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Page No 5.100:
Question 48:
Answer:
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss (2,400 – 2,000) |
400 |
|
|
Proposed Dividend |
11,600 |
|
|
Interim Dividend |
9,000 |
|
|
Provision for Taxation |
9,400 |
|
|
Profit Before Taxation |
30,400 |
|
|
Items to be Added: |
|
|
|
Loss on Sale of Fixed Assets |
4,000 |
|
|
Interest on Debentures |
1,200 |
|
|
Depreciation |
14,000 |
|
|
Operating Profit before Working Capital Adjustments |
49,600 |
|
|
Less: Increase in Current Assets |
|
|
|
Trade Receivables |
(8,000) |
|
|
Inventories |
(10,000) |
|
|
Prepaid Expenses |
(400) |
|
|
Less: Decrease in Current Liabilities |
|
|
|
Trade Payables |
(2,000) |
|
|
Cash Generated from Operations |
29,200 |
|
|
Less: Tax Paid |
(7,000) |
|
|
Net Cash Flow from Operating Activities |
|
22,200 |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Sale of Fixed Assets |
10,000 |
|
|
Purchase of Fixed Assets |
(18,000) |
|
|
Net Cash from (used in) Investing Activities |
|
(8,000) |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Equity Share Capital |
25,000 |
|
|
Proceeds from Issue of 10% Debentures |
2,000 |
|
|
Interim Dividend |
(9,000) |
|
|
Dividend Paid |
(10,000) |
|
|
Interest on Debentures |
(1,200) |
|
|
Redemption of 12% Preference Share Capital |
(5,000) |
|
|
Net Cash Flow from Financing Activities |
|
1,800 |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
16,000 |
|
Add: Cash and Cash Equivalent in the beginning of the period (2,400 – 25,000) |
|
(22,600) |
|
Cash and Cash Equivalents at the end of the period (7,000 – 13,600) |
|
(6,600) |
|
|
|
|
Working Notes:
WN1
Fixed Assets Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
1,82,000 |
Bank A/c (Sale) |
10,000 |
Bank A/c (Purchase- Bal. Fig.) |
18,000 |
Profit and Loss A/c (Loss on Sale) |
4,000 |
|
|
Accumulated Depreciation A/c |
6,000 |
|
|
Balance c/d |
1,80,000 |
|
2,00,000 |
|
2,00,000 |
|
|
|
|
WN2
Accumulated Depreciation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
To Fixed Assets A/c |
6,000 |
Balance b/d |
22,000 |
To Balance c/d |
30,000 |
Profit and Loss A/c (Dep. charged during the year- Bal. Fig.) |
14,000 |
|
36,000 |
|
36,000 |
|
|
|
|
WN3
Provision for Taxation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Bank A/c (Tax Paid) |
7,000 |
Balance b/d |
6,000 |
Balance c/d |
8,400 |
Profit and Loss A/c (Bal. Fig.) |
9,400 |
|
15,400 |
|
15,400 |
|
|
|
|
Page No 5.101:
Question 49:
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss (2,400 – 2,000) |
400 |
|
|
Proposed Dividend |
11,600 |
|
|
Interim Dividend |
9,000 |
|
|
Provision for Taxation |
9,400 |
|
|
Profit Before Taxation |
30,400 |
|
|
Items to be Added: |
|
|
|
Loss on Sale of Fixed Assets |
4,000 |
|
|
Interest on Debentures |
1,200 |
|
|
Depreciation |
14,000 |
|
|
Operating Profit before Working Capital Adjustments |
49,600 |
|
|
Less: Increase in Current Assets |
|
|
|
Trade Receivables |
(8,000) |
|
|
Inventories |
(10,000) |
|
|
Prepaid Expenses |
(400) |
|
|
Less: Decrease in Current Liabilities |
|
|
|
Trade Payables |
(2,000) |
|
|
Cash Generated from Operations |
29,200 |
|
|
Less: Tax Paid |
(7,000) |
|
|
Net Cash Flow from Operating Activities |
|
22,200 |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Sale of Fixed Assets |
10,000 |
|
|
Purchase of Fixed Assets |
(18,000) |
|
|
Net Cash from (used in) Investing Activities |
|
(8,000) |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Equity Share Capital |
25,000 |
|
|
Proceeds from Issue of 10% Debentures |
2,000 |
|
|
Interim Dividend |
(9,000) |
|
|
Dividend Paid |
(10,000) |
|
|
Interest on Debentures |
(1,200) |
|
|
Redemption of 12% Preference Share Capital |
(5,000) |
|
|
Net Cash Flow from Financing Activities |
|
1,800 |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
16,000 |
|
Add: Cash and Cash Equivalent in the beginning of the period (2,400 – 25,000) |
|
(22,600) |
|
Cash and Cash Equivalents at the end of the period (7,000 – 13,600) |
|
(6,600) |
|
|
|
|
Working Notes:
WN1
Fixed Assets Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
1,82,000 |
Bank A/c (Sale) |
10,000 |
Bank A/c (Purchase- Bal. Fig.) |
18,000 |
Profit and Loss A/c (Loss on Sale) |
4,000 |
|
|
Accumulated Depreciation A/c |
6,000 |
|
|
Balance c/d |
1,80,000 |
|
2,00,000 |
|
2,00,000 |
|
|
|
|
WN2
Accumulated Depreciation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
To Fixed Assets A/c |
6,000 |
Balance b/d |
22,000 |
To Balance c/d |
30,000 |
Profit and Loss A/c (Dep. charged during the year- Bal. Fig.) |
14,000 |
|
36,000 |
|
36,000 |
|
|
|
|
WN3
Provision for Taxation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Bank A/c (Tax Paid) |
7,000 |
Balance b/d |
6,000 |
Balance c/d |
8,400 |
Profit and Loss A/c (Bal. Fig.) |
9,400 |
|
15,400 |
|
15,400 |
|
|
|
|
Answer:
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss |
1,80,000 |
|
|
Provision for Taxation |
40,000 |
|
|
Profit Before Taxation |
2,20,000 |
|
|
Items to be Added: |
|
|
|
Finance Cost |
15,000 |
|
|
Depreciation and Amortisation Expenses |
80,000 |
|
|
Operating Profit before Working Capital Adjustments |
3,15,000 |
|
|
Less: Increase in Current Assets |
|
|
|
Inventories |
(65,000) |
|
|
Trade Receivables |
(38,000) |
|
|
Add: Increase in Current Liabilities |
|
|
|
Trade Payables |
47,000 |
|
|
Cash Generated from Operations |
2,59,000 |
|
|
Less: Tax Paid |
(26,000) |
|
|
Net Cash Flow from Operating Activities |
|
2,33,000 |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Purchase of Fixed Assets |
(3,00,000) |
|
|
Net Cash Used in Investing Activities |
|
(3,00,000) |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Share Capital |
1,00,000 |
|
|
Redemption of Long-Term Loan |
(30,000) |
|
|
Interest (Finance Cost) |
(15,000) |
|
|
Net Cash Flow from Financing Activities |
|
55,000 |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
(12,000) |
|
Add: Cash and Cash Equivalent in the beginning of the period (17,000 + 28,000 + 20,000) |
|
65,000 |
|
Cash and Cash Equivalents at the end of the period (32,000 + 34,000 – 13,000) |
|
53,000 |
|
|
|
|
Working Notes:
WN1
Provision for Taxation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Bank A/c (Tax Paid- Bal. Fig.) |
26,000 |
Balance b/d |
30,000 |
Balance c/d |
44,000 |
Profit and Loss A/c |
40,000 |
|
70,000 |
|
70,000 |
|
|
|
|
WN2
Fixed Assets Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
4,00,000 |
Depreciation A/c |
80,000 |
Bank A/c (Purchases- Bal. Fig.) |
3,00,000 |
Balance c/d |
6,20,000 |
|
7,00,000 |
|
7,00,000 |
|
|
|
|
Note: Short-term Investments are considered as a part of Cash and Cash Equivalents
Page No 5.103:
Question 50:
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss |
1,80,000 |
|
|
Provision for Taxation |
40,000 |
|
|
Profit Before Taxation |
2,20,000 |
|
|
Items to be Added: |
|
|
|
Finance Cost |
15,000 |
|
|
Depreciation and Amortisation Expenses |
80,000 |
|
|
Operating Profit before Working Capital Adjustments |
3,15,000 |
|
|
Less: Increase in Current Assets |
|
|
|
Inventories |
(65,000) |
|
|
Trade Receivables |
(38,000) |
|
|
Add: Increase in Current Liabilities |
|
|
|
Trade Payables |
47,000 |
|
|
Cash Generated from Operations |
2,59,000 |
|
|
Less: Tax Paid |
(26,000) |
|
|
Net Cash Flow from Operating Activities |
|
2,33,000 |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Purchase of Fixed Assets |
(3,00,000) |
|
|
Net Cash Used in Investing Activities |
|
(3,00,000) |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Share Capital |
1,00,000 |
|
|
Redemption of Long-Term Loan |
(30,000) |
|
|
Interest (Finance Cost) |
(15,000) |
|
|
Net Cash Flow from Financing Activities |
|
55,000 |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
(12,000) |
|
Add: Cash and Cash Equivalent in the beginning of the period (17,000 + 28,000 + 20,000) |
|
65,000 |
|
Cash and Cash Equivalents at the end of the period (32,000 + 34,000 – 13,000) |
|
53,000 |
|
|
|
|
Working Notes:
WN1
Provision for Taxation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Bank A/c (Tax Paid- Bal. Fig.) |
26,000 |
Balance b/d |
30,000 |
Balance c/d |
44,000 |
Profit and Loss A/c |
40,000 |
|
70,000 |
|
70,000 |
|
|
|
|
WN2
Fixed Assets Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
4,00,000 |
Depreciation A/c |
80,000 |
Bank A/c (Purchases- Bal. Fig.) |
3,00,000 |
Balance c/d |
6,20,000 |
|
7,00,000 |
|
7,00,000 |
|
|
|
|
Note: Short-term Investments are considered as a part of Cash and Cash Equivalents
Answer:
Cash Flow Statement for the year ended March 31, 2013 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss (2,04,000 – 1,68,000) |
36,000 |
|
|
Transfer from General Reserve |
30,000 |
|
|
Interim Dividend |
1,20,000 |
|
|
Provision for Taxation |
27,000 |
|
|
Profit Before Taxation |
2,13,000 |
|
|
Items to be Added: |
|
|
|
Depreciation |
2,10,000 |
|
|
Profit on Sale of Investments |
(1,500) |
|
|
Profit on Sale of Fixed Assets |
(6,000) |
|
|
Operating Profit before Working Capital Adjustments |
4,15,500 |
|
|
Less: Increase in Current Assets |
|
|
|
Trade Receivables |
(7,35,000) |
|
|
Less: Decrease in Current Liabilities |
|
|
|
Trade Payables |
(1,02,000) |
|
|
Add: Decrease in Current Assets |
|
|
|
Inventories |
90,000 |
|
|
Cash Generated from Operations |
(3,31,500) |
|
|
Less: Tax Paid |
(2,22,000) |
|
|
Net Cash from (used in) Operating Activities |
|
(5,53,500) |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Sale of Investments |
25,500 |
|
|
Sale of Fixed Assets |
36,000 |
|
|
Purchase of Investments |
(54,000) |
|
|
Net Cash Flow from Investing Activities |
|
7,500 |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of 10% Mortgage Loan |
8,10,000 |
|
|
Interim Dividend Paid |
(1,20,000) |
|
|
Net Cash Flow from Financing Activities |
|
6,90,000 |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
1,44,000 |
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
4,47,000 |
|
Cash and Cash Equivalents at the end of the period |
|
5,91,000 |
|
|
|
|
Working Notes:
WN1
Fixed Assets Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
12,00,000 |
Bank A/c (Sale) |
36,000 |
Profit and Loss A/c (Profit on Sale) |
6,000 |
Depreciation (Bal. Fig.) |
2,10,000 |
|
|
Balance c/d |
9,60,000 |
|
12,06,000 |
|
12,06,000 |
|
|
|
|
WN2
Investments Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
1,50,000 |
Bank A/c (Sale) |
25,500 |
Profit and Loss A/c (Profit on Sale) |
1,500 |
Balance c/d |
1,80,000 |
Bank A/c (Purchases- Bal. Fig.) |
54,000 |
|
|
|
2,05,500 |
|
2,05,500 |
|
|
|
|
WN 3
Provision for Taxation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Bank A/c (Tax Paid- Bal. Fig.) |
2,22,000 |
Balance b/d |
2,25,000 |
Balance c/d |
30,000 |
Profit and Loss A/c |
27,000 |
|
2,52,000 |
|
2,52,000 |
|
|
|
|
Page No 5.104:
Question 51:
Cash Flow Statement for the year ended March 31, 2013 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss (2,04,000 – 1,68,000) |
36,000 |
|
|
Transfer from General Reserve |
30,000 |
|
|
Interim Dividend |
1,20,000 |
|
|
Provision for Taxation |
27,000 |
|
|
Profit Before Taxation |
2,13,000 |
|
|
Items to be Added: |
|
|
|
Depreciation |
2,10,000 |
|
|
Profit on Sale of Investments |
(1,500) |
|
|
Profit on Sale of Fixed Assets |
(6,000) |
|
|
Operating Profit before Working Capital Adjustments |
4,15,500 |
|
|
Less: Increase in Current Assets |
|
|
|
Trade Receivables |
(7,35,000) |
|
|
Less: Decrease in Current Liabilities |
|
|
|
Trade Payables |
(1,02,000) |
|
|
Add: Decrease in Current Assets |
|
|
|
Inventories |
90,000 |
|
|
Cash Generated from Operations |
(3,31,500) |
|
|
Less: Tax Paid |
(2,22,000) |
|
|
Net Cash from (used in) Operating Activities |
|
(5,53,500) |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Sale of Investments |
25,500 |
|
|
Sale of Fixed Assets |
36,000 |
|
|
Purchase of Investments |
(54,000) |
|
|
Net Cash Flow from Investing Activities |
|
7,500 |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of 10% Mortgage Loan |
8,10,000 |
|
|
Interim Dividend Paid |
(1,20,000) |
|
|
Net Cash Flow from Financing Activities |
|
6,90,000 |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
1,44,000 |
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
4,47,000 |
|
Cash and Cash Equivalents at the end of the period |
|
5,91,000 |
|
|
|
|
Working Notes:
WN1
Fixed Assets Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
12,00,000 |
Bank A/c (Sale) |
36,000 |
Profit and Loss A/c (Profit on Sale) |
6,000 |
Depreciation (Bal. Fig.) |
2,10,000 |
|
|
Balance c/d |
9,60,000 |
|
12,06,000 |
|
12,06,000 |
|
|
|
|
WN2
Investments Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
1,50,000 |
Bank A/c (Sale) |
25,500 |
Profit and Loss A/c (Profit on Sale) |
1,500 |
Balance c/d |
1,80,000 |
Bank A/c (Purchases- Bal. Fig.) |
54,000 |
|
|
|
2,05,500 |
|
2,05,500 |
|
|
|
|
WN 3
Provision for Taxation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Bank A/c (Tax Paid- Bal. Fig.) |
2,22,000 |
Balance b/d |
2,25,000 |
Balance c/d |
30,000 |
Profit and Loss A/c |
27,000 |
|
2,52,000 |
|
2,52,000 |
|
|
|
|
Answer:
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss (30,600 – 30,500) |
100 |
|
|
Proposed Dividend |
23,000 |
|
|
Transfer to General Reserve |
10,000 |
|
|
Provision for Taxation |
33,000 |
|
|
Profit Before Taxation |
66,100 |
|
|
Items to be Added: |
|
|
|
Depreciation on Machinery |
14,000 |
|
|
Depreciation on Building |
10,000 |
|
|
Operating Profit before Working Capital Adjustments |
90,100 |
|
|
Add: Decrease in Current Assets |
|
|
|
Inventories |
26,000 |
|
|
Trade Receivables |
15,800 |
|
|
Less: Decrease in Current Liabilities |
|
|
|
Trade Payables |
(14,800) |
|
|
Cash Generated from operations |
1,17,100 |
|
|
Less: Tax Paid |
(28,000) |
|
|
Net Cash Flows from Operating Activities |
|
89,100 |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Purchase of Machinery |
(33,000) |
|
|
Purchase of Goodwill |
(5,000) |
|
|
Net Cash from (used in) Investing Activities |
|
(38,000) |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Equity Shares |
50,000 |
|
|
Repayment of Bank Loan |
(70,000) |
|
|
Dividend Paid |
(23,000) |
|
|
Net Cash Used in Financing Activities |
|
(43,000) |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
8,100 |
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
500 |
|
Cash and Cash Equivalents at the end of the period |
|
8,600 |
|
|
|
|
Working Notes:
WN1
Machinery Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
1,50,000 |
Depreciation |
14,000 |
Bank A/c (Purchases- Bal. Fig.) |
33,000 |
Balance c/d |
1,69,000 |
|
1,83,000 |
|
1,83,000 |
|
|
|
|
WN2
Provision for Taxation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Bank A/c (Tax Paid) |
28,000 |
Balance b/d |
30,000 |
Balance c/d |
35,000 |
Profit and Loss A/c (Bal. Fig.) |
