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Page No 3.100:
Answer:
| Cash Flow from Operating Activities For the Year Ending March 31, 2017 |
||
| Particulars | Details (Rs) | Amount (Rs) |
| Cash Flow from Operating Activities | ||
| Net Profit | 2,50,000 | |
| + Provision for Tax | 1,50,000 | |
| + Reserve | 2,00,000 | |
| + Dividend | ||
|
Add: Non Operating Expenses
|
||
| Depreciation | 2,50,000 | |
| Goodwill written off | 80,000 | |
| Loss on Sale of Machinery | 2,50,000 | 5,80,000 |
|
Less: Non Operating Incomes
|
– | |
| Operating Profit Before Working Capital Changes | 11,80,000 | |
|
Add: Decrease in Current Assets & Increase in Current Liabilities
|
||
| Debtors | 1,28,000 | |
| O/standing Expenses | 15,000 | |
| Prepaid Expenses | 20,000 | 1,63,000 |
|
Less: Increase in Current Assets & Decrease in Current Liabilities
|
||
| Bills Payable | (47,000) | |
| Current Investments | (1,50,000) | (1,97,000) |
| Cash From Operating Activities | 11,46,000 | |
|
Less: Tax Paid
|
(3,50,000) | |
| Net Cash From Operating Activities (A) | 7,96,000 | |
Page No 3.100:
Answer:
| Cash Flow from Operating Activities For the Year Ending March 31,2015 |
||
| Particulars | Details (Rs) | Amount (Rs) |
| Cash Flow from Operating Activities | ||
| Net Profit | 18,000 | |
| + Provision for Tax | 50,000 | |
| + General Reserve | 30,000 | |
| + Proposed Dividend | 50,000 | |
|
Add: Non Operating Expenses
|
||
| Depreciation | 30,000 | 30,000 |
| Goodwill written off | 25,000 | 25,000 |
| Loss on Sale of Machinery | ||
|
Less: Non Operating Incomes
|
– | |
| Operating Profit Before Working Capital Changes | 2,03,000 | |
|
Add: Decrease in Current Assets & Increase in Current Liabilities
|
||
| Stock | 10,000 | |
| Creditors | 28,000 | 38,000 |
|
Less: Increase in Current Assets & Decrease in Current Liabilities
|
||
| Debtors | (92,000) | |
| O/Standing Current Liabilities | (4,000) | (96,000) |
| Cash From Operating Activities | 1,45,000 | |
|
Less: Tax Paid
|
(40,000) | |
| Net Cash From Operating Activities (A) | 1,05,000 | |
Page No 3.101:
Answer:
|
Cash Flow from Operating Activities |
|||
|
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
Profit as per Statement of Profit and Loss |
|
1,80,000 |
|
|
Add: Tax Expense |
|
64,000 |
|
|
Profit Before Taxation |
|
2,44,000 |
|
|
Items to be Added: |
|
|
|
|
Loss on Sale of Assets |
36,000 |
|
|
|
Depreciation and Amortisation Expenses |
1,85,000 |
2,21,000 |
|
|
|
|
4,65,000 |
|
|
Items to be Deducted: |
|
|
|
|
Dividend Received |
(5,000) |
|
|
|
Profit on Sale of Plant |
(40,000) |
(45,000) |
|
|
Operating Profit before Working Capital Adjustments |
|
4,20,000 |
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
Office Expenses Outstanding |
|
(5,000) |
|
|
Add: Increase in Current Liabilities |
|
|
|
|
Trade Payables |
28,000 |
|
|
|
Selling Expenses Outstanding |
3,000 |
31,000 |
|
|
Less: Increase in Current Assets |
|
|
|
|
Trade Receivables |
(37,000) |
|
|
|
Inventories |
16,000 |
(21,000) |
|
|
Cash Generated from Operations |
|
4,25,000 |
|
|
Less: Tax Paid |
|
(64,000) |
|
|
Net Cash Flows from Operating Activities |
|
3,61,000 |
Page No 3.102:
Answer:
|
|
Cash Flow Statement for the year ended March 31, 2017 |
||||
|
|
Particulars |
Amount (Rs) |
Amount (Rs) |
||
|
|
Cash Flow from Operating Activities |
|
|
||
|
|
Profit as per Statement of Profit and Loss |
(60,000) |
|
||
|
|
Profit Before Taxation |
|
(60,000) |
||
|
|
Items to be Added: |
|
|
||
|
|
Depreciation on Machinery |
60,000 |
|
||
|
|
Goodwill Written Off |
40,000 |
|
||
|
|
Loss on Sale of Machinery |
1,00,000 |
|
||
|
|
Items to be Deducted: |
|
|
||
|
|
Dividend Received |
(40,000) |
1,60,000 |
||
|
|
Operating Profit before Working Capital Adjustments |
|
1,00,000 |
||
|
|
Less: Increase in Current Assets |
