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Page No 3.100:

Question 18:

Answer:

Cash Flow from Operating Activities
For the Year Ending March 31, 2017
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   2,50,000
+ Provision for Tax   1,50,000
+ Reserve   2,00,000
+ Dividend    
Add: Non Operating Expenses
   
Depreciation 2,50,000  
Goodwill written off 80,000  
Loss on Sale of Machinery 2,50,000 5,80,000
Less: Non Operating Incomes
 
     
Operating Profit Before Working Capital Changes   11,80,000
Add: Decrease in Current Assets & Increase in Current Liabilities
   
Debtors 1,28,000  
O/standing Expenses 15,000  
Prepaid Expenses 20,000 1,63,000
Less: Increase in Current Assets & Decrease in Current Liabilities
   
Bills Payable (47,000)  
Current Investments (1,50,000) (1,97,000)
Cash From Operating Activities   11,46,000
Less: Tax Paid
  (3,50,000)
Net Cash From Operating Activities (A)   7,96,000
     

Page No 3.100:

Question 19:

Cash Flow from Operating Activities
For the Year Ending March 31, 2017
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   2,50,000
+ Provision for Tax   1,50,000
+ Reserve   2,00,000
+ Dividend    
Add: Non Operating Expenses
   
Depreciation 2,50,000  
Goodwill written off 80,000  
Loss on Sale of Machinery 2,50,000 5,80,000
Less: Non Operating Incomes
 
     
Operating Profit Before Working Capital Changes   11,80,000
Add: Decrease in Current Assets & Increase in Current Liabilities
   
Debtors 1,28,000  
O/standing Expenses 15,000  
Prepaid Expenses 20,000 1,63,000
Less: Increase in Current Assets & Decrease in Current Liabilities
   
Bills Payable (47,000)  
Current Investments (1,50,000) (1,97,000)
Cash From Operating Activities   11,46,000
Less: Tax Paid
  (3,50,000)
Net Cash From Operating Activities (A)   7,96,000
     

Answer:

Cash Flow from Operating Activities
For the Year Ending March 31,2015
Particulars Details (Rs) Amount (Rs)
Cash Flow from Operating Activities    
Net Profit   18,000
+ Provision for Tax   50,000
+ General Reserve   30,000
+ Proposed Dividend   50,000
Add: Non Operating Expenses
   
Depreciation 30,000 30,000
Goodwill written off 25,000 25,000
Loss on Sale of Machinery    
Less: Non Operating Incomes
 
     
Operating Profit Before Working Capital Changes   2,03,000
Add: Decrease in Current Assets & Increase in Current Liabilities
   
Stock 10,000  
Creditors 28,000 38,000
Less: Increase in Current Assets & Decrease in Current Liabilities
   
Debtors (92,000)  
O/Standing Current Liabilities (4,000) (96,000)
Cash From Operating  Activities   1,45,000
Less: Tax Paid
  (40,000)
Net Cash From Operating  Activities (A)   1,05,000
     



Page No 3.101:

Question 20:

Cash Flow from Operating Activities
For the Year Ending March 31,2015
Particulars Details (Rs) Amount (Rs)
Cash Flow from Operating Activities    
Net Profit   18,000
+ Provision for Tax   50,000
+ General Reserve   30,000
+ Proposed Dividend   50,000
Add: Non Operating Expenses
   
Depreciation 30,000 30,000
Goodwill written off 25,000 25,000
Loss on Sale of Machinery    
Less: Non Operating Incomes
 
     
Operating Profit Before Working Capital Changes   2,03,000
Add: Decrease in Current Assets & Increase in Current Liabilities
   
Stock 10,000  
Creditors 28,000 38,000
Less: Increase in Current Assets & Decrease in Current Liabilities
   
Debtors (92,000)  
O/Standing Current Liabilities (4,000) (96,000)
Cash From Operating  Activities   1,45,000
Less: Tax Paid
  (40,000)
Net Cash From Operating  Activities (A)   1,05,000
     

Answer:

Cash Flow from Operating Activities

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Profit as per Statement of Profit and Loss

 

1,80,000

 

Add: Tax Expense

 

64,000

 

Profit Before Taxation

 

2,44,000

 

Items to be Added:

 

 

 

Loss on Sale of Assets

36,000

 

 

Depreciation and Amortisation Expenses

1,85,000

2,21,000

 

 

 

4,65,000

 

Items to be Deducted:

 

 

 

Dividend Received

(5,000)

 

 

Profit on Sale of Plant

(40,000)

(45,000)

 

Operating Profit before Working Capital Adjustments

 

4,20,000

 

Less: Decrease in Current Liabilities

 

 

 

Office Expenses Outstanding

 

(5,000)

 

Add: Increase in Current Liabilities

 

 

 

Trade Payables

28,000

 

 

Selling Expenses Outstanding

3,000

31,000

 

Less: Increase in Current Assets

 

 

 

Trade Receivables

(37,000)

 

 

  Inventories

16,000

(21,000)

 

Cash Generated from Operations

 

4,25,000

 

Less: Tax Paid

 

(64,000)

 

Net Cash Flows from Operating Activities

 

3,61,000



Page No 3.102:

Question 21:

Cash Flow from Operating Activities

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Profit as per Statement of Profit and Loss

 

1,80,000

 

Add: Tax Expense

 

64,000

 

Profit Before Taxation

 

2,44,000

 

Items to be Added:

 

 

 

Loss on Sale of Assets

36,000

 

 

Depreciation and Amortisation Expenses

1,85,000

2,21,000

 

 

 

4,65,000

 

Items to be Deducted:

 

 

 

Dividend Received

(5,000)

 

 

Profit on Sale of Plant

(40,000)

(45,000)

 

Operating Profit before Working Capital Adjustments

 

4,20,000

 

Less: Decrease in Current Liabilities

 

 

 

Office Expenses Outstanding

 

(5,000)

 

Add: Increase in Current Liabilities

 

 

 

Trade Payables

28,000

 

 

Selling Expenses Outstanding

3,000

31,000

 

Less: Increase in Current Assets

 

 

 

Trade Receivables

(37,000)

 

 

  Inventories

16,000

(21,000)

 

Cash Generated from Operations

 

4,25,000

 

Less: Tax Paid

 

(64,000)

 

Net Cash Flows from Operating Activities

 

3,61,000

Answer:

 

Cash Flow Statement 

for the year ended March 31, 2017

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

(60,000)

 

 

Profit Before Taxation

 

(60,000)

 

Items to be Added:

 

 

 

Depreciation on Machinery

60,000

 

 

Goodwill Written Off

40,000

 

 

Loss on Sale of Machinery

1,00,000

 

 

Items to be Deducted:

 

 

 

Dividend Received

(40,000)

1,60,000

 

Operating Profit before Working Capital Adjustments

 

1,00,000

 

Less: Increase in Current Assets

 

 

 

 

Accrued Commission

(20,000)

 

 

 

Increase in Inventory

(20,000)

(40,000)

 

Add: Increase in Current Liabilities

 

 

 

 Outstanding Rent

40,000

 

 

 Outstanding Wages

60,000

1,00,000

 

Cash Generated from Operations

 

1,60,000

 

Less: Tax Paid

 

-

 

Net Cash Flows from Operating Activities

 

1,60,000

 

 

 

 

 



Page No 3.103:

Question 22:

 

Cash Flow Statement 

for the year ended March 31, 2017

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

(60,000)

 

 

Profit Before Taxation

 

(60,000)

 

Items to be Added:

 

 

 

Depreciation on Machinery

60,000

 

 

Goodwill Written Off

40,000

 

 

Loss on Sale of Machinery

1,00,000

 

 

Items to be Deducted:

 

 

 

Dividend Received

(40,000)

1,60,000

 

Operating Profit before Working Capital Adjustments

 

1,00,000

 

Less: Increase in Current Assets

 

 

 

 

Accrued Commission

(20,000)

 

 

 

Increase in Inventory

(20,000)

(40,000)

 

Add: Increase in Current Liabilities

 

 

 

 Outstanding Rent

40,000

 

 

 Outstanding Wages

60,000

1,00,000

 

Cash Generated from Operations

 

1,60,000

 

Less: Tax Paid

 

-

 

Net Cash Flows from Operating Activities

 

1,60,000

 

 

 

 

 

Answer:

 

Cash Flow Statement 

for the year ended March 31, 2017

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

 

1,00,000

 

Profit Before Taxation

 

 

 

Items to be Added:

 

 

 

Depreciation on Machinery

 

25,000

 

Operating Profit before Working Capital Adjustments

 

1,25,000

 

Less: Increase in Current Assets

 

 

 

 

Prepaid Expenses

(5,000)

 

 

Add: Decrease in Current Assets

 

 

 

Inventory

50,000

 

 

Trade Receivables

30,000

 

 

Add: Increase in Current Liabilities

 

 

 

 Outstanding Expenses

3,000

 

 

Less: Decrease in Current Liabilities

 

 

 

 Trade Payables

(15,000)

63,000

 

Cash Generated from Operations

 

1,88,000

 

Less: Tax Paid

 

-

 

Net Cash Flows from Operating Activities

 

1,88,000

 

 

 

 

Page No 3.103:

Question 23:

 

Cash Flow Statement 

for the year ended March 31, 2017

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

 

1,00,000

 

Profit Before Taxation

 

 

 

Items to be Added:

 

 

 

Depreciation on Machinery

 

25,000

 

Operating Profit before Working Capital Adjustments

 

1,25,000

 

Less: Increase in Current Assets

 

 

 

 

Prepaid Expenses

(5,000)

 

 

Add: Decrease in Current Assets

 

 

 

Inventory

50,000

 

 

Trade Receivables

30,000

 

 

Add: Increase in Current Liabilities

 

 

 

 Outstanding Expenses

3,000

 

 

Less: Decrease in Current Liabilities

 

 

 

 Trade Payables

(15,000)

63,000

 

Cash Generated from Operations

 

1,88,000

 

Less: Tax Paid

 

-

 

Net Cash Flows from Operating Activities

 

1,88,000

 

 

 

 

Answer:

Cash From Investing  Activities
For the Year Ending …….
Particulars Details
(Rs)
Amount
(Rs)
Cash From Investing  Activities    
Purchase of Investment (5,00,000)  
Proceeds from Sale of Investments 6,00,000  
Purchase of Goodwill (2,50,000)  
Purchase of Machinery (7,40,000)  
Proceeds from Sale of Machinery 1,00,000  
Proceeds from Sale of Patents 1,00,000  
Interest received on Investments 80,000  
Dividend Received on Shares 40,000  
Rent Received ( Land used for Commercial Purpose) 80,000  
     
Net Cash From Investing Activities   (4,90,000)
     

Page No 3.103:

Question 24:

Cash From Investing  Activities
For the Year Ending …….
Particulars Details
(Rs)
Amount
(Rs)
Cash From Investing  Activities    
Purchase of Investment (5,00,000)  
Proceeds from Sale of Investments 6,00,000  
Purchase of Goodwill (2,50,000)  
Purchase of Machinery (7,40,000)  
Proceeds from Sale of Machinery 1,00,000  
Proceeds from Sale of Patents 1,00,000  
Interest received on Investments 80,000  
Dividend Received on Shares 40,000  
Rent Received ( Land used for Commercial Purpose) 80,000  
     
Net Cash From Investing Activities   (4,90,000)
     

Answer:

Cash From Investing  Activities
For the Year Ending March 31, 2017
Particulars Details
(Rs)
Amount
(Rs)
Cash From Investing  Activities    
     
Purchase of Patents (40,000)  
Proceeds from Sale of Land 40,000  
Purchase of Furniture (4,60,000)  
Proceeds from Sale of Investment 40,000  
Accrued Interest on Investment 20,000  
     
Net Cash From Investing Activities    (4,00,000)
     
     



Page No 3.104:

Question 25:

Cash From Investing  Activities
For the Year Ending March 31, 2017
Particulars Details
(Rs)
Amount
(Rs)
Cash From Investing  Activities    
     
Purchase of Patents (40,000)  
Proceeds from Sale of Land 40,000  
Purchase of Furniture (4,60,000)  
Proceeds from Sale of Investment 40,000  
Accrued Interest on Investment 20,000  
     
Net Cash From Investing Activities    (4,00,000)
     
     

Answer:

Cash Flow from Investing Activities

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

 

Purchase of Machinery (WN1)

(60,000)

 

 

 

Sale of Machinery

20,000

 

 

 

Sale of Patents (WN3)

1,00,000

60,000

 

Net Cash Used in Investing Activities

 

60,000

 

Working Notes:

 

WN 1:

 

Machinery Account

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

4,00,000

Provision for Depreciation A/c

24,000

Profit and Loss A/c (Profit on Sale)

4,000

Bank A/c (Sale)

20,000

Bank A/c (Purchase)

60,000

Balance c/d

4,20,000

 

4,64,000

 

4,64,000

 

 

 

 

 

 

WN2:

Patents Account

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

2,80,000

Patents Written off

40,000

Profit and Loss A/c (Profit on Sale)

20,000

Bank A/c (Sale) (Balancing Figure)

1,00,000

 

 

Balance c/d

1,60,000

 

3,00,000

 

3,00,000

 

 

 

 

 

 

WN3:

 

Provision for Depreciation Account

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Asset A/c

60,000

Balance b/d

1,10,000

Balance c/d

1,50,000

Profit and Loss A/c (Depreciation charged during the year)

1,00,000

 

2,10,000

 

2,10,000

 

 

 

 

 

 

 

Page No 3.104:

Question 26:

Cash Flow from Investing Activities

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

 

Purchase of Machinery (WN1)

(60,000)

 

 

 

Sale of Machinery

20,000

 

 

 

Sale of Patents (WN3)

1,00,000

60,000

 

Net Cash Used in Investing Activities

 

60,000

 

Working Notes:

 

WN 1:

 

Machinery Account

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

4,00,000

Provision for Depreciation A/c

24,000

Profit and Loss A/c (Profit on Sale)

4,000

Bank A/c (Sale)

20,000

Bank A/c (Purchase)

60,000

Balance c/d

4,20,000

 

4,64,000

 

4,64,000

 

 

 

 

 

 

WN2:

Patents Account

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

2,80,000

Patents Written off

40,000

Profit and Loss A/c (Profit on Sale)

20,000

Bank A/c (Sale) (Balancing Figure)

1,00,000

 

 

Balance c/d

1,60,000

 

3,00,000

 

3,00,000

 

 

 

 

 

 

WN3:

 

Provision for Depreciation Account

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Asset A/c

60,000

Balance b/d

1,10,000

Balance c/d

1,50,000

Profit and Loss A/c (Depreciation charged during the year)

1,00,000

 

2,10,000

 

2,10,000

 

 

 

 

 

 

 

Answer:

Cash From Investing Activities
For the Year Ending March 31, 2015
Particulars Details (Rs) Amount (Rs)
Cash From Investing Activities    
     
Proceeds from Sale of Investments (2,50,000 + 10%) 2,75,000  
Interest received on Investments 70,000  
Dividend Received on Investment 30,000  
Purchase of Investment (7,50,000)  
Rent Received 20,000  
Purchase of Fixed Assets (23,80,000 + 2,00,000 – 19,50,000) (6,30,000)  
     
Net Cash From Investing Activities   (9,85,000)
     
     

Page No 3.104:

Question 27:

Cash From Investing Activities
For the Year Ending March 31, 2015
Particulars Details (Rs) Amount (Rs)
Cash From Investing Activities    
     
Proceeds from Sale of Investments (2,50,000 + 10%) 2,75,000  
Interest received on Investments 70,000  
Dividend Received on Investment 30,000  
Purchase of Investment (7,50,000)  
Rent Received 20,000  
Purchase of Fixed Assets (23,80,000 + 2,00,000 – 19,50,000) (6,30,000)  
     
Net Cash From Investing Activities   (9,85,000)
     
     

Answer:

Cash From Investing  Activities
For the Year Ending …..
Particulars Details
(Rs)
Amount
(Rs)
Cash From Investing  Activities    
Purchase of Land (5,00,000)  
Purchase of Investment (2,70,000)  
Purchase of Machinery (4,50,000)  
Proceeds from Sale of Building 6,00,000  
Proceeds from Sale of Investments 1,60,000  
Proceeds from Sale of Machinery 2,10,000  
Interest received 20,000  
Dividend Received 30,000  
Rent Received 90,000 (1,10,000)
     
Net Cash From Investing Activities   (1,10,000)
     

Page No 3.104:

Question 28:

Cash From Investing  Activities
For the Year Ending …..
Particulars Details
(Rs)
Amount
(Rs)
Cash From Investing  Activities    
Purchase of Land (5,00,000)  
Purchase of Investment (2,70,000)  
Purchase of Machinery (4,50,000)  
Proceeds from Sale of Building 6,00,000  
Proceeds from Sale of Investments 1,60,000  
Proceeds from Sale of Machinery 2,10,000  
Interest received 20,000  
Dividend Received 30,000  
Rent Received 90,000 (1,10,000)
     
Net Cash From Investing Activities   (1,10,000)
     

Answer:

Cash From Investing  Activities
For the Year Ending March 31, 2017
Particulars Details
(Rs)
Amount
(Rs)
Cash From Investing  Activities    
     
Purchase of Plant & Machinery (2,60,000)  
Proceeds from Sale of Plant & Machinery 40,000  
Proceeds from Sale of Land 1,60,000  
Purchase of Investment (60,000) (1,20,000)
     