33,000 |
|
63,000 |
|
63,000 |
|
|
|
|
Page No 5.105:
Question 52:
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss (30,600 – 30,500) |
100 |
|
|
Proposed Dividend |
23,000 |
|
|
Transfer to General Reserve |
10,000 |
|
|
Provision for Taxation |
33,000 |
|
|
Profit Before Taxation |
66,100 |
|
|
Items to be Added: |
|
|
|
Depreciation on Machinery |
14,000 |
|
|
Depreciation on Building |
10,000 |
|
|
Operating Profit before Working Capital Adjustments |
90,100 |
|
|
Add: Decrease in Current Assets |
|
|
|
Inventories |
26,000 |
|
|
Trade Receivables |
15,800 |
|
|
Less: Decrease in Current Liabilities |
|
|
|
Trade Payables |
(14,800) |
|
|
Cash Generated from operations |
1,17,100 |
|
|
Less: Tax Paid |
(28,000) |
|
|
Net Cash Flows from Operating Activities |
|
89,100 |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Purchase of Machinery |
(33,000) |
|
|
Purchase of Goodwill |
(5,000) |
|
|
Net Cash from (used in) Investing Activities |
|
(38,000) |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Equity Shares |
50,000 |
|
|
Repayment of Bank Loan |
(70,000) |
|
|
Dividend Paid |
(23,000) |
|
|
Net Cash Used in Financing Activities |
|
(43,000) |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
8,100 |
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
500 |
|
Cash and Cash Equivalents at the end of the period |
|
8,600 |
|
|
|
|
Working Notes:
WN1
Machinery Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
1,50,000 |
Depreciation |
14,000 |
Bank A/c (Purchases- Bal. Fig.) |
33,000 |
Balance c/d |
1,69,000 |
|
1,83,000 |
|
1,83,000 |
|
|
|
|
WN2
Provision for Taxation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Bank A/c (Tax Paid) |
28,000 |
Balance b/d |
30,000 |
Balance c/d |
35,000 |
Profit and Loss A/c (Bal. Fig.) |
33,000 |
|
63,000 |
|
63,000 |
|
|
|
|
Answer:
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss (90,000 – 50,000) |
40,000 |
|
|
Transfer to General Reserve |
40,000 |
|
|
Proposed Dividend |
22,500 |
|
|
Provision for Taxation |
80,000 |
|
|
Profit before Taxation |
1,82,500 |
|
|
Items to be Added: |
|
|
|
Depreciation on Fixed Assets |
10,000 |
|
|
Interest on Bank Loan |
5,000 |
|
|
Interest on Debentures |
9,000 |
|
|
Operating Profit before Working Capital Adjustments |
2,06,500 |
|
|
Add: Increase in Current Liabilities |
|
|
|
Trade Payables |
10,000 |
|
|
Less: Increase in Current Assets |
|
|
|
Trade Receivables |
(50,000) |
|
|
Inventories |
(26,500) |
|
|
Cash Generated from operations |
1,40,000 |
|
|
Less: Tax Paid |
(60,000) |
|
|
Net Cash Flows from Operating Activities |
|
80,000 |
|
|
|
|
B |
Cash Flow from Investing Activities |
- |
|
|
Net Cash Flow from or Used in Investing Activities |
|
- |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Equity Shares |
50,000 |
|
|
Proceeds from Issue of 8% Preference Share Capital |
50,000 |
|
|
Redemption of 15% Debentures |
(80,000) |
|
|
Redemption of Loan from Bank |
(50,000) |
|
|
Interest on Debentures |
(9,000) |
|
|
Interest on Loan From bank |
(5,000) |
|
|
Dividend Paid |
(10,000) |
|
|
Net Cash Flow from or Used in Financing Activities |
|
(54,000) |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
26,000 |
|
Add: Cash and Cash Equivalent in the beginning of the period (20,000 – 45,000)* See Note-2 |
|
(25,000) |
|
Cash and Cash Equivalents at the end of the period (31,000 – 30,000) |
|
1,000 |
|
|
|
|
Working Notes: 1
Machinery Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
4,10,000 |
Depreciation |
10,000 |
|
|
Balance c/d |
4,00,000 |
|
4,10,000 |
|
4,10,000 |
|
|
|
|
Note:
The net cash and cash equivalents have been ascertained in the following manner.
Net Opening Cash and Cash Equivalents = Opening Cash and Cash Equivalents i.e. Rs 20,000 (including Current Investments) less Opening Balance of Bank Overdraft amount i.e. Rs 45,000 = (Rs 25,000)
Similarly, Net Closing Cash and Cash Equivalents = Closing Cash and Cash Equivalents i.e. Rs 31,000 (including Current Investments) less Closing Balance of Bank Overdraft amount i.e. Rs 30,000 = Rs 1,000
Page No 5.106:
Question 53:
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss (90,000 – 50,000) |
40,000 |
|
|
Transfer to General Reserve |
40,000 |
|
|
Proposed Dividend |
22,500 |
|
|
Provision for Taxation |
80,000 |
|
|
Profit before Taxation |
1,82,500 |
|
|
Items to be Added: |
|
|
|
Depreciation on Fixed Assets |
10,000 |
|
|
Interest on Bank Loan |
5,000 |
|
|
Interest on Debentures |
9,000 |
|
|
Operating Profit before Working Capital Adjustments |
2,06,500 |
|
|
Add: Increase in Current Liabilities |
|
|
|
Trade Payables |
10,000 |
|
|
Less: Increase in Current Assets |
|
|
|
Trade Receivables |
(50,000) |
|
|
Inventories |
(26,500) |
|
|
Cash Generated from operations |
1,40,000 |
|
|
Less: Tax Paid |
(60,000) |
|
|
Net Cash Flows from Operating Activities |
|
80,000 |
|
|
|
|
B |
Cash Flow from Investing Activities |
- |
|
|
Net Cash Flow from or Used in Investing Activities |
|
- |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Equity Shares |
50,000 |
|
|
Proceeds from Issue of 8% Preference Share Capital |
50,000 |
|
|
Redemption of 15% Debentures |
(80,000) |
|
|
Redemption of Loan from Bank |
(50,000) |
|
|
Interest on Debentures |
(9,000) |
|
|
Interest on Loan From bank |
(5,000) |
|
|
Dividend Paid |
(10,000) |
|
|
Net Cash Flow from or Used in Financing Activities |
|
(54,000) |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
26,000 |
|
Add: Cash and Cash Equivalent in the beginning of the period (20,000 – 45,000)* See Note-2 |
|
(25,000) |
|
Cash and Cash Equivalents at the end of the period (31,000 – 30,000) |
|
1,000 |
|
|
|
|
Working Notes: 1
Machinery Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
4,10,000 |
Depreciation |
10,000 |
|
|
Balance c/d |
4,00,000 |
|
4,10,000 |
|
4,10,000 |
|
|
|
|
Note:
The net cash and cash equivalents have been ascertained in the following manner.
Net Opening Cash and Cash Equivalents = Opening Cash and Cash Equivalents i.e. Rs 20,000 (including Current Investments) less Opening Balance of Bank Overdraft amount i.e. Rs 45,000 = (Rs 25,000)
Similarly, Net Closing Cash and Cash Equivalents = Closing Cash and Cash Equivalents i.e. Rs 31,000 (including Current Investments) less Closing Balance of Bank Overdraft amount i.e. Rs 30,000 = Rs 1,000
Answer:
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss |
25,000 |
|
|
Proposed Dividend |
15,000 |
|
|
Provision for Taxation |
23,000 |
|
|
Profit Before Taxation |
63,000 |
|
|
Items to be Added: |
|
|
|
Depreciation on Fixed Assets |
80,000 |
|
|
Goodwill Written-off |
25,000 |
|
|
Interest on Debentures |
10,600 |
|
|
Operating Profit before Working Capital Adjustments |
1,78,600 |
|
|
Less: Increase in Current Assets |
|
|
|
Inventories |
(20,000) |
|
|
Trade Receivables |
(22,000) |
|
|
Less: Decrease in Current Liabilities |
|
|
|
Trade Payables |
(5,000) |
|
|
Add: Decrease in Current Assets |
|
|
|
Cash Generated from operations |
1,31,600 |
|
|
Less: Tax Paid |
(18,000) |
|
|
Net Cash Flow from Operating Activities |
|
1,13,600 |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Purchase of Land and Building |
(80,000) |
|
|
Purchase of Investments |
(50,000) |
|
|
Net Cash from (used in) Investing Activities |
|
(1,30,000) |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Equity Share Capital |
1,00,000 |
|
|
Redemption of Debentures |
(90,000) |
|
|
Interest on Debentures |
(10,600) |
|
|
Dividend Paid |
(10,000) |
|
|
Net Cash from (used in) Financing Activities |
|
(10,600) |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
(27,000) |
|
Add: Cash and Cash Equivalent in the beginning of the period (12,000 – 80,000) |
|
(68,000) |
|
Cash and Cash Equivalents at the end of the period (5,000 – 1,00,000) |
|
(95,000) |
|
|
|
|
Working Notes:
WN1 Calculation of Interest on Debentures
WN2
Provision For Taxation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Bank A/c (Tax Paid- Bal. Fig.) |
18,000 |
Balance b/d |
20,000 |
Balance c/d |
25,000 |
Profit and Loss A/c (Provision made) |
23,000 |
|
43,000 |
|
43,000 |
|
|
|
|
WN3
Land and Building Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
5,50,000 |
Depreciation |
80,000 |
Bank A/c (Purchase- Bal. Fig.) |
80,000 |
Balance c/d |
5,50,000 |
|
6,30,000 |
|
6,30,000 |
|
|
|
|
Page No 5.107:
Question 54:
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss |
25,000 |
|
|
Proposed Dividend |
15,000 |
|
|
Provision for Taxation |
23,000 |
|
|
Profit Before Taxation |
63,000 |
|
|
Items to be Added: |
|
|
|
Depreciation on Fixed Assets |
80,000 |
|
|
Goodwill Written-off |
25,000 |
|
|
Interest on Debentures |
10,600 |
|
|
Operating Profit before Working Capital Adjustments |
1,78,600 |
|
|
Less: Increase in Current Assets |
|
|
|
Inventories |
(20,000) |
|
|
Trade Receivables |
(22,000) |
|
|
Less: Decrease in Current Liabilities |
|
|
|
Trade Payables |
(5,000) |
|
|
Add: Decrease in Current Assets |
|
|
|
Cash Generated from operations |
1,31,600 |
|
|
Less: Tax Paid |
(18,000) |
|
|
Net Cash Flow from Operating Activities |
|
1,13,600 |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Purchase of Land and Building |
(80,000) |
|
|
Purchase of Investments |
(50,000) |
|
|
Net Cash from (used in) Investing Activities |
|
(1,30,000) |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Equity Share Capital |
1,00,000 |
|
|
Redemption of Debentures |
(90,000) |
|
|
Interest on Debentures |
(10,600) |
|
|
Dividend Paid |
(10,000) |
|
|
Net Cash from (used in) Financing Activities |
|
(10,600) |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
(27,000) |
|
Add: Cash and Cash Equivalent in the beginning of the period (12,000 – 80,000) |
|
(68,000) |
|
Cash and Cash Equivalents at the end of the period (5,000 – 1,00,000) |
|
(95,000) |
|
|
|
|
Working Notes:
WN1 Calculation of Interest on Debentures
WN2
Provision For Taxation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Bank A/c (Tax Paid- Bal. Fig.) |
18,000 |
Balance b/d |
20,000 |
Balance c/d |
25,000 |
Profit and Loss A/c (Provision made) |
23,000 |
|
43,000 |
|
43,000 |
|
|
|
|
WN3
Land and Building Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
5,50,000 |
Depreciation |
80,000 |
Bank A/c (Purchase- Bal. Fig.) |
80,000 |
Balance c/d |
5,50,000 |
|
6,30,000 |
|
6,30,000 |
|
|
|
|
Answer:
Working Notes:
WN1
Provision For Taxation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Bank A/c (Tax Paid) |
37,500 |
Balance b/d |
35,000 |
Balance c/d |
38,000 |
Profit and Loss Account (Bal. Fig.) |
40,500 |
|
75,500 |
|
75,500 |
|
|
|
|
WN2
Investments Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
90,000 |
By Bank A/c (Sale) |
45,000 |
Capital Reserve (Profit on Sale of Investment) |
5,000 |
Balance c/d |
90,000 |
Bank A/c (Purchases- Bal. Fig.) |
40,000 |
|
|
|
1,35,000 |
|
1,35,000 |
|
|
|
|
WN3
Non-Current Assets Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
5,00,000 |
Accumulated Depreciation |
15,000 |
Bank A/c (Purchases- Bal. Fig.) |
1,20,000 |
Bank A/c |
4,000 |
|
|
Profit and Loss A/c (Loss on Sale) |
1,000 |
|
|
Balance c/d |
6,00,000 |
|
6,20,000 |
|
6,20,000 |
|
|
|
|
WN4
Accumulated Depreciation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Non-Current Assets A/c |
15,000 |
Balance b/d |
1,00,000 |
Balance c/d |
1,25,000 |
Profit and Loss A/c (Dep. charged during the year- Bal. Fig.) |
40,000 |
|
1,40,000 |
|
1,40,000 |
|
|
|
|
WN5
15% Debenture Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Bank A/c |
55,000 |
Balance b/d |
1,50,000 |
Balance c/d |
1,00,000 |
Premium on Redemption |
5,000 |
|
1,55,000 |
|
1,55,000 |
|
|
|
|
Page No 5.79:
Question 1:
Working Notes:
WN1
Provision For Taxation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Bank A/c (Tax Paid) |
37,500 |
Balance b/d |
35,000 |
Balance c/d |
38,000 |
Profit and Loss Account (Bal. Fig.) |
40,500 |
|
75,500 |
|
75,500 |
|
|
|
|
WN2
Investments Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
90,000 |
By Bank A/c (Sale) |
45,000 |
Capital Reserve (Profit on Sale of Investment) |
5,000 |
Balance c/d |
90,000 |
Bank A/c (Purchases- Bal. Fig.) |
40,000 |
|
|
|
1,35,000 |
|
1,35,000 |
|
|
|
|
WN3
Non-Current Assets Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
5,00,000 |
Accumulated Depreciation |
15,000 |
Bank A/c (Purchases- Bal. Fig.) |
1,20,000 |
Bank A/c |
4,000 |
|
|
Profit and Loss A/c (Loss on Sale) |
1,000 |
|
|
Balance c/d |
6,00,000 |
|
6,20,000 |
|
6,20,000 |
|
|
|
|
WN4
Accumulated Depreciation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Non-Current Assets A/c |
15,000 |
Balance b/d |
1,00,000 |
Balance c/d |
1,25,000 |
Profit and Loss A/c (Dep. charged during the year- Bal. Fig.) |
40,000 |
|
1,40,000 |
|
1,40,000 |
|
|
|
|
WN5
15% Debenture Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Bank A/c |
55,000 |
Balance b/d |
1,50,000 |
Balance c/d |
1,00,000 |
Premium on Redemption |
5,000 |
|
1,55,000 |
|
1,55,000 |
|
|
|
|
Answer:
OPERATING ACTIVITY | INVESTING ACTIVITY | FINANCING ACTIVITY | CASH AND CASH EQUIVALENTS |
a. Cash Sale of Goods | e. Patents Purchased | h. Proceeds from Issue of Debentures | f. Marketable Securities |
b. Cash Received against Revenue from Services rendered | i. Purchase of Shares | j. Repayment of Long-term Loan | g. Bank Overdraft |
c. Cash Purchase of Goods | n. Interest on Investments | l. Redemption of Debentures | |
d. Cash paid against Services Taken | p. Income Tax paid on Gain of Sale of Asset | m. Interest on Debentures | |
k. Commission Received | |||
o. Income Tax paid | |||
q. Cash Received from Debtors | |||
r. Cash Paid to Creditors |
Page No 5.79:
Question 2:
OPERATING ACTIVITY | INVESTING ACTIVITY | FINANCING ACTIVITY | CASH AND CASH EQUIVALENTS |
a. Cash Sale of Goods | e. Patents Purchased | h. Proceeds from Issue of Debentures | f. Marketable Securities |
b. Cash Received against Revenue from Services rendered | i. Purchase of Shares | j. Repayment of Long-term Loan | g. Bank Overdraft |
c. Cash Purchase of Goods | n. Interest on Investments | l. Redemption of Debentures | |
d. Cash paid against Services Taken | p. Income Tax paid on Gain of Sale of Asset | m. Interest on Debentures | |
k. Commission Received | |||
o. Income Tax paid | |||
q. Cash Received from Debtors | |||
r. Cash Paid to Creditors |
Answer:
OPERATING ACTIVITY | |
Financial Company | Non-Financial Company |
a. Purchase of Shares on a Stock Exchange | - |
b. Dividend received on shares | |
d. Loans given | |
e. Loans taken | |
f. Interest paid on borrowings |
A financial company deals with securities like shares, bonds, debentures, etc on a regular basis. These securities form part of their stock and hence purchase and sale of these securities will be categorised under Operating Activity. But, Dividend paid by them will be the part of Financing Activities.