|
|
||
|
|
|
Accrued Commission |
(20,000) |
|
|
|
|
|
Increase in Inventory |
(20,000) |
(40,000) |
|
|
|
Add: Increase in Current Liabilities |
|
|
||
|
|
Outstanding Rent |
40,000 |
|
||
|
|
Outstanding Wages |
60,000 |
1,00,000 |
||
|
|
Cash Generated from Operations |
|
1,60,000 |
||
|
|
Less: Tax Paid |
|
- |
||
|
|
Net Cash Flows from Operating Activities |
|
1,60,000 |
||
|
|
|
|
|
||
Page No 3.103:
Answer:
|
|
Cash Flow Statement for the year ended March 31, 2017 |
||||
|
|
Particulars |
Amount (Rs) |
Amount (Rs) |
||
|
|
Cash Flow from Operating Activities |
|
|
||
|
|
Profit as per Statement of Profit and Loss |
|
1,00,000 |
||
|
|
Profit Before Taxation |
|
|
||
|
|
Items to be Added: |
|
|
||
|
|
Depreciation on Machinery |
|
25,000 |
||
|
|
Operating Profit before Working Capital Adjustments |
|
1,25,000 |
||
|
|
Less: Increase in Current Assets |
|
|
||
|
|
|
Prepaid Expenses |
(5,000) |
|
|
|
|
Add: Decrease in Current Assets |
|
|
||
|
|
Inventory |
50,000 |
|
||
|
|
Trade Receivables |
30,000 |
|
||
|
|
Add: Increase in Current Liabilities |
|
|
||
|
|
Outstanding Expenses |
3,000 |
|
||
|
|
Less: Decrease in Current Liabilities |
|
|
||
|
|
Trade Payables |
(15,000) |
63,000 |
||
|
|
Cash Generated from Operations |
|
1,88,000 |
||
|
|
Less: Tax Paid |
|
- |
||
|
|
Net Cash Flows from Operating Activities |
|
1,88,000 |
||
|
|
|
|
|
||
Page No 3.103:
Answer:
| Cash From Investing Activities For the Year Ending ……. |
||
| Particulars | Details (Rs) |
Amount (Rs) |
| Cash From Investing Activities | ||
| Purchase of Investment | (5,00,000) | |
| Proceeds from Sale of Investments | 6,00,000 | |
| Purchase of Goodwill | (2,50,000) | |
| Purchase of Machinery | (7,40,000) | |
| Proceeds from Sale of Machinery | 1,00,000 | |
| Proceeds from Sale of Patents | 1,00,000 | |
| Interest received on Investments | 80,000 | |
| Dividend Received on Shares | 40,000 | |
| Rent Received ( Land used for Commercial Purpose) | 80,000 | |
| Net Cash From Investing Activities | (4,90,000) | |
Page No 3.103:
Answer:
| Cash From Investing Activities For the Year Ending March 31, 2017 |
||
| Particulars | Details (Rs) |
Amount (Rs) |
| Cash From Investing Activities | ||
| Purchase of Patents | (40,000) | |
| Proceeds from Sale of Land | 40,000 | |
| Purchase of Furniture | (4,60,000) | |
| Proceeds from Sale of Investment | 40,000 | |
| Accrued Interest on Investment | 20,000 | |
| Net Cash From Investing Activities | (4,00,000) | |
Page No 3.104:
Answer:
|
Cash Flow from Investing Activities |
||||
|
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
|
|
Purchase of Machinery (WN1) |
(60,000) |
|
|
|
|
Sale of Machinery |
20,000 |
|
|
|
|
Sale of Patents (WN3) |
1,00,000 |
60,000 |
|
|
Net Cash Used in Investing Activities |
|
60,000 |
|
Working Notes:
WN 1:
|
Machinery Account |
|||||
|
Dr. |
|
Cr. |
|||
|
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
||
|
Balance b/d |
4,00,000 |
Provision for Depreciation A/c |
24,000 |
||
|
Profit and Loss A/c (Profit on Sale) |
4,000 |
Bank A/c (Sale) |
20,000 |
||
|
Bank A/c (Purchase) |
60,000 |
Balance c/d |
4,20,000 |
||
|
|
4,64,000 |
|
4,64,000 |
||
|
|
|
|
|
||
WN2:
|
Patents Account |
|||||
|
Dr. |
|
Cr. |
|||
|
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
||
|
Balance b/d |
2,80,000 |
Patents Written off |
40,000 |
||
|
Profit and Loss A/c (Profit on Sale) |
20,000 |
Bank A/c (Sale) (Balancing Figure) |
1,00,000 |
||
|
|
|
Balance c/d |
1,60,000 |
||
|
|
3,00,000 |
|
3,00,000 |
||
|
|
|
|
|
||
WN3:
|
Provision for Depreciation Account |
|||||
|
Dr. |
|
Cr. |
|||
|
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
||
|
Asset A/c |
60,000 |
Balance b/d |
1,10,000 |
||
|
Balance c/d |
1,50,000 |
Profit and Loss A/c (Depreciation charged during the year) |
1,00,000 |
