. EQUITY AND LIABILITIES | |||
|
1. Shareholders' Funds
|
|||
|
(a) Share Capital
|
|
24,00,000 | 22,00,000 |
|
(b) Reserves and Surplus
|
1 | 6,00,000 | 4,00,000 |
|
2. Non-Current Liabilities
|
|||
|
Long-term Borrowings
|
4,80,000 | 3,40,000 | |
| 3. Current Liabilities | |||
|
(a) Trade Payables
|
3,58,000 | 4,08,000 | |
|
(b) Short-term Provisions
|
|
1,00,000 | 1,54,000 |
|
Total
|
39,38,000 | 35,02,000 | |
| II. ASSETS | |||
|
1. Non-Current Assets
|
|||
|
Fixed Assets:
|
|||
|
(i) Tangible Assets
|
2 | 21,40,000 | 17,00,000 |
|
(ii) Intangible Assets
|
3 | 80,000 | 2,24,000 |
|
2. Current Assets
|
|||
|
(a) Current Investments
|
4,80,000 | 3,00,000 | |
|
(b) Inventories
|
2,58,000 | 2,42,000 | |
|
(c) Trade Receivables
|
3,40,000 | 2,86,000 | |
|
(d) Cash and Cash Equivalents
|
6,40,000 | 7,50,000 | |
|
Total
|
39,38,000 | 35,02,000 | |
|
Particulars |
31st March, 2014
(₹)
|
31st March, 2013
(₹)
|
| 1. Revenue and Surplus
Surplus, i.e., Balance in Statement of Profit and Loss
|
6,00,000 | 4,00,000 |
| 2. Tangible Assets | ||
|
Machinery
|
25,40,000 | 20,00,000 |
|
Less: Accumulated Deprciation
|
(4,00,000) | (3,00,000) |
| 21,40,000 | 17,00,000 | |
| 3. Intangible Assets | ||
|
Goodwill
|
80,000 | 2,24,000 |
Additional Iformation:
Druing the year, a piece of machinery costing ₹48,000 on which accumulated deprciation was ₹ 32,000. was sold for ₹ 12,000.
Prepare Cash Flow Statement.
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 5.106:
Answer:
|
Cash Flow Statement for the year ended March 31, 2018 |
|||
|
|
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 5.107:
Question 47:
Following was the Balance Sheet of M.M. Ltd. as at 31st March, 2015:
| Particulars | Note No. |
(₹)
|
(₹)
|
| I. EQUITY AND LIABILITIES | |||
|
1. Shareholders' Funds
|
|||
|
(a) Share Capital
|
5,00,000 | 4,00,000 | |
|
(b) Reserves and Surplus
|
1 | 2,00,000 | (50,000) |
|
2. Non-Current Liabilities
|
|||
|
Long-term Borrowings
|
2 | 4,50,000 | 5,00,000 |
|
3. Current Liabilities
|
|||
|
(a) Short-term Borrowings
|
3 | 1,50,000 | 50,000 |
|
(b) Short-term Provisions
|
4 | 70,000 | 90,000 |
|
Total Total Expenses
|
13,70,000 | 9,90,000 | |
| II. ASSETS | |||
|
1. Non-Current Assets
|
|||
|
(a) Fixed Assets:
|
|||
|
(i) Tangible Assets
|
5 | 10,03,000 | 7,20,000 |
|
(ii) Intangible Assets
|
6 | 20,000 | 30,000 |
|
(b) Non-Current Investments
|
1,00,000 | 75,000 | |
|
2. Current Assets
|
|||
|
(a) Current Investments
|
50,000 | 60,000 | |
|
(b) Inventories
|
7 | 1,07,000 | 45,000 |
|
(c) Cash and Cash Equivalents
|
90,000 | 60,000 | |
|
Total
|
13,70,000 | 9,90,000 | |
Notes to Accounts
|
Particular |
31st March 2015 (₹) |
31st March 2014 (₹) |
|
|
1. |
Reserves and Surplus | ||
|
|
Surplus, i.e., Balance in Statement of Profit and Loss |
2,00,000 |
(50,000) |
|
|
2,00,000 |
(50,000) |
|
|
2. |
Long-term Borrowings |
|
|
|
|
12% Debentures |
4,50,000 |
5,00,000 |
|
|
4,50,000 |
5,00,000 |
|
|
3. |
Short-term Borrowings |
|
|
|
|
Bank Overdraft |
1,50,000 |
50,000 |
|
|
1,50,000 |
50,000 |
|
|
4. |
Short-term Provisions |
|
|
|
|
Provision for Tax |
70,000 |
90,000 |
|
|
70,000 |
90,000 |
|
|
5. |
Tangible Assets |
|
|
|
|
Machinery |
12,03,000 |
8,21,000 |
|
|
Less: Accumulated Depreciation |
(2,00,000) |
(1,01,000) |
|
|
10,03,000 |
7,20,000 |
|
|
6. |
Intangible Assets |
|
|
|
|
Goodwill |
20,000 |
30,000 |
|
|
20,000 |
30,000 |
|
|
7. |
Inventories |
|
|
|
|
Stock-in-Trade |
1,07,000 |
45,000 |
|
|
1,07,000 |
45,000 |
|
|
|
|
|
|
Additional Information:
1. 12% Debentures were redeemed on 31st March, 2015.