However, for a non-financial company issue of shares, debentures, etc form part of financing activities as such issue will increase the capital employed in the business.
Page No 5.79:
Question 3:
OPERATING ACTIVITY | |
Financial Company | Non-Financial Company |
a. Purchase of Shares on a Stock Exchange | - |
b. Dividend received on shares | |
d. Loans given | |
e. Loans taken | |
f. Interest paid on borrowings |
A financial company deals with securities like shares, bonds, debentures, etc on a regular basis. These securities form part of their stock and hence purchase and sale of these securities will be categorised under Operating Activity. But, Dividend paid by them will be the part of Financing Activities.
However, for a non-financial company issue of shares, debentures, etc form part of financing activities as such issue will increase the capital employed in the business.
Answer:
Inflow | Outflow | No Flow |
a. Sale of Fixed Assets | c. Purchase of Machinery for cash | d. Purchase of Land and Building. Consideration paid by issue of Debentures. |
b. Sale of goods against cash | g. Payment of Interim Dividend | e. Issued fully paid bonus shares |
f. Cash withdrawn from Bank | ||
h. Proposed Dividend |
Page No 5.79:
Question 4:
Inflow | Outflow | No Flow |
a. Sale of Fixed Assets | c. Purchase of Machinery for cash | d. Purchase of Land and Building. Consideration paid by issue of Debentures. |
b. Sale of goods against cash | g. Payment of Interim Dividend | e. Issued fully paid bonus shares |
f. Cash withdrawn from Bank | ||
h. Proposed Dividend |
Answer:
|
Particulars |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (10,00,000 – 5,00,000) |
5,00,000 |
|
Add: Proposed Dividend (Current Year) |
4,00,000 |
|
Profit Before Taxation and Extraordinary Items |
9,00,000 |
Page No 5.80:
Question 5:
|
Particulars |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (10,00,000 – 5,00,000) |
5,00,000 |
|
Add: Proposed Dividend (Current Year) |
4,00,000 |
|
Profit Before Taxation and Extraordinary Items |
9,00,000 |
Answer:
|
Particulars |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (7,20,000 – 4,00,000) |
3,20,000 |
|
Add: Proposed Dividend (Current Year) |
1,60,000 |
|
Add: Proposed Preference Dividend (Current Year) 10% of 6,00,000 |
60,000 |
|
Add: Interim Dividend |
40,000 |
|
Profit Before Taxation and Extraordinary Items |
5,80,000 |
Page No 5.80:
Question 6:
|
Particulars |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (7,20,000 – 4,00,000) |
3,20,000 |
|
Add: Proposed Dividend (Current Year) |
1,60,000 |
|
Add: Proposed Preference Dividend (Current Year) 10% of 6,00,000 |
60,000 |
|
Add: Interim Dividend |
40,000 |
|
Profit Before Taxation and Extraordinary Items |
5,80,000 |
Answer:
|
Particulars |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (2,00,000 – 1,45,000) |
55,000 |
|
Add: Proposed Dividend (Current Year) |
50,000 |
Add: Provision for Taxation (Current Year) | 50,000 | |
|
Add: Interim Dividend Paid |
10,000 |
|
Profit Before Taxation and Extraordinary Items |
1,65,000 |
Page No 5.81:
Question 7:
|
Particulars |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (2,00,000 – 1,45,000) |
55,000 |
|
Add: Proposed Dividend (Current Year) |
50,000 |
Add: Provision for Taxation (Current Year) | 50,000 | |
|
Add: Interim Dividend Paid |
10,000 |
|
Profit Before Taxation and Extraordinary Items |
1,65,000 |
Answer:
|
Particulars |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (2,80,000 – 1,70,000) |
1,10,000 |
|
Add: Proposed Dividend (Current Year) |
1,00,000 |
|
Add: Provision for Tax (Current Year) |
80,000 |
|
Add: Transfer to Reserve (1,20,000 – 80,000) |
40,000 |
|
Profit Before Taxation and Extraordinary Items |
3,30,000 |
Page No 5.81:
Question 8:
|
Particulars |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (2,80,000 – 1,70,000) |
1,10,000 |
|
Add: Proposed Dividend (Current Year) |
1,00,000 |
|
Add: Provision for Tax (Current Year) |
80,000 |
|
Add: Transfer to Reserve (1,20,000 – 80,000) |
40,000 |
|
Profit Before Taxation and Extraordinary Items |
3,30,000 |
Answer:
Computation of Operating Profit before Working Capital Changes for the year ended March 31, 2014 |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
Profit as per Statement of Profit and Loss (1,70,000 – 1,00,000) |
|
70,000 |
|
|
Transfer to General Reserve (5,00,000 – 4,00,000) |
|
1,00,000 |
|
|
Provision for Taxation (Current Year) |
|
1,00,000 |
|
|
Profit before Tax |
|
2,70,000 |
|
|
Items to be Added: |
|
|
|
|
|
Depreciation for the year |
|
75,000 |
|
Operating Profit before Working Capital Changes |
|
3,45,000 |
Page No 5.82:
Question 9:
Computation of Operating Profit before Working Capital Changes for the year ended March 31, 2014 |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
Profit as per Statement of Profit and Loss (1,70,000 – 1,00,000) |
|
70,000 |
|
|
Transfer to General Reserve (5,00,000 – 4,00,000) |
|
1,00,000 |
|
|
Provision for Taxation (Current Year) |
|
1,00,000 |
|
|
Profit before Tax |
|
2,70,000 |
|
|
Items to be Added: |
|
|
|
|
|
Depreciation for the year |
|
75,000 |
|
Operating Profit before Working Capital Changes |
|
3,45,000 |
Answer:
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
Profit as per Statement of Profit and Loss (Net Income) |
|
20,000 |
|
|
Items to be Added: |
|
|
|
|
|
Depreciation |
10,000 |
|
|
|
Goodwill written off |
8,000 |
18,000 |
|
Operating Profit before Working Capital Changes |
|
38,000 |
|
|
Add: Decrease in Current Assets |
|
|
|
|
|
Trade Receivables |
6,000 |
|
|
|
Prepaid Insurance |
1,000 |
|
|
Less: Increase in Current Assets |
|
|
|
|
|
Inventories |
(20,000) |
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
|
Outstanding Rent |
(9,000) |
|
|
|
Trade Payables |
(6,000) |
(28,000) |
|
Cash Generated from operations |
|
10,000 |
|
|
Less: Tax Paid |
|
Nil |
|
|
Net Cash Flows from Operating Activities |
|
10,000 |
Page No 5.82:
Question 10:
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
Profit as per Statement of Profit and Loss (Net Income) |
|
20,000 |
|
|
Items to be Added: |
|
|
|
|
|
Depreciation |
10,000 |
|
|
|
Goodwill written off |
8,000 |
18,000 |
|
Operating Profit before Working Capital Changes |
|
38,000 |
|
|
Add: Decrease in Current Assets |
|
|
|
|
|
Trade Receivables |
6,000 |
|
|
|
Prepaid Insurance |
1,000 |
|
|
Less: Increase in Current Assets |
|
|
|
|
|
Inventories |
(20,000) |
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
|
Outstanding Rent |
(9,000) |
|
|
|
Trade Payables |
(6,000) |
(28,000) |
|
Cash Generated from operations |
|
10,000 |
|
|
Less: Tax Paid |
|
Nil |
|
|
Net Cash Flows from Operating Activities |
|
10,000 |
Answer:
Cash Flow from Operating Activities |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
Profit as per Statement of Profit and Loss (Net Income) |
|
(30,000) |
|
|
Operating Profit before Working Capital Changes |
|
(30,000) |
|
|
Add: Decrease in Current Assets |
|
|
|
|
|
Trade Receivables |
|
20,000 |
|
Less: Increase in Current Assets |
|
(10,000) |
|
|
|
Prepaid Insurance |
|
(10,000) |
|
Less: Decrease in Current Liabilities |
|
(20,000) |
|
|
|
Outstanding Rent |
(24,000) |
|
|
|
Trade Payables |
(40,000) |
(64,000) |
|
Cash Generated from operations |
|
(84,000) |
|
|
Less: Tax Paid |
|
Nil |
|
|
Net Cash Flow from (used in) Operating Activities |
|
(84,000) |
Page No 5.82:
Question 11:
Cash Flow from Operating Activities |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
Profit as per Statement of Profit and Loss (Net Income) |
|
(30,000) |
|
|
Operating Profit before Working Capital Changes |
|
(30,000) |
|
|
Add: Decrease in Current Assets |
|
|
|
|
|
Trade Receivables |
|
20,000 |
|
Less: Increase in Current Assets |
|
(10,000) |
|
|
|
Prepaid Insurance |
|
(10,000) |
|
Less: Decrease in Current Liabilities |
|
(20,000) |
|
|
|
Outstanding Rent |
(24,000) |
|
|
|
Trade Payables |
(40,000) |
(64,000) |
|
Cash Generated from operations |
|
(84,000) |
|
|
Less: Tax Paid |
|
Nil |
|
|
Net Cash Flow from (used in) Operating Activities |
|
(84,000) |
Answer:
Cash Flow from Operating Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Net Profit after Provision for Tax and Proposed Dividend |
|
2,15,000 |
|
Add: Provision for Tax |
|
45,000 |
|
Add: Proposed Dividend |
|
50,000 |
|
Profit Before Taxation |
|
3,10,000 |
|
Items to be Added: |
|
|
|
Depreciation |
25,000 |
|
|
Loss on Sale of Machinery |
10,000 |
|
|
Patents Amortised |
30,000 |
65,000 |
|
|
|
3,75,000 |
|
Items to be Deducted: |
|
|
|
Income Tax Refund |
(30,000) |
|
|
Gain on Sale of Land |
(70,000) |
(1,00,000) |
|
Operating Profit before Working Capital Changes |
|
2,75,000 |
|
Less: Net Tax Paid (45,000 – 30,000) |
|
(15,000) |
|
Net Cash Flows from Operating Activities |
|
2,60,000 |
Page No 5.83:
Question 12:
Cash Flow from Operating Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Net Profit after Provision for Tax and Proposed Dividend |
|
2,15,000 |
|
Add: Provision for Tax |
|
45,000 |
|
Add: Proposed Dividend |
|
50,000 |
|
Profit Before Taxation |
|
3,10,000 |
|
Items to be Added: |
|
|
|
Depreciation |
25,000 |
|
|
Loss on Sale of Machinery |
10,000 |
|
|
Patents Amortised |
30,000 |
65,000 |
|
|
|
3,75,000 |
|
Items to be Deducted: |
|
|
|
Income Tax Refund |
(30,000) |
|
|
Gain on Sale of Land |
(70,000) |
(1,00,000) |
|
Operating Profit before Working Capital Changes |
|
2,75,000 |
|
Less: Net Tax Paid (45,000 – 30,000) |
|
(15,000) |
|
Net Cash Flows from Operating Activities |
|
2,60,000 |
Answer:
Cash Flow from Operating Activities |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
Profit as per Statement of Profit and Loss |
|
7,00,000 |
|
|
Add: Transfer to Reserve |
|
60,000 |
|
|
Profit Before extraordinary items |
|
7,60,000 |
|
|
Items to be Added: |
|
|
|
|
Depreciation on Fixed Assets |
40,000 |
|
|
|
Goodwill Amortised |
20,000 |
60,000 |
|
|
|
|
8,20,000 |
|
|
Items to be Deducted: |
|
|
|
|
Gain on Sale of Land |
|
(90,000) |
|
|
Operating Profit before Working Capital Adjustments |
|
7,30,000 |
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
|
Trade Payables |
(25,000) |
|
|
Less: Increase in Current Assets |
|
|
|
|
|
Trade Receivables |
(15,000) |
(40,000) |
|
|
|
|
6,90,000 |
|
Add:Decrease in Current Assets |
|
|
|
|
|
Prepaid Expenses |
|
8,000 |
|
Cash Generated from Operations |
|
6,98,000 |
|
|
Less: Tax Paid |
|
Nil |
|
|
Net Cash Flows from Operating Activities |
|
6,98,000 |
Page No 5.83:
Question 13:
Cash Flow from Operating Activities |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
Profit as per Statement of Profit and Loss |
|
7,00,000 |
|
|
Add: Transfer to Reserve |
|
60,000 |
|
|
Profit Before extraordinary items |
|
7,60,000 |
|
|
Items to be Added: |
|
|
|
|
Depreciation on Fixed Assets |
40,000 |
|
|
|
Goodwill Amortised |
20,000 |
60,000 |
|
|
|
|
8,20,000 |
|
|
Items to be Deducted: |
|
|
|
|
Gain on Sale of Land |
|
(90,000) |
|
|
Operating Profit before Working Capital Adjustments |
|
7,30,000 |
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
|
Trade Payables |
(25,000) |
|
|
Less: Increase in Current Assets |
|
|
|
|
|
Trade Receivables |
(15,000) |
(40,000) |
|
|
|
|
6,90,000 |
|
Add:Decrease in Current Assets |
|
|
|
|
|
Prepaid Expenses |
|
8,000 |
|
Cash Generated from Operations |
|
6,98,000 |
|
|
Less: Tax Paid |
|
Nil |
|
|
Net Cash Flows from Operating Activities |
|
6,98,000 |
Answer:
Cash Flow from Operating Activities |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
Profit as per Statement of Profit and Loss |
|
6,40,000 |
|
Add: Provision for Tax | 20,000 | |||
Less:Extraordinary Item | ||||
|
Insurance Claim |
|
(50,000) |
|
|
Profit Before Tax and Extraordinary items |
|
6,10,000 |
|
|
Items to be Added: |
|
|
|
|
Depreciation on Plant and Machinery |
|
55,000 |
|
|
|
|
6,65,000 |
|
|
Items to be Deducted: |
|
|
|
|
Gain on Sale of Investments |
|
(20,000) |
|
|
Operating Profit before Working Capital Adjustments |
|
6,45,000 |
|
|
Add: Increase in Current Liabilities |
|
|
|
|
|
Trade Payables |
30,000 |
|
|
Add:Decrease in Current Assets |
|
|
|
|
|
Inventories |
10,000 |
40,000 |
|
Less: Increase in Current Assets |
|
6,85,000 |
|
|
|
Trade Receivables |
(40,000) |
|
|
|
Prepaid Expenses |
(14,000) |
(54,000) |
|
Cash Generated from Operations (before tax and Extraordinary items) |
|
6,31,000 |
|
Less: Tax Paid | (15,000) | |||
Cash Flow from Operating Activities after Tax | 6,16,000 | |||
Add:Extraordinary items | ||||
|
Insurance Claim |
|
50,000 |
|
|