||
|
|
2,10,000 |
|
2,10,000 |
||
|
|
|
|
|
||
Page No 3.104:
Answer:
| Cash From Investing Activities For the Year Ending March 31, 2015 |
||
| Particulars | Details (Rs) | Amount (Rs) |
| Cash From Investing Activities | ||
| Proceeds from Sale of Investments (2,50,000 + 10%) | 2,75,000 | |
| Interest received on Investments | 70,000 | |
| Dividend Received on Investment | 30,000 | |
| Purchase of Investment | (7,50,000) | |
| Rent Received | 20,000 | |
| Purchase of Fixed Assets (23,80,000 + 2,00,000 – 19,50,000) | (6,30,000) | |
| Net Cash From Investing Activities | (9,85,000) | |
Page No 3.104:
Answer:
| Cash From Investing Activities For the Year Ending ….. |
||
| Particulars | Details (Rs) |
Amount (Rs) |
| Cash From Investing Activities | ||
| Purchase of Land | (5,00,000) | |
| Purchase of Investment | (2,70,000) | |
| Purchase of Machinery | (4,50,000) | |
| Proceeds from Sale of Building | 6,00,000 | |
| Proceeds from Sale of Investments | 1,60,000 | |
| Proceeds from Sale of Machinery | 2,10,000 | |
| Interest received | 20,000 | |
| Dividend Received | 30,000 | |
| Rent Received | 90,000 | (1,10,000) |
| Net Cash From Investing Activities | (1,10,000) | |
Page No 3.104:
Answer:
| Cash From Investing Activities For the Year Ending March 31, 2017 |
||
| Particulars | Details (Rs) |
Amount (Rs) |
| Cash From Investing Activities | ||
| Purchase of Plant & Machinery | (2,60,000) | |
| Proceeds from Sale of Plant & Machinery | 40,000 | |
| Proceeds from Sale of Land | 1,60,000 | |
| Purchase of Investment | (60,000) | (1,20,000) |
| Net Cash From Investing Activities | (1,20,000) | |
Working Notes:-
| Plant & Machinery Account | |||||
| Dr. | Cr. | ||||
| Particulars | Amount (Rs) |
Particulars | Amount (Rs) |
||
| Balance b/d | 8,50,000 | Depreciation A/c | 50,000 | ||
| Bank A/c (Purchases) (Balancing Figure) |
2,60,000 | Sales A/c | 40,000 | ||
| P& L A/c ( Loss) | 20,000 | ||||
| Balance c/d | 10,00,000 | ||||
| 11,10,000 | 11,10,000 | ||||
Land Account |
|||||
| Dr. | Cr. | ||||
| Particulars | Amount (Rs) |
Particulars | Amount (Rs) |
||
| Balance b/d | 2,00,000 | Sales A/c (Balancing Figure) | 1,60,000 | ||
| P& L A/c (Profit) | 60,000 | Balance c/d | 1,00,000 | ||
| 2,60,000 | 2,60,000 | ||||
Page No 3.105:
Answer:
| Cash From Investing Activities For the Year Ending March 31,2017 |
||
| Particulars | Details (Rs) |
Amount (Rs) |
| Cash From Investing Activities | ||
| Purchase of Goodwill | (1,00,000) | |
| Purchase of Investment | (1,80,000) | |
| Purchase of Machinery | (4,40,000) | |
| Proceeds from Sale of Patents | 1,00,000 | |
| Proceeds from Sale of Investments | 1,00,000 | |
| Proceeds from Sale of Machinery | 50,000 | |
| Interest on Investment received | 7,200 | |
| Dividend Received on Investment | 10,000 | |
| Rent Received | 20,000 | |
| Net Cash From Investing Activities | 4,32,800 | |
Working Notes:-
| Machinery Account | |||||
| Dr. | Cr. | ||||
| Particulars | Amount (Rs) |
Particulars | Amount (Rs) |
||
| Balance b/d | 10,20,000 | Depreciation A/c | 1,40,000 | ||
| Bank A/c ( Purchases) (Balancing Figure) |
4,40,000 | Bank A/c | 50,000 | ||
| P& L A/c ( Loss) | 30,000 | ||||
| Balance c/d | 12,40,000 | ||||
| 14,60,000 | 14,60,000 | ||||
Patents Account |
|||||
| Dr. | Cr. | ||||
| Particulars | Amount (Rs) |
Particulars | Amount (Rs) |
||
| Balance b/d | 3,80,000 | P& L A/c ( Loss) | 40,000 | ||
| P& L A/c ( Profit) | 20,000 | Sales A/c (Balancing Figure) | 1,00,000 | ||
| Balance c/d | 2,60,000 | ||||
| 14,60,000 | 14,60,000 | ||||
| Investment Account | |||||
| Dr. | Cr. | ||||
| Particulars | Amount (Rs) |
Particulars | Amount (Rs) |
||
| Balance b/d | 60,000 | Sales A/c (Balancing Figure) | 1,00,000 | ||
| Bank A/c | 1,80,000 | Balance c/d | 1,60,000 | ||
| P& L A/c ( Profit) | 20,000 | ||||