Net Cash From Investing Activities    (1,20,000)
     

Working Notes:-

Plant & 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)
(Balancing Figure)
2,60,000 Sales A/c 40,000
    P& L A/c ( Loss) 20,000
    Balance c/d 10,00,000
       
  11,10,000   11,10,000
       

Land Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 2,00,000 Sales A/c (Balancing Figure) 1,60,000
P& L A/c (Profit) 60,000 Balance c/d 1,00,000
       
  2,60,000   2,60,000
       



Page No 3.105:

Question 29:

Cash From Investing  Activities
For the Year Ending March 31, 2017
Particulars Details
(Rs)
Amount
(Rs)
Cash From Investing  Activities    
     
Purchase of Plant & Machinery (2,60,000)  
Proceeds from Sale of Plant & Machinery 40,000  
Proceeds from Sale of Land 1,60,000  
Purchase of Investment (60,000) (1,20,000)
     
Net Cash From Investing Activities    (1,20,000)
     

Working Notes:-

Plant & 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)
(Balancing Figure)
2,60,000 Sales A/c 40,000
    P& L A/c ( Loss) 20,000
    Balance c/d 10,00,000
       
  11,10,000   11,10,000
       

Land Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 2,00,000 Sales A/c (Balancing Figure) 1,60,000
P& L A/c (Profit) 60,000 Balance c/d 1,00,000
       
  2,60,000   2,60,000
       

Answer:

Cash From Investing  Activities
For the Year Ending March 31,2017
Particulars Details
(Rs)
Amount
(Rs)
Cash From Investing  Activities    
Purchase of Goodwill (1,00,000)  
Purchase of Investment (1,80,000)  
Purchase of Machinery (4,40,000)  
Proceeds from Sale of Patents 1,00,000  
Proceeds from Sale of Investments 1,00,000  
Proceeds from Sale of Machinery 50,000  
Interest on Investment received 7,200  
Dividend Received on Investment 10,000  
Rent Received 20,000  
     
Net Cash From Investing Activities   4,32,800
     

Working Notes:-  
Machinery Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 10,20,000 Depreciation A/c 1,40,000
Bank A/c ( Purchases)
(Balancing Figure)
4,40,000 Bank A/c 50,000
    P& L A/c ( Loss) 30,000
    Balance c/d 12,40,000
       
  14,60,000   14,60,000
       

Patents Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 3,80,000 P& L A/c ( Loss) 40,000
P& L A/c ( Profit) 20,000 Sales A/c (Balancing Figure) 1,00,000
    Balance c/d 2,60,000
       
  14,60,000   14,60,000
       
 
Investment  Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 60,000 Sales A/c (Balancing Figure) 1,00,000
Bank A/c 1,80,000 Balance c/d 1,60,000
P& L A/c ( Profit) 20,000    
       
       
  2,60,000   2,60,000
       

Page No 3.105:

Question 30:

Cash From Investing  Activities
For the Year Ending March 31,2017
Particulars Details
(Rs)
Amount
(Rs)
Cash From Investing  Activities    
Purchase of Goodwill (1,00,000)  
Purchase of Investment (1,80,000)  
Purchase of Machinery (4,40,000)  
Proceeds from Sale of Patents 1,00,000  
Proceeds from Sale of Investments 1,00,000  
Proceeds from Sale of Machinery 50,000  
Interest on Investment received 7,200  
Dividend Received on Investment 10,000  
Rent Received 20,000  
     
Net Cash From Investing Activities   4,32,800
     

Working Notes:-  
Machinery Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 10,20,000 Depreciation A/c 1,40,000
Bank A/c ( Purchases)
(Balancing Figure)
4,40,000 Bank A/c 50,000
    P& L A/c ( Loss) 30,000
    Balance c/d 12,40,000
       
  14,60,000   14,60,000
       

Patents Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 3,80,000 P& L A/c ( Loss) 40,000
P& L A/c ( Profit) 20,000 Sales A/c (Balancing Figure) 1,00,000
    Balance c/d 2,60,000
       
  14,60,000   14,60,000
       
 
Investment  Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 60,000 Sales A/c (Balancing Figure) 1,00,000
Bank A/c 1,80,000 Balance c/d 1,60,000
P& L A/c ( Profit) 20,000    
       
       
  2,60,000   2,60,000
       

Answer:

Cash From Financing Activities
For the Year Ending March 31,2017
Particulars Details
(Rs)
Amount
(Rs)
Cash From Financing Activities    
Interest Paid on Debentures (19,000)  
Dividend Paid (50,000)  
Proceeds from Issue of Share Capital 2,00,000  
Proceeds from Issue of Debenture 1,00,000 2,31,000
     
Net Cash From Financing Activities   2,31,000
     

Page No 3.105:

Question 31:

Cash From Financing Activities
For the Year Ending March 31,2017
Particulars Details
(Rs)
Amount
(Rs)
Cash From Financing Activities    
Interest Paid on Debentures (19,000)  
Dividend Paid (50,000)  
Proceeds from Issue of Share Capital 2,00,000  
Proceeds from Issue of Debenture 1,00,000 2,31,000
     
Net Cash From Financing Activities   2,31,000
     

Answer:

Cash From Investing Activities
For the Year Ending March 31, 2017
Particulars Details
(Rs)
Amount
(Rs)
Cash From Investing Activities    
     
Proceeds from Sale of Plant & Machinery 2,50,000  
Purchase of Plant & Machinery (8,00,000 + 2,50,000 – 6,00,000) (4,50,000)  
Purchase of Non Current Investment (50,000)  
     
Net Cash From Investing Activities   (2,50,000)
     



Page No 3.106:

Question 32:

Cash From Investing Activities
For the Year Ending March 31, 2017
Particulars Details
(Rs)
Amount
(Rs)
Cash From Investing Activities    
     
Proceeds from Sale of Plant & Machinery 2,50,000  
Purchase of Plant & Machinery (8,00,000 + 2,50,000 – 6,00,000) (4,50,000)  
Purchase of Non Current Investment (50,000)  
     
Net Cash From Investing Activities   (2,50,000)
     

Answer:

Cash From Investing  Activities
For the Year Ending March 31, 2017
Particulars Details (Rs) Amount
(Rs)

Cash From Investing  Activities

   
     
Dividend Received on Investment 5,000  
Sale of Non Current Investments 2,00,000  
     
Net Cash From Investing Activities    2,05,000
     

Page No 3.106:

Question 33:

Cash From Investing  Activities
For the Year Ending March 31, 2017
Particulars Details (Rs) Amount
(Rs)

Cash From Investing  Activities

   
     
Dividend Received on Investment 5,000  
Sale of Non Current Investments 2,00,000  
     
Net Cash From Investing Activities    2,05,000
     

Answer:

Cash From Financing Activities
For the Year Ending March 31,2017
Particulars Details (Rs)
Amount
(Rs)
Cash From Financing Activities    
Interest Paid on Debentures (18,000)  
Proceeds from Issue of Share Capital (1,00,000 +10,000) 1,10,000  
Redemption of Debenture (50,000 + 5,000) (55,000)  
     
Net Cash From Financing Activities   37,000
     



Page No 3.107:

Question 34:

Cash From Financing Activities
For the Year Ending March 31,2017
Particulars Details (Rs)
Amount
(Rs)
Cash From Financing Activities    
Interest Paid on Debentures (18,000)  
Proceeds from Issue of Share Capital (1,00,000 +10,000) 1,10,000  
Redemption of Debenture (50,000 + 5,000) (55,000)  
     
Net Cash From Financing Activities   37,000
     

Answer:

Cash From Financing Activities
For the Year Ending March 31, 2017
Particulars Details
(Rs)
Amount
(Rs)
Cash From Financing Activities    
Interest Paid on Debentures (10,000)  
Dividend Paid (50,000)  
Proceeds from Issue of Share Capital 2,00,000  
Redemption of 10% Debenture (2,00,000)  
Proceeds from Issue of 8% Debenture 3,00,000  
Repayment of Bank Loan (1,50,000)  
Bank Overdraft 50,000  
Interest paid on Bank Overdraft (1,000)  
Net Cash From Financing Activities   1,39,000
     

Page No 3.107:

Question 35:

Cash From Financing Activities
For the Year Ending March 31, 2017
Particulars Details
(Rs)
Amount
(Rs)
Cash From Financing Activities    
Interest Paid on Debentures (10,000)  
Dividend Paid (50,000)  
Proceeds from Issue of Share Capital 2,00,000  
Redemption of 10% Debenture (2,00,000)  
Proceeds from Issue of 8% Debenture 3,00,000  
Repayment of Bank Loan (1,50,000)  
Bank Overdraft 50,000  
Interest paid on Bank Overdraft (1,000)  
Net Cash From Financing Activities   1,39,000
     

Answer:

Cash From Financing Activities
For the Year Ending March 31, 2017
Particulars Details
(Rs)
Amount
(Rs)
Cash From Financing Activities    
Dividend Paid on Preference Share Capital (4,00,000 × 10%) (40,000)  
Interim Dividend Paid (6,00,000 × 15%) (90,000)  
Redemption of Preference Shares (2,00,000 + 5%) (2,10,000)  
Proceeds from Issue of Equity Share Capital 2,00,000  
Premium Received from Equity Share 25,000  
Proceeds from Issue of Debentures 2,00,000  
Interest Paid on Debentures (48,000 – 9,600) (38,400)  
     
Net Cash From Financing Activities   46,600
     



Page No 3.108:

Question 36:

Cash From Financing Activities
For the Year Ending March 31, 2017
Particulars Details
(Rs)
Amount
(Rs)
Cash From Financing Activities    
Dividend Paid on Preference Share Capital (4,00,000 × 10%) (40,000)  
Interim Dividend Paid (6,00,000 × 15%) (90,000)  
Redemption of Preference Shares (2,00,000 + 5%) (2,10,000)  
Proceeds from Issue of Equity Share Capital 2,00,000  
Premium Received from Equity Share 25,000  
Proceeds from Issue of Debentures 2,00,000  
Interest Paid on Debentures (48,000 – 9,600) (38,400)  
     
Net Cash From Financing Activities   46,600
     

Answer:

Cash From Financing Activities
For the Year Ending March 31,2017
Particulars Details
(Rs)
Amount
(Rs)
Cash From Financing Activities    
Proceeds from Issue of Equity Share Capital (15,00,000+ 75,000) 15,75,000  
Share Issue Expenses Paid (1,75,000)  
Bank Overdraft 1,00,000  
Net Cash From Financing Activities   15,00,000
     

Page No 3.108:

Question 37:

Cash From Financing Activities
For the Year Ending March 31,2017
Particulars Details
(Rs)
Amount
(Rs)
Cash From Financing Activities    
Proceeds from Issue of Equity Share Capital (15,00,000+ 75,000) 15,75,000  
Share Issue Expenses Paid (1,75,000)  
Bank Overdraft 1,00,000  
Net Cash From Financing Activities   15,00,000
     

Answer:

Calculation of Cash from Financing Activities:

 

Cash Flow Statement 

for the year ended March 31, 2011

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Cash Flow from Financing Activities

 

 

 

Issue of Share Capital

2,00,000

 

 

Redemption of Preference Share Capital

(1,00,000)

 

 

Security Premium Reserve

35,000

 

 

Issue of 11% Debentures

1,00,000

 

 

Preference Dividend paid

(30,000)

 

 

Interest on Debentures paid

(55,000)

 

 

Equity Dividend paid

(36,000)

 

 

 

 

 

 

Net Cash Flows from Financing Activities

 

1,14,000

 

 

 

 

 



Page No 3.109:

Question 38:

Calculation of Cash from Financing Activities:

 

Cash Flow Statement 

for the year ended March 31, 2011

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Cash Flow from Financing Activities

 

 

 

Issue of Share Capital

2,00,000

 

 

Redemption of Preference Share Capital

(1,00,000)

 

 

Security Premium Reserve

35,000

 

 

Issue of 11% Debentures

1,00,000

 

 

Preference Dividend paid

(30,000)

 

 

Interest on Debentures paid

(55,000)

 

 

Equity Dividend paid

(36,000)

 

 

 

 

 

 

Net Cash Flows from Financing Activities

 

1,14,000

 

 

 

 

 

Answer:

 

Cash Flow Statement 

for the year ended March 31, 2017

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

7,25,000

 

 

Provision for Tax

1,12,500

 

 

Equity Dividend

90,000

 

 

Preference Dividend

37,500

 

 

General Reserve

75,000

 

 

Profit Before Taxation

 

10,40,000

 

Items to be Added:

 

 

 

Interest on Debentures

41,000

 

 

Interest on Bank Loan

9,000

50,000

 

Operating Profit before Working Capital Adjustments

 

10,90,000

 

Less: Increase in Current Assets

 

 

 

 

      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: Tax Paid

 

(62,500)

 

Net Cash Flows from Operating Activities

 

11,27,500

 

 

 

 

 

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of Share Capital

2,50,000

 

 

Equity Dividend paid

     (90,000)

 

 

Redemption of Preference Share Capital

   (2,50,000)

 

 

Preference Dividend paid

      (37,500)

 

 

Proceeds from Issue of Debentures

     2,75,000

 

 

Interest on Debentures Paid

     (41,000)

 

 

 Security Premium Reserve

25,000

 

 

Repayment of bank loan

(25,000)

 

 

Interest on Bank Loan Paid

(9,000)

 

 

Net Cash Flow from Financing Activities

 

97,500

 

 

 

 

           

 

Working Note:

1. If Equity dividend is paid, it is assumed Preference Dividend is also paid.

2. Interest on Debentures Paid=[3,75,000×8100 ×612+ 2,75,000×8100 ×612]  = Rs 41,0003. Interest on Bank Loan Paid=[1,25,000×8100×612+1,00,000×8100 ×612] = Rs 25,000

4.

Provision for Taxation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Bank A/c (Tax Paid)

62,500

Balance b/d

50,000

(Bal. Fig.)

 

Profit and Loss A/c

1,12,500

Balance c/d

1,00,000

 

 

 

1,62,500

 

1,62,500

 

 

 

 

Page No 3.109:

Question 39:

 

Cash Flow Statement 

for the year ended March 31, 2017

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

7,25,000

 

 

Provision for Tax

1,12,500

 

 

Equity Dividend

90,000

 

 

Preference Dividend

37,500

 

 

General Reserve

75,000

 

 

Profit Before Taxation

 

10,40,000

 

Items to be Added:

 

 

 

Interest on Debentures

41,000

 

 

Interest on Bank Loan

9,000

50,000

 

Operating Profit before Working Capital Adjustments

 

10,90,000

 

Less: Increase in Current Assets

 

 

 

 

      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: Tax Paid

 

(62,500)

 

Net Cash Flows from Operating Activities

 

11,27,500

 

 

 

 

 

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of Share Capital

2,50,000

 

 

Equity Dividend paid

     (90,000)

 

 

Redemption of Preference Share Capital

   (2,50,000)

 

 

Preference Dividend paid

      (37,500)

 

 

Proceeds from Issue of Debentures

     2,75,000

 

 

Interest on Debentures Paid

     (41,000)

 

 

 Security Premium Reserve

25,000

 

 

Repayment of bank loan

(25,000)

 

 

Interest on Bank Loan Paid

(9,000)

 

 

Net Cash Flow from Financing Activities

 

97,500

 

 

 

 

           

 

Working Note:

1. If Equity dividend is paid, it is assumed Preference Dividend is also paid.

2. Interest on Debentures Paid=[3,75,000×8100 ×612+ 2,75,000×8100 ×612]  = Rs 41,0003. Interest on Bank Loan Paid=[1,25,000×8100×612+1,00,000×8100 ×612] = Rs 25,000

4.

Provision for Taxation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Bank A/c (Tax Paid)

62,500

Balance b/d

50,000

(Bal. Fig.)