Net Cash Flows from Operating Activities |
|
6,66,000 |
Page No 5.83:
Question 14:
Cash Flow from Operating Activities |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
Profit as per Statement of Profit and Loss |
|
6,40,000 |
|
Add: Provision for Tax | 20,000 | |||
Less:Extraordinary Item | ||||
|
Insurance Claim |
|
(50,000) |
|
|
Profit Before Tax and Extraordinary items |
|
6,10,000 |
|
|
Items to be Added: |
|
|
|
|
Depreciation on Plant and Machinery |
|
55,000 |
|
|
|
|
6,65,000 |
|
|
Items to be Deducted: |
|
|
|
|
Gain on Sale of Investments |
|
(20,000) |
|
|
Operating Profit before Working Capital Adjustments |
|
6,45,000 |
|
|
Add: Increase in Current Liabilities |
|
|
|
|
|
Trade Payables |
30,000 |
|
|
Add:Decrease in Current Assets |
|
|
|
|
|
Inventories |
10,000 |
40,000 |
|
Less: Increase in Current Assets |
|
6,85,000 |
|
|
|
Trade Receivables |
(40,000) |
|
|
|
Prepaid Expenses |
(14,000) |
(54,000) |
|
Cash Generated from Operations (before tax and Extraordinary items) |
|
6,31,000 |
|
Less: Tax Paid | (15,000) | |||
Cash Flow from Operating Activities after Tax | 6,16,000 | |||
Add:Extraordinary items | ||||
|
Insurance Claim |
|
50,000 |
|
|
Net Cash Flows from Operating Activities |
|
6,66,000 |
Answer:
Cash Flow from Operating Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss |
|
8,00,000 |
|
Add: Provision for Tax |
|
1,00,000 |
Add: Proposed Dividend | 1,10,000 | ||
|
Less: Compensation for Natural Disaster |
|
(75,000) |
|
Profit Before Tax and Extraordinary items |
|
9,35,000 |
|
Items to be Added: |
|
|
|
Depreciation on Plant and Machinery |
1,50,000 |
|
|
Loss on sale of Investment |
30,000 |
1,80,000 |
|
|
|
11,15,000 |
|
Items to be Deducted: |
|
|
|
Profit on Sale of Land |
(90,000) |
|
|
Dividend Received |
(20,000) |
(1,10,000) |
|
Operating Profit before Working Capital Adjustments |
|
10,05,000 |
|
Add: Increase in Current Liabilities |
70,000 |
|
|
Add:Decrease in Current Assets |
40,000 |
1,10,000 |
|
|
|
11,15,000 |
|
Less: Decrease in Current Liabilities |
(10,000) |
|
|
Less: Increase in Current Assets |
(60,000) |
(70,000) |
|
Cash Generated from Operations |
|
10,45,000 |
Less: Net Tax Paid (1,20,000 â 10,000) | (1,10,000) | ||
Cash Flow from operations after Tax | |||
|
Add: Compensation for Natural Disaster |
|
75,000 |
|
Net Cash Flows from Operating Activities |
|
10,10,000 |
Page No 5.84:
Question 15:
Cash Flow from Operating Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss |
|
8,00,000 |
|
Add: Provision for Tax |
|
1,00,000 |
Add: Proposed Dividend | 1,10,000 | ||
|
Less: Compensation for Natural Disaster |
|
(75,000) |
|
Profit Before Tax and Extraordinary items |
|
9,35,000 |
|
Items to be Added: |
|
|
|
Depreciation on Plant and Machinery |
1,50,000 |
|
|
Loss on sale of Investment |
30,000 |
1,80,000 |
|
|
|
11,15,000 |
|
Items to be Deducted: |
|
|
|
Profit on Sale of Land |
(90,000) |
|
|
Dividend Received |
(20,000) |
(1,10,000) |
|
Operating Profit before Working Capital Adjustments |
|
10,05,000 |
|
Add: Increase in Current Liabilities |
70,000 |
|
|
Add:Decrease in Current Assets |
40,000 |
1,10,000 |
|
|
|
11,15,000 |
|
Less: Decrease in Current Liabilities |
(10,000) |
|
|
Less: Increase in Current Assets |
(60,000) |
(70,000) |
|
Cash Generated from Operations |
|
10,45,000 |
Less: Net Tax Paid (1,20,000 â 10,000) | (1,10,000) | ||
Cash Flow from operations after Tax | |||
|
Add: Compensation for Natural Disaster |
|
75,000 |
|
Net Cash Flows from Operating Activities |
|
10,10,000 |
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 |
|
|
Goodwill Written-off |
25,000 |
|
|
Depreciation and Amortisation Expenses |
1,60,000 |
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) |
|
Add: Increase in Current Assets |
|
|
|
Inventories |
|
16,000 |
|
Cash Generated from Operations |
|
4,25,000 |
|
Less: Tax Paid |
|
(64,000) |
|
Net Cash Flows from Operating Activities |
|
3,61,000 |
Page No 5.84:
Question 16:
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 |
|
|
Goodwill Written-off |
25,000 |
|
|
Depreciation and Amortisation Expenses |
1,60,000 |
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) |
|
Add: Increase in Current Assets |
|
|
|
Inventories |
|
16,000 |
|
Cash Generated from Operations |
|
4,25,000 |
|
Less: Tax Paid |
|
(64,000) |
|
Net Cash Flows from Operating Activities |
|
3,61,000 |
Answer:
Cash Flow from Operating Activities |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
Profit as per Statement of Profit or Loss |
5,000 |
|
|
|
Add: Transfer to Reserve |
35,000 |
40,000 |
|
|
Profit before Tax and Extraordinary Items |
|
40,000 |
|
|
Items to be Added: |
|
|
|
|
Depreciation(WN1) |
22,000 |
|
|
|
Goodwill written off |
10,000 |
32,000 |
|
|
Items to be Deducted: |
|
|
|
|
Profit on Sale of Asset |
|
(8,000) |
|
|
Operating Profit before Working Capital Adjustments |
|
64,000 |
|
|
Less: Increase in Current Assets |
|
|
|
|
|
Bills Receivables |
|
(41,000) |
|
Add:Decrease in Current Assets |
|
|
|
|
|
Debtors |
|
35,000 |
|
Less: Decrease in Current Liabilities |
|
|
|
|
|
Outstanding Expenses |
|
(18,000) |
|
Cash Generated from Operations |
|
40,000 |
|
|
Less: Tax Paid |
|
Nil |
|
|
Net Cash Flows from Operating Activities |
|
40,000 |
Working Note1:
Provision for Depreciation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Asset A/c (40,000 – 28,000)* |
12,000 |
Balance b/d |
20,000 |
Balance c/d |
30,000 |
Profit and Loss A/c (Depreciation charged during the year) |
22,000 |
|
42,000 |
|
42,000 |
|
|
|
|
Particulars |
Amount (Rs) |
Cost of Asset Sold |
40,000 |
Less: Provision for Depreciation* |
(12,000) |
Book Value |
28,000 |
Less: Sale of Asset |
(36,000) |
Profit on Sale |
8,000 |
Page No 5.85:
Question 17:
Cash Flow from Operating Activities |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
Profit as per Statement of Profit or Loss |
5,000 |
|
|
|
Add: Transfer to Reserve |
35,000 |
40,000 |
|
|
Profit before Tax and Extraordinary Items |
|
40,000 |
|
|
Items to be Added: |
|
|
|
|
Depreciation(WN1) |
22,000 |
|
|
|
Goodwill written off |
10,000 |
32,000 |
|
|
Items to be Deducted: |
|
|
|
|
Profit on Sale of Asset |
|
(8,000) |
|
|
Operating Profit before Working Capital Adjustments |
|
64,000 |
|
|
Less: Increase in Current Assets |
|
|
|
|
|
Bills Receivables |
|
(41,000) |
|
Add:Decrease in Current Assets |
|
|
|
|
|
Debtors |
|
35,000 |
|
Less: Decrease in Current Liabilities |
|
|
|
|
|
Outstanding Expenses |
|
(18,000) |
|
Cash Generated from Operations |
|
40,000 |
|
|
Less: Tax Paid |
|
Nil |
|
|
Net Cash Flows from Operating Activities |
|
40,000 |
Working Note1:
Provision for Depreciation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Asset A/c (40,000 – 28,000)* |
12,000 |
Balance b/d |
20,000 |
Balance c/d |
30,000 |
Profit and Loss A/c (Depreciation charged during the year) |
22,000 |
|
42,000 |
|
42,000 |
|
|
|
|
Particulars |
Amount (Rs) |
Cost of Asset Sold |
40,000 |
Less: Provision for Depreciation* |
(12,000) |
Book Value |
28,000 |
Less: Sale of Asset |
(36,000) |
Profit on Sale |
8,000 |
Answer:
Cash Flow from Operating Activities for the year ended 31st March, 2013 |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
Profit as per Statement of Profit and Loss (Net Income) |
15,00,000 |
|
|
|
Items to be Added: |
|
|
|
|
|
Depreciation |
6,00,000 |
|
|
Items to be Deducted: |
21,00,000 |
|
|
|
|
Profit on Sale of Furniture |
(1,50,000) |
|
|
Operating Profit before Working Capital Changes |
19,50,000 |
|
|
|
Add: Increase in Current Liabilities |
|
|
|
|
|
Trade Payables |
1,80,000 |
|
|
Less: Increase in Current Assets |
|
|
|
|
|
Trade Receivables |
(1,20,000) |
|
|
Cash Generated from operations |
20,10,000 |
|
|
|
Less: Tax Paid |
Nil |
|
|
|
Net Cash Flows from Operating Activities |
|
20,10,000 |
|
|
Page No 5.85:
Question 18:
Cash Flow from Operating Activities for the year ended 31st March, 2013 |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
Profit as per Statement of Profit and Loss (Net Income) |
15,00,000 |
|
|
|
Items to be Added: |
|
|
|
|
|
Depreciation |
6,00,000 |
|
|
Items to be Deducted: |
21,00,000 |
|
|
|
|
Profit on Sale of Furniture |
(1,50,000) |
|
|
Operating Profit before Working Capital Changes |
19,50,000 |
|
|
|
Add: Increase in Current Liabilities |
|
|
|
|
|
Trade Payables |
1,80,000 |
|
|
Less: Increase in Current Assets |
|
|
|
|
|
Trade Receivables |
(1,20,000) |
|
|
Cash Generated from operations |
20,10,000 |
|
|
|
Less: Tax Paid |
Nil |
|
|
|
Net Cash Flows from Operating Activities |
|
20,10,000 |
|
|
Answer:
Cash Flow from Operating Activities |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
Profit as per Statement of Profit and Loss (90,000 – 80,000) |
|
10,000 |
|
|
Items to be Added |
|
Nil |
|
|
Operating Profit before Working Capital Adjustments |
|
10,000 |
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
|
Trade Payables |
|
(17,000) |
|
Add: Increase in Current Liabilities |
|
|
|
|
Expenses Outstanding |
|
1,000 |
|
|
Less: Increase in Current Assets |
|
|
|
|
|
Accrued Income |
|
(1,000) |
|
Add: Decrease in Current Assets |
|
|
|
|
Inventories |
10,000 |
|
|
|
Trade Receivables |
2,000 |
12,000 |
|
|
Cash Generated from Operations |
|
5,000 |
|
|
Less: Tax Paid |
|
Nil |
|
Net Cash Flows from Operating Activities |
|
5,000 |
||
|
Page No 5.85:
Question 19:
Cash Flow from Operating Activities |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
Profit as per Statement of Profit and Loss (90,000 – 80,000) |
|
10,000 |
|
|
Items to be Added |
|
Nil |
|
|
Operating Profit before Working Capital Adjustments |
|
10,000 |
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
|
Trade Payables |
|
(17,000) |
|
Add: Increase in Current Liabilities |
|
|
|
|
Expenses Outstanding |
|
1,000 |
|
|
Less: Increase in Current Assets |
|
|
|
|
|
Accrued Income |
|
(1,000) |
|
Add: Decrease in Current Assets |
|
|
|
|
Inventories |
10,000 |
|
|
|
Trade Receivables |
2,000 |
12,000 |
|
|
Cash Generated from Operations |
|
5,000 |
|
|
Less: Tax Paid |
|
Nil |
|
Net Cash Flows from Operating Activities |
|
5,000 |
||
|
Answer:
Cash Flow from Operating Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (80,000 – 40,000) |
|
40,000 |
|
Items to be Added |
|
Nil |
|
Operating Profit before Working Capital Adjustments |
|
40,000 |
|
Less: Decrease in Current Liabilities |
|
|
|
Bills Payables |
|
(1,000) |
|
Add: Increase in Current Liabilities |
|
|
|
Creditors |
2,000 |
|
|
Outstanding Expenses |
1,000 |
3,000 |
|
Less: Increase in Current Assets |
|
|
|
Debtors |
(2,000) |
|
|
Bills Receivables |
(3,000) |
(5,000) |
|
Add: Decrease in Current Assets |
|
|
|
Inventories |
3,000 |
|
|
Prepaid Expenses |
500 |
3,500 |
|
Cash Generated from Operations |
|
40,500 |
|
Less: Tax Paid |
|
Nil |
|
Net Cash Flows from Operating Activities |
|
40,500 |
|
Page No 5.85:
Question 20:
Cash Flow from Operating Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (80,000 – 40,000) |
|
40,000 |
|
Items to be Added |
|
Nil |
|
Operating Profit before Working Capital Adjustments |
|
40,000 |
|
Less: Decrease in Current Liabilities |
|
|
|
Bills Payables |
|
(1,000) |
|
Add: Increase in Current Liabilities |
|
|
|
Creditors |
2,000 |
|
|
Outstanding Expenses |
1,000 |
3,000 |
|
Less: Increase in Current Assets |
|
|
|
Debtors |
(2,000) |
|
|
Bills Receivables |
(3,000) |
(5,000) |
|
Add: Decrease in Current Assets |
|
|
|
Inventories |
3,000 |
|
|
Prepaid Expenses |
500 |
3,500 |
|
Cash Generated from Operations |
|
40,500 |
|
Less: Tax Paid |
|
Nil |
|
Net Cash Flows from Operating Activities |
|
40,500 |
|
Answer:
Cash Flow from Operating Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (65,000 – 60,000) |
|
5,000 |
|
Transfer to General Reserve |
|
35,000 |
|
Dividend Equalisation Fund |
|
22,000 |
|
Profit Before Taxation |
|
62,000 |
|
Items to be Added: |
|
|
|
Goodwill Written-off |
|
10,000 |
|
Operating Profit before Working Capital Adjustments |
|
72,000 |
|
Less: Decrease in Current Liabilities |
|
|
|
Salary Outstanding |
|
(18,000) |
|
Less: Increase in Current Assets |
|
|
|
Wages Prepaid |
(2,000) |
|
|
Bills Receivables |
(41,000) |
(43,000) |
|
Add: Decrease in Current Assets |
|
|
|
Debtors |
|
47,000 |
|
Cash Generated from Operations |
|
58,000 |
|
Less: Tax Paid |
|
Nil |
|
Net Cash Flows from Operating Activities |
|
58,000 |
Note: Dividend Equalisation Fund is the amount of profits that are reserved for distributing the dividends in the future. Hence, it is an appropriation of profits and thus, it is added back to the profits.