2. Tax ₹ 70,000 was paid during the year.
Prepare Cash Flow Statement.
Answer:
|
|
Cash Flow Statement for the year ended 31st March, 2015 |
||||
|
|
Particulars |
Amount (₹) |
Amount (₹) |
||
|
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 (₹) |
Particulars |
Amount (₹) |
|
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 5.108:
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 (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 |
(75,000) |
|
|
|
Interest Paid on Debentures |
(27,000) |
|
|
|
Net Cash Used in Financing Activities |
|
(1,62,000) |
|
|
|
|
|
|
D |
Net Increase in Cash and Cash Equivalents |
|
30,000 |
|
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
1,50,000 |
|
|
Cash and Cash Equivalents at the end of the period |
|
1,80,000 |
|
|
|
|
|
Page No 5.109:
Question 49:
Following are the Balance Sheets of Krishtec Ltd. for the years ended 31st March 2012 and 2011:
|
Particulars |
Note No. |
31st March, 2012
(₹)
|
31st March, 2011
(₹)
|
| I. EQUITY AND LIABILITIES | |||
|
1. Shareholders' Funds
|
|||
|
(a) Share Capital
|
12,00,000 | 8,00,000 | |
|
(b) Reserves and Surplus (Surplus, i.e., Balance in Statement of Profit and Loss)
|
3,50,000 | 4,00,000 | |
|
2. Non-Current Liabilities
|
|||
|
Long-term Borrowings
|
4,40,000 | 3,50,000 | |
|
3. Current Liabilities
|
|||
|
(a) Trade Payables
|
60,000 | 50,000 | |
|
Total
|
20,50,000 | 16,00,000 | |
| II. ASSETS | |||
|
1, Non-Current Assets
|
|||
|
Fixed Assets:
|
|||
|
Tangible Assets
|
12,00,000 | 9,00,000 | |
|
2. Current Assets
|
|||
|
(a) Inventories
|
2,00,000 | 1,00,000 | |
|
(b) Trade Receivables
|
3,10,000 | 2,30,000 | |
|
(c) Cash and Cash Equivalents
|
3,40,000 | 3,70,000 | |
|
Total
|
20,50,000 | 16,00,000 | |
(a) The company paid Interest ₹36,000 on its long-term borrowings.
(b) Depreciation charged on tangible fixed assets was ₹1,20,000
Answer:
|
Cash Flow Statement for the year ended March 31, 2012 |
||||
|
|
Particulars |
Amount (₹) |
Amount (₹) |
|
|
A |
Cash Flow from Operating Activities |
|
|
|
|
|
Profit as per Statement of Profit and Loss |
|
(50,000) |
|
|
|
Items to be Added: |
|
|
|
|
|
Depreciation |
1,20,000 |
|
|
|
|
Interest |
36,000 |
1,56,000 |
|
|
|
Operating Profit before Working Capital Adjustments |
|
1,06,000 |
|
|
|
Less: Increase in Current Assets |
|
|
|
|
|
Inventories |
(1,00,000) |
|
|
|
|
Trade Receivables |
(80,000) |
|
|
|
|
Add:Increase in CurrentLiabilities |
|
|
|
|
|
Trade Payables |
10,000 |
(1,70,000) |
|
|
|
Cash Generated from Operations |
|
(64,000) |
|
|
|
Less: Tax Paid |
|
NIL |
|
|
|
Net Cash Flows from Operating Activities |
|
(64,000) |
|
|
|
|
|
||
|
B |
Cash Flow from Investing Activities |
|
|
|
|
|
Purchase of Tangible Fixed Assets |
|
(4,20,000) |
|
|
|
Net Cash Used in Investing Activities |
|
(4,20,000) |
|
|
|
|
|
||
|
C |
Cash Flow from Financing Activities |
|
|
|
|
|
Interest Paid |
|
(36,000) |
|
|
|
Proceeds from Issue of Share Capital |
|
4,00,000 |
|
|
|
Proceeds from Long Term Borrowings |
|
90,000 |
|
|
|
Net Cash Flow from Financing Activities |
|
4,54,000 |
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
(30,000) |
|
|
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
3,70,000 |
|
|
|
Cash and Cash Equivalents at the end of the period |
|
3,40,000 |
|
|
|
|
|
||
|
Tangible Fixed Assets Account |
|||
| Dr. |
Cr. |
||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
| Balance b/d |
9,00,000 |
Depreciation A/c |
1,20,000 |
| Bank A/c (Bal. Fig.) |
4,20,000 |
Balance c/d |
12,00,000 |
|
13,20,000 |
13,20,000 |
||
Page No 5.109:
Answer:
|
|
Cash Flow Statement for the year ended March 31, 2018 |
||||
|
|
Particulars |