| 2,60,000 | 2,60,000 | ||||
Page No 3.105:
Answer:
| Cash From Financing Activities For the Year Ending March 31,2017 |
||
| Particulars | Details (Rs) |
Amount (Rs) |
| Cash From Financing Activities | ||
| Interest Paid on Debentures | (19,000) | |
| Dividend Paid | (50,000) | |
| Proceeds from Issue of Share Capital | 2,00,000 | |
| Proceeds from Issue of Debenture | 1,00,000 | 2,31,000 |
| Net Cash From Financing Activities | 2,31,000 | |
Page No 3.105:
Answer:
| Cash From Investing Activities For the Year Ending March 31, 2017 |
||
| Particulars | Details (Rs) |
Amount (Rs) |
| Cash From Investing Activities | ||
| Proceeds from Sale of Plant & Machinery | 2,50,000 | |
| Purchase of Plant & Machinery (8,00,000 + 2,50,000 – 6,00,000) | (4,50,000) | |
| Purchase of Non Current Investment | (50,000) | |
| Net Cash From Investing Activities | (2,50,000) | |
Page No 3.106:
Answer:
| Cash From Investing Activities For the Year Ending March 31, 2017 |
||
| Particulars | Details (Rs) | Amount (Rs) |
|
Cash From Investing Activities |
||
| Dividend Received on Investment | 5,000 | |
| Sale of Non Current Investments | 2,00,000 | |
| Net Cash From Investing Activities | 2,05,000 | |
Page No 3.106:
Answer:
| Cash From Financing Activities For the Year Ending March 31,2017 |
||
| Particulars | Details (Rs) |
Amount
(Rs)
|
| Cash From Financing Activities | ||
| Interest Paid on Debentures | (18,000) | |
| Proceeds from Issue of Share Capital (1,00,000 +10,000) | 1,10,000 | |
| Redemption of Debenture (50,000 + 5,000) | (55,000) | |
| Net Cash From Financing Activities | 37,000 | |
Page No 3.107:
Answer:
| Cash From Financing Activities For the Year Ending March 31, 2017 |
||
| Particulars | Details (Rs) |
Amount (Rs) |
| Cash From Financing Activities | ||
| Interest Paid on Debentures | (10,000) | |
| Dividend Paid | (50,000) | |
| Proceeds from Issue of Share Capital | 2,00,000 | |
| Redemption of 10% Debenture | (2,00,000) | |
| Proceeds from Issue of 8% Debenture | 3,00,000 | |
| Repayment of Bank Loan | (1,50,000) | |
| Bank Overdraft | 50,000 | |
| Interest paid on Bank Overdraft | (1,000) | |
| Net Cash From Financing Activities | 1,39,000 | |
Page No 3.107:
Answer:
| Cash From Financing Activities For the Year Ending March 31, 2017 |
||
| Particulars | Details (Rs) |
Amount (Rs) |
| Cash From Financing Activities | ||
| Dividend Paid on Preference Share Capital (4,00,000 × 10%) | (40,000) | |
| Interim Dividend Paid (6,00,000 × 15%) | (90,000) | |
| Redemption of Preference Shares (2,00,000 + 5%) | (2,10,000) | |
| Proceeds from Issue of Equity Share Capital | 2,00,000 | |
| Premium Received from Equity Share | 25,000 | |
| Proceeds from Issue of Debentures | 2,00,000 | |
| Interest Paid on Debentures (48,000 – 9,600) | (38,400) | |
| Net Cash From Financing Activities | 46,600 | |
Page No 3.108:
Answer:
| Cash From Financing Activities For the Year Ending March 31,2017 |
||
| Particulars | Details (Rs) |
Amount (Rs) |
| Cash From Financing Activities | ||
| Proceeds from Issue of Equity Share Capital (15,00,000+ 75,000) | 15,75,000 | |
| Share Issue Expenses Paid | (1,75,000) | |
| Bank Overdraft | 1,00,000 | |
| Net Cash From Financing Activities | 15,00,000 | |
Page No 3.108:
Answer:
Calculation of Cash from Financing Activities:
|
|
Cash Flow Statement for the year ended March 31, 2011 |
|||
|
|
Particulars |
Amount (Rs) |
Amount (Rs) |
|
|
|
Cash Flow from Financing Activities |
|
|
|
|
|
Issue of Share Capital |
2,00,000 |
|
|
|
|
Redemption of Preference Share Capital |
(1,00,000) |
|
|
|
|
Security Premium Reserve |
35,000 |
|
|
|
|
Issue of 11% Debentures |
1,00,000 |
|
|
|
|
Preference Dividend paid |
(30,000) |
|
|
|
|
Interest on Debentures paid |
(55,000) |
|
|
|
|
Equity Dividend paid |
(36,000) |
|
|
|
|
|
|
|
|
|