Page No 5.86:
Question 21:
Cash Flow from Operating Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (65,000 – 60,000) |
|
5,000 |
|
Transfer to General Reserve |
|
35,000 |
|
Dividend Equalisation Fund |
|
22,000 |
|
Profit Before Taxation |
|
62,000 |
|
Items to be Added: |
|
|
|
Goodwill Written-off |
|
10,000 |
|
Operating Profit before Working Capital Adjustments |
|
72,000 |
|
Less: Decrease in Current Liabilities |
|
|
|
Salary Outstanding |
|
(18,000) |
|
Less: Increase in Current Assets |
|
|
|
Wages Prepaid |
(2,000) |
|
|
Bills Receivables |
(41,000) |
(43,000) |
|
Add: Decrease in Current Assets |
|
|
|
Debtors |
|
47,000 |
|
Cash Generated from Operations |
|
58,000 |
|
Less: Tax Paid |
|
Nil |
|
Net Cash Flows from Operating Activities |
|
58,000 |
Note: Dividend Equalisation Fund is the amount of profits that are reserved for distributing the dividends in the future. Hence, it is an appropriation of profits and thus, it is added back to the profits.
Answer:
Cash Flow from Operating Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (30,000 – 20,000) |
|
10,000 |
|
Items to be Added: |
|
|
|
Goodwill Written off |
4,000 |
|
|
Provision for Depreciation (30,000 – 28,000) |
2,000 |
6,000 |
|
Operating Profit before Working Capital Adjustments |
|
16,000 |
|
Less: Increase in Current Assets |
|
|
|
Trade Receivables |
(2,000) |
|
|
Inventories |
(3,000) |
|
|
Prepaid Insurance |
(200) |
(5,200) |
|
Cash Generated from operations |
|
10,800 |
|
Less: Tax Paid |
|
Nil |
|
Net Cash Flows from Operating Activities |
|
10,800 |
Page No 5.86:
Question 22:
Cash Flow from Operating Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (30,000 – 20,000) |
|
10,000 |
|
Items to be Added: |
|
|
|
Goodwill Written off |
4,000 |
|
|
Provision for Depreciation (30,000 – 28,000) |
2,000 |
6,000 |
|
Operating Profit before Working Capital Adjustments |
|
16,000 |
|
Less: Increase in Current Assets |
|
|
|
Trade Receivables |
(2,000) |
|
|
Inventories |
(3,000) |
|
|
Prepaid Insurance |
(200) |
(5,200) |
|
Cash Generated from operations |
|
10,800 |
|
Less: Tax Paid |
|
Nil |
|
Net Cash Flows from Operating Activities |
|
10,800 |
Answer:
Case (a)
Cash Flow from Operating Activities for the year ended 31st March, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (6,00,000 – 2,00,000) |
|
4,00,000 |
|
Items to be Added: |
|
|
|
Provision for Depreciation (2,50,000 – 2,00,000) |
|
50,000 |
|
Net Cash Flows from Operating Activities |
|
4,50,000 |
Case (b)
Cash Flow from Operating Activities for the year ended 31st March, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (6,00,000 – 2,00,000) |
|
4,00,000 |
|
Items to be Added: |
|
|
|
Goodwill written off |
|
10,000 |
|
Net Cash Flows from Operating Activities |
|
4,10,000 |
Case (c)
Cash Flow from Operating Activities for the year ended 31st March, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (6,00,000 – 2,00,000) |
|
4,00,000 |
|
Items to be Added: |
|
|
|
Provision for Taxation (1,50,000 – 1,00,000) |
|
50,000 |
|
Net Cash Flows from Operating Activities |
|
4,50,000 |
Case (d)
Cash Flow from Operating Activities for the year ended 31st March, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (6,00,000 – 2,00,000) |
|
4,00,000 |
|
Items to be Added: |
|
|
|
Transfer to General Reserve |
|
20,000 |
|
Net Cash Flows from Operating Activities |
|
4,20,000 |
Case (e)
Cash Flow from Operating Activities for the year ended 31st March, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (6,00,000 – 2,00,000) |
|
4,00,000 |
|
Items to be Added: |
|
|
|
Loss on Sale of Machinery |
|
5,000 |
|
Provision for Depreciation |
|
90,000 |
|
Net Cash Flows from Operating Activities |
|
4,95,000 |
Working Notes
Plant and Machinery Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
4,00,000 |
Bank a/c (Sale) |
5,000 |
Bank A/c (Purchase- Bal. Fig.) |
50,000 |
Accumulated Depreciation A/c |
40,000 |
|
|
Profit and Loss A/c (Loss on Sale) |
5,000 |
|
|
Balance c/d |
4,00,000 |
|
4,50,000 |
|
4,50,000 |
|
|
|
|
Accumulated Depreciation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Plant and Machinery A/c |
40,000 |
Balance b/d |
1,00,000 |
Balance c/d |
1,50,000 |
Profit and Loss A/c (Depreciation charged during the year) |
90,000 |
|
1,90,000 |
|
1,90,000 |
|
|
|
|
Page No 5.87:
Question 23:
Case (a)
Cash Flow from Operating Activities for the year ended 31st March, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (6,00,000 – 2,00,000) |
|
4,00,000 |
|
Items to be Added: |
|
|
|
Provision for Depreciation (2,50,000 – 2,00,000) |
|
50,000 |
|
Net Cash Flows from Operating Activities |
|
4,50,000 |
Case (b)
Cash Flow from Operating Activities for the year ended 31st March, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (6,00,000 – 2,00,000) |
|
4,00,000 |
|
Items to be Added: |
|
|
|
Goodwill written off |
|
10,000 |
|
Net Cash Flows from Operating Activities |
|
4,10,000 |
Case (c)
Cash Flow from Operating Activities for the year ended 31st March, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (6,00,000 – 2,00,000) |
|
4,00,000 |
|
Items to be Added: |
|
|
|
Provision for Taxation (1,50,000 – 1,00,000) |
|
50,000 |
|
Net Cash Flows from Operating Activities |
|
4,50,000 |
Case (d)
Cash Flow from Operating Activities for the year ended 31st March, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (6,00,000 – 2,00,000) |
|
4,00,000 |
|
Items to be Added: |
|
|
|
Transfer to General Reserve |
|
20,000 |
|
Net Cash Flows from Operating Activities |
|
4,20,000 |
Case (e)
Cash Flow from Operating Activities for the year ended 31st March, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (6,00,000 – 2,00,000) |
|
4,00,000 |
|
Items to be Added: |
|
|
|
Loss on Sale of Machinery |
|
5,000 |
|
Provision for Depreciation |
|
90,000 |
|
Net Cash Flows from Operating Activities |
|
4,95,000 |
Working Notes
Plant and Machinery Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
4,00,000 |
Bank a/c (Sale) |
5,000 |
Bank A/c (Purchase- Bal. Fig.) |
50,000 |
Accumulated Depreciation A/c |
40,000 |
|
|
Profit and Loss A/c (Loss on Sale) |
5,000 |
|
|
Balance c/d |
4,00,000 |
|
4,50,000 |
|
4,50,000 |
|
|
|
|
Accumulated Depreciation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Plant and Machinery A/c |
40,000 |
Balance b/d |
1,00,000 |
Balance c/d |
1,50,000 |
Profit and Loss A/c (Depreciation charged during the year) |
90,000 |
|
1,90,000 |
|
1,90,000 |
|
|
|
|
Answer:
Cash Flow from Operating Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (48,000 – 30,000) |
|
18,000 |
|
Transfer to General Reserve |
|
30,000 |
|
Proposed Dividend |
|
50,000 |
|
Provision for Tax |
|
50,000 |
|
Profit Before Taxation |
|
1,48,000 |
|
Items to be Added: |
|
– |
|
Goodwill Written-off |
25,000 |
|
|
Depreciation on Building (2,00,000 – 1,70,000) |
30,000 |
55,000 |
|
Operating Profit before Working Capital Adjustments |
|
2,03,000 |
|
Less: Decrease in Current Liabilities |
|
|
|
Other Current Liabilities |
|
(4,000) |
|
Add: Increase in Current Liabilities |
|
|
|
Trade Payables |
|
28,000 |
|
Less: Increase in Current Assets |
|
|
|
Trade Receivables |
|
(92,000) |
|
Add: Decrease in Current Assets |
|
|
|
Inventories |
|
10,000 |
|
Cash Generated from Operations |
|
1,45,000 |
|
Less: Tax Paid |
|
(40,000) |
|
Net Cash Flows from Operating Activities |
|
1,05,000 |
Page No 5.88:
Question 24:
Cash Flow from Operating Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss (48,000 – 30,000) |
|
18,000 |
|
Transfer to General Reserve |
|
30,000 |
|
Proposed Dividend |
|
50,000 |
|
Provision for Tax |
|
50,000 |
|
Profit Before Taxation |
|
1,48,000 |
|
Items to be Added: |
|
– |
|
Goodwill Written-off |
25,000 |
|
|
Depreciation on Building (2,00,000 – 1,70,000) |
30,000 |
55,000 |
|
Operating Profit before Working Capital Adjustments |
|
2,03,000 |
|
Less: Decrease in Current Liabilities |
|
|
|
Other Current Liabilities |
|
(4,000) |
|
Add: Increase in Current Liabilities |
|
|
|
Trade Payables |
|
28,000 |
|
Less: Increase in Current Assets |
|
|
|
Trade Receivables |
|
(92,000) |
|
Add: Decrease in Current Assets |
|
|
|
Inventories |
|
10,000 |
|
Cash Generated from Operations |
|
1,45,000 |
|
Less: Tax Paid |
|
(40,000) |
|
Net Cash Flows from Operating Activities |
|
1,05,000 |
Answer:
Cash Flow from Operating Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss |
|
2,00,000 |
|
Add: Tax Expenses |
|
25,000 |
|
Profit Before Taxation |
|
2,25,000 |
|
Items to be Added: |
|
|
|
Goodwill Written-off |
28,000 |
|
|
Depreciation and Amortisation Expenses |
44,000 |
72,000 |
|
Operating Profit before Working Capital Adjustments |
|
2,97,000 |
|
Less: Decrease in Current Liabilities |
|
|
|
Trade Payables |
|
(8,000) |
|
Add: Increase in Current Liabilities |
|
|
|
Outstanding Expenses |
|
600 |
|
Less: Increase in Current Assets |
|
|
|
Inventories |
(25,000) |
|
|
Trade Receivables |
(6,000) |
|
|
Prepaid Expenses |
(1,500) |
(32,500) |
|
Cash Generated from Operations |
|
2,57,100 |
|
Less: Tax Paid |
|
(25,000) |
|
Net Cash Flows from Operating Activities |
|
2,32,100 |
Page No 5.89:
Question 25:
Cash Flow from Operating Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Profit as per Statement of Profit and Loss |
|
2,00,000 |
|
Add: Tax Expenses |
|
25,000 |
|
Profit Before Taxation |
|
2,25,000 |
|
Items to be Added: |
|
|
|
Goodwill Written-off |
28,000 |
|
|
Depreciation and Amortisation Expenses |
44,000 |
72,000 |
|
Operating Profit before Working Capital Adjustments |
|
2,97,000 |
|
Less: Decrease in Current Liabilities |
|
|
|
Trade Payables |
|
(8,000) |
|
Add: Increase in Current Liabilities |
|
|
|
Outstanding Expenses |
|
600 |
|
Less: Increase in Current Assets |
|
|
|
Inventories |
(25,000) |
|
|
Trade Receivables |
(6,000) |
|
|
Prepaid Expenses |
(1,500) |
(32,500) |
|
Cash Generated from Operations |
|
2,57,100 |
|
Less: Tax Paid |
|
(25,000) |
|
Net Cash Flows from Operating Activities |
|
2,32,100 |
Answer:
Cash Flow from Investing Activities for the year ended March 31, 2014 |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
|
Purchase of Plant and Machinery |
(1,55,000) |
|
|
|
Sale of Plant and Machinery |
45,000 |
|
|
Net Cash Used in Investing Activities |
|
(1,10,000) |
Working Notes:
Plant and Machinery Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
||
Balance b/d |
9,60,000 |
Depreciation |
35,000 |
||
Profit and Loss A/c (Profit on Sale) |
15,000 |
Bank A/c (Sale) |
45,000 |
||
Bank A/c (Purchase) |
1,55,000 |
Balance c/d |
10,50,000 |
||
|
11,30,000 |
|
11,30,000 |
||
|
|
|
|
Page No 5.89:
Question 26:
Cash Flow from Investing Activities for the year ended March 31, 2014 |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
|
Purchase of Plant and Machinery |
(1,55,000) |
|
|
|
Sale of Plant and Machinery |
45,000 |
|
|
Net Cash Used in Investing Activities |
|
(1,10,000) |
Working Notes:
Plant and Machinery Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
||
Balance b/d |
9,60,000 |
Depreciation |
35,000 |
||
Profit and Loss A/c (Profit on Sale) |
15,000 |
Bank A/c (Sale) |
45,000 |
||
Bank A/c (Purchase) |
1,55,000 |
Balance c/d |
10,50,000 |
||
|
11,30,000 |
|
11,30,000 |
||
|
|
|
|
Answer:
Cash Flow from Investing Activities |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
|
Purchase of Machinery (WN1) |
(1,40,000) |
|
|
|
Sale of Machinery |
50,000 |
|
|
|
Sale of Patents (WN3) |
90,000 |
Nil |
|
Net Cash Used in Investing Activities |
|
Nil |
Working Notes:
WN1:
Machinery Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
||
Balance b/d |
9,50,000 |
Provision for Depreciation A/c |
60,000 |
||
Profit and Loss A/c (Profit on Sale) |
20,000 |
Bank A/c (Sale) |
50,000 |
||
Bank A/c (Purchase) |
1,40,000 |
Balance c/d |
10,00,000 |
||
|
11,10,000 |
|
11,10,000 |
||
|
|
|
|
WN2:
Patents Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
||
Balance b/d |
3,00,000 |
Patents Written off |
50,000 |
||
Profit and Loss A/c (Profit on Sale) |
40,000 |
Bank A/c (Sale) (Balancing Figure) |
90,000 |
||
|
|
Balance c/d |
2,00,000 |
||
|
3,40,000 |
|
3,40,000 |
||
|
|
|
|
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 5.89:
Question 27:
Cash Flow from Investing Activities |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
|
Purchase of Machinery (WN1) |
(1,40,000) |
|
|
|
Sale of Machinery |
50,000 |
|
|
|
Sale of Patents (WN3) |
90,000 |
Nil |
|
Net Cash Used in Investing Activities |
|
Nil |
Working Notes:
WN1:
Machinery Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
||
Balance b/d |
9,50,000 |
Provision for Depreciation A/c |
60,000 |
||
Profit and Loss A/c (Profit on Sale) |
20,000 |
Bank A/c (Sale) |
50,000 |
||
Bank A/c (Purchase) |
1,40,000 |
Balance c/d |
10,00,000 |
||
|
11,10,000 |
|
11,10,000 |
||
|
|
|
|
WN2:
Patents Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