 

Profit and Loss A/c

1,12,500

Balance c/d

1,00,000

 

 

 

1,62,500

 

1,62,500

 

 

 

 

Answer:

Cash Flow from Operating Activities
For the Year Ending March 31, 2017
Particulars Details
(Rs)
Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   5,00,000
+ Provision for Tax    
+ Reserve    
+ Dividend    
  Add: Non Operating Expenses    
Premium on Redemption of Preference Share 25,000 25,000
Interim Dividend 2,40,000 2,40,000
Proposed Dividend (10, 00,000 × 10%) 1,00,000 1,00,000
     
  Less: Non Operating Incomes  
     
Operating Profit Before Working Capital Changes    
  Add: Decrease in Current Assets & Increase in Current Liabilities    
     
  Less: Increase in Current Assets & Decrease in Current Liabilities    
     
Cash From Operating  Activities   9,65,000
    Less: Tax Paid   -
Net Cash From Operating  Activities (A)   9,65,000
     
Cash From Financing Activities    
Redemption of Preference Shares Capital (5, 00,000 + 5%) (5,25,000)  
Interim Dividend Paid (30, 00,000 × 8%) (2,40,000)  
Preference Dividend Paid (1,00,000)  
Proceeds from Public Deposits (1,00,000)  
Proceeds from Issue of Equity Share Capital 10,00,000  
Proceeds from Security Premium 2,00,000  
     
Net Cash From Financing Activities (C)   3,35,000
     

Page No 3.109:

Question 40:

Cash Flow from Operating Activities
For the Year Ending March 31, 2017
Particulars Details
(Rs)
Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   5,00,000
+ Provision for Tax    
+ Reserve    
+ Dividend    
  Add: Non Operating Expenses    
Premium on Redemption of Preference Share 25,000 25,000
Interim Dividend 2,40,000 2,40,000
Proposed Dividend (10, 00,000 × 10%) 1,00,000 1,00,000
     
  Less: Non Operating Incomes  
     
Operating Profit Before Working Capital Changes    
  Add: Decrease in Current Assets & Increase in Current Liabilities    
     
  Less: Increase in Current Assets & Decrease in Current Liabilities    
     
Cash From Operating  Activities   9,65,000
    Less: Tax Paid   -
Net Cash From Operating  Activities (A)   9,65,000
     
Cash From Financing Activities    
Redemption of Preference Shares Capital (5, 00,000 + 5%) (5,25,000)  
Interim Dividend Paid (30, 00,000 × 8%) (2,40,000)  
Preference Dividend Paid (1,00,000)  
Proceeds from Public Deposits (1,00,000)  
Proceeds from Issue of Equity Share Capital 10,00,000  
Proceeds from Security Premium 2,00,000  
     
Net Cash From Financing Activities (C)   3,35,000
     

Answer:

Cash From Financing Activities
For the Year Ending March 31, 2017
Particulars Details (Rs) Amount
(Rs)
Cash From Financing Activities    
Proceeds from Issue of Share Capital 2,50,000  
Interest Paid on Debentures (50,000)  
Cash Credit 25,000  
Net Cash From Financing Activities (C)   2,25,000
     

Note: There is a misprint in the answer given in the textbook. It should be 'Cash Flows from Financing Activities' instead of 'Cash Used in Financing Activities'.



Page No 3.110:

Question 41:

Cash From Financing Activities
For the Year Ending March 31, 2017
Particulars Details (Rs) Amount
(Rs)
Cash From Financing Activities    
Proceeds from Issue of Share Capital 2,50,000  
Interest Paid on Debentures (50,000)  
Cash Credit 25,000  
Net Cash From Financing Activities (C)   2,25,000
     

Note: There is a misprint in the answer given in the textbook. It should be 'Cash Flows from Financing Activities' instead of 'Cash Used in Financing Activities'.

Answer:

Cash Flow Statement
For the Year Ending March31,2014
Particulars Details
(Rs)
Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   10,000
+ Provision for Tax    
+ Reserve    
+ Dividend    
  Add: Non Operating Expenses    
Goodwill Written Off 15,000 15,000
  Less: Non Operating Incomes  
     
Operating Profit Before Working Capital Changes   25,000
  Add: Decrease in Current Assets & Increase in Current Liabilities    
Creditors 35,000  
Debtors 28,000 63,000
  Less: Increase in Current Assets & Decrease in Current Liabilities    
O/standing Expenses (12,000)  
Inventories (80,000) (92,000)
     
Cash From Operating  Activities   (4,000)
  Less: Tax Paid  
Net Cash From Operating  Activities (A)   (4,000)
     
Cash From Investing  Activities    
     
Purchase of Fixed Assets (1,23,000)  
     
Net Cash From Investing Activities (B)   (1,23,000)
     
Cash From Financing Activities    
Proceeds from Mortgage Loan 30,000  
Repayment of Public Deposits (60,000)  
Proceeds from Issue of Share Capital 1,00,000  
     
Net Cash From Financing Activities (C)   70,000
Net decrease in Cash (A + B + C)   (57,000)
  Add: Opening Cash and Cash Equivalents   90,000
(Cash + Marketable Investments- Bank Overdraft)    
Closing Cash and Cash Equivalents   33,000
(Cash + Marketable Investments- Bank Overdraft)    
     



Page No 3.111:

Question 42:

Cash Flow Statement
For the Year Ending March31,2014
Particulars Details
(Rs)
Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   10,000
+ Provision for Tax    
+ Reserve    
+ Dividend    
  Add: Non Operating Expenses    
Goodwill Written Off 15,000 15,000
  Less: Non Operating Incomes  
     
Operating Profit Before Working Capital Changes   25,000
  Add: Decrease in Current Assets & Increase in Current Liabilities    
Creditors 35,000  
Debtors 28,000 63,000
  Less: Increase in Current Assets & Decrease in Current Liabilities    
O/standing Expenses (12,000)  
Inventories (80,000) (92,000)
     
Cash From Operating  Activities   (4,000)
  Less: Tax Paid  
Net Cash From Operating  Activities (A)   (4,000)
     
Cash From Investing  Activities    
     
Purchase of Fixed Assets (1,23,000)  
     
Net Cash From Investing Activities (B)   (1,23,000)
     
Cash From Financing Activities    
Proceeds from Mortgage Loan 30,000  
Repayment of Public Deposits (60,000)  
Proceeds from Issue of Share Capital 1,00,000  
     
Net Cash From Financing Activities (C)   70,000
Net decrease in Cash (A + B + C)   (57,000)
  Add: Opening Cash and Cash Equivalents   90,000
(Cash + Marketable Investments- Bank Overdraft)    
Closing Cash and Cash Equivalents   33,000
(Cash + Marketable Investments- Bank Overdraft)    
     

Answer:

Cash Flow Statement
For the Year Ending March 31,2017
Particulars Details
(Rs)
Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   9,000
+ Provision for Tax   32,000
+ General Reserve   10,000
+ Proposed Dividend   39,000
  Add: Non Operating Expenses    
Goodwill Written Off 10,000 10,000
  Less: Non Operating Incomes  
     
     
Operating Profit Before Working Capital Changes   1,00,000
  Add: Decrease in Current Assets & Increase in Current Liabilities    
Inventories 7,000  
Creditors 18,000 25,000
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Debtors (33,000)  
Other Current Liabilities (2,000) (35,000)
     
Cash From Operating  Activities   90,000
  Less: Tax Paid   (28,000)
Net Cash From Operating  Activities (A)   62,000
     
Cash From Investing  Activities    
Purchase of Plant (1,01,000)  
Purchase of Investment (25,000)  
Proceeds from Sale of Land & Building 53,000 (73,000)
Net Cash From Investing Activities (B)   (73,000)
     
Cash From Financing Activities    
Proposed Dividend (28,000)  
Proceeds from Share Capital 50,000 22,000
     
Net Cash From Financing Activities (C)   22,000
Net Increase in Cash (A + B + C)   11,000
Add: Opening Cash and Cash Equivalents   17,000
(Cash + Marketable Investments- Bank Overdraft)    
Closing Cash and Cash Equivalents   28,000
(Cash + Marketable Investments- Bank Overdraft)    
     

Page No 3.111:

Question 43:

Cash Flow Statement
For the Year Ending March 31,2017
Particulars Details
(Rs)
Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   9,000
+ Provision for Tax   32,000
+ General Reserve   10,000
+ Proposed Dividend   39,000
  Add: Non Operating Expenses    
Goodwill Written Off 10,000 10,000
  Less: Non Operating Incomes  
     
     
Operating Profit Before Working Capital Changes   1,00,000
  Add: Decrease in Current Assets & Increase in Current Liabilities    
Inventories 7,000  
Creditors 18,000 25,000
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Debtors (33,000)  
Other Current Liabilities (2,000) (35,000)
     
Cash From Operating  Activities   90,000
  Less: Tax Paid   (28,000)
Net Cash From Operating  Activities (A)   62,000
     
Cash From Investing  Activities    
Purchase of Plant (1,01,000)  
Purchase of Investment (25,000)  
Proceeds from Sale of Land & Building 53,000 (73,000)
Net Cash From Investing Activities (B)   (73,000)
     
Cash From Financing Activities    
Proposed Dividend (28,000)  
Proceeds from Share Capital 50,000 22,000
     
Net Cash From Financing Activities (C)   22,000
Net Increase in Cash (A + B + C)   11,000
Add: Opening Cash and Cash Equivalents   17,000
(Cash + Marketable Investments- Bank Overdraft)    
Closing Cash and Cash Equivalents   28,000
(Cash + Marketable Investments- Bank Overdraft)    
     

Answer:

Cash Flow Statement
For the Year Ending March 31, 2017
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   2,000
+ Provision for Tax    
+ General Reserve   20,000
+ Dividend    
  Add: Non Operating Expenses    
Depreciation on Plant 30,000  
Depreciation on Building 50,000  
Goodwill Written Off 10,000 90,000
  Less: Non Operating Incomes  
     
Operating Profit Before Working Capital Changes   1,12,000
  Add: Decrease in Current Assets & Increase in Current Liabilities    
     
     
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Debtors (40,000)  
Inventories (2,000)  
Creditors (18,000) (60,000)
     
Cash From Operating  Activities   52,000
  Less: Tax Paid  
Net Cash From Operating  Activities (A)   52,000
     
Cash From Investing  Activities    
Purchase of Plant (60,000)  
Purchase of Building (30,000) (90,000)
     
Net Cash From Investing Activities (B)   (90,000)
     
Cash From Financing Activities    
Proceeds from Issue of Share Capital 50,000  
Redemption of Preference Share Capital (10,000) 40,000
     
Net Cash From Financing Activities (C)   40,000
Net Increase in Cash (A + B + C)   2,000
  Add: Opening Cash and Cash Equivalents   15,000
(Cash + Marketable Investments- Bank Overdraft)    
Closing Cash and Cash Equivalents   17,000
(Cash + Marketable Investments- Bank Overdraft)    
     

Working Notes:-  

Plant Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 40,000 Depreciation 30,000
Cash A/c (Balancing Figure) 60,000 Balance c/d 70,000
       
  1,00,000   1,00,000
       

Building Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 1,00,000 Depreciation 5,00,000
Cash A/c (Balancing Figure) 30,000 Balance c/d 80,000
       
  1,30,000   1,30,000
       



Page No 3.112:

Question 44:

Cash Flow Statement
For the Year Ending March 31, 2017
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   2,000
+ Provision for Tax    
+ General Reserve   20,000
+ Dividend    
  Add: Non Operating Expenses    
Depreciation on Plant 30,000  
Depreciation on Building 50,000  
Goodwill Written Off 10,000 90,000
  Less: Non Operating Incomes  
     
Operating Profit Before Working Capital Changes   1,12,000
  Add: Decrease in Current Assets & Increase in Current Liabilities    
     
     
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Debtors (40,000)  
Inventories (2,000)  
Creditors (18,000) (60,000)
     
Cash From Operating  Activities   52,000
  Less: Tax Paid  
Net Cash From Operating  Activities (A)   52,000
     
Cash From Investing  Activities    
Purchase of Plant (60,000)  
Purchase of Building (30,000) (90,000)
     
Net Cash From Investing Activities (B)   (90,000)
     
Cash From Financing Activities    
Proceeds from Issue of Share Capital 50,000  
Redemption of Preference Share Capital (10,000) 40,000
     
Net Cash From Financing Activities (C)   40,000
Net Increase in Cash (A + B + C)   2,000
  Add: Opening Cash and Cash Equivalents   15,000
(Cash + Marketable Investments- Bank Overdraft)    
Closing Cash and Cash Equivalents   17,000
(Cash + Marketable Investments- Bank Overdraft)    
     

Working Notes:-  

Plant Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 40,000 Depreciation 30,000
Cash A/c (Balancing Figure) 60,000 Balance c/d 70,000
       
  1,00,000   1,00,000
       

Building Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 1,00,000 Depreciation 5,00,000
Cash A/c (Balancing Figure) 30,000 Balance c/d 80,000
       
  1,30,000   1,30,000
       

Answer:

Cash Flow Statement
For the Year Ending March 31,2017
Particulars Details
(Rs)
Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   18,000
+ Provision for Tax   45,000
+ General Reserve   30,000
+ Interim Dividend   20,000
+ Proposed Dividend   50,000
+ Share Issue Expenses   5,000
  Add: Non Operating Expenses    
Depreciation on Plant 10,000  
Depreciation on Building 20,000  
Goodwill Written Off 25,000 55,000
  Less: Non Operating Incomes  
     
Operating Profit Before Working Capital Changes   2,23,000
  Add: Decrease in Current Assets & Increase in Current Liabilities    
Creditors 28,000 28,000
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Debtors (40,000)  
Inventories (32,000)  
Bills Receivable (10,000)  
Bills Payable (4,000) (86,000)
Cash From Operating  Activities   1,65,000
  Less: Tax Paid   (35,000)
Net Cash From Operating  Activities (A)   1,30,000
     
Cash From Investing  Activities    
Purchase of Plant (1,20,000) (1,20,000)
     
Net Cash From Investing Activities (B)   (1,20,000)
     
Cash From Financing Activities    
Payment of Share Issue Expenses (5,000)  
Interim Dividend (20,000)  
Payment of Proposed Dividend (42,000)  
Proceeds from Issue of Share Capital 1,00,000  
Payment of Land & Building (50,000) (17,000)
     
Net Cash From Financing Activities (C)   (17,000)
Net Increase in Cash (A + B + C)   (7,000)
Add: Opening Cash and Cash Equivalents   25,000
(Cash + Marketable Investments- Bank Overdraft)    
Closing Cash and Cash Equivalents   18,000
(Cash + Marketable Investments- Bank Overdraft)    
     

Working Notes:-
  Plant Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 80,000 Depreciation 10,000
Cash A/c (Balancing Figure) 1,20,000 Balance c/d 1,90,000
       
  2,00,000   2,00,000
       
 
Building Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 2,00,000 Depreciation 20,000
    Balance c/d 1,80,000
       
  2,00,000   2,00,000
       
 
Provision for Tax Account
Dr.   Cr.
Particulars Amount (Rs) Particulars Amount
(Rs)
Cash A/c 35,000 Balance b/d 40,000
Balance c/d 50,000 P/ L A/c 45,000
       
  85,000   85,000
       



Page No 3.113:

Question 45:

Cash Flow Statement
For the Year Ending March 31,2017
Particulars Details
(Rs)
Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   18,000
+ Provision for Tax   45,000
+ General Reserve   30,000
+ Interim Dividend   20,000
+ Proposed Dividend   50,000
+ Share Issue Expenses   5,000
  Add: Non Operating Expenses    
Depreciation on Plant 10,000  
Depreciation on Building 20,000  
Goodwill Written Off 25,000 55,000
  Less: Non Operating Incomes  
     
Operating Profit Before Working Capital Changes   2,23,000
  Add: Decrease in Current Assets & Increase in Current Liabilities    
Creditors 28,000 28,000
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Debtors (40,000)  
Inventories (32,000)  
Bills Receivable (10,000)  
Bills Payable (4,000) (86,000)
Cash From Operating  Activities   1,65,000
  Less: Tax Paid   (35,000)
Net Cash From Operating  Activities (A)   1,30,000
     
Cash From Investing  Activities    
Purchase of Plant (1,20,000) (1,20,000)
     
Net Cash From Investing Activities (B)   (1,20,000)
     
Cash From Financing Activities    
Payment of Share Issue Expenses (5,000)  
Interim Dividend (20,000)  
Payment of Proposed Dividend (42,000)  
Proceeds from Issue of Share Capital 1,00,000  
Payment of Land & Building (50,000) (17,000)
     
Net Cash From Financing Activities (C)   (17,000)
Net Increase in Cash (A + B + C)   (7,000)
Add: Opening Cash and Cash Equivalents   25,000
(Cash + Marketable Investments- Bank Overdraft)    
Closing Cash and Cash Equivalents   18,000
(Cash + Marketable Investments- Bank Overdraft)    
     

Working Notes:-
  Plant Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 80,000 Depreciation 10,000
Cash A/c (Balancing Figure) 1,20,000 Balance c/d 1,90,000
       
  2,00,000   2,00,000
       
 
Building Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 2,00,000 Depreciation 20,000
    Balance c/d 1,80,000
       
  2,00,000   2,00,000
       
 
Provision for Tax Account
Dr.   Cr.
Particulars Amount (Rs) Particulars Amount
(Rs)
Cash A/c 35,000 Balance b/d 40,000
Balance c/d 50,000 P/ L A/c 45,000
       
  85,000   85,000
       

Answer:

Cash Flow Statement
For the Year Ending March 31, 2017
Particulars Details
(Rs)
Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   10,000
+ Provision for Tax  
+ General Reserve   20,000
+ Interim Dividend  
+ Proposed Dividend   30,000
+ Share Issue Expenses   7,000
  Add: Non Operating Expenses    
Depreciation on Fixed Assets 50,000  
Debenture Interest 10,000 60,000
Less: Non Operating Incomes  
     
Operating Profit Before Working Capital Changes   1,27,000
  Add: Decrease in Current Assets & Increase in Current Liabilities    
Creditors 40,000 40,000
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Debtors (18,000)  
Current Investments (20,000)  
Inventories (20,000) (58,000)
     
Cash From Operating  Activities   1,09,000
  Less: Tax Paid  
Net Cash From Operating  Activities (A)   1,09,000
     
Cash From Investing  Activities    
Purchase of Fixed Assets (93,000)  
Purchase of Investment (10,000) (1,03,000)
Net Cash From Investing Activities (B)   (1,03,000)
     
Cash From Financing Activities    
Proceeds from Issue of Share Capital 40,000  
Proposed  Dividend (20,000)  
Share Issue Expenses Paid (7,000)  
Debenture Interest Paid (10,000)  
Repayment of Land & Building (10,000) (7,000)
     
Net Cash From Financing Activities (C)   (7,000)
Net Increase in Cash (A + B + C)   (1,000)
Add: Opening Cash and Cash Equivalents   3,000
Closing Cash and Cash Equivalents   2,000
     