|
Net Cash Flows from Financing Activities |
|
1,14,000 |
|
|
|
|
|
|
|
Page No 3.109:
Answer:
|
|
Cash Flow Statement for the year ended March 31, 2017 |
||||
|
|
Particulars |
Amount (Rs) |
Amount (Rs) |
||
|
|
Cash Flow from Operating Activities |
|
|
||
|
|
Profit as per Statement of Profit and Loss |
7,25,000 |
|
||
|
|
Provision for Tax |
1,12,500 |
|
||
|
|
Equity Dividend |
90,000 |
|
||
|
|
Preference Dividend |
37,500 |
|
||
|
|
General Reserve |
75,000 |
|
||
|
|
Profit Before Taxation |
|
10,40,000 |
||
|
|
Items to be Added: |
|
|
||
|
|
Interest on Debentures |
41,000 |
|
||
|
|
Interest on Bank Loan |
9,000 |
50,000 |
||
|
|
Operating Profit before Working Capital Adjustments |
|
10,90,000 |
||
|
|
Less: Increase in Current Assets |
|
|
||
|
|
|
Inventories |
(1,50,000) |
|
|
|
|
Add: Increase in Current Liabilities |
|
|
||
|
|
Trade Payables |
2,50,000 |
1,00,000 |
||
|
|
Cash Generated from Operations |
|
11,90,000 |
||
|
|
Less: Tax Paid |
|
(62,500) |
||
|
|
Net Cash Flows from Operating Activities |
|
11,27,500 |
||
|
|
|
|
|
||
|
|
Cash Flow from Financing Activities |
|
|
||
|
|
Proceeds from Issue of Share Capital |
2,50,000 |
|
||
|
|
Equity Dividend paid |
(90,000) |
|
||
|
|
Redemption of Preference Share Capital |
(2,50,000) |
|
||
|
|
Preference Dividend paid |
(37,500) |
|
||
|
|
Proceeds from Issue of Debentures |
2,75,000 |
|
||
|
|
Interest on Debentures Paid |
(41,000) |
|
||
|
|
Security Premium Reserve |
25,000 |
|
||
|
|
Repayment of bank loan |
(25,000) |
|
||
|
|
Interest on Bank Loan Paid |
(9,000) |
|
||
|
|
Net Cash Flow from Financing Activities |
|
97,500 |
||
|
|
|
|
|
||
Working Note:
1. If Equity dividend is paid, it is assumed Preference Dividend is also paid.
4.
|
Provision for Taxation Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
|
Bank A/c (Tax Paid) |
62,500 |
Balance b/d |
50,000 |
|
(Bal. Fig.) |
|
Profit and Loss A/c |
1,12,500 |
|
Balance c/d |
1,00,000 |
|
|
|
|
1,62,500 |
|
1,62,500 |
|
|
|
|
|
Page No 3.109:
Answer:
| Cash Flow from Operating Activities For the Year Ending March 31, 2017 |
||
| Particulars | Details (Rs) |
Amount (Rs) |
| Cash Flow from Operating Activities | ||
| Net Profit | 5,00,000 | |
| + Provision for Tax | ||
| + Reserve | ||
| + Dividend | ||
| Add: Non Operating Expenses | ||
| Premium on Redemption of Preference Share | 25,000 | 25,000 |
| Interim Dividend | 2,40,000 | 2,40,000 |
| Proposed Dividend (10, 00,000 × 10%) | 1,00,000 | 1,00,000 |
| Less: Non Operating Incomes | – | |
| Operating Profit Before Working Capital Changes | ||
| Add: Decrease in Current Assets & Increase in Current Liabilities | ||
| Less: Increase in Current Assets & Decrease in Current Liabilities | ||
| Cash From Operating Activities | 9,65,000 | |
| Less: Tax Paid | - | |
| Net Cash From Operating Activities (A) | 9,65,000 | |
| Cash From Financing Activities | ||
| Redemption of Preference Shares Capital (5, 00,000 + 5%) | (5,25,000) | |
| Interim Dividend Paid (30, 00,000 × 8%) | (2,40,000) | |
| Preference Dividend Paid | (1,00,000) | |
| Proceeds from Public Deposits | (1,00,000) | |
| Proceeds from Issue of Equity Share Capital | 10,00,000 | |
| Proceeds from Security Premium | 2,00,000 | |
| Net Cash From Financing Activities (C) | 3,35,000 | |
Page No 3.109:
Answer:
| Cash From Financing Activities For the Year Ending March 31, 2017 |
||
| Particulars | Details (Rs) | Amount (Rs) |
| Cash From Financing Activities | ||
| Proceeds from Issue of Share Capital | 2,50,000 | |
| Interest Paid on Debentures | (50,000) | |
| Cash Credit | 25,000 | |
| Net Cash From Financing Activities (C) | 2,25,000 | |
Note: There is a misprint in the answer given in the textbook. It should be 'Cash Flows from Financing Activities' instead of 'Cash Used in Financing Activities'.