||
Balance b/d |
3,00,000 |
Patents Written off |
50,000 |
||
Profit and Loss A/c (Profit on Sale) |
40,000 |
Bank A/c (Sale) (Balancing Figure) |
90,000 |
||
|
|
Balance c/d |
2,00,000 |
||
|
3,40,000 |
|
3,40,000 |
||
|
|
|
|
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 Flow from Investing Activities for the year ended March 31, 2014 |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
|
Purchase of Land and Building (WN1) |
(6,50,000) |
|
|
|
Interest received on Investments |
75,000 |
|
|
|
Sale of Debentures (WN2) |
2,75,000 |
|
|
|
Purchase of Debentures (WN2) |
(7,50,000) |
(10,50,000) |
|
Net Cash Used in Investing Activities |
|
(10,50,000) |
Working Notes:
WN1:
Land and Building Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
||
Balance b/d |
9,00,000 |
Depreciation A/c |
50,000 |
||
Bank A/c (Purchase) |
6,50,000 |
Balance c/d |
15,00,000 |
||
|
15,50,000 |
|
15,50,000 |
||
|
|
|
|
WN2:
Investment in Debentures Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
||
Balance b/d |
5,00,000 |
Bank A/c (Sale) |
2,75,000 |
||
Profit and Loss A/c (Profit on sale) |
25,000 |
Balance c/d |
10,00,000 |
||
Bank A/c (Purchase) |
7,50,000 |
|
|
||
|
12,75,000 |
|
12,75,000 |
||
|
|
|
|
Page No 5.89:
Question 28:
Cash Flow from Investing Activities for the year ended March 31, 2014 |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
|
Purchase of Land and Building (WN1) |
(6,50,000) |
|
|
|
Interest received on Investments |
75,000 |
|
|
|
Sale of Debentures (WN2) |
2,75,000 |
|
|
|
Purchase of Debentures (WN2) |
(7,50,000) |
(10,50,000) |
|
Net Cash Used in Investing Activities |
|
(10,50,000) |
Working Notes:
WN1:
Land and Building Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
||
Balance b/d |
9,00,000 |
Depreciation A/c |
50,000 |
||
Bank A/c (Purchase) |
6,50,000 |
Balance c/d |
15,00,000 |
||
|
15,50,000 |
|
15,50,000 |
||
|
|
|
|
WN2:
Investment in Debentures Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
||
Balance b/d |
5,00,000 |
Bank A/c (Sale) |
2,75,000 |
||
Profit and Loss A/c (Profit on sale) |
25,000 |
Balance c/d |
10,00,000 |
||
Bank A/c (Purchase) |
7,50,000 |
|
|
||
|
12,75,000 |
|
12,75,000 |
||
|
|
|
|
Answer:
Cash Flow from Investing Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Purchase of Machine |
(2,50,000) |
|
|
Purchase of Goodwill |
(1,00,000) |
|
|
Purchase of Investments |
(1,50,000) |
|
|
Sale of Machine |
35,000 |
|
|
Sale of Investment |
50,000 |
|
|
Sale of Patents |
40,000 |
|
|
Interest and Dividend Received |
10,000 |
|
|
Rent Received |
20,000 |
|
|
Net Cash Used in Investing Activities |
|
(3,45,000) |
Page No 5.89:
Question 29:
Cash Flow from Investing Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Purchase of Machine |
(2,50,000) |
|
|
Purchase of Goodwill |
(1,00,000) |
|
|
Purchase of Investments |
(1,50,000) |
|
|
Sale of Machine |
35,000 |
|
|
Sale of Investment |
50,000 |
|
|
Sale of Patents |
40,000 |
|
|
Interest and Dividend Received |
10,000 |
|
|
Rent Received |
20,000 |
|
|
Net Cash Used in Investing Activities |
|
(3,45,000) |
Answer:
|
Cash Flow Statement for the year ended March 31, 2014 |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
||
|
|
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
||
|
|
Sale of Machinery |
1,50,000 |
|
|
|
|
Purchase of Machinery |
1,50,000 |
|
|
|
|
Purchase of Non-Current Investments |
(2,00,000) |
|
|
|
Net Cash Used in Investing Activities |
|
(2,00,000) |
||
|
|
|
|
Working Notes:
Plant & Machinery Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
||
Balance b/d |
5,00,000 |
Bank A/c (Sale) |
1,50,000 |
||
Bank A/c (Purchase- Bal. Fig.) |
1,50,000 |
Balance c/d |
5,00,000 |
||
|
|
|
|
||
|
6,50,000 |
|
6,50,000 |
||
|
|
|
|
Page No 5.90:
Question 30:
|
Cash Flow Statement for the year ended March 31, 2014 |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
||
|
|
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
||
|
|
Sale of Machinery |
1,50,000 |
|
|
|
|
Purchase of Machinery |
1,50,000 |
|
|
|
|
Purchase of Non-Current Investments |
(2,00,000) |
|
|
|
Net Cash Used in Investing Activities |
|
(2,00,000) |
||
|
|
|
|
Working Notes:
Plant & Machinery Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
||
Balance b/d |
5,00,000 |
Bank A/c (Sale) |
1,50,000 |
||
Bank A/c (Purchase- Bal. Fig.) |
1,50,000 |
Balance c/d |
5,00,000 |
||
|
|
|
|
||
|
6,50,000 |
|
6,50,000 |
||
|
|
|
|
Answer:
Cash Flow from Investing Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Purchase of Plant and Machinery (WN1) |
(2,60,000) |
|
|
Purchase of Investments |
(60,000) |
|
|
Sale of Plant and Machinery (WN1) |
40,000 |
|
|
Sale of Land (WN2) |
1,60,000 |
|
|
Net Cash Used in Investing Activities |
|
(1,20,000) |
Working Notes:
WN1
Plant and Machinery Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
8,50,000 |
Depreciation A/c |
50,000 |
Bank A/c (Purchases- Bal. Fig.) |
2,60,000 |
Bank A/c (Sale) |
40,000 |
|
|
Profit and Loss A/c (Loss on Sale) |
20,000 |
|
|
Balance c/d |
10,00,000 |
|
11,10,000 |
|
11,10,000 |
|
|
|
|
WN2
Land Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
2,00,000 |
Bank A/c (Sale- Bal. Fig.) |
1,60,000 |
Profit and Loss A/c (Profit on Sale) |
60,000 |
Balance c/d |
1,00,000 |
|
2,60,000 |
|
2,60,000 |
|
|
|
|
Page No 5.90:
Question 31:
Cash Flow from Investing Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Purchase of Plant and Machinery (WN1) |
(2,60,000) |
|
|
Purchase of Investments |
(60,000) |
|
|
Sale of Plant and Machinery (WN1) |
40,000 |
|
|
Sale of Land (WN2) |
1,60,000 |
|
|
Net Cash Used in Investing Activities |
|
(1,20,000) |
Working Notes:
WN1
Plant and Machinery Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
8,50,000 |
Depreciation A/c |
50,000 |
Bank A/c (Purchases- Bal. Fig.) |
2,60,000 |
Bank A/c (Sale) |
40,000 |
|
|
Profit and Loss A/c (Loss on Sale) |
20,000 |
|
|
Balance c/d |
10,00,000 |
|
11,10,000 |
|
11,10,000 |
|
|
|
|
WN2
Land Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
2,00,000 |
Bank A/c (Sale- Bal. Fig.) |
1,60,000 |
Profit and Loss A/c (Profit on Sale) |
60,000 |
Balance c/d |
1,00,000 |
|
2,60,000 |
|
2,60,000 |
|
|
|
|
Answer:
Cash Flow from Investing Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Purchase of Patents |
(25,000) |
|
|
Purchase of Furniture |
(2,25,000) |
|
|
Interest received on Investment |
14,000 |
|
|
Sale of Investment |
20,000 |
|
|
Sale of Land |
10,000 |
|
|
Net Cash Used in Investing Activities |
|
(2,06,000) |
Note: It has been assumed that Investments have been sold ath their Book Value at the end of the accounting period.
Working Notes:
Computation of Interest on Investments
Page No 5.91:
Question 32:
Cash Flow from Investing Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Purchase of Patents |
(25,000) |
|
|
Purchase of Furniture |
(2,25,000) |
|
|
Interest received on Investment |
14,000 |
|
|
Sale of Investment |
20,000 |
|
|
Sale of Land |
10,000 |
|
|
Net Cash Used in Investing Activities |
|
(2,06,000) |
Note: It has been assumed that Investments have been sold ath their Book Value at the end of the accounting period.
Working Notes:
Computation of Interest on Investments
Answer:
Cash Flow from Investing Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Purchase of Plant and Machinery |
(2,70,000) |
|
|
Purchase of Investment |
(1,00,000) |
|
|
Purchase of Goodwill |
(50,000) |
|
|
Rent Received |
20,000 |
|
|
Dividend Received (1,50,000 × 12%) |
18,000 |
|
|
Sale of Plant and Machinery |
35,000 |
|
|
Sale of Investment |
80,000 |
|
|
Interest on Investments |
6,000 |
|
|
Sale of Patents |
20,000 |
|
|
Net Cash Used in Investing Activities |
|
(2,41,000) |
Working Notes:
WN1 Computation of Interest on Investments
Interest on 12% Long-term Investments =
WN2
Patents Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
1,00,000 |
Profit and Loss A/c (Written-off) |
20,000 |
Profit and Loss A/c (Profit on Sale) |
10,000 |
Bank A/c (Sale- Bal. Fig.) |
20,000 |
|
|
Balance c/d |
70,000 |
|
1,10,000 |
|
1,10,000 |
|
|
|
|
WN3
12% Long-Term Investments Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
50,000 |
Bank A/c (Sale- Bal. Fig.) |
80,000 |
Bank A/c (Purchase) |
1,00,000 |
Balance c/d |
80,000 |
Profit and Loss A/c (Profit on Sale) |
10,000 |
|
|
|
1,60,000 |
|
1,60,000 |
|
|
|
|
WN3
Plant and Machinery Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
6,00,000 |
Depreciation A/c |
70,000 |
Bank A/c (Purchase- Bal. Fig.) |
2,70,000 |
Bank A/c (Sale) |
35,000 |
|
|
Profit and Loss A/c (Loss on Sale) |
15,000 |
|
|
Balance c/d |
7,50,000 |
|
8,70,000 |
|
8,70,000 |
|
|
|
|
Page No 5.91:
Question 33:
Cash Flow from Investing Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Purchase of Plant and Machinery |
(2,70,000) |
|
|
Purchase of Investment |
(1,00,000) |
|
|
Purchase of Goodwill |
(50,000) |
|
|
Rent Received |
20,000 |
|
|
Dividend Received (1,50,000 × 12%) |
18,000 |
|
|
Sale of Plant and Machinery |
35,000 |
|
|
Sale of Investment |
80,000 |
|
|
Interest on Investments |
6,000 |
|
|
Sale of Patents |
20,000 |
|
|
Net Cash Used in Investing Activities |
|
(2,41,000) |
Working Notes:
WN1 Computation of Interest on Investments
Interest on 12% Long-term Investments =
WN2
Patents Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
1,00,000 |
Profit and Loss A/c (Written-off) |
20,000 |
Profit and Loss A/c (Profit on Sale) |
10,000 |
Bank A/c (Sale- Bal. Fig.) |
20,000 |
|
|
Balance c/d |
70,000 |
|
1,10,000 |
|
1,10,000 |
|
|
|
|
WN3
12% Long-Term Investments Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
50,000 |
Bank A/c (Sale- Bal. Fig.) |
80,000 |
Bank A/c (Purchase) |
1,00,000 |
Balance c/d |
80,000 |
Profit and Loss A/c (Profit on Sale) |
10,000 |
|
|
|
1,60,000 |
|
1,60,000 |
|
|
|
|
WN3
Plant and Machinery Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
6,00,000 |
Depreciation A/c |
70,000 |
Bank A/c (Purchase- Bal. Fig.) |
2,70,000 |
Bank A/c (Sale) |
35,000 |
|
|
Profit and Loss A/c (Loss on Sale) |
15,000 |
|
|
Balance c/d |
7,50,000 |
|
8,70,000 |
|
8,70,000 |
|
|
|
|
Answer:
Cash Flow from Investing Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Purchase of Machinery |
(1,00,000) |
|
|
Sale of Machinery |
26,000 |
|
|
Net Cash Used in Investing Activities |
|
(74,000) |
Working Notes:
Machinery Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
To Balance b/d |
5,00,000 |
Accumulated Depreciation A/c |
20,000 |
To Bank A/c (Purchase- Bal. Fig.) |
1,00,000 |
Bank A/c (Sale) |
26,000 |
|
|
Profit and Loss A/c (Loss on Sale) |
4,000 |
|
|
Balance c/d |
5,50,000 |
|
6,00,000 |
|
6,00,000 |
|
|
|
|
Accumulated Depreciation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
To Machinery A/c |
20,000 |
Balance b/d |
1,00,000 |
Balance c/d |
1,70,000 |
Profit and Loss A/c (Dep. charged during the year- Bal. Fig.) |
90,000 |
|
1,90,000 |
|
1,90,000 |
|
|
|
|
Page No 5.91:
Question 34:
Cash Flow from Investing Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Purchase of Machinery |
(1,00,000) |
|
|
Sale of Machinery |
26,000 |
|
|
Net Cash Used in Investing Activities |
|
(74,000) |
Working Notes:
Machinery Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
To Balance b/d |
5,00,000 |
Accumulated Depreciation A/c |
20,000 |
To Bank A/c (Purchase- Bal. Fig.) |
1,00,000 |
Bank A/c (Sale) |
26,000 |
|
|
Profit and Loss A/c (Loss on Sale) |
4,000 |
|
|
Balance c/d |
5,50,000 |
|
6,00,000 |
|
6,00,000 |
|
|
|
|
Accumulated Depreciation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
To Machinery A/c |
20,000 |
Balance b/d |
1,00,000 |
Balance c/d |
1,70,000 |
Profit and Loss A/c (Dep. charged during the year- Bal. Fig.) |
90,000 |
|
1,90,000 |
|
1,90,000 |
|
|
|
|
Answer:
Cash Flow from Investing Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Purchase of Machinery |
(6,20,000) |
|
|
Purchase of Investments |
(2,40,000) |
|
|
Purchase of Goodwill |
(1,00,000) |
|
|
Sale of Machinery |
2,00,000 |
|
|
Rent Received |
50,000 |
|
|
Dividend Received |
20,000 |
|
|
Sale of Investments |
80,000 |
|
|
Interest on Debentures |
8,000 |
|
|
Sale of Patents |
1,50,000 |
|
|
Net Cash Used in Investing Activities |
|
(4,52,000) |
Note: Dividend paid and interest paid is a part of Financing Activities.
Page No 5.92:
Question 35:
Cash Flow from Investing Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Purchase of Machinery |
(6,20,000) |
|
|
Purchase of Investments |
(2,40,000) |
|
|
Purchase of Goodwill |
(1,00,000) |
|
|
Sale of Machinery |
2,00,000 |
|
|
Rent Received |
50,000 |
|
|
Dividend Received |
20,000 |
|
|
Sale of Investments |
80,000 |
|
|
Interest on Debentures |
8,000 |
|
|
Sale of Patents |
1,50,000 |
|
|
Net Cash Used in Investing Activities |
|
(4,52,000) |
Note: Dividend paid and interest paid is a part of Financing Activities.