     

Working Notes:-
Fixed Asset Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 3,97,000 Depreciation 50,000
Cash A/c (Balancing Figure) 93,000 Balance c/d 4,40,000
        
  4,90,000   4,90,000
       



Page No 3.114:

Question 46:

Cash Flow Statement
For the Year Ending March 31, 2017
Particulars Details
(Rs)
Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   10,000
+ Provision for Tax  
+ General Reserve   20,000
+ Interim Dividend  
+ Proposed Dividend   30,000
+ Share Issue Expenses   7,000
  Add: Non Operating Expenses    
Depreciation on Fixed Assets 50,000  
Debenture Interest 10,000 60,000
Less: Non Operating Incomes  
     
Operating Profit Before Working Capital Changes   1,27,000
  Add: Decrease in Current Assets & Increase in Current Liabilities    
Creditors 40,000 40,000
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Debtors (18,000)  
Current Investments (20,000)  
Inventories (20,000) (58,000)
     
Cash From Operating  Activities   1,09,000
  Less: Tax Paid  
Net Cash From Operating  Activities (A)   1,09,000
     
Cash From Investing  Activities    
Purchase of Fixed Assets (93,000)  
Purchase of Investment (10,000) (1,03,000)
Net Cash From Investing Activities (B)   (1,03,000)
     
Cash From Financing Activities    
Proceeds from Issue of Share Capital 40,000  
Proposed  Dividend (20,000)  
Share Issue Expenses Paid (7,000)  
Debenture Interest Paid (10,000)  
Repayment of Land & Building (10,000) (7,000)
     
Net Cash From Financing Activities (C)   (7,000)
Net Increase in Cash (A + B + C)   (1,000)
Add: Opening Cash and Cash Equivalents   3,000
Closing Cash and Cash Equivalents   2,000
     
     

Working Notes:-
Fixed Asset Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 3,97,000 Depreciation 50,000
Cash A/c (Balancing Figure) 93,000 Balance c/d 4,40,000
        
  4,90,000   4,90,000
       

Answer:

Cash Flow Statement
For the Year Ending March 31, 2017
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   25,000
+ Provision for Tax   23,000
+ General Reserve  
+ Interim Dividend  
+ Proposed Dividend   15,000
  Add: Non Operating Expenses    
Depreciation on Fixed Assets 80,000  
Debenture Interest 10,600  
Goodwill Written Off 25,000 1,15,600
  Less: Non Operating Incomes  
     
Operating Profit Before Working Capital Changes   1,78,600
  Add: Decrease in Current Assets & Increase in Current Liabilities    
Other Assets 8,000 8,000
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Debtors (30,000)  
Creditors (5,000)  
Inventories (20,000) 55,000
     
Cash From Operating  Activities   1,31,600
  Less: Tax Paid   (18,000)
Net Cash From Operating  Activities (A)   1,13,600
     
Cash From Investing  Activities    
Purchase of Fixed Assets (80,000)  
Purchase of Investment (50,000) (1,30,000)
Net Cash From Investing Activities (B)   (1,30,000)
     
Cash From Financing Activities    
Proceeds from Issue of Share Capital 1,00,000  
Proposed  Dividend (10,000)  
Debenture Interest Paid (10,600)  
Redemption of 8% Debentures (90,000) (10,600)
     
Net Cash From Financing Activities (C)   (10,600)
Net Increase in Cash (A + B + C)   (27,000)
Add: Opening Cash and Cash Equivalents   (68,000)
(Cash + Marketable Investments- Bank Overdraft)    
Closing Cash and Cash Equivalents   (95,000)
(Cash + Marketable Investments- Bank Overdraft)    
     

Working Notes:-
Fixed Asset Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 5,50,000 Depreciation 80,000
Cash A/c (Balancing Figure) 80,000 Balance c/d 5,50,000
       
  6,30,000   6,30,000
       
           
Provision for Tax Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Cash A/c (Balancing Figure) 18,000 Balance b/d 20,000
Balance c/d 25,000 Profit & Loss A/c 23,000
       
  43,000   43,000
       


Interest on Debentures @ 8%on Rs. 2,00,000 for 3 months=Rs 4,000on Rs 1,10,000 for 3 months=Rs 6,600=Rs 10,600

Note: Answer for Cash flow from Financing Activities calculated above is different from the answer given in the book.



Page No 3.115:

Question 47:

Cash Flow Statement
For the Year Ending March 31, 2017
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   25,000
+ Provision for Tax   23,000
+ General Reserve  
+ Interim Dividend  
+ Proposed Dividend   15,000
  Add: Non Operating Expenses    
Depreciation on Fixed Assets 80,000  
Debenture Interest 10,600  
Goodwill Written Off 25,000 1,15,600
  Less: Non Operating Incomes  
     
Operating Profit Before Working Capital Changes   1,78,600
  Add: Decrease in Current Assets & Increase in Current Liabilities    
Other Assets 8,000 8,000
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Debtors (30,000)  
Creditors (5,000)  
Inventories (20,000) 55,000
     
Cash From Operating  Activities   1,31,600
  Less: Tax Paid   (18,000)
Net Cash From Operating  Activities (A)   1,13,600
     
Cash From Investing  Activities    
Purchase of Fixed Assets (80,000)  
Purchase of Investment (50,000) (1,30,000)
Net Cash From Investing Activities (B)   (1,30,000)
     
Cash From Financing Activities    
Proceeds from Issue of Share Capital 1,00,000  
Proposed  Dividend (10,000)  
Debenture Interest Paid (10,600)  
Redemption of 8% Debentures (90,000) (10,600)
     
Net Cash From Financing Activities (C)   (10,600)
Net Increase in Cash (A + B + C)   (27,000)
Add: Opening Cash and Cash Equivalents   (68,000)
(Cash + Marketable Investments- Bank Overdraft)    
Closing Cash and Cash Equivalents   (95,000)
(Cash + Marketable Investments- Bank Overdraft)    
     

Working Notes:-
Fixed Asset Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 5,50,000 Depreciation 80,000
Cash A/c (Balancing Figure) 80,000 Balance c/d 5,50,000
       
  6,30,000   6,30,000
       
           
Provision for Tax Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Cash A/c (Balancing Figure) 18,000 Balance b/d 20,000
Balance c/d 25,000 Profit & Loss A/c 23,000
       
  43,000   43,000
       


Interest on Debentures @ 8%on Rs. 2,00,000 for 3 months=Rs 4,000on Rs 1,10,000 for 3 months=Rs 6,600=Rs 10,600

Note: Answer for Cash flow from Financing Activities calculated above is different from the answer given in the book.

Answer:

Cash Flow Statement
For the Year Ending March 31, 2016
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   13,000
+ Provision for Tax    
+ General Reserve    
+ Interim Dividend    
  Add: Non Operating Expenses  
     
  Less: Non Operating Incomes  
     
Operating Profit Before Working Capital Changes   13,000
  Add: Decrease in Current Assets & Increase in Current Liabilities    
Debtors 5,000 5,000
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Creditors (25,000)  
Inventories (10,000)  
Other Current Investments (10,000) (45,000)
Cash From Operating  Activities   (27,000)
  Less: Tax Paid  
Net Cash Used in Operating  Activities (A)   (27,000)
     
Cash From Investing  Activities    
Nil    
Net Cash From Investing Activities (B)   NIL
     
Cash From Financing Activities    
Proceeds from Issue of Share Capital 50,000 50,000
     
Net Cash From Financing Activities (C)   50,000
Net Increase in Cash (A + B + C)   23,000
  Add: Opening Cash and Cash Equivalents (30,000 + 10,000)   40,000
(Cash + Short-term Investments)    
Closing Cash and Cash Equivalents (47,000 + 16,000)   63,000
(Cash + Short-term Investments)    
     



Page No 3.116:

Question 48:

Cash Flow Statement
For the Year Ending March 31, 2016
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   13,000
+ Provision for Tax    
+ General Reserve    
+ Interim Dividend    
  Add: Non Operating Expenses  
     
  Less: Non Operating Incomes  
     
Operating Profit Before Working Capital Changes   13,000
  Add: Decrease in Current Assets & Increase in Current Liabilities    
Debtors 5,000 5,000
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Creditors (25,000)  
Inventories (10,000)  
Other Current Investments (10,000) (45,000)
Cash From Operating  Activities   (27,000)
  Less: Tax Paid  
Net Cash Used in Operating  Activities (A)   (27,000)
     
Cash From Investing  Activities    
Nil    
Net Cash From Investing Activities (B)   NIL
     
Cash From Financing Activities    
Proceeds from Issue of Share Capital 50,000 50,000
     
Net Cash From Financing Activities (C)   50,000
Net Increase in Cash (A + B + C)   23,000
  Add: Opening Cash and Cash Equivalents (30,000 + 10,000)   40,000
(Cash + Short-term Investments)    
Closing Cash and Cash Equivalents (47,000 + 16,000)   63,000
(Cash + Short-term Investments)    
     

Answer:

Cash Flow Statement
For the Year Ending March 31, 2017
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   50,000
+ Provision for Tax   15,000
+ General Reserve  
+ Proposed Dividend   30,000
  Add: Non Operating Expenses    
Depreciation on Plant & Machinery 10,000 10,000
  Less: Non Operating Incomes  
     
Operating Profit Before Working Capital Changes   1,05,000
  Add: Decrease in Current Assets & Increase in Current Liabilities    
Creditors 44,000  
Bills Receivable 4,000 48,000
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Debtors (36,000)  
Inventories (40,000) (76,000)
     
Cash From Operating  Activities   77,000
  Less: Tax Paid   (12,000)
Net Cash From Operating  Activities (A)   65,000
     
Cash From Investing  Activities    
Proceeds from sale of Plant & Machinery 50,000 50,000
Net Cash From Investing Activities (B)   50,000
     
Cash From Financing Activities    
Payment of  Land & Building (75,000)  
Proposed Dividend (20,000) (95,000)
     
Net Cash From Financing Activities (C)   (95,000)
Net Increase in Cash (A + B + C)   20,000
  Add: Opening Cash and Cash Equivalents   (32,000)
(Cash + Marketable Investments- Bank Overdraft)     
Closing Cash and Cash Equivalents   (12,000)
(Cash + Marketable Investments- Bank Overdraft)    
     

Working Note:-

Plant & Machinery Account
Dr.   Cr.
Particulars  Amount
(Rs)
Particulars Amount (Rs)
Balance b/d 1,50,000 Depreciation 10,000
    Bank A/c (Balancing Figure) 50,000
    Balance c/d 90,000
  1,50,000   1,50,000
       



Page No 3.117:

Question 49:

Cash Flow Statement
For the Year Ending March 31, 2017
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   50,000
+ Provision for Tax   15,000
+ General Reserve  
+ Proposed Dividend   30,000
  Add: Non Operating Expenses    
Depreciation on Plant & Machinery 10,000 10,000
  Less: Non Operating Incomes  
     
Operating Profit Before Working Capital Changes   1,05,000
  Add: Decrease in Current Assets & Increase in Current Liabilities    
Creditors 44,000  
Bills Receivable 4,000 48,000
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Debtors (36,000)  
Inventories (40,000) (76,000)
     
Cash From Operating  Activities   77,000
  Less: Tax Paid   (12,000)
Net Cash From Operating  Activities (A)   65,000
     
Cash From Investing  Activities    
Proceeds from sale of Plant & Machinery 50,000 50,000
Net Cash From Investing Activities (B)   50,000
     
Cash From Financing Activities    
Payment of  Land & Building (75,000)  
Proposed Dividend (20,000) (95,000)
     
Net Cash From Financing Activities (C)   (95,000)
Net Increase in Cash (A + B + C)   20,000
  Add: Opening Cash and Cash Equivalents   (32,000)
(Cash + Marketable Investments- Bank Overdraft)     
Closing Cash and Cash Equivalents   (12,000)
(Cash + Marketable Investments- Bank Overdraft)    
     

Working Note:-

Plant & Machinery Account
Dr.   Cr.
Particulars  Amount
(Rs)
Particulars Amount (Rs)
Balance b/d 1,50,000 Depreciation 10,000
    Bank A/c (Balancing Figure) 50,000
    Balance c/d 90,000
  1,50,000   1,50,000
       

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

1,00,000

 

 

Provision for Tax

1,60,000

 

 

Profit Before Taxation

 

2,60,000

 

Items to be Added:

 

 

 

Depreciation

60,000

 

 

Goodwill written off

60,000

1,20,000

 

Operating Profit before Working Capital Adjustments

 

3,80,000

 

Less: Increase in Current Assets

 

 

 

 

      Bills Receivables

2,00,000

 

 

 

      Inventories

50,000

 

 

Add: Increase in Current Liabilities

 

 

 

       Trade Payables

40,000

(2,10,000)

 

Cash Generated from Operations

 

1,70,000

 

Less: Tax Paid

 

(1,40,000)

 

Net Cash Flows from Operating Activities

 

30,000

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Purchase of Machinery

7,60,000

 

 

Net Cash Used in Investing Activities

 

(7,60,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

 Proceeds from Issue of Share Capital

4,00,000

 

 

Increase in Long-term Borrowings

3,60,000

 

 

Net Cash Flow from Financing Activities

 

7,60,000

 

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

30,000

 

 

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

 

5,60,000

 

Cash and Cash Equivalents at the end of the period

 

5,90,000

 

 

 

 

           

Working Notes:

 

Provision for Taxation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Bank A/c (Tax Paid)

1,40,000

Balance b/d

60,000

Balance c/d

80,000

Profit and Loss A/c (Bal. Fig.)

1,60,000

 

2,20,000

 

2,20,000

 

 

 

 

 



Page No 3.118:

Question 50:

 

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

1,00,000

 

 

Provision for Tax

1,60,000

 

 

Profit Before Taxation

 

2,60,000

 

Items to be Added:

 

 

 

Depreciation

60,000

 

 

Goodwill written off

60,000

1,20,000

 

Operating Profit before Working Capital Adjustments

 

3,80,000

 

Less: Increase in Current Assets

 

 

 

 

      Bills Receivables

2,00,000

 

 

 

      Inventories

50,000

 

 

Add: Increase in Current Liabilities

 

 

 

       Trade Payables

40,000

(2,10,000)

 

Cash Generated from Operations

 

1,70,000

 

Less: Tax Paid

 

(1,40,000)

 

Net Cash Flows from Operating Activities

 

30,000

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Purchase of Machinery

7,60,000

 

 

Net Cash Used in Investing Activities

 

(7,60,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

 Proceeds from Issue of Share Capital

4,00,000

 

 

Increase in Long-term Borrowings

3,60,000

 

 

Net Cash Flow from Financing Activities

 

7,60,000

 

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

30,000

 

 

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

 

5,60,000

 

Cash and Cash Equivalents at the end of the period

 

5,90,000

 

 

 

 

           

Working Notes:

 

Provision for Taxation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Bank A/c (Tax Paid)

1,40,000

Balance b/d

60,000

Balance c/d

80,000

Profit and Loss A/c (Bal. Fig.)