Page No 3.110:
Answer:
| Cash Flow Statement For the Year Ending March31,2014 |
||
| Particulars | Details (Rs) |
Amount (Rs) |
| Cash Flow from Operating Activities | ||
| Net Profit | 10,000 | |
| + Provision for Tax | ||
| + Reserve | ||
| + Dividend | ||
| Add: Non Operating Expenses | ||
| Goodwill Written Off | 15,000 | 15,000 |
| Less: Non Operating Incomes | – | |
| Operating Profit Before Working Capital Changes | 25,000 | |
| Add: Decrease in Current Assets & Increase in Current Liabilities | ||
| Creditors | 35,000 | |
| Debtors | 28,000 | 63,000 |
| Less: Increase in Current Assets & Decrease in Current Liabilities | ||
| O/standing Expenses | (12,000) | |
| Inventories | (80,000) | (92,000) |
| Cash From Operating Activities | (4,000) | |
| Less: Tax Paid | – | |
| Net Cash From Operating Activities (A) | (4,000) | |
| Cash From Investing Activities | ||
| Purchase of Fixed Assets | (1,23,000) | |
| Net Cash From Investing Activities (B) | (1,23,000) | |
| Cash From Financing Activities | ||
| Proceeds from Mortgage Loan | 30,000 | |
| Repayment of Public Deposits | (60,000) | |
| Proceeds from Issue of Share Capital | 1,00,000 | |
| Net Cash From Financing Activities (C) | 70,000 | |
| Net decrease in Cash (A + B + C) | (57,000) | |
| Add: Opening Cash and Cash Equivalents | 90,000 | |
| (Cash + Marketable Investments- Bank Overdraft) | ||
| Closing Cash and Cash Equivalents | 33,000 | |
| (Cash + Marketable Investments- Bank Overdraft) | ||
Page No 3.111:
Answer:
| Cash Flow Statement For the Year Ending March 31,2017 |
||
| Particulars | Details (Rs) |
Amount (Rs) |
| Cash Flow from Operating Activities | ||
| Net Profit | 9,000 | |
| + Provision for Tax | 32,000 | |
| + General Reserve | 10,000 | |
| + Proposed Dividend | 39,000 | |
| Add: Non Operating Expenses | ||
| Goodwill Written Off | 10,000 | 10,000 |
| Less: Non Operating Incomes |
–
|
|
| Operating Profit Before Working Capital Changes | 1,00,000 | |
| Add: Decrease in Current Assets & Increase in Current Liabilities | ||
| Inventories | 7,000 | |
| Creditors | 18,000 | 25,000 |
| Less: Increase in Current Assets & Decrease in Current Liabilities | ||
| Debtors | (33,000) | |
| Other Current Liabilities | (2,000) | (35,000) |
| Cash From Operating Activities | 90,000 | |
| Less: Tax Paid | (28,000) | |
| Net Cash From Operating Activities (A) | 62,000 | |
| Cash From Investing Activities | ||
| Purchase of Plant | (1,01,000) | |
| Purchase of Investment | (25,000) | |
| Proceeds from Sale of Land & Building | 53,000 | (73,000) |
| Net Cash From Investing Activities (B) | (73,000) | |
| Cash From Financing Activities | ||
| Proposed Dividend | (28,000) | |
| Proceeds from Share Capital | 50,000 | 22,000 |
| Net Cash From Financing Activities (C) | 22,000 | |
| Net Increase in Cash (A + B + C) | 11,000 | |
| Add: Opening Cash and Cash Equivalents | 17,000 | |
| (Cash + Marketable Investments- Bank Overdraft) | ||
| Closing Cash and Cash Equivalents | 28,000 | |
| (Cash + Marketable Investments- Bank Overdraft) | ||
Page No 3.111:
Answer:
| Cash Flow Statement For the Year Ending March 31, 2017 |
||
| Particulars | Details (Rs) | Amount (Rs) |
| Cash Flow from Operating Activities | ||
| Net Profit | 2,000 | |
| + Provision for Tax | ||
| + General Reserve | 20,000 | |
| + Dividend | ||
| Add: Non Operating Expenses | ||
| Depreciation on Plant | 30,000 | |
| Depreciation on Building | 50,000 | |
| Goodwill Written Off | 10,000 | 90,000 |
| Less: Non Operating Incomes |
–
|
|
| Operating Profit Before Working Capital Changes | 1,12,000 | |
| Add: Decrease in Current Assets & Increase in Current Liabilities | ||
| Less: Increase in Current Assets & Decrease in Current Liabilities | ||
| Debtors | (40,000) | |
| Inventories | (2,000) | |