Amount (Rs) |
Amount (Rs) |
||
|
A |
Cash Flow from Operating Activities |
|
|
||
|
|
Profit as per Statement of Profit and Loss |
|
10,000 |
||
|
|
Transfer to Reserve |
|
5,000 |
||
|
|
Provision for Tax |
|
20,000 |
||
|
|
Interim Dividend |
|
12,000 |
||
|
|
Profit Before Taxation |
|
47,000 |
||
|
|
Items to be Added: |
|
|
||
|
|
Depreciation |
|
5,000 |
||
|
|
Operating Profit before Working Capital Adjustments |
|
52,000 |
||
|
|
Less: Increase in Current Assets |
|
|
||
|
|
Inventories |
(33,000) |
|
||
|
|
Less: Decrease in Current Liabilities |
|
|
||
|
|
Creditors |
(5,000) |
|
||
|
|
Add: Decrease in Current Assets |
|
|
||
|
|
Trade Receivables |
8,000 |
|
||
|
|
Add: Increase in Current Liabilities |
|
|
||
|
|
Bills Payable |
10,000 |
(20,000) |
||
|
|
Cash Generated from Operations |
|
32,000 |
||
|
|
Less: Tax Paid |
|
(10,000) |
||
|
|
Net Cash Flows from Operating Activities |
|
22,000 |
||
|
|
|
|
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
||
|
|
|
Sale of Investments |
5,000 |
|
|
|
|
|
Purchase of Fixed Assets |
(15,000) |
|
|
|
|
Net Cash Used in Investing Activities |
|
(10,000) |
||
|
|
|
|
|
||
|
C |
Cash Flow from Financing Activities |
|
|
||
|
|
Proceeds from Issue of Share Capital |
25,000 |
|
||
|
|
Proceeds of Bank Loan |
20,000 |
|
||
|
|
Bank Overdraft Raised |
5,000 |
|
||
|
|
Dividend Paid |
(12,000) |
|
||
|
|
Net Cash Flow from Financing Activities |
|
38,000 |
||
|
D |
Net Increase in Cash and Cash Equivalents |
|
50,000 |
||
|
|
Add: Cash and Cash Equivalent at the beginning of the period |
|
50,000 |
||
|
|
Cash and Cash Equivalents at the end of the period |
|
1,00,000 |
||
|
|
|
|
|
||
Working Notes:
WN1:
|
Fixed Assets Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
|
Balance b/d |
20,000 |
Depreciation |
5,000 |
|
Bank A/c (Purchase- Bal. Fig.) |
15,000 |
Balance c/d |
30,000 |
|
|
35,000 |
|
35,000 |
|
|
|
|
|
WN2:
|
Provision for Taxation Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
|
Bank A/c (Tax Paid) (Bal. Fig.) |
10,000 |
Balance b/d |
15,000 |
|
Balance c/d |
25,000 |
Profit and Loss A/c |
20,000 |
|
|
35,000 |
|
35,000 |
|
|
|
|
|
Page No 5.110:
Question 51:
Prepare Cash Flow Statement from the following Balance Sheet:
|
Particulars |
Note No. |
31st March, 2013
(₹)
|
31st March, 2012
(₹)
|
| I. EQUITY AND LIABILITIES | |||
|
1. Shareholders' Funds
|
|||
|
(a) Share Capital
|
6,00,000 | 5,00,000 | |
|
(b) Reserves and Surplus
|
1 | 4,00,000 | 2,00,000 |
|
2. Current Liabilities
|
|||
|
(a) Trade Payables
|
2,80,000 | 1,80,000 | |
|
Total
|
12,80,000 | 8,80,000 | |
| II. ASSETS | |||
|
1, Non-Current Assets
|
|||
|
(a) Fixed Assets:
|
|||
|
Plant and Machinery
|
5,00,000 | 3,00,000 | |
|
2. Current Assets
|
|||
|
(a) Inventories
|
1,00,000 | 1,50,000 | |
|
(b) Trade Receivables
|
6,00,000 | 4,00,000 | |
|
(c) Cash and Cash Equivalents
|
80,000 | 30,000 | |
|
Total
|
12,80,000 | 8,80,000 | |
|
Particulars |
31st March, 2013
(₹)
|
31st March, 2012
(₹)
|
| I. Reserves and Surplus | ||
|
Surplus, i.e., Balance in Statement of Profit and Loss
|
4,00,000 | 2,00,000 |
(i) An old machinery having book value of ₹50,000 was sold for ₹60,000.
(ii) Depreciation provided on Machinery during the year was ₹30,000.
Answer:
|
Cash Flow Statement for the year ended March 31, 2013 |
|||
|
Particulars |
Details (Rs) |
Amount (Rs) |
|
| A |
Cash from Operating Activities |
|
|
|
Net Profit |
|
2,00,000 |
|
|
Add: Non Operating Expenses |
|
|
|
|
Depreciation on Plant and Machinery |
30,000 |
|
|
|
Less: Non Operating Incomes |
|
|
|
|
Profit on Sale of Machinery |
(10,000) |
20,000 |
|
|
Operating Profit Before Working Capital Changes |
|
||