1,60,000

 

2,20,000

 

2,20,000

 

 

 

 

 

Answer:

Cash Flow Statement
For the Year Ending March 31,2016
Particulars Details
(Rs)
Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   (56,000)
+ Provision for Tax    
+ General Reserve    
+ Proposed Dividend    
Add: Non Operating Expenses    
Depreciation on Plant & Machinery 10,000  
Loss on Sale of Furniture 2,000  
Debenture Interest 12,000 24,000
  Less: Non Operating Incomes  
     
     
Operating Profit Before Working Capital Changes   (32,000)
  Add: Decrease in Current Assets & Increase in Current Liabilities  
     
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Debtors (10,000)  
Creditors (25,000) (35,000)
     
Cash From Operating  Activities   (67,000)
  Less: Tax Paid  
Net Cash From Operating  Activities (A)   (67,000)
     
Cash From Investing  Activities    
Proceeds from sale of Fixed Assets 28,000  
Purchase of Fixed Assets (1,20,000) (92,000)
Net Cash From Investing Activities (B)   (92,000)
     
Cash From Financing Activities    
Proceeds from Issue of Share Capital 1,00,000  
Proceeds from issue of 12% Debentures 36,000  
Debenture Interest Paid (12,000)  
Security Premium Reserve 25,000 1,49,000
     
Net Cash From Financing Activities (C)   1,49,000
Net Increase in Cash (A + B + C)   (10,000)
  Add: Opening Cash and Cash Equivalents   40,000
(Cash + Marketable Investments- Bank Overdraft)    
Closing Cash and Cash Equivalents   30,000
(Cash + Marketable Investments- Bank Overdraft)    
     

Working Note:-
 
Fixed Assets Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 2,00,000 Depreciation (Balancing Figure) 10,000
Cash A/c 1,20,000  Cash A/c 28,000
    P& L A/c 2,000
  3,20,000   3,20,000
       



Page No 3.119:

Question 51:

Cash Flow Statement
For the Year Ending March 31,2016
Particulars Details
(Rs)
Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   (56,000)
+ Provision for Tax    
+ General Reserve    
+ Proposed Dividend    
Add: Non Operating Expenses    
Depreciation on Plant & Machinery 10,000  
Loss on Sale of Furniture 2,000  
Debenture Interest 12,000 24,000
  Less: Non Operating Incomes  
     
     
Operating Profit Before Working Capital Changes   (32,000)
  Add: Decrease in Current Assets & Increase in Current Liabilities  
     
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Debtors (10,000)  
Creditors (25,000) (35,000)
     
Cash From Operating  Activities   (67,000)
  Less: Tax Paid  
Net Cash From Operating  Activities (A)   (67,000)
     
Cash From Investing  Activities    
Proceeds from sale of Fixed Assets 28,000  
Purchase of Fixed Assets (1,20,000) (92,000)
Net Cash From Investing Activities (B)   (92,000)
     
Cash From Financing Activities    
Proceeds from Issue of Share Capital 1,00,000  
Proceeds from issue of 12% Debentures 36,000  
Debenture Interest Paid (12,000)  
Security Premium Reserve 25,000 1,49,000
     
Net Cash From Financing Activities (C)   1,49,000
Net Increase in Cash (A + B + C)   (10,000)
  Add: Opening Cash and Cash Equivalents   40,000
(Cash + Marketable Investments- Bank Overdraft)    
Closing Cash and Cash Equivalents   30,000
(Cash + Marketable Investments- Bank Overdraft)    
     

Working Note:-
 
Fixed Assets Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 2,00,000 Depreciation (Balancing Figure) 10,000
Cash A/c 1,20,000  Cash A/c 28,000
    P& L A/c 2,000
  3,20,000   3,20,000
       

Answer:

Cash Flow Statement
For the Year Ending March 31,2014
Particulars Details
(Rs)
Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   36,000
+ Provision for Tax   27,000
+ General Reserve   30,000
+ Proposed Dividend    
  Add: Non Operating Expenses    
Depreciation on Fixed Assets 2,10,000  
Interim Dividend 1,20,000 3,30,000
  Less: Non Operating Incomes    
Profit on Sale of Investment (1,500)  
Profit on Sale of Fixed Assets (6,000) (7,500)
     
Operating Profit Before Working Capital Changes   4,15,500
  Add: Decrease in Current Assets & Increase in Current Liabilities    
Inventories 90,000 90,000
     
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Debtors (7,35,000)  
Creditors (1,02,000) (8,37,000)
     
Cash From Operating  Activities   3,31,500
  Less: Tax Paid   (2,22,000)
Net Cash From Operating  Activities (A)   (5,53,500)
     
Cash From Investing  Activities    
Proceeds from sale of Investment 25,500  
Proceeds from sale of Fixed Assets 36,000  
Purchase of  Investment (54,000) 7,500
Net Cash From Investing Activities (B)   7,500
     
Cash From Financing Activities    
Interim Dividend (1,20,000)  
Proceeds from Land & Buildings 8,10,000 6,90,000
     
     
Net Cash From Financing Activities (C)   6,90,000
Net Increase in Cash (A + B + C)   1,44,000
Add: Opening Cash and Cash Equivalents   4,47,000
(Cash + Marketable Investments- Bank Overdraft)    
Closing Cash and Cash Equivalents   5,91,000
(Cash + Marketable Investments- Bank Overdraft)    
     

Working Note:-
 
Investment  Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 1,50,000 Bank A/c 25,500
P & L A/c 1,500 Balance c/d 1,80,000
Bank A/c (Balancing Figure) 54,000    
  2,05,500   2,05,500
       
 
Provision for Tax Account
Dr.   Cr.
Particulars  Amount
(Rs)
Particulars Amount
(Rs)
Cash A/c 2,22,000 Balance b/d 2,25,000
Balance c/d 30,000 P & L A/c 27,000
       
  2,52,000   2,52,000
       
 
Fixed Assets Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 12,00,000 Depreciation (Balancing Figure) 2,10,000
P & L A/c 6,000 Bank A/c 36,000
    Balance c/d 9,60,000
  12,06,000   12,06,000
       



Page No 3.120:

Question 52:

Cash Flow Statement
For the Year Ending March 31,2014
Particulars Details
(Rs)
Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   36,000
+ Provision for Tax   27,000
+ General Reserve   30,000
+ Proposed Dividend    
  Add: Non Operating Expenses    
Depreciation on Fixed Assets 2,10,000  
Interim Dividend 1,20,000 3,30,000
  Less: Non Operating Incomes    
Profit on Sale of Investment (1,500)  
Profit on Sale of Fixed Assets (6,000) (7,500)
     
Operating Profit Before Working Capital Changes   4,15,500
  Add: Decrease in Current Assets & Increase in Current Liabilities    
Inventories 90,000 90,000
     
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Debtors (7,35,000)  
Creditors (1,02,000) (8,37,000)
     
Cash From Operating  Activities   3,31,500
  Less: Tax Paid   (2,22,000)
Net Cash From Operating  Activities (A)   (5,53,500)
     
Cash From Investing  Activities    
Proceeds from sale of Investment 25,500  
Proceeds from sale of Fixed Assets 36,000  
Purchase of  Investment (54,000) 7,500
Net Cash From Investing Activities (B)   7,500
     
Cash From Financing Activities    
Interim Dividend (1,20,000)  
Proceeds from Land & Buildings 8,10,000 6,90,000
     
     
Net Cash From Financing Activities (C)   6,90,000
Net Increase in Cash (A + B + C)   1,44,000
Add: Opening Cash and Cash Equivalents   4,47,000
(Cash + Marketable Investments- Bank Overdraft)    
Closing Cash and Cash Equivalents   5,91,000
(Cash + Marketable Investments- Bank Overdraft)    
     

Working Note:-
 
Investment  Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 1,50,000 Bank A/c 25,500
P & L A/c 1,500 Balance c/d 1,80,000
Bank A/c (Balancing Figure) 54,000    
  2,05,500   2,05,500
       
 
Provision for Tax Account
Dr.   Cr.
Particulars  Amount
(Rs)
Particulars Amount
(Rs)
Cash A/c 2,22,000 Balance b/d 2,25,000
Balance c/d 30,000 P & L A/c 27,000
       
  2,52,000   2,52,000
       
 
Fixed Assets Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 12,00,000 Depreciation (Balancing Figure) 2,10,000
P & L A/c 6,000 Bank A/c 36,000
    Balance c/d 9,60,000
  12,06,000   12,06,000
       

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

70,000

 

 

General Reserve

30,000

 

 

Provision for Tax

40,000

 

 

Profit Before Taxation

 

1,40,000

 

Items to be Added:

 

 

 

Depreciation on machinery

80,000

 

 

Interest on Debentures

10,000

 

 

Items to be Deducted:

 

 

 

Profit on sale of Machinery

(10,000)

 

 

Profit on sale of investment

(8,000)

(72,000)

 

Operating Profit before Working Capital Adjustments

 

2,12,000

 

Add: Decrease in Current Assets

 

 

 

 

      Trade Receivables

1,10,000

 

 

Less: Decrease in Current Liabilities

 

 

 

       Trade Payables

(15,000)

95,000

 

Cash Generated from Operations

 

3,07,000

 

Less: Tax Paid

 

(55,000)

 

Net Cash Flows from Operating Activities

 

2,52,000

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Sale of Machinery

25,000

 

 

 

Purchase of Machinery

(4,40,000)

 

 

 

Purchase of Investment

(75,000)

 

 

 

Sale of Investment

48,000

 

 

Net Cash Used in Investing Activities

 

(4,42,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of Share Capital

2,00,000

 

 

Proceeds from Issue of Debentures

        60,000

 

 

Interest on Debentures Paid

     (10,000)

 

 

 Security Premium Reserve

10,000

 

 

Net Cash Flow from Financing Activities

 

2,60,000

 

 

 

 

 

D

Net Increase in Cash and Cash Equivalents

 

70,000

 

 

Add: Cash and Cash Equivalent in the beginning of the period (1,70,000+40,000)

 

2,10,000

 

Cash and Cash Equivalents at the end of the period 

 

2,80,000

 

 

 

 

           

 

Working Notes:

Investments Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

1,00,000

Bank A/c (Sale)

48,000

Profit and Loss A/c (Profit on Sale)

8,000

Balance c/d

1,35,000

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

75,000

 

 

 

1,83,000

 

1,83,000

 

 

 

 

 

Machinery  Account

Dr.

Cr.

 

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

 

Balance b/d

7,00,000

Bank A/c (Sale)

25,000

 

Profit and Loss A/c

10,000

Accumulated Depreciation

55,000

 

(Profit on Sale)

 

Balance c/d

10,70,000

 

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

4,40,000

 

 

 

 

11,50,000

 

11,50,000

 

 

 

 

 

 

 

Accumulated Depreciation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Fixed Assets A/c

55,000

Balance b/d

95,000

Balance c/d

1,20,000

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

80,000

 

1,75,000

 

1,75,000

 

 

 

 

 



Page No 3.121:

Question 53:

 

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

70,000

 

 

General Reserve

30,000

 

 

Provision for Tax

40,000

 

 

Profit Before Taxation

 

1,40,000

 

Items to be Added:

 

 

 

Depreciation on machinery

80,000

 

 

Interest on Debentures

10,000

 

 

Items to be Deducted:

 

 

 

Profit on sale of Machinery

(10,000)

 

 

Profit on sale of investment

(8,000)

(72,000)

 

Operating Profit before Working Capital Adjustments

 

2,12,000

 

Add: Decrease in Current Assets

 

 

 

 

      Trade Receivables

1,10,000

 

 

Less: Decrease in Current Liabilities

 

 

 

       Trade Payables

(15,000)

95,000

 

Cash Generated from Operations

 

3,07,000

 

Less: Tax Paid

 

(55,000)

 

Net Cash Flows from Operating Activities

 

2,52,000

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Sale of Machinery

25,000

 

 

 

Purchase of Machinery

(4,40,000)

 

 

 

Purchase of Investment

(75,000)

 

 

 

Sale of Investment

48,000

 

 

Net Cash Used in Investing Activities

 

(4,42,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of Share Capital

2,00,000

 

 

Proceeds from Issue of Debentures

        60,000

 

 

Interest on Debentures Paid

     (10,000)

 

 

 Security Premium Reserve

10,000

 

 

Net Cash Flow from Financing Activities

 

2,60,000

 

 

 

 

 

D

Net Increase in Cash and Cash Equivalents

 

70,000

 

 

Add: Cash and Cash Equivalent in the beginning of the period (1,70,000+40,000)

 

2,10,000

 

Cash and Cash Equivalents at the end of the period 

 

2,80,000

 

 

 

 

           

 

Working Notes:

Investments Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

1,00,000

Bank A/c (Sale)

48,000

Profit and Loss A/c (Profit on Sale)

8,000

Balance c/d

1,35,000

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

75,000

 

 

 

1,83,000

 

1,83,000

 

 

 

 

 

Machinery  Account

Dr.

Cr.

 

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

 

Balance b/d

7,00,000

Bank A/c (Sale)

25,000

 

Profit and Loss A/c

10,000

Accumulated Depreciation

55,000

 

(Profit on Sale)

 

Balance c/d

10,70,000

 

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

4,40,000

 

 

 

 

11,50,000

 

11,50,000

 

 

 

 

 

 

 

Accumulated Depreciation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Fixed Assets A/c

55,000

Balance b/d

95,000

Balance c/d

1,20,000

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

80,000

 

1,75,000

 

1,75,000

 

 

 

 

 

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

75,000

 

 

Interim Dividend

20,000

 

 

Provision for Tax

25,000

 

 

Proposed Dividend

35,000

 

 

Profit Before Taxation

 

1,55,000

 

Items to be Added:

 

 

 

Depreciation on Equipment

9,000

 

 

Patents Written Off

2,500

 

 

Loss on Sale of Equipment

6,000

17,500

 

Operating Profit before Working Capital Adjustments

 

1,72,500

 

Less: Increase in Current Assets

 

 

 

 

      Trade Receivables

(20,000)

 

 

 

      Inventories

(40,000)

 

 

Less: Decrease in Current Liabilities

 

 

 

       Trade Payables

(1,500)

(61,500)

 

Cash Generated from Operations

 

1,11,000

 

Less: Tax Paid

 

(15,000)

 

Net Cash Flows from Operating Activities

 

96,000

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Sale of Equipment

35,000

 

 

 

Purchase of Investment

(47,500)

 

 

 

Purchase of Equipment

(50,000)

 

 

Net Cash Used in Investing Activities

 

(62,500)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

 Proceeds from Issue of Share Capital

      1,00,000

 

 

Repayment of Bank Loan

(25,000)

 

 

Proposed Dividend

(25,000)

 

 

Interim Dividend Paid

(20,000)

 

 

Net Cash Flow from Financing Activities

 

30,000

 

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

63,500

 

 

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

 

1,00,000

 

Cash and Cash Equivalents at the end of the period

 

1,63,500

 

 

 

 

           

 

Working Notes:

Equipment Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

2,50,000

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

35,000

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

50,000

Depreciation

9,000

 

 

Profit and Loss A/c (Loss on Sale)

6,000

 

 

Balance c/d

2,50,000

 

3,00,000

 

3,00,000

 

 

 

 

 

Provision for Taxation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Bank A/c (Tax Paid)

15,000

Balance b/d

15,000

Balance c/d

25,000

Profit and Loss A/c (Bal. Fig.)

25,000

 

40,000

 

40,000

 

 

 

 

 



Page No 3.122:

Question 54:

 

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

75,000

 

 

Interim Dividend

20,000

 

 

Provision for Tax

25,000

 

 

Proposed Dividend

35,000

 

 

Profit Before Taxation

 

1,55,000

 

Items to be Added:

 

 

 

Depreciation on Equipment

9,000

 

 

Patents Written Off

2,500

 

 

Loss on Sale of Equipment

6,000

17,500

 

Operating Profit before Working Capital Adjustments

 

1,72,500

 

Less: Increase in Current Assets

 

 

 

 

      Trade Receivables

(20,000)

 

 

 

      Inventories

(40,000)

 

 

Less: Decrease in Current Liabilities

 

 

 

       Trade Payables

(1,500)

(61,500)

 

Cash Generated from Operations

 

1,11,000

 

Less: Tax Paid

 

(15,000)

 

Net Cash Flows from Operating Activities

 

96,000

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Sale of Equipment

35,000

 

 

 

Purchase of Investment

(47,500)

 

 

 

Purchase of Equipment

(50,000)

 

 

Net Cash Used in Investing Activities

 

(62,500)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

 Proceeds from Issue of Share Capital

      1,00,000

 

 

Repayment of Bank Loan

(25,000)

 

 

Proposed Dividend

(25,000)

 

 

Interim Dividend Paid

(20,000)

 

 

Net Cash Flow from Financing Activities

 

30,000

 

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

63,500

 

 

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

 

1,00,000

 

Cash and Cash Equivalents at the end of the period

 

1,63,500

 

 

 

 

           

 

Working Notes:

Equipment Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

2,50,000

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

35,000

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

50,000

Depreciation

9,000

 

 

Profit and Loss A/c (Loss on Sale)

6,000

 

 

Balance c/d

2,50,000

 

3,00,000

 

3,00,000

 

 

 

 

 

Provision for Taxation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Bank A/c (Tax Paid)

15,000

Balance b/d

15,000

Balance c/d

25,000

Profit and Loss A/c (Bal. Fig.)