| Creditors | (18,000) | (60,000) |
| Cash From Operating Activities | 52,000 | |
| Less: Tax Paid | – | |
| Net Cash From Operating Activities (A) | 52,000 | |
| Cash From Investing Activities | ||
| Purchase of Plant | (60,000) | |
| Purchase of Building | (30,000) | (90,000) |
| Net Cash From Investing Activities (B) | (90,000) | |
| Cash From Financing Activities | ||
| Proceeds from Issue of Share Capital | 50,000 | |
| Redemption of Preference Share Capital | (10,000) | 40,000 |
| Net Cash From Financing Activities (C) | 40,000 | |
| Net Increase in Cash (A + B + C) | 2,000 | |
| Add: Opening Cash and Cash Equivalents | 15,000 | |
| (Cash + Marketable Investments- Bank Overdraft) | ||
| Closing Cash and Cash Equivalents | 17,000 | |
| (Cash + Marketable Investments- Bank Overdraft) | ||
Working Notes:-
| Plant Account | |||||
| Dr. | Cr. | ||||
| Particulars | Amount (Rs) |
Particulars | Amount (Rs) |
||
| Balance b/d | 40,000 | Depreciation | 30,000 | ||
| Cash A/c (Balancing Figure) | 60,000 | Balance c/d | 70,000 | ||
| 1,00,000 | 1,00,000 | ||||
Building Account |
|||||
| Dr. | Cr. | ||||
| Particulars | Amount (Rs) |
Particulars | Amount (Rs) |
||
| Balance b/d | 1,00,000 | Depreciation | 5,00,000 | ||
| Cash A/c (Balancing Figure) | 30,000 | Balance c/d | 80,000 | ||
| 1,30,000 | 1,30,000 | ||||
Page No 3.112:
Answer:
| Cash Flow Statement For the Year Ending March 31,2017 |
||
| Particulars | Details (Rs) |
Amount (Rs) |
| Cash Flow from Operating Activities | ||
| Net Profit | 18,000 | |
| + Provision for Tax | 45,000 | |
| + General Reserve | 30,000 | |
| + Interim Dividend | 20,000 | |
| + Proposed Dividend | 50,000 | |
| + Share Issue Expenses | 5,000 | |
| Add: Non Operating Expenses | ||
| Depreciation on Plant | 10,000 | |
| Depreciation on Building | 20,000 | |
| Goodwill Written Off | 25,000 | 55,000 |
| Less: Non Operating Incomes | – | |
| Operating Profit Before Working Capital Changes | 2,23,000 | |
| Add: Decrease in Current Assets & Increase in Current Liabilities | ||
| Creditors | 28,000 | 28,000 |
| Less: Increase in Current Assets & Decrease in Current Liabilities | ||
| Debtors | (40,000) | |
| Inventories | (32,000) | |
| Bills Receivable | (10,000) | |
| Bills Payable | (4,000) | (86,000) |
| Cash From Operating Activities | 1,65,000 | |
| Less: Tax Paid | (35,000) | |
| Net Cash From Operating Activities (A) | 1,30,000 | |
| Cash From Investing Activities | ||
| Purchase of Plant | (1,20,000) | (1,20,000) |
| Net Cash From Investing Activities (B) | (1,20,000) | |
| Cash From Financing Activities | ||
| Payment of Share Issue Expenses | (5,000) | |
| Interim Dividend | (20,000) | |
| Payment of Proposed Dividend | (42,000) | |
| Proceeds from Issue of Share Capital | 1,00,000 | |
| Payment of Land & Building | (50,000) | (17,000) |
| Net Cash From Financing Activities (C) | (17,000) | |
| Net Increase in Cash (A + B + C) | (7,000) | |
| Add: Opening Cash and Cash Equivalents | 25,000 | |
| (Cash + Marketable Investments- Bank Overdraft) | ||
| Closing Cash and Cash Equivalents | 18,000 | |
| (Cash + Marketable Investments- Bank Overdraft) | ||
Working Notes:-
| Plant Account | |||||
| Dr. | Cr. | ||||
| Particulars | Amount (Rs) |
Particulars | Amount (Rs) |
||
| Balance b/d | 80,000 | Depreciation | 10,000 | ||
| Cash A/c (Balancing Figure) | 1,20,000 | Balance c/d | 1,90,000 | ||
| 2,00,000 | 2,00,000 | ||||
|
Building Account
|
|||||
| Dr. | Cr. | ||||
| Particulars | Amount (Rs) |
Particulars | Amount (Rs) |
||
| Balance b/d | 2,00,000 | Depreciation | 20,000 | ||
| Balance c/d | 1,80,000 | ||||
| 2,00,000 | 2,00,000 | ||||
|
Provision for Tax Account
|
|||||
| Dr. | Cr. | ||||
| Particulars | Amount (Rs) | Particulars | Amount (Rs) |
||
| Cash A/c | 35,000 | Balance b/d | 40,000 | ||