Answer:
Cash Flow from Financing Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Proceeds from Issue of Equity Shares |
1,10,000 |
|
|
Redemption of 12% Debentures |
(50,000) |
|
|
Interest Paid |
(18,000) |
|
|
Net Cash Flows from Financing Activities |
|
42,000 |
Page No 5.92:
Question 36:
Cash Flow from Financing Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Proceeds from Issue of Equity Shares |
1,10,000 |
|
|
Redemption of 12% Debentures |
(50,000) |
|
|
Interest Paid |
(18,000) |
|
|
Net Cash Flows from Financing Activities |
|
42,000 |
Answer:
Cash Flow from Financing Activities for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Issue of Shares |
1,25,000 |
|
|
Transfer to Securities Premium Reserve |
1,25,000 |
|
|
Issue of Debentures |
1,00,000 |
|
|
Premium on redemption of Preference Shares (5% of 1,50,000) |
(7,500) |
|
|
Interim Dividend Paid(15% of 4,00,000) |
(60,000) |
|
|
Redemption of Preference Share Capital |
(1,50,000) |
|
|
Interest on Debentures (12% of 3,00,000) |
(36,000) |
|
|
Interest on Preference Share Capital |
(55,000) |
|
|
Net Cash Flow from Financing Activities |
41,500 |
41,500 |
|
|
|
|
Page No 5.92:
Question 37:
Cash Flow from Financing Activities for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Issue of Shares |
1,25,000 |
|
|
Transfer to Securities Premium Reserve |
1,25,000 |
|
|
Issue of Debentures |
1,00,000 |
|
|
Premium on redemption of Preference Shares (5% of 1,50,000) |
(7,500) |
|
|
Interim Dividend Paid(15% of 4,00,000) |
(60,000) |
|
|
Redemption of Preference Share Capital |
(1,50,000) |
|
|
Interest on Debentures (12% of 3,00,000) |
(36,000) |
|
|
Interest on Preference Share Capital |
(55,000) |
|
|
Net Cash Flow from Financing Activities |
41,500 |
41,500 |
|
|
|
|
Answer:
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Cash Flow from Investing Activities |
|
|
|
Purchase of Machinery |
(20,000) |
|
|
Sale of Machine |
4,000 |
|
|
Net Cash from (used in) Investing Activities |
|
(16,000) |
|
|
|
|
|
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Equity Shares |
5,000 |
|
|
Repayment of Bank Loan |
(10,000) |
|
|
Net Cash (used in) Financing Activities |
|
(5,000) |
|
|
|
|
Working Notes:
Machinery Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
40,000 |
Accumulated Depreciation A/c |
4,000 |
Bank A/c (Purchase- Bal. Fig.) |
20,000 |
Bank A/c (Sale) |
4,000 |
|
|
Profit and Loss A/c (Loss on Sale) |
2,000 |
|
|
Balance c/d |
50,000 |
|
60,000 |
|
60,000 |
|
|
|
|
Accumulated Depreciation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
To Machinery A/c (Bal. Fig.) |
4,000 |
Balance b/d |
10,000 |
Balance c/d |
12,000 |
By Profit and Loss A/c (Dep. charged during the year) |
6,000 |
|
16,000 |
|
16,000 |
|
|
|
|
Page No 5.93:
Question 38:
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Cash Flow from Investing Activities |
|
|
|
Purchase of Machinery |
(20,000) |
|
|
Sale of Machine |
4,000 |
|
|
Net Cash from (used in) Investing Activities |
|
(16,000) |
|
|
|
|
|
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Equity Shares |
5,000 |
|
|
Repayment of Bank Loan |
(10,000) |
|
|
Net Cash (used in) Financing Activities |
|
(5,000) |
|
|
|
|
Working Notes:
Machinery Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
40,000 |
Accumulated Depreciation A/c |
4,000 |
Bank A/c (Purchase- Bal. Fig.) |
20,000 |
Bank A/c (Sale) |
4,000 |
|
|
Profit and Loss A/c (Loss on Sale) |
2,000 |
|
|
Balance c/d |
50,000 |
|
60,000 |
|
60,000 |
|
|
|
|
Accumulated Depreciation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
To Machinery A/c (Bal. Fig.) |
4,000 |
Balance b/d |
10,000 |
Balance c/d |
12,000 |
By Profit and Loss A/c (Dep. charged during the year) |
6,000 |
|
16,000 |
|
16,000 |
|
|
|
|
Answer:
Cash Flow from Financing Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Proceeds from Issue of 12% Debentures |
1,00,000 |
|
|
Interest Paid |
(19,000) |
|
|
Dividend Paid |
(50,000) |
|
|
Net Cash Flows from Financing Activities |
|
31,000 |
Note: Amount of Equity Share Capital has been increased due to the issue of Bonus Shares which does not involve any flow of cash. Therefore, it is not considered in the Financing Activities.
Page No 5.93:
Question 39:
Cash Flow from Financing Activities |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
Proceeds from Issue of 12% Debentures |
1,00,000 |
|
|
Interest Paid |
(19,000) |
|
|
Dividend Paid |
(50,000) |
|
|
Net Cash Flows from Financing Activities |
|
31,000 |
Note: Amount of Equity Share Capital has been increased due to the issue of Bonus Shares which does not involve any flow of cash. Therefore, it is not considered in the Financing Activities.
Answer:
Cash Flow Statement |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
A |
Cash Flow from Operating Activities |
|
|
|
|
Profit as per Statement of Profit and Loss (Net Profit) |
2,000 |
|
|
|
Profit Before Taxation |
2,000 |
|
|
|
Items to be Added: |
– |
|
|
|
Operating Profit before Working Capital Adjustments |
2,000 |
|
|
|
Add: Decrease in Current Assets |
|
|
|
|
Stock |
8,000 |
|
|
|
Add: Increase in Current Liabilities |
|
|
|
|
Bills Payable |
12,000 |
|
|
|
Cash Generated from Operations |
22,000 |
|
|
|
Less: Tax Paid |
– |
|
|
|
Net Cash Flow from Operating Activities |
|
22,000 |
|
|
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
|
|
Sale of Fixed Assets |
30,000 |
|
|
Net Cash Flows from Investing Activities |
|
30,000 |
|
|
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
|
Repayment of Long-Term Loan |
(50,000) |
|
|
|
Net Cash Used in Financing Activities |
|
(50,000) |
|
|
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
2,000 |
|
|
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
15,000 |
|
Cash and Cash Equivalents at the end of the period |
|
17,000 |
|
|
|
|
|
Page No 5.93:
Question 40:
Cash Flow Statement |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
A |
Cash Flow from Operating Activities |
|
|
|
|
Profit as per Statement of Profit and Loss (Net Profit) |
2,000 |
|
|
|
Profit Before Taxation |
2,000 |
|
|
|
Items to be Added: |
– |
|
|
|
Operating Profit before Working Capital Adjustments |
2,000 |
|
|
|
Add: Decrease in Current Assets |
|
|
|
|
Stock |
8,000 |
|
|
|
Add: Increase in Current Liabilities |
|
|
|
|
Bills Payable |
12,000 |
|
|
|
Cash Generated from Operations |
22,000 |
|
|
|
Less: Tax Paid |
– |
|
|
|
Net Cash Flow from Operating Activities |
|
22,000 |
|
|
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
|
|
Sale of Fixed Assets |
30,000 |
|
|
Net Cash Flows from Investing Activities |
|
30,000 |
|
|
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
|
Repayment of Long-Term Loan |
(50,000) |
|
|
|
Net Cash Used in Financing Activities |
|
(50,000) |
|
|
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
2,000 |
|
|
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
15,000 |
|
Cash and Cash Equivalents at the end of the period |
|
17,000 |
|
|
|
|
|
Answer:
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss (1,83,000 – 82,000) |
1,01,000 |
|
|
Profit Before Taxation |
1,01,000 |
|
|
Items to be Added: |
|
|
|
Interest on Debentures |
7,500 |
|
|
Operating Profit before Working Capital Adjustments |
1,08,500 |
|
|
Less: Increase in Current Assets |
|
|
|
Inventories |
(56,000) |
|
|
Add: Increase in Current Liabilities |
|
|
|
Trade Payables |
40,000 |
|
|
Less: Decrease in Current Liabilities |
|
|
|
Other Current Liabilities |
(8,000) |
|
|
Add: Decrease in Current Assets |
|
|
|
Trade Receivables |
38,000 |
|
|
Cash Generated from Operations |
1,22,500 |
|
|
Less: Tax Paid |
– |
|
|
Net Cash Flows from Operating Activities |
|
1,22,500 |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Purchase of Fixed Assets |
(1,57,000) |
|
|
Purchase of Investments |
(13,000) |
|
|
Net Cash Used in Investing Activities |
|
(1,70,000) |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Equity Share Capital |
50,000 |
|
|
Proceeds from Issue of 15% Debentures |
30,000 |
|
|
Interest on Debentures (50,000 × 15%) |
(7,500) |
|
|
Net Cash Flow from Financing Activities |
|
72,500 |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
25,000 |
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
70,000 |
|
Cash and Cash Equivalents at the end of the period |
|
95,000 |
|
|
|
|
Note: It has been assumed that Debentures were issued at the end of the accounting period. Therefore, interest on Debentures is computed on the opening balance of the Debenture.
Page No 5.94:
Question 41:
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss (1,83,000 – 82,000) |
1,01,000 |
|
|
Profit Before Taxation |
1,01,000 |
|
|
Items to be Added: |
|
|
|
Interest on Debentures |
7,500 |
|
|
Operating Profit before Working Capital Adjustments |
1,08,500 |
|
|
Less: Increase in Current Assets |
|
|
|
Inventories |
(56,000) |
|
|
Add: Increase in Current Liabilities |
|
|
|
Trade Payables |
40,000 |
|
|
Less: Decrease in Current Liabilities |
|
|
|
Other Current Liabilities |
(8,000) |
|
|
Add: Decrease in Current Assets |
|
|
|
Trade Receivables |
38,000 |
|
|
Cash Generated from Operations |
1,22,500 |
|
|
Less: Tax Paid |
– |
|
|
Net Cash Flows from Operating Activities |
|
1,22,500 |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Purchase of Fixed Assets |
(1,57,000) |
|
|
Purchase of Investments |
(13,000) |
|
|
Net Cash Used in Investing Activities |
|
(1,70,000) |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Equity Share Capital |
50,000 |
|
|
Proceeds from Issue of 15% Debentures |
30,000 |
|
|
Interest on Debentures (50,000 × 15%) |
(7,500) |
|
|
Net Cash Flow from Financing Activities |
|
72,500 |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
25,000 |
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
70,000 |
|
Cash and Cash Equivalents at the end of the period |
|
95,000 |
|
|
|
|
Note: It has been assumed that Debentures were issued at the end of the accounting period. Therefore, interest on Debentures is computed on the opening balance of the Debenture.
Answer:
Cash Flow Statement for the year ended March 31, 2013 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss (58,000 – 50,000) |
8,000 |
|
|
Profit Before Taxation |
8,000 |
|
|
Items to be Added: |
|
|
|
Goodwill Written-off |
15,000 |
|
|
Share Issue Expenses Written-off |
3,000 |
|
|
Operating Profit before Working Capital Adjustments |
26,000 |
|
|
Less: Increase in Current Assets |
|
|
|
Inventories |
(80,000) |
|
|
Add: Increase in Current Liabilities |
|
|
|
Trade Payables |
23,000 |
|
|
Add: Decrease in Current Assets |
|
|
|
Trade Receivables |
23,000 |
|
|
Cash Generated from Operations |
(8,000) |
|
|
Less: Tax Paid |
– |
|
|
Net Cash Used in Operating Activities |
|
(8,000) |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Purchase of Plant |
(1,24,000) |
|
|
Net Cash Used in Investing Activities |
|
(1,24,000) |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Equity Share Capital |
1,00,000 |
|
|
Repayment of Long-term Borrowings |
(30,000) |
|
|
Net Cash Flow from Financing Activities |
|
70,000 |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
(62,000) |
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
80,000 |
|
Cash and Cash Equivalents at the end of the period |
|
18,000 |
|
|
|
|
Page No 5.95:
Question 42:
Cash Flow Statement for the year ended March 31, 2013 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss (58,000 – 50,000) |
8,000 |
|
|
Profit Before Taxation |
8,000 |
|
|
Items to be Added: |
|
|
|
Goodwill Written-off |
15,000 |
|
|
Share Issue Expenses Written-off |
3,000 |
|
|
Operating Profit before Working Capital Adjustments |
26,000 |
|
|
Less: Increase in Current Assets |
|
|
|
Inventories |
(80,000) |
|
|
Add: Increase in Current Liabilities |
|
|
|
Trade Payables |
23,000 |
|
|
Add: Decrease in Current Assets |
|
|
|
Trade Receivables |
23,000 |
|
|
Cash Generated from Operations |
(8,000) |
|
|
Less: Tax Paid |
– |
|
|
Net Cash Used in Operating Activities |
|
(8,000) |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Purchase of Plant |
(1,24,000) |
|
|
Net Cash Used in Investing Activities |
|
(1,24,000) |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Equity Share Capital |
1,00,000 |
|
|
Repayment of Long-term Borrowings |
(30,000) |
|
|
Net Cash Flow from Financing Activities |
|
70,000 |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
(62,000) |
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
80,000 |
|
Cash and Cash Equivalents at the end of the period |
|
18,000 |
|
|
|
|
Answer:
Cash Flow Statement for the year ended March 31, 2014 |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
A |
Cash Flow from Operating Activities |
|
|
|
|
Profit as per Statement of Profit and Loss (1,25,000 – 20,000) |
1,05,000 |
|
|
|
Proposed Dividend |
28,000 |
|
|
|
Provision for Taxation |
15,000 |
|
|
|
Profit Before Taxation |
1,48,000 |
|
|
|
Items to be Added: |
|
|
|
|
Depreciation |
16,000 |
|
|
|
Operating Profit before Working Capital Adjustments |
1,64,000 |
|
|
|
Less: Increase in Current Assets |
|
|
|
|
Inventories |
(22,000) |
|
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
Trade Payables |
(34,000) |
|
|
|
Add: Decrease in Current Assets |
|
|
|
|
Bills Receivables |
15,000 |
|
|
|
Prepaid Expenses |
2,000 |
|
|
|
Trade Receivables |
9,000 |
|
|
|
Cash Generated from Operations |
1,34,000 |
|
|
|
Less: Tax Paid |
(10,000) |
|
|
|
Net Cash Flow from Operating Activities |
|
1,24,000 |
|
|
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
|
Purchase of Fixed Assets |
(1,55,000) |
|
|
|
Net Cash Used in Investing Activities |
|
(1,55,000) |
|
|
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
|
Proceeds from Issue of Mortgage Loan |
25,000 |
|
|
|
Dividend Paid |
(20,000) |
|
|
|
Net Cash Flow from Financing Activities |
|
5,000 |
|
|
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
(26,000) |
|
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
59,000 |
|
|
Cash and Cash Equivalents at the end of the period |
|
33,000 |
|
|
|
|
|
Page No 5.96:
Question 43:
Cash Flow Statement for the year ended March 31, 2014 |
||||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
A |
Cash Flow from Operating Activities |
|
|
|
|
Profit as per Statement of Profit and Loss (1,25,000 – 20,000) |
1,05,000 |
|
|
|
Proposed Dividend |
28,000 |
|
|
|
Provision for Taxation |
15,000 |
|
|
|
Profit Before Taxation |
1,48,000 |
|
|
|
Items to be Added: |
|
|
|
|
Depreciation |
16,000 |
|
|
|
Operating Profit before Working Capital Adjustments |
1,64,000 |
|
|
|
Less: Increase in Current Assets |
|
|
|
|
Inventories |
(22,000) |
|
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
Trade Payables |
(34,000) |
|
|
|
Add: Decrease in Current Assets |
|
|
|
|
Bills Receivables |
15,000 |
|
|
|
Prepaid Expenses |
2,000 |
|
|
|
Trade Receivables |
9,000 |
|
|
|
Cash Generated from Operations |
1,34,000 |
|
|
|
Less: Tax Paid |
(10,000) |
|
|
|
Net Cash Flow from Operating Activities |
|
1,24,000 |
|
|
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
|
Purchase of Fixed Assets |
(1,55,000) |
|
|
|
Net Cash Used in Investing Activities |
|
(1,55,000) |
|
|
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
|
Proceeds from Issue of Mortgage Loan |
25,000 |
|
|
|
Dividend Paid |
(20,000) |
|
|
|
Net Cash Flow from Financing Activities |
|
5,000 |
|
|
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
(26,000) |
|
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
59,000 |
|
|
Cash and Cash Equivalents at the end of the period |
|
33,000 |
|
|
|
|
|
Answer:
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss (80,000 – 30,000) |
50,000 |
|
|
Proposed Dividend |
30,000 |
|
|
Provision for Taxation |
15,000 |
|
|
Profit Before Taxation |
95,000 |
|
|
Items to be Added: |
|
|
|
Depreciation |
10,000 |
|
|
Operating Profit before Working Capital Adjustments |
1,05,000 |
|
|
Less: Increase in Current Assets |
|
|
|
Inventories |
(40,000) |
|
|
Debtors |
(36,000) |
|
|
Add: Increase in Current Liabilities |
|
|
|
Trade Payables |
44,000 |
|
|
Add: Decrease in Current Assets |
|
|
|
Bills Receivable |
4,000 |
|
|
Cash Generated from Operations |
77,000 |
|
|
Less: Tax Paid |
(12,000) |
|
|
Net Cash Flow from Operating Activities |
|
65,000 |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Sale of Plant and Machinery |
50,000 |
|
|
Net Cash Flow from Investing Activities |
|
50,000 |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Repayment of 10% Loan |
(75,000) |
|
|
Dividend Paid |
(20,000) |
|
|
Net Cash Used in Financing Activities |
|
(95,000) |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
20,000 |
|
Add: Cash and Cash Equivalent in the beginning of the period (5,000 – 37,000) |
|
(32,000) |
|
Cash and Cash Equivalents at the end of the period (13,000 – 25,000) |
|
(12,000) |
|
|
|
|
Note: It has been assumed that 10% loan is repaid in the beginning of the accounting period, therefore, no interest on loan is provided.