25,000

 

40,000

 

40,000

 

 

 

 

 

Answer:

Cash Flow Statement
For the Year Ending March 31,2015
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   40,000
+ Provision for Tax   80,000
+ General Reserve   40,000
+ Proposed Dividend   22,500
  Add: Non Operating Expenses    
Depreciation on Fixed Assets 10,000  
Interest Paid on Loan 5,000  
Interest Paid on Debentures 9,000 24,000
  Less: Non Operating Incomes  
     
Operating Profit Before Working Capital Changes   2,06,500
  Add: Decrease in Current Assets & Increase in Current Liabilities    
Creditors 10,000 10,000
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Inventories (25,000)  
Debtors (50,000)  
Current Investments (1,500) (76,500)
     
Cash From Operating  Activities   1,40,000
  Less: Tax Paid   (60,000)
Net Cash From Operating  Activities (A)   80,000
     
Cash From Investing  Activities  
     
Net Cash From Investing Activities (B)  
     
Cash From Financing Activities    
Interest Paid on Loan from Bank (5,000)  
Interest Paid on Debentures (9,000)  
Proposed Dividend (10,000)  
Repayment of Debentures (80,000)  
Repayment of Bank Loan (50,000)  
Proceeds from Equity Share Capital 50,000  
Proceeds from Preference Share Capital 50,000  
Bank Overdraft (15,000) (69,000)
Net Cash From Financing Activities (C)   (69,000)
Net Increase in Cash (A + B + C)   11,000
Add: Opening Cash and Cash Equivalents   20,000
Closing Cash and Cash Equivalents   31,000
     
     

Working Note:-
 
Fixed Assets  Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 4,10,000 Depreciation A/c 10,000
    Balance c/d 4,00,000
       
  4,10,000   4,10,000
       



Page No 3.123:

Question 55:

Cash Flow Statement
For the Year Ending March 31,2015
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   40,000
+ Provision for Tax   80,000
+ General Reserve   40,000
+ Proposed Dividend   22,500
  Add: Non Operating Expenses    
Depreciation on Fixed Assets 10,000  
Interest Paid on Loan 5,000  
Interest Paid on Debentures 9,000 24,000
  Less: Non Operating Incomes  
     
Operating Profit Before Working Capital Changes   2,06,500
  Add: Decrease in Current Assets & Increase in Current Liabilities    
Creditors 10,000 10,000
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Inventories (25,000)  
Debtors (50,000)  
Current Investments (1,500) (76,500)
     
Cash From Operating  Activities   1,40,000
  Less: Tax Paid   (60,000)
Net Cash From Operating  Activities (A)   80,000
     
Cash From Investing  Activities  
     
Net Cash From Investing Activities (B)  
     
Cash From Financing Activities    
Interest Paid on Loan from Bank (5,000)  
Interest Paid on Debentures (9,000)  
Proposed Dividend (10,000)  
Repayment of Debentures (80,000)  
Repayment of Bank Loan (50,000)  
Proceeds from Equity Share Capital 50,000  
Proceeds from Preference Share Capital 50,000  
Bank Overdraft (15,000) (69,000)
Net Cash From Financing Activities (C)   (69,000)
Net Increase in Cash (A + B + C)   11,000
Add: Opening Cash and Cash Equivalents   20,000
Closing Cash and Cash Equivalents   31,000
     
     

Working Note:-
 
Fixed Assets  Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 4,10,000 Depreciation A/c 10,000
    Balance c/d 4,00,000
       
  4,10,000   4,10,000
       

Answer:

Cash Flow Statement
For the Year Ending March 31,2015
Particulars Details
(Rs)
Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   40,000
+ Provision for Tax    
+ General Reserve    
+ Proposed Dividend    
  Add: Non Operating Expenses    
Depreciation on Building 20,000  
Depreciation on Plant 10,000  
Interest Paid on Deposits 19,200  
Interest Paid on Debentures 14,400 63,600
  Less: Non Operating Incomes  
     
Operating Profit Before Working Capital Changes   1,03,600
  Add: Decrease in Current Assets & Increase in Current Liabilities    
Creditors 4,000  
Accrued Income 8,000  
Inventories 6,000 18,000
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Prepaid Expenses (4,000)  
Bills Payable (4,000)  
O/standing Expenses (4,000)  
Debtors (30,000)  
Bills Receivables (2,000) (44,000)
     
Cash From Operating  Activities   77,600
Less: Tax Paid  
Net Cash From Operating  Activities (A)   77,600
     
Cash From Investing  Activities    
Purchase of Building (1,60,000)  
Purchase of Plant (50,000) (2,10,000)
     
Net Cash From Investing Activities (B)   (2,10,000)
     
Cash From Financing Activities    
Interest Paid on Deposit (19,200)  
Interest Paid on Debentures (14,400)  
Proceeds from Public Deposit 80,000  
Proceeds from Issue of Share Capital 60,000  
Proceeds from Issue of Debentures 36,000 1,42,400
     
     
Net Cash From Financing Activities (C)   1,42,400
Net Increase in Cash (A + B + C)   10,000
  Add: Opening Cash and Cash Equivalents   1,00,000
(Cash + Marketable Investments- Bank Overdraft)    
Closing Cash and Cash Equivalents   1,10,000
(Cash + Marketable Investments- Bank Overdraft)    
     

Working Note:-
 
Building Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 3,00,000 Depreciation A/c 20,000
Cash A/c (Balancing Figure) 1,60,000 Balance c/d 4,40,000
       
  4,60,000   4,60,000
       
 
Plant  Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount (Rs)
Balance b/d 1,60,000 Depreciation A/c 10,000
Cash A/c (Balancing Figure) 50,000 Balance c/d 2,00,000
       
  2,10,000   2,10,000
       



Page No 3.124:

Question 56:

Cash Flow Statement
For the Year Ending March 31,2015
Particulars Details
(Rs)
Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   40,000
+ Provision for Tax    
+ General Reserve    
+ Proposed Dividend    
  Add: Non Operating Expenses    
Depreciation on Building 20,000  
Depreciation on Plant 10,000  
Interest Paid on Deposits 19,200  
Interest Paid on Debentures 14,400 63,600
  Less: Non Operating Incomes  
     
Operating Profit Before Working Capital Changes   1,03,600
  Add: Decrease in Current Assets & Increase in Current Liabilities    
Creditors 4,000  
Accrued Income 8,000  
Inventories 6,000 18,000
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Prepaid Expenses (4,000)  
Bills Payable (4,000)  
O/standing Expenses (4,000)  
Debtors (30,000)  
Bills Receivables (2,000) (44,000)
     
Cash From Operating  Activities   77,600
Less: Tax Paid  
Net Cash From Operating  Activities (A)   77,600
     
Cash From Investing  Activities    
Purchase of Building (1,60,000)  
Purchase of Plant (50,000) (2,10,000)
     
Net Cash From Investing Activities (B)   (2,10,000)
     
Cash From Financing Activities    
Interest Paid on Deposit (19,200)  
Interest Paid on Debentures (14,400)  
Proceeds from Public Deposit 80,000  
Proceeds from Issue of Share Capital 60,000  
Proceeds from Issue of Debentures 36,000 1,42,400
     
     
Net Cash From Financing Activities (C)   1,42,400
Net Increase in Cash (A + B + C)   10,000
  Add: Opening Cash and Cash Equivalents   1,00,000
(Cash + Marketable Investments- Bank Overdraft)    
Closing Cash and Cash Equivalents   1,10,000
(Cash + Marketable Investments- Bank Overdraft)    
     

Working Note:-
 
Building Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 3,00,000 Depreciation A/c 20,000
Cash A/c (Balancing Figure) 1,60,000 Balance c/d 4,40,000
       
  4,60,000   4,60,000
       
 
Plant  Account
Dr.   Cr.
Particulars Amount
(Rs)
Particulars Amount (Rs)
Balance b/d 1,60,000 Depreciation A/c 10,000
Cash A/c (Balancing Figure) 50,000 Balance c/d 2,00,000
       
  2,10,000   2,10,000
       

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

10,000

 

 

General Reserve

13,000

 

 

Provision for Tax

25,000

 

 

Profit Before Taxation

 

48,000

 

Items to be Added:

 

 

 

Depreciation on Plant & Machinery

50,000

 

 

Interest on Debentures

7,500

 

 

Items to be Deducted:

 

 

 

Profit on Sale of Plant & Machinery

(13,000)

44,500

 

Operating Profit before Working Capital Adjustments

 

92,500

 

Less: Increase in Current Assets

 

 

 

 

      Trade Receivables

(60,000)

 

 

 

      Inventories

(20,000)

 

 

Add:Increase in Current Liabilities

 

 

 

       Trade Payables

60,000

(20,000)

 

Cash Generated from Operations

 

72,500

 

Less: Tax Paid

 

25,000

 

Net Cash Flows from Operating Activities

 

47,500

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Sale of Plant & Machinery

28,000

 

 

 

Sale of Non-Current Investment

25,000

 

 

 

Purchase of Plant & Machinery

(3,15,000)

 

 

Net Cash Used in Investing Activities

 

(2,62,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

 Proceeds from Issue of Share Capital

3,25,000

 

 

Redemption of Debentures

(25,000)

 

 

Interest on Debentures

(7,500)

 

 

Bank Overdraft Discharged

(8,000)

 

 

Net Cash Flow from Financing Activities

 

2,84,500

 

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

70,000

 

 

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

 

20,000

 

Cash and Cash Equivalents at the end of the period

 

90,000

 

 

 

 

           

 

Working Notes:

Plant & Machinery Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

4,10,000

Bank A/c (Sale)

28,000

Profit and Loss A/c (Profit on Sale)

13,000

Accumulated Depreciation

20,000

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

3,15,000

Balance c/d

6,90,000

 

7,38,000

 

7,38,000

 

 

 

 

 

Accumulated Depreciation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Fixed Assets A/c

20,000

Balance b/d

60,000

Balance c/d

90,000

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

50,000

 

1,10,000

 

1,10,000

 

 

 

 

 

Non-Current Investment Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

70,000

Bank A/c

25,000*

Capital Reserve (Profit on Sale)

5,000

Balance c/d

50,000

 

 

 

 

 

75,000

 

75,000

 

 

 

 

* 5,000×12525=Rs 25,000



Page No 3.125:

Question 57:

 

 

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

10,000

 

 

General Reserve

13,000

 

 

Provision for Tax

25,000

 

 

Profit Before Taxation

 

48,000

 

Items to be Added:

 

 

 

Depreciation on Plant & Machinery

50,000

 

 

Interest on Debentures

7,500

 

 

Items to be Deducted:

 

 

 

Profit on Sale of Plant & Machinery

(13,000)

44,500

 

Operating Profit before Working Capital Adjustments

 

92,500

 

Less: Increase in Current Assets

 

 

 

 

      Trade Receivables

(60,000)

 

 

 

      Inventories

(20,000)

 

 

Add:Increase in Current Liabilities

 

 

 

       Trade Payables

60,000

(20,000)

 

Cash Generated from Operations

 

72,500

 

Less: Tax Paid

 

25,000

 

Net Cash Flows from Operating Activities

 

47,500

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Sale of Plant & Machinery

28,000

 

 

 

Sale of Non-Current Investment

25,000

 

 

 

Purchase of Plant & Machinery

(3,15,000)

 

 

Net Cash Used in Investing Activities

 

(2,62,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

 Proceeds from Issue of Share Capital

3,25,000

 

 

Redemption of Debentures

(25,000)

 

 

Interest on Debentures

(7,500)

 

 

Bank Overdraft Discharged

(8,000)

 

 

Net Cash Flow from Financing Activities

 

2,84,500

 

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

70,000

 

 

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

 

20,000

 

Cash and Cash Equivalents at the end of the period

 

90,000

 

 

 

 

           

 

Working Notes:

Plant & Machinery Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

4,10,000

Bank A/c (Sale)

28,000

Profit and Loss A/c (Profit on Sale)

13,000

Accumulated Depreciation

20,000

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

3,15,000

Balance c/d

6,90,000

 

7,38,000

 

7,38,000

 

 

 

 

 

Accumulated Depreciation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Fixed Assets A/c

20,000

Balance b/d

60,000

Balance c/d

90,000

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

50,000

 

1,10,000

 

1,10,000

 

 

 

 

 

Non-Current Investment Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

70,000

Bank A/c

25,000*

Capital Reserve (Profit on Sale)

5,000

Balance c/d

50,000

 

 

 

 

 

75,000

 

75,000

 

 

 

 

* 5,000×12525=Rs 25,000

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

1,50,000

 

 

General Reserve

(2,25,000)

 

 

Equity Dividend

48,000

 

 

Preference Dividend

24,000

 

 

Provision for Tax

1,80,000

 

 

Profit Before Taxation

 

1,77,000

 

Items to be Added:

 

 

 

Depreciation on Machinery

70,000

 

 

Interest on Loan

60,000

 

 

Interest on Debentures

21,375

 

 

Goodwill Written Off

50,000

 

 

Items to be Deducted:

 

 

 

Profit on sale of Machinery

(6,000)

 

 

Profit on sale of Non-Current Investment

(12,000)

(1,83,375)

 

Operating Profit before Working Capital Adjustments

 

3,60,375

 

Less: Increase in Current Assets

 

 

 

 

     Trade Receivables

(30,000)

 

 

Add: Increase in Current Liabilities

 

 

 

       Trade Payables

1,10,000

 

 

Add: Decrease in Current Assets

 

 

 

      Inventory

50,000

1,30,000

 

Cash Generated from Operations

 

4,90,375

 

Less: Tax Paid

 

1,40,000

 

Net Cash Flows from Operating Activities

 

3,50,375

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Sale of Machinery

36,000

 

 

 

Purchase of Machinery

(3,00,000)

 

 

 

Sale of Non-Current investment

72,000

 

 

 

Purchase of Non-Current investment

(1,20,000)

 

 

Net Cash Used in Investing Activities

 

(3,12,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

 Proceeds from Issue of Share Capital

3,00,000

 

 

Repayment of Bank Loan

(1,00,000)

 

 

Interest on Debentures

(21,375)

 

 

Repayment of Debentures

(50,000)

 

 

Interest on Bank Loan

(60,000)

 

 

Repayment of Preference Capital

(1,00,000)

 

 

Preference Dividend

(24,000)

 

 

 Equity Dividend Paid

(48,000)

 

 

Net Cash Flow from Financing Activities

 

(1,03,375)

D

Net Increase or Decrease in Cash and Cash Equivalents

 

(65,000)

 

 

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

 

2,85,000

 

Cash and Cash Equivalents at the end of the period

 

2,20,000

 

 

 

 

           

 

Working Notes:

Interest on Debentures=(2,50,000×9100×912+2,00,000×9100×312)  = Rs 21,375

  

Machinery  Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

9,00,000

Bank A/c (Sale)

36,000

Profit and Loss A/c (Profit on Sale)

6,000

Depreciation

70,000

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

3,00,000

Balance c/d

11,00,000

 

12,06,000

 

12,06,000

 

 

 

 

 

Non-Current Investment Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

1,40,000

Bank A/c (Sale)

72,000

Profit and Loss A/c (Profit on Sale)

12,000

Balance c/d

2,00,000

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

1,20,000

 

 

 

2,72,000

 

2,72,000

 

 

 

 

 

Provision for Taxation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Bank A/c (Tax Paid)

1,40,000

Balance b/d

1,50,000

Balance c/d

1,90,000

Profit and Loss A/c (Bal. Fig.)

1,80,000

 

3,30,000

 

3,30,000

 

 

 

 

Note: Answers calculated for Operating and Investing Activities is different from the answers given in the book.



Page No 3.126:

Question 58:

 

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

1,50,000

 

 

General Reserve

(2,25,000)

 

 

Equity Dividend

48,000

 

 

Preference Dividend

24,000

 

 

Provision for Tax

1,80,000

 

 

Profit Before Taxation

 

1,77,000

 

Items to be Added:

 

 

 

Depreciation on Machinery

70,000

 

 

Interest on Loan

60,000

 

 

Interest on Debentures

21,375

 

 

Goodwill Written Off

50,000

 

 

Items to be Deducted:

 

 

 

Profit on sale of Machinery

(6,000)

 

 

Profit on sale of Non-Current Investment

(12,000)

(1,83,375)

 

Operating Profit before Working Capital Adjustments

 

3,60,375

 

Less: Increase in Current Assets

 

 

 

 

     Trade Receivables

(30,000)

 

 

Add: Increase in Current Liabilities

 

 

 

       Trade Payables

1,10,000

 

 

Add: Decrease in Current Assets

 

 

 

      Inventory

50,000

1,30,000

 

Cash Generated from Operations

 

4,90,375

 

Less: Tax Paid

 

1,40,000

 

Net Cash Flows from Operating Activities

 

3,50,375

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Sale of Machinery

36,000

 

 

 

Purchase of Machinery

(3,00,000)

 

 

 

Sale of Non-Current investment

72,000

 

 

 

Purchase of Non-Current investment

(1,20,000)

 

 

Net Cash Used in Investing Activities

 

(3,12,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

 Proceeds from Issue of Share Capital

3,00,000

 

 

Repayment of Bank Loan

(1,00,000)

 

 

Interest on Debentures

(21,375)

 

 

Repayment of Debentures

(50,000)

 

 

Interest on Bank Loan

(60,000)

 

 

Repayment of Preference Capital

(1,00,000)

 

 

Preference Dividend

(24,000)

 

 

 Equity Dividend Paid

(48,000)

 

 

Net Cash Flow from Financing Activities

 

(1,03,375)

D

Net Increase or Decrease in Cash and Cash Equivalents

 

(65,000)

 

 

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

 

2,85,000

 

Cash and Cash Equivalents at the end of the period

 

2,20,000

 

 

 

 

           

 

Working Notes:

Interest on Debentures=(2,50,000×9100×912+2,00,000×9100×312)  = Rs 21,375

  

Machinery  Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

9,00,000

Bank A/c (Sale)

36,000

Profit and Loss A/c (Profit on Sale)

6,000

Depreciation

70,000

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

3,00,000

Balance c/d

11,00,000

 

12,06,000

 

12,06,000

 

 

 

 

 

Non-Current Investment Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

1,40,000

Bank A/c (Sale)

72,000

Profit and Loss A/c (Profit on Sale)

12,000

Balance c/d

2,00,000

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

1,20,000

 

 

 

2,72,000

 

2,72,000

 

 

 

 

 

Provision for Taxation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Bank A/c (Tax Paid)

1,40,000

Balance b/d

1,50,000

Balance c/d

1,90,000

Profit and Loss A/c (Bal. Fig.)

1,80,000

 

3,30,000

 

3,30,000

 

 

 

 

Note: Answers calculated for Operating and Investing Activities is different from the answers given in the book.

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

1,90,000

 

 

Interim Dividend

50,000

 

 

Proposed Dividend

1,15,000

 

 

Provision for Tax

75,000

 

 

Profit Before Taxation

 

4,30,000

 

Items to be Added:

 

 

 

Depreciation on Machinery

30,000

 

 

Interest on Loan

5,000

 

 

Interest on Debentures

40,000

 

 

Intangible Assets Written Off

50,000

 

 

Items to be Deducted:

 

 

 

Interest on Investment

(6,000)

1,19,000

 

Operating Profit before Working Capital Adjustments

 

5,49,000

 

Less: Increase in Current Assets

 

 

 

 

     Trade  Receivables

(40,000)

 

 

Add: Increase in Current Liabilities

 

 

 

       Trade Creditors

5,000

 

 

Less: Decrease in Current Liabilities

 

 

 

      Bills Payables

(30,000)

 

 

Add: Decrease in Current Assets

 

 

 

      Inventory

10,000

(55,000)

 

Cash Generated from Operations

 

4,94,000

 

Less: Tax Paid

 

60,000

 

Net Cash Flows from Operating Activities

 

4,34,000

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Sale of building

1,50,000

 

 

 

Interest on Investment

6,000

 

 

 

Sale of Non-Current investment

55,000

 

 

 

Purchase of Non-Current investment

(1,60,000)

 

 

Net Cash Used in Investing Activities

 

51,000

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

 Proceeds from Issue of Share Capital

3,00,000

 

 

Proceeds from Issue of Bank Loan

50,000

 

 

Interest on Bank Loan

(5,000)

 

 

Repayment of Debentures

(1,00,000)

 

 

Interest on Debentures (40,000­10,000)

(30,000)

 

 

Proposed Dividend (1,00,000-20,000)

(80,000)

 

 

Interim Dividend

(50,000)

 

 

Security premium Reserve

(40,000)

 

 

Net Cash Flow from Financing Activities

 

45,000

D

Net Increase or Decrease in Cash and Cash Equivalents

 

5,30,000

 

 

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

 

4,95,000

 

Cash and Cash Equivalents at the end of the period

 

10,25,000

 

 

 

 

           

 

Working Notes:

Non-Current Investment Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

60,000

Bank A/c (Sale)

30,000

Capital Reserve A/c (Profit on Sale)

5,000

Capital Reserve A/c (Loss on Sale)

10,000

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

1,60,000

Bank A/c (Sale)

25,000

 

 

Balance c/d

1,60,000

 

2,25,000

 

2,25,000

 

 

 

 

 

Provision for Taxation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Bank A/c (Tax Paid)

60,000

Balance b/d

50,000

Balance c/d

65,000

Profit and Loss A/c (Bal. Fig.)

75,000

 

1,25,000

 

1,25,000

 

 

 

 

 



Page No 3.127:

Question 59:

 

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

1,90,000

 

 

Interim Dividend

50,000

 

 

Proposed Dividend

1,15,000

 

 

Provision for Tax

75,000

 

 

Profit Before Taxation

 

4,30,000

 

Items to be Added:

 

 

 

Depreciation on Machinery

30,000

 

 

Interest on Loan

5,000

 

 

Interest on Debentures

40,000

 

 

Intangible Assets Written Off

50,000

 

 

Items to be Deducted:

 

 

 

Interest on Investment

(6,000)

1,19,000

 

Operating Profit before Working Capital Adjustments

 

5,49,000

 

Less: Increase in Current Assets

 

 

 

 

     Trade  Receivables

(40,000)

 

 

Add: Increase in Current Liabilities

 

 

 

       Trade Creditors

5,000

 

 

Less: Decrease in Current Liabilities

 

 

 

      Bills Payables

(30,000)

 

 

Add: Decrease in Current Assets

 

 

 

      Inventory

10,000

(55,000)

 

Cash Generated from Operations

 

4,94,000

 

Less: Tax Paid

 

60,000

 

Net Cash Flows from Operating Activities

 

4,34,000

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Sale of building

1,50,000

 

 

 

Interest on Investment

6,000

 

 

 

Sale of Non-Current investment

55,000

 

 

 

Purchase of Non-Current investment

(1,60,000)

 

 

Net Cash Used in Investing Activities

 

51,000

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

 Proceeds from Issue of Share Capital

3,00,000

 

 

Proceeds from Issue of Bank Loan

50,000

 

 

Interest on Bank Loan

(5,000)

 

 

Repayment of Debentures

(1,00,000)

 

 

Interest on Debentures (40,000­10,000)

(30,000)

 

 

Proposed Dividend (1,00,000-20,000)

(80,000)

 

 

Interim Dividend

(50,000)

 

 

Security premium Reserve

(40,000)

 

 

Net Cash Flow from Financing Activities

 

45,000

D

Net Increase or Decrease in Cash and Cash Equivalents

 

5,30,000

 

 

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

 

4,95,000

 

Cash and Cash Equivalents at the end of the period

 

10,25,000

 

 

 

 

           

 

Working Notes:

Non-Current Investment Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

60,000

Bank A/c (Sale)

30,000

Capital Reserve A/c (Profit on Sale)

5,000

Capital Reserve A/c (Loss on Sale)

10,000

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

1,60,000

Bank A/c (Sale)

25,000

 

 

Balance c/d

1,60,000

 

2,25,000

 

2,25,000

 

 

 

 

 

Provision for Taxation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Bank A/c (Tax Paid)

60,000

Balance b/d

50,000

Balance c/d

65,000

Profit and Loss A/c (Bal. Fig.)

75,000

 

1,25,000

 

1,25,000

 

 

 

 

 

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

40,000

 

 

General reserve

50,000

 

 

Proposed Dividend

2,00,000

 

 

Provision for Tax

80,000

 

 

Profit Before Taxation

 

3,70,000

 

Items to be Added:

 

 

 

Depreciation on Machinery

1,25,000

 

 

Interest on Debentures

10,000

 

 

Items to be Deducted:

 

 

 

Profit on sale of Machinery

(15,000)

1,20,000

 

Operating Profit before Working Capital Adjustments

 

4,90,000

 

Less: Increase in Current Assets

 

 

 

 

     Inventory

(2,00,000)

 

 

 

 

 

 

 

Less: Decrease in Current Liabilities

 

 

 

       Trade Payables

(1,20,000)

 

 

Add: Decrease in Current Assets

 

 

 

Trade Receivables  

2,00,000

1,20,000

 

Cash Generated from Operations

 

3,70,000

 

Less: Tax Paid

 

50,000

 

Net Cash Flows from Operating Activities

 

3,20,000

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Sale of Machinery

35,000

 

 

 

Purchase of Machinery

(3,45,000)

 

 

 

Purchase of Building

(2,00,000)

 

 

 

Purchase of Non-Current investment

(1,00,000)

 

 

Net Cash Used in Investing Activities

 

(6,10,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

 Proceeds from Issue of Share Capital

2,00,000

 

 

Interest on Debentures

(10,000)

 

 

Proceeds from Issue of Debentures

2,00,000

 

 

Proposed Dividend

(1,00,000)

 

 

Net Cash Flow from Financing Activities

 

2,90,000

D

Net Increase or Decrease in Cash and Cash Equivalents

 

-

 

 

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

 

2,00,000

 

Cash and Cash Equivalents at the end of the period

 

2,00,000

 

 

 

 

           

 

Working Notes:

Interest on Debentures= 2,00,000×10100×612= Rs 10,000

Machinery  Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

5,00,000

Bank A/c (Sale)

35,000

Profit and Loss A/c (Profit on Sale)

15,000

Depreciation

1,25,000

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

3,45,000

Balance c/d

7,00,000

 

8,60,000

 

8,60,000

 

 

 

 

 

Provision for Taxation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Bank A/c (Tax Paid)

50,000

Balance b/d

70,000

Balance c/d

1,00,000

Profit and Loss A/c (Bal. Fig.)

80,000

 

1,50,000

 

1,50,000

 

 

 

 

 



Page No 3.128:

Question 60:

 

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

40,000

 

 

General reserve

50,000

 

 

Proposed Dividend

2,00,000

 

 

Provision for Tax

80,000

 

 

Profit Before Taxation

 

3,70,000

 

Items to be Added:

 

 

 

Depreciation on Machinery

1,25,000

 

 

Interest on Debentures

10,000

 

 

Items to be Deducted:

 

 

 

Profit on sale of Machinery

(15,000)

1,20,000

 

Operating Profit before Working Capital Adjustments

 

4,90,000

 

Less: Increase in Current Assets

 

 

 

 

     Inventory

(2,00,000)

 

 

 

 

 

 

 

Less: Decrease in Current Liabilities

 

 

 

       Trade Payables

(1,20,000)

 

 

Add: Decrease in Current Assets

 

 

 

Trade Receivables  

2,00,000

1,20,000

 

Cash Generated from Operations

 

3,70,000

 

Less: Tax Paid

 

50,000

 

Net Cash Flows from Operating Activities

 

3,20,000

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Sale of Machinery

35,000

 

 

 

Purchase of Machinery

(3,45,000)

 

 

 

Purchase of Building

(2,00,000)

 

 

 

Purchase of Non-Current investment

(1,00,000)

 

 

Net Cash Used in Investing Activities

 

(6,10,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

 Proceeds from Issue of Share Capital

2,00,000

 

 

Interest on Debentures

(10,000)

 

 

Proceeds from Issue of Debentures

2,00,000

 

 

Proposed Dividend

(1,00,000)

 

 

Net Cash Flow from Financing Activities

 

2,90,000

D

Net Increase or Decrease in Cash and Cash Equivalents

 

-

 

 

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

 

2,00,000

 

Cash and Cash Equivalents at the end of the period

 

2,00,000

 

 

 

 

           

 

Working Notes:

Interest on Debentures= 2,00,000×10100×612= Rs 10,000

Machinery  Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

5,00,000

Bank A/c (Sale)

35,000

Profit and Loss A/c (Profit on Sale)

15,000

Depreciation

1,25,000

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

3,45,000

Balance c/d

7,00,000

 

8,60,000

 

8,60,000

 

 

 

 

 

Provision for Taxation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Bank A/c (Tax Paid)

50,000

Balance b/d

70,000

Balance c/d

1,00,000

Profit and Loss A/c (Bal. Fig.)

80,000

 

1,50,000

 

1,50,000

 

 

 

 

 

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

45,000

 

 

General Reserve

20,000

 

 

Interim Dividend

25,000

 

 

Proposed Dividend

1,50,000

 

 

Provision for Tax

70,000

 

 

Profit Before Taxation

 

3,10,000

 

Items to be Added:

 

 

 

Depreciation on Machinery

75,000

 

 

Interest on Loan

12,000

 

 

Interest on Debentures

15,000

 

 

Loss on sale of Machinery

3,000

 

 

Items to be Deducted:

 

 

 

Interest on Investment

(7,000)

98,000

 

Operating Profit before Working Capital Adjustments

 

4,08,000

 

Less: Increase in Current Assets

 

 

 

 

     Trade Receivables

(50,000)

 

 

Add: Increase in Current Liabilities

 

 

 

       Trade Payables

60,000

 

 

Add: Decrease in Current Assets

 

 

 

      Inventory

30,000

40,000

 

Cash Generated from Operations

 

4,48,000

 

Less: Tax Paid

 

50,000

 

Net Cash Flows from Operating Activities

 

3,98,000

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Sale of Machinery

12,000

 

 

 

Purchase of Machinery

(2,90,000)

 

 

 

Interest on Non-Current investment

7,000

 

 

 

Purchase of Non-Current investment

(20,000)

 

 

Net Cash Used in Investing Activities

 

(2,91,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

 Proceeds from Issue of Share Capital

     1,00,000

 

 

Repayment of Bank Loan

(1,00,000)

 

 

Interest on Debentures

(15,000)

 

 

Proceeds from Issue of Debentures

1,00,000

 

 

Interest on Bank Loan

(12,000)

 

 

Security Premium Reserve

5,000

 

 

Interim  Dividend

(25,000)

 

 

Proposed Dividend

(1,20,000)

 

 

Net Cash Flow from Financing Activities

 

(67,000)

 

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

40,000

 

 

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

 

4,70,000

 

Cash and Cash Equivalents at the end of the period

 

5,10,000

 

 

 

 

           

 

 

Working Notes:

(i) Interest on Debentures=(1,00,000×10100+1,00,000×10100×612) = Rs 15,000

(ii) Discount on issue of debentures has been adjusted from Securities Premium Reserve as per Section 52(2) of the Companies Act,2013. The balance of Rs 5,000 in Securities Premium Reserve is after writing off discount of Rs 10,000. As such discount has not been written off through Statement of Profit and loss, it is not considered while calculating Operating profit.

Fixed Assets Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

6,10,000

Bank A/c (Sale)

12,000

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

2,90,000

Accumulated Depreciation

35,000

 

 

Profit and Loss A/c (Loss on Sale)

3,000

 

 

Balance c/d

8,50,000

 

9,00,000

 

9,00,000

 

 

 

 

 

Accumulated Depreciation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Fixed Assets A/c

35,000

Balance b/d

1,10,000

Balance c/d

1,50,000

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

75,000

 

1,85,000

 

1,85,000

 

 

 

 

 

Provision for Taxation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Bank A/c (Tax Paid)

50,000

Balance b/d

20,000

Balance c/d

40,000

Profit and Loss A/c (Bal. Fig.)

70,000

 

90,000

 

90,000

 

 

 

 

 



Page No 3.94:

Question 1:

 

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

45,000

 

 

General Reserve

20,000

 

 

Interim Dividend

25,000

 

 

Proposed Dividend

1,50,000

 

 

Provision for Tax

70,000

 

 

Profit Before Taxation

 

3,10,000

 

Items to be Added:

 

 

 

Depreciation on Machinery

75,000

 

 

Interest on Loan

12,000

 

 

Interest on Debentures

15,000

 

 

Loss on sale of Machinery

3,000

 

 

Items to be Deducted:

 

 

 

Interest on Investment

(7,000)

98,000

 

Operating Profit before Working Capital Adjustments

 

4,08,000

 

Less: Increase in Current Assets

 

 

 

 

     Trade Receivables

(50,000)

 

 

Add: Increase in Current Liabilities

 

 

 

       Trade Payables

60,000

 

 

Add: Decrease in Current Assets

 

 

 

      Inventory

30,000

40,000

 

Cash Generated from Operations

 

4,48,000

 

Less: Tax Paid

 

50,000

 

Net Cash Flows from Operating Activities

 

3,98,000

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Sale of Machinery

12,000

 

 

 

Purchase of Machinery

(2,90,000)

 

 

 

Interest on Non-Current investment

7,000

 

 

 

Purchase of Non-Current investment

(20,000)

 

 

Net Cash Used in Investing Activities

 

(2,91,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

 Proceeds from Issue of Share Capital

     1,00,000

 

 

Repayment of Bank Loan

(1,00,000)

 

 

Interest on Debentures

(15,000)

 

 

Proceeds from Issue of Debentures

1,00,000

 

 

Interest on Bank Loan

(12,000)

 

 

Security Premium Reserve

5,000

 

 

Interim  Dividend

(25,000)

 

 

Proposed Dividend

(1,20,000)

 

 

Net Cash Flow from Financing Activities

 

(67,000)

 

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

40,000

 

 

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

 

4,70,000

 

Cash and Cash Equivalents at the end of the period

 

5,10,000

 

 

 

 

           

 

 

Working Notes:

(i) Interest on Debentures=(1,00,000×10100+1,00,000×10100×612) = Rs 15,000

(ii) Discount on issue of debentures has been adjusted from Securities Premium Reserve as per Section 52(2) of the Companies Act,2013. The balance of Rs 5,000 in Securities Premium Reserve is after writing off discount of Rs 10,000. As such discount has not been written off through Statement of Profit and loss, it is not considered while calculating Operating profit.

Fixed Assets Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

6,10,000

Bank A/c (Sale)

12,000

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

2,90,000

Accumulated Depreciation

35,000

 

 

Profit and Loss A/c (Loss on Sale)

3,000

 

 

Balance c/d

8,50,000

 

9,00,000

 

9,00,000

 

 

 

 

 

Accumulated Depreciation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Fixed Assets A/c

35,000

Balance b/d

1,10,000

Balance c/d

1,50,000

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

75,000

 

1,85,000

 

1,85,000

 

 

 

 

 

Provision for Taxation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Bank A/c (Tax Paid)

50,000

Balance b/d

20,000

Balance c/d

40,000

Profit and Loss A/c (Bal. Fig.)

70,000

 

90,000

 

90,000

 

 

 

 

 

Answer:

Transaction Classified as Operating Activities
1. Cash Received from Debtors.
2. Cash Paid to Creditors.
3. Selling and Distribution Expenses.
4. Wages and Salaries.

Page No 3.94:

Question 2:

Transaction Classified as Operating Activities
1. Cash Received from Debtors.
2. Cash Paid to Creditors.
3. Selling and Distribution Expenses.
4. Wages and Salaries.

Answer:

Transaction Classified as Investing Activities
1. Proceeds from Sale of Investments.
2. Purchase of Debentures.
3. Dividend Received on Investments.
4. Public Deposits given.

Page No 3.94:

Question 3:

Transaction Classified as Investing Activities
1. Proceeds from Sale of Investments.
2. Purchase of Debentures.
3. Dividend Received on Investments.
4. Public Deposits given.

Answer:

Transaction Classified as Financing Activities
1. Loan taken from Bank.
2. Issue of Debentures.
3. Issue of Shares.
4. Redemption of Debentures.
5. Buy-Back of Shares.
6. Dividend Paid.

Page No 3.94:

Question 4:

Transaction Classified as Financing Activities
1. Loan taken from Bank.
2. Issue of Debentures.
3. Issue of Shares.
4. Redemption of Debentures.
5. Buy-Back of Shares.
6. Dividend Paid.

Answer:

Transaction Classified as Operating Activities
1. Cash Sales.
2. Cash Purchases.
3. Salary and Wages.
4. Income Tax Refund.
5. Computer Maintenance Expenses.

Transaction Classified as Investing Activities
1. Purchase of Investments.
2. Dividend Received.

Transaction Classified as Financing Activities
1. Dividend Paid.
2. Issue of Shares.