Page No 5.97:
Question 44:
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss (80,000 – 30,000) |
50,000 |
|
|
Proposed Dividend |
30,000 |
|
|
Provision for Taxation |
15,000 |
|
|
Profit Before Taxation |
95,000 |
|
|
Items to be Added: |
|
|
|
Depreciation |
10,000 |
|
|
Operating Profit before Working Capital Adjustments |
1,05,000 |
|
|
Less: Increase in Current Assets |
|
|
|
Inventories |
(40,000) |
|
|
Debtors |
(36,000) |
|
|
Add: Increase in Current Liabilities |
|
|
|
Trade Payables |
44,000 |
|
|
Add: Decrease in Current Assets |
|
|
|
Bills Receivable |
4,000 |
|
|
Cash Generated from Operations |
77,000 |
|
|
Less: Tax Paid |
(12,000) |
|
|
Net Cash Flow from Operating Activities |
|
65,000 |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Sale of Plant and Machinery |
50,000 |
|
|
Net Cash Flow from Investing Activities |
|
50,000 |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Repayment of 10% Loan |
(75,000) |
|
|
Dividend Paid |
(20,000) |
|
|
Net Cash Used in Financing Activities |
|
(95,000) |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
20,000 |
|
Add: Cash and Cash Equivalent in the beginning of the period (5,000 – 37,000) |
|
(32,000) |
|
Cash and Cash Equivalents at the end of the period (13,000 – 25,000) |
|
(12,000) |
|
|
|
|
Note: It has been assumed that 10% loan is repaid in the beginning of the accounting period, therefore, no interest on loan is provided.
Answer:
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss (17,000 – 15,000) |
2,000 |
|
12% Preference Share Dividend | 6,000 | ||
|
Transfer to General Reserve |
20,000 |
|
|
Profit Before Taxation |
28,000 |
|
|
Items to be Added: |
|
|
|
Depreciation on Plant |
30,000 |
|
|
Depreciation on Building |
50,000 |
|
|
Goodwill Written-off |
10,000 |
|
|
Operating Profit before Working Capital Adjustments |
1,18,000 |
|
|
Less: Increase in Current Assets |
|
|
|
Inventories |
(2,000) |
|
|
Trade Receivables |
(40,000) |
|
|
Less: Decrease in Current Liabilities |
|
|
|
Trade Payables |
(18,000) |
|
|
Cash Generated from Operations |
58,000 |
|
|
Less: Tax Paid |
– |
|
|
Net Cash Flow from Operating Activities |
|
58,000 |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Purchase of Land and Building |
(30,000) |
|
|
Purchase of Plant |
(60,000) |
|
|
Net Cash Used in Investing Activities |
|
(90,000) |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Equity Share Capital |
50,000 |
|
12% Preference Share Dividend | (6,000) | ||
|
Redemption of 12% Preference Share Capital |
(10,000) |
|
|
Net Cash Flow from Financing Activities |
|
34,000 |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
2,000 |
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
15,000 |
|
Cash and Cash Equivalents at the end of the period |
|
17,000 |
|
|
|
|
Working Notes:
WN1
Building Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
1,00,000 |
Depreciation A/c |
50,000 |
Bank A/c (Purchase- Bal. Fig.) |
30,000 |
Balance c/d |
80,000 |
|
1,30,000 |
|
1,30,000 |
|
|
|
|
WN2
Plant Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
40,000 |
Depreciation A/c |
30,000 |
Bank A/c (Purchase- Bal. Fig.) |
60,000 |
Balance c/d |
70,000 |
|
1,00,000 |
|
1,00,000 |
|
|
|
|
Notes:
1. It is assumed that preference shares are redeemed at year end, since the date of redemption is not mentioned.
2. The answer as per book for the operating, investing and financing activity is different from the above solution. In the textbook answer, dividend on preference share capital has not been considered.
Page No 5.97:
Question 45:
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss (17,000 – 15,000) |
2,000 |
|
12% Preference Share Dividend | 6,000 | ||
|
Transfer to General Reserve |
20,000 |
|
|
Profit Before Taxation |
28,000 |
|
|
Items to be Added: |
|
|
|
Depreciation on Plant |
30,000 |
|
|
Depreciation on Building |
50,000 |
|
|
Goodwill Written-off |
10,000 |
|
|
Operating Profit before Working Capital Adjustments |
1,18,000 |
|
|
Less: Increase in Current Assets |
|
|
|
Inventories |
(2,000) |
|
|
Trade Receivables |
(40,000) |
|
|
Less: Decrease in Current Liabilities |
|
|
|
Trade Payables |
(18,000) |
|
|
Cash Generated from Operations |
58,000 |
|
|
Less: Tax Paid |
– |
|
|
Net Cash Flow from Operating Activities |
|
58,000 |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Purchase of Land and Building |
(30,000) |
|
|
Purchase of Plant |
(60,000) |
|
|
Net Cash Used in Investing Activities |
|
(90,000) |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Equity Share Capital |
50,000 |
|
12% Preference Share Dividend | (6,000) | ||
|
Redemption of 12% Preference Share Capital |
(10,000) |
|
|
Net Cash Flow from Financing Activities |
|
34,000 |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
2,000 |
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
15,000 |
|
Cash and Cash Equivalents at the end of the period |
|
17,000 |
|
|
|
|
Working Notes:
WN1
Building Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
1,00,000 |
Depreciation A/c |
50,000 |
Bank A/c (Purchase- Bal. Fig.) |
30,000 |
Balance c/d |
80,000 |
|
1,30,000 |
|
1,30,000 |
|
|
|
|
WN2
Plant Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
40,000 |
Depreciation A/c |
30,000 |
Bank A/c (Purchase- Bal. Fig.) |
60,000 |
Balance c/d |
70,000 |
|
1,00,000 |
|
1,00,000 |
|
|
|
|
Notes:
1. It is assumed that preference shares are redeemed at year end, since the date of redemption is not mentioned.
2. The answer as per book for the operating, investing and financing activity is different from the above solution. In the textbook answer, dividend on preference share capital has not been considered.
Answer:
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss (1,50,000 – 2,00,000) |
(50,000) |
|
|
Transfer to General Reserve |
3,40,000 |
|
|
Dividend Paid |
50,000 |
|
|
Profit Before Taxation |
3,40,000 |
|
|
Items to be Added: |
|
|
|
Interest Paid |
54,000 |
|
|
Loss on Sale of Machinery |
14,000 |
|
|
Operating Profit before Working Capital Adjustments |
4,08,000 |
|
|
Less: Increase in Current Assets |
|
|
|
Inventories |
(1,00,000) |
|
|
Trade Receivables |
(1,00,000) |
|
|
Add: Increase in Current Liabilities |
|
|
|
Trade Payables |
3,50,000 |
|
|
Cash Generated from Operations |
5,58,000 |
|
|
Less: Tax Paid |
– |
|
|
Net Cash Flow from Operating Activities |
|
5,58,000 |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Sale of Machinery |
6,000 |
|
|
Purchase of Fixed Assets |
(5,20,000) |
|
|
Net Cash Used in Investing Activities |
|
(5,14,000) |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Equity Share Capital |
5,00,000 |
|
|
Proceeds from 7% Preference Share Capital |
60,000 |
|
|
Dividend Paid |
(50,000) |
|
|
Redemption of 9% Debentures |
(2,00,000) |
|
|
Interest Paid (6,00,000 × 9%) |
(54,000) |
|
|
Net Cash Flow from Financing Activities |
|
2,56,000 |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
3,00,000 |
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
2,00,000 |
|
Cash and Cash Equivalents at the end of the period |
|
5,00,000 |
|
|
|
|
Working Notes:
Fixed Assets Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
15,00,000 |
Bank A/c (Sale) |
6,000 |
Bank A/c (Purchase- Bal. Fig.) |
5,20,000 |
Profit and Loss A/c (Loss on Sale) |
14,000 |
|
|
Balance c/d |
20,00,000 |
|
20,20,000 |
|
20,20,000 |
|
|
|
|
Page No 5.98:
Question 46:
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss (1,50,000 – 2,00,000) |
(50,000) |
|
|
Transfer to General Reserve |
3,40,000 |
|
|
Dividend Paid |
50,000 |
|
|
Profit Before Taxation |
3,40,000 |
|
|
Items to be Added: |
|
|
|
Interest Paid |
54,000 |
|
|
Loss on Sale of Machinery |
14,000 |
|
|
Operating Profit before Working Capital Adjustments |
4,08,000 |
|
|
Less: Increase in Current Assets |
|
|
|
Inventories |
(1,00,000) |
|
|
Trade Receivables |
(1,00,000) |
|
|
Add: Increase in Current Liabilities |
|
|
|
Trade Payables |
3,50,000 |
|
|
Cash Generated from Operations |
5,58,000 |
|
|
Less: Tax Paid |
– |
|
|
Net Cash Flow from Operating Activities |
|
5,58,000 |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Sale of Machinery |
6,000 |
|
|
Purchase of Fixed Assets |
(5,20,000) |
|
|
Net Cash Used in Investing Activities |
|
(5,14,000) |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Equity Share Capital |
5,00,000 |
|
|
Proceeds from 7% Preference Share Capital |
60,000 |
|
|
Dividend Paid |
(50,000) |
|
|
Redemption of 9% Debentures |
(2,00,000) |
|
|
Interest Paid (6,00,000 × 9%) |
(54,000) |
|
|
Net Cash Flow from Financing Activities |
|
2,56,000 |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
3,00,000 |
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
2,00,000 |
|
Cash and Cash Equivalents at the end of the period |
|
5,00,000 |
|
|
|
|
Working Notes:
Fixed Assets Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
15,00,000 |
Bank A/c (Sale) |
6,000 |
Bank A/c (Purchase- Bal. Fig.) |
5,20,000 |
Profit and Loss A/c (Loss on Sale) |
14,000 |
|
|
Balance c/d |
20,00,000 |
|
20,20,000 |
|
20,20,000 |
|
|
|
|
Answer:
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss (1,10,000 – 85,000) |
25,000 |
|
|
Proposed Dividend |
60,000 |
|
|
Profit Before Taxation |
85,000 |
|
|
Items to be Added: |
|
|
|
Depreciation |
70,000 |
|
|
Loss on Sale of Fixed Assets |
15,000 |
|
|
Operating Profit before Working Capital Adjustments |
1,70,000 |
|
|
Less: Increase in Current Assets |
|
|
|
Bills Receivables |
(30,000) |
|
|
Inventories |
(25,000) |
|
|
Less: Decrease in Current Liabilities |
|
|
|
Trade Payables |
(15,000) |
|
|
Add: Decrease in Current Assets |
|
|
|
Debtors |
20,000 |
|
|
Cash Generated from Operations |
1,20,000 |
|
|
Less: Tax Paid |
– |
|
|
Net Cash Flows from Operating Activities |
|
1,20,000 |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Sale of Fixed Assets |
30,000 |
|
|
Purchase of Fixed Assets |
(2,10,000) |
|
|
Net Cash Used in Investing Activities |
|
(1,80,000) |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Share Capital |
1,00,000 |
|
|
Repayment of Bank Loan |
(25,000) |
|
|
Dividend Paid |
(45,000) |
|
|
Net Cash Flow from Financing Activities |
|
30,000 |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
(30,000) |
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
30,000 |
|
Cash and Cash Equivalents at the end of the period |
|
– |
|
|
|
|
Working Notes:
Fixed Assets Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
4,00,000 |
Bank A/c (Sale) |
30,000 |
Bank A/c (Purchase- Bal. Fig.) |
2,10,000 |
Accumulated Depreciation |
15,000 |
|
|
Profit and Loss A/c (Loss on Sale) |
15,000 |
|
|
Balance c/d |
5,50,000 |
|
6,10,000 |
|
6,10,000 |
|
|
|
|
Accumulated Depreciation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Fixed Assets A/c |
15,000 |
Balance b/d |
80,000 |
Balance c/d |
1,35,000 |
Profit and Loss A/c (Dep. charged during the year- Bal. Fig.) |
70,000 |
|
1,50,000 |
|
1,50,000 |
|
|
|
|
Page No 5.99:
Question 47:
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss (1,10,000 – 85,000) |
25,000 |
|
|
Proposed Dividend |
60,000 |
|
|
Profit Before Taxation |
85,000 |
|
|
Items to be Added: |
|
|
|
Depreciation |
70,000 |
|
|
Loss on Sale of Fixed Assets |
15,000 |
|
|
Operating Profit before Working Capital Adjustments |
1,70,000 |
|
|
Less: Increase in Current Assets |
|
|
|
Bills Receivables |
(30,000) |
|
|
Inventories |
(25,000) |
|
|
Less: Decrease in Current Liabilities |
|
|
|
Trade Payables |
(15,000) |
|
|
Add: Decrease in Current Assets |
|
|
|
Debtors |
20,000 |
|
|
Cash Generated from Operations |
1,20,000 |
|
|
Less: Tax Paid |
– |
|
|
Net Cash Flows from Operating Activities |
|
1,20,000 |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Sale of Fixed Assets |
30,000 |
|
|
Purchase of Fixed Assets |
(2,10,000) |
|
|
Net Cash Used in Investing Activities |
|
(1,80,000) |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Share Capital |
1,00,000 |
|
|
Repayment of Bank Loan |
(25,000) |
|
|
Dividend Paid |
(45,000) |
|
|
Net Cash Flow from Financing Activities |
|
30,000 |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
(30,000) |
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
30,000 |
|
Cash and Cash Equivalents at the end of the period |
|
– |
|
|
|
|
Working Notes:
Fixed Assets Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Balance b/d |
4,00,000 |
Bank A/c (Sale) |
30,000 |
Bank A/c (Purchase- Bal. Fig.) |
2,10,000 |
Accumulated Depreciation |
15,000 |
|
|
Profit and Loss A/c (Loss on Sale) |
15,000 |
|
|
Balance c/d |
5,50,000 |
|
6,10,000 |
|
6,10,000 |
|
|
|
|
Accumulated Depreciation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
Fixed Assets A/c |
15,000 |
Balance b/d |
80,000 |
Balance c/d |
1,35,000 |
Profit and Loss A/c (Dep. charged during the year- Bal. Fig.) |
70,000 |
|
1,50,000 |
|
1,50,000 |
|
|
|
|
Answer:
Cash Flow Statement for the year ended March 31, 2012 |
|||
|
Particulars |
Amount (Rs) |
Amount (Rs) |
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss (4,80,000 – 3,75,000) |
1,05,000 |
|
|
Interim Dividend |
75,000 |
|
|
Profit Before Taxation |
1,80,000 |
|
|
Items to be Added: |
|
|
|
Interest Paid on Debentures |
27,000 |
|
|
Depreciation |
60,000 |
|
|
Operating Profit before Working Capital Adjustments |
2,67,000 |
|
|
Less: Increase in Current Assets |
|
|
|
Trade Receivables |
(75,000) |
|
|
Add: Increase in Current Liabilities |
|
|
|
Trade Payables |
30,000 |
|
|
Add: Decrease in Current Assets |
|
|
|
Inventories |
60,000 |
|
|
Cash Generated from operations |
2,82,000 |
|
|
Less: Tax Paid |
– |
|
|
Net Cash Flow from Operating Activities |
|
2,82,000 |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Sale of Land |
60,000 |
|
|
Purchase of Machinery |
(1,50,000) |
|
|
Net Cash Used in Investing Activities |
|
(90,000) |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Share Capital |
1,20,000 |
|
|
Redemption of 10% Debentures |
(1,80,000) |
|
|
Interim Dividend Paid |
(75,000) |
|
|
Interest Paid on Debentures |
(27,000) |
|
|
Net Cash Used in Financing Activities |
|
(1,62,000) |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
30,000 |
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
1,50,000 |
|
Cash and Cash Equivalents at the end of the period |
|
1,80,000 |
|
|
|
|
View NCERT Solutions for all chapters of Class 15