Transaction Classified as Cash and Cash Equivalents Activities
1. Cash in Hand.
2. Cash at Bank.

Page No 3.94:

Question 5:

Transaction Classified as Operating Activities
1. Cash Sales.
2. Cash Purchases.
3. Salary and Wages.
4. Income Tax Refund.
5. Computer Maintenance Expenses.

Transaction Classified as Investing Activities
1. Purchase of Investments.
2. Dividend Received.

Transaction Classified as Financing Activities
1. Dividend Paid.
2. Issue of Shares.

Transaction Classified as Cash and Cash Equivalents Activities
1. Cash in Hand.
2. Cash at Bank.

Answer:

Transaction Classified as Operating Activities
1. Selling Expenses.
2. Cash Paid to Creditors.
3. Salaries Paid.
4. Marketing Expenses

Transaction Classified as Investing Activities
1. Purchase of Patents.
2. Sale of Goodwill.
3. Sale of Investments.

Transaction Classified as Financing Activities
1. Buy- Back of Shares.
2. Issue of Shares.
3. Loan taken.
4. Redemption of Preference Shares.

Transaction Classified as Cash and Cash Equivalents Activities
1. Fixed Deposit with Bank.
2. Marketable Securities.

Page No 3.94:

Question 6:

Transaction Classified as Operating Activities
1. Selling Expenses.
2. Cash Paid to Creditors.
3. Salaries Paid.
4. Marketing Expenses

Transaction Classified as Investing Activities
1. Purchase of Patents.
2. Sale of Goodwill.
3. Sale of Investments.

Transaction Classified as Financing Activities
1. Buy- Back of Shares.
2. Issue of Shares.
3. Loan taken.
4. Redemption of Preference Shares.

Transaction Classified as Cash and Cash Equivalents Activities
1. Fixed Deposit with Bank.
2. Marketable Securities.

Answer:

Transaction Classified as Operating Activities
1. Rent received by a Real Estate Company.

Transaction Classified as Investing Activities
1. Purchase of Investments.
2. Dividend Received.
3. Rent Received by a Trading Company.

Transaction Classified as Financing Activities
1. Dividend Paid.
2. Interest Paid on Borrowings.
3. Proceeds from Issue of Debentures.

Transaction Classified as Cash and Cash Equivalents Activities
1. Marketable Securities.



Page No 3.95:

Question 7:

Transaction Classified as Operating Activities
1. Rent received by a Real Estate Company.

Transaction Classified as Investing Activities
1. Purchase of Investments.
2. Dividend Received.
3. Rent Received by a Trading Company.

Transaction Classified as Financing Activities
1. Dividend Paid.
2. Interest Paid on Borrowings.
3. Proceeds from Issue of Debentures.

Transaction Classified as Cash and Cash Equivalents Activities
1. Marketable Securities.

Answer:

Calculation of Net Profit before Tax:

Particulars

Amount

(Rs)

 

 

Net Profit for the Current Year

2,36,000

Reserve

1,00,000

Proposed Dividend

72,000

Interim Dividend

90,000

Provision for Tax

1,50,000

Net Profit Before Taxation and Extraordinary Items

6,48,000

 

Page No 3.95:

Question 8:

Calculation of Net Profit before Tax:

Particulars

Amount

(Rs)

 

 

Net Profit for the Current Year

2,36,000

Reserve

1,00,000

Proposed Dividend

72,000

Interim Dividend

90,000

Provision for Tax

1,50,000

Net Profit Before Taxation and Extraordinary Items

6,48,000

 

Answer:

Calculation of Net Profit Before Tax
For the Year Ending March 31,2016
Particulars Details
(Rs)
Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   55,000
+ Provision for Tax   50,000
+ Proposed Dividend   50,000
Net Profit Before Tax   1,55,000
     
     



Page No 3.96:

Question 9:

Calculation of Net Profit Before Tax
For the Year Ending March 31,2016
Particulars Details
(Rs)
Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   55,000
+ Provision for Tax   50,000
+ Proposed Dividend   50,000
Net Profit Before Tax   1,55,000
     
     

Answer:

Calculation of Operating Profit before working Capital Changes
For the Year Ending …….
Particulars Details
(Rs)
Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   6,00,000
Add: Non Operating Expenses
   
 Goodwill written off 30,000  
 Depreciation on Fixed Assets 1,40,000  
 Interest on Debentures 28,000  
 Share Issue Expenses Written Off 1,000  
 Loss on Sale of Machinery 30,000 2,29,000
Less: Non Operating Incomes
   
Profit on Sale of Investment (20,000)  
Interest and Dividend received on Investment (46,000) (66,000)
     
Operating Profit Before Working Capital Changes   7,63,000
     

Page No 3.96:

Question 10:

Calculation of Operating Profit before working Capital Changes
For the Year Ending …….
Particulars Details
(Rs)
Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   6,00,000
Add: Non Operating Expenses
   
 Goodwill written off 30,000  
 Depreciation on Fixed Assets 1,40,000  
 Interest on Debentures 28,000  
 Share Issue Expenses Written Off 1,000  
 Loss on Sale of Machinery 30,000 2,29,000
Less: Non Operating Incomes
   
Profit on Sale of Investment (20,000)  
Interest and Dividend received on Investment (46,000) (66,000)
     
Operating Profit Before Working Capital Changes   7,63,000
     

Answer:

Calculation of Operating Profit before working Capital Changes
For the Year Ending March 31, 2017
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   1,20,000
+ Provision for Tax   1,50,000
+ Investment Fluctuation Reserve   10,000
+ Bad Debts   5,000
–Excess Provision Written Back   (5,000)
    2,80,000
Add: Non Operating Expenses
   
 Depreciation on Fixed Assets   50,000
Less: Non Operating Incomes
 
Operating Profit Before Working Capital Changes   3,30,000
     
​



Page No 3.97:

Question 11:

Calculation of Operating Profit before working Capital Changes
For the Year Ending March 31, 2017
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   1,20,000
+ Provision for Tax   1,50,000
+ Investment Fluctuation Reserve   10,000
+ Bad Debts   5,000
–Excess Provision Written Back   (5,000)
    2,80,000
Add: Non Operating Expenses
   
 Depreciation on Fixed Assets   50,000
Less: Non Operating Incomes
 
Operating Profit Before Working Capital Changes   3,30,000
     
​

Answer:

Calculation of Operating Profit before working Capital Changes
For the Year Ending March 31,2017
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   1,50,000
+ Provision for Tax   2,50,000
+ Investment Fluctuation Reserve   40,000
+ Bad Debts   15,000
+ General Reserve   50,000
+ Proposed Dividend   1,20,000
-Excess Provision Written Back   (5,000)
    6,20,000
Add: Non Operating Expenses
   
Depreciation on Fixed Assets   1,10,000
Less: Non Operating Incomes
   
Dividend Received on Investments   (10,000)
Operating Profit Before Working Capital Changes   7,20,000
     
​



Page No 3.98:

Question 12:

Calculation of Operating Profit before working Capital Changes
For the Year Ending March 31,2017
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   1,50,000
+ Provision for Tax   2,50,000
+ Investment Fluctuation Reserve   40,000
+ Bad Debts   15,000
+ General Reserve   50,000
+ Proposed Dividend   1,20,000
-Excess Provision Written Back   (5,000)
    6,20,000
Add: Non Operating Expenses
   
Depreciation on Fixed Assets   1,10,000
Less: Non Operating Incomes
   
Dividend Received on Investments   (10,000)
Operating Profit Before Working Capital Changes   7,20,000
     
​

Answer:

Cash Flow from Operating Activities
For the Year Ending March 31, 2017
Particulars Details
(Rs)
Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit 10,000  
Add: Non Operating Expenses
   
Depreciation     5,000  
Less: Non Operating Incomes
   
Operating Profit Before Working Capital Changes   15,000
Add: Decrease in Current Assets & Increase in Current Liabilities
   
Debtors 10,000  
Bills Receivables 2,000  
Expenses Outstanding 1,000 13,000
Less: Increase in Current Assets & Decrease in Current Liabilities
   
Creditors (4,000)  
Bills Payables (13,000)  
Accrued Income (1,000) (18,000)
     
Cash From Operating  Activities   10,000
Less: Tax Paid
 
Net Cash From Operating  Activities (A)   10,000
     

Page No 3.98:

Question 13:

Cash Flow from Operating Activities
For the Year Ending March 31, 2017
Particulars Details
(Rs)
Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit 10,000  
Add: Non Operating Expenses
   
Depreciation     5,000  
Less: Non Operating Incomes
   
Operating Profit Before Working Capital Changes   15,000
Add: Decrease in Current Assets & Increase in Current Liabilities
   
Debtors 10,000  
Bills Receivables 2,000  
Expenses Outstanding 1,000 13,000
Less: Increase in Current Assets & Decrease in Current Liabilities
   
Creditors (4,000)  
Bills Payables (13,000)  
Accrued Income (1,000) (18,000)
     
Cash From Operating  Activities   10,000
Less: Tax Paid
 
Net Cash From Operating  Activities (A)   10,000
     

Answer:

Cash Flow from Operating Activities
For the Year Ending March 31, 2017
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   5,000
+ Provision for Tax    
+ Reserve    
+ Dividend    
Add: Non Operating Expenses
   
     
Less: Non Operating Incomes
   
     
Operating Profit Before Working Capital Changes    
Add: Decrease in Current Assets & Increase in Current Liabilities
   
Creditors 6,000  
O/standing Rent 9,000  
Prepaid Insurance 2,000 17,000
    22,000
Less: Increase in Current Assets & Decrease in Current Liabilities
   
Debtors (6,000)  
Current Investments (2,000) (8,000)
Cash From Operating  Activities   14,000
Less: Tax Paid
 
Net Cash From Operating  Activities (A)   14,000
     

Note: Current investments are taken as 'Working Capital'.

Page No 3.98:

Question 14:

Cash Flow from Operating Activities
For the Year Ending March 31, 2017
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   5,000
+ Provision for Tax    
+ Reserve    
+ Dividend    
Add: Non Operating Expenses
   
     
Less: Non Operating Incomes
   
     
Operating Profit Before Working Capital Changes    
Add: Decrease in Current Assets & Increase in Current Liabilities
   
Creditors 6,000  
O/standing Rent 9,000  
Prepaid Insurance 2,000 17,000
    22,000
Less: Increase in Current Assets & Decrease in Current Liabilities
   
Debtors (6,000)  
Current Investments (2,000) (8,000)
Cash From Operating  Activities   14,000
Less: Tax Paid
 
Net Cash From Operating  Activities (A)   14,000
     

Note: Current investments are taken as 'Working Capital'.

Answer:

Cash Flow from Operating Activities
For the Year Ending March 31, 2017
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   1,00,000
+ Provision for Tax    
+ Reserve    
+ Dividend    
Add: Non Operating Expenses
   
Provision for Depreciation 20,000  
Goodwill Written Off 40,000 60,000
Less: Non Operating Incomes
   
     
Operating Profit Before Working Capital Changes   1,60,000
Add: Decrease in Current Assets & Increase in Current Liabilities
   
O/standing Expenses 14,000  
Prepaid Expenses 2,000 16,000
    1,76,000
Less: Increase in Current Assets & Decrease in Current Liabilities
   
Debtors (80,000)  
Inventories (40,000) (1,20,000)
     
Cash From Operating  Activities   56,000
Less: Tax Paid
 
     
Net Cash From Operating  Activities (A)   56,000
     



Page No 3.99:

Question 15:

Cash Flow from Operating Activities
For the Year Ending March 31, 2017
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   1,00,000
+ Provision for Tax    
+ Reserve    
+ Dividend    
Add: Non Operating Expenses
   
Provision for Depreciation 20,000  
Goodwill Written Off 40,000 60,000
Less: Non Operating Incomes
   
     
Operating Profit Before Working Capital Changes   1,60,000
Add: Decrease in Current Assets & Increase in Current Liabilities
   
O/standing Expenses 14,000  
Prepaid Expenses 2,000 16,000
    1,76,000
Less: Increase in Current Assets & Decrease in Current Liabilities
   
Debtors (80,000)  
Inventories (40,000) (1,20,000)
     
Cash From Operating  Activities   56,000
Less: Tax Paid
 
     
Net Cash From Operating  Activities (A)   56,000
     

Answer:

Cash Flow from Operating Activities
For the Year Ending …..
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   4,00,000
+ Provision for Tax    
+ General Reserve   25,000
+ Dividend    
Add: Non Operating Expenses
   
Depreciation on Fixed Assets 50,000 50,000
Goodwill written off 5,000 5,000
Less: Non Operating Incomes
   
Profit on Sale of Land (50,000) (50,000)
Operating Profit Before Working Capital Changes   4,30,000
Add: Decrease in Current Assets & Increase in Current Liabilities
   
Bills Receivable 2,000  
Prepaid Expenses 2,000 4,000
Less: Increase in Current Assets & Decrease in Current Liabilities
   
Debtors (3,000)  
Creditors (5,000) (8,000)
     
Cash From Operating  Activities   4,26,000
Less: Tax Paid
 
Net Cash From Operating Activities (A)   4,26,000
     

Page No 3.99:

Question 16:

Cash Flow from Operating Activities
For the Year Ending …..
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   4,00,000
+ Provision for Tax    
+ General Reserve   25,000
+ Dividend    
Add: Non Operating Expenses
   
Depreciation on Fixed Assets 50,000 50,000
Goodwill written off 5,000 5,000
Less: Non Operating Incomes
   
Profit on Sale of Land (50,000) (50,000)
Operating Profit Before Working Capital Changes   4,30,000
Add: Decrease in Current Assets & Increase in Current Liabilities
   
Bills Receivable 2,000  
Prepaid Expenses 2,000 4,000
Less: Increase in Current Assets & Decrease in Current Liabilities
   
Debtors (3,000)  
Creditors (5,000) (8,000)
     
Cash From Operating  Activities   4,26,000
Less: Tax Paid
 
Net Cash From Operating Activities (A)   4,26,000
     

Answer:

Cash Flow from Operating Activities
For the Year Ending ………
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   1,50,000
+ Provision for Tax    
+ Debenture Redemption Reserve   50,000
+ Dividend    
Add: Non Operating Expenses
   
Provision for Depreciation 1,90,000 1,90,000
Goodwill written off 50,000 50,000
Less: Non Operating Incomes
   
Profit on Sale of Plant (60,000) (60,000)
Operating Profit Before Working Capital Changes   3,80,000
Add: Decrease in Current Assets & Increase in Current Liabilities
   
Debtors 50,000 50,000
Less: Increase in Current Assets & Decrease in Current Liabilities
   
O/standing Expenses (30,000) (30,000)
     
Cash From Operating  Activities   4,00,000
Less: Tax Paid
 
     
Net Cash From Operating  Activities (A)   4,00,000
     
 
Provision for Depreciation Account
Dr.   Cr.
Particulars  Amount
(Rs)
Particulars Amount
(Rs)
Plant A/c 90,000 Balance b/d 3,00,000
Balance c/d 4,00,000 Depreciation (Balancing Figure) 1,90,000
       
  4,90,000   4,90,000
       

Page No 3.99:

Question 17:

Cash Flow from Operating Activities
For the Year Ending ………
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   1,50,000
+ Provision for Tax    
+ Debenture Redemption Reserve   50,000
+ Dividend    
Add: Non Operating Expenses
   
Provision for Depreciation 1,90,000 1,90,000
Goodwill written off 50,000 50,000
Less: Non Operating Incomes
   
Profit on Sale of Plant (60,000) (60,000)
Operating Profit Before Working Capital Changes   3,80,000
Add: Decrease in Current Assets & Increase in Current Liabilities
   
Debtors 50,000 50,000
Less: Increase in Current Assets & Decrease in Current Liabilities
   
O/standing Expenses (30,000) (30,000)
     
Cash From Operating  Activities   4,00,000
Less: Tax Paid
 
     
Net Cash From Operating  Activities (A)   4,00,000
     
 
Provision for Depreciation Account
Dr.   Cr.
Particulars  Amount
(Rs)
Particulars Amount
(Rs)
Plant A/c 90,000 Balance b/d 3,00,000
Balance c/d 4,00,000 Depreciation (Balancing Figure) 1,90,000
       
  4,90,000   4,90,000
       

Answer:

Cash Flow from Operating Activities
For the Year Ending March 31, 2015
Particulars Details (Rs) Amount
(Rs)
Cash Flow from Operating Activities    
Net Profit   1,25,000
+ Provision for Tax   20,000
+ Reserve  
+ Dividend   15,000
  Add: Non Operating Expenses    
Goodwill Written Off 10,000  
Depreciation 20,000  
Preliminary Expenses Written Off 2,000  
Loss on Sale of Machinery 10,000 42,000
  Less: Non Operating Incomes    
Profit on Sale of Furniture (5,000) (5,000)
Operating Profit Before Working Capital Changes   1,97,000
  Add: Decrease in Current Assets & Increase in Current Liabilities    
Inventories   6,000
Expenses Outstanding   1,000
  Less: Increase in Current Assets & Decrease in Current Liabilities    
Creditors (4,000)  
Trade Receivables (8,000)  
Current Investments (30,000) (42,000)
     
Cash From Operating  Activities   1,62000
Less: Tax Paid   22,000
Net Cash From Operating  Activities (A)   1,40,000
     
Note: Basically, Current Investments are the part of cash and cash equivalents but as per answer given in the book it should be treated as Current Assets.



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