| Balance c/d | 50,000 | P/ L A/c | 45,000 | ||
| 85,000 | 85,000 | ||||
Page No 3.113:
Answer:
| Cash Flow Statement For the Year Ending March 31, 2017 |
||
| Particulars | Details (Rs) |
Amount (Rs) |
| Cash Flow from Operating Activities | ||
| Net Profit | 10,000 | |
| + Provision for Tax | – | |
| + General Reserve | 20,000 | |
| + Interim Dividend | – | |
| + Proposed Dividend | 30,000 | |
| + Share Issue Expenses | 7,000 | |
| Add: Non Operating Expenses | ||
| Depreciation on Fixed Assets | 50,000 | |
| Debenture Interest | 10,000 | 60,000 |
| Less: Non Operating Incomes | – | |
| Operating Profit Before Working Capital Changes | 1,27,000 | |
| Add: Decrease in Current Assets & Increase in Current Liabilities | ||
| Creditors | 40,000 | 40,000 |
| Less: Increase in Current Assets & Decrease in Current Liabilities | ||
| Debtors | (18,000) | |
| Current Investments | (20,000) | |
| Inventories | (20,000) | (58,000) |
| Cash From Operating Activities | 1,09,000 | |
| Less: Tax Paid | – | |
| Net Cash From Operating Activities (A) | 1,09,000 | |
| Cash From Investing Activities | ||
| Purchase of Fixed Assets | (93,000) | |
| Purchase of Investment | (10,000) | (1,03,000) |
| Net Cash From Investing Activities (B) | (1,03,000) | |
| Cash From Financing Activities | ||
| Proceeds from Issue of Share Capital | 40,000 | |
| Proposed Dividend | (20,000) | |
| Share Issue Expenses Paid | (7,000) | |
| Debenture Interest Paid | (10,000) | |
| Repayment of Land & Building | (10,000) | (7,000) |
| Net Cash From Financing Activities (C) | (7,000) | |
| Net Increase in Cash (A + B + C) | (1,000) | |
| Add: Opening Cash and Cash Equivalents | 3,000 | |
| Closing Cash and Cash Equivalents | 2,000 | |
Working Notes:-
| Fixed Asset Account | |||||
| Dr. | Cr. | ||||
| Particulars | Amount (Rs) |
Particulars | Amount (Rs) |
||
| Balance b/d | 3,97,000 | Depreciation | 50,000 | ||
| Cash A/c (Balancing Figure) | 93,000 | Balance c/d | 4,40,000 | ||
| 4,90,000 | 4,90,000 | ||||
Page No 3.114:
Answer:
| Cash Flow Statement For the Year Ending March 31, 2017 |
||
| Particulars | Details (Rs) | Amount (Rs) |
| Cash Flow from Operating Activities | ||
| Net Profit | 25,000 | |
| + Provision for Tax | 23,000 | |
| + General Reserve | – | |
| + Interim Dividend | – | |
| + Proposed Dividend | 15,000 | |
| Add: Non Operating Expenses | ||
| Depreciation on Fixed Assets | 80,000 | |
| Debenture Interest | 10,600 | |
| Goodwill Written Off | 25,000 | 1,15,600 |
| Less: Non Operating Incomes | – | |
| Operating Profit Before Working Capital Changes | 1,78,600 | |
| Add: Decrease in Current Assets & Increase in Current Liabilities | ||
| Other Assets | 8,000 | 8,000 |
| Less: Increase in Current Assets & Decrease in Current Liabilities | ||
| Debtors | (30,000) | |
| Creditors | (5,000) | |
| Inventories | (20,000) | 55,000 |
| Cash From Operating Activities | 1,31,600 | |
| Less: Tax Paid | (18,000) | |
| Net Cash From Operating Activities (A) | 1,13,600 | |
| Cash From Investing Activities | ||
| Purchase of Fixed Assets | (80,000) | |
| Purchase of Investment | (50,000) | (1,30,000) |
| Net Cash From Investing Activities (B) | (1,30,000) | |
| Cash From Financing Activities | ||
| Proceeds from Issue of Share Capital | 1,00,000 | |
| Proposed Dividend | (10,000) | |
| Debenture Interest Paid | (10,600) | |
| Redemption of 8% Debentures | (90,000) | (10,600) |
| Net Cash From Financing Activities (C) | (10,600) | |
| Net Increase in Cash (A + B + C) | (27,000) | |
| Add: Opening Cash and Cash Equivalents | (68,000) | |
| (Cash + Marketable Investments- Bank Overdraft) | ||
| Closing Cash and Cash Equivalents | (95,000) | |
| (Cash + Marketable Investments- Bank Overdraft) | ||
Working Notes:-
| Fixed Asset Account | |||||
| Dr. | Cr. | ||||
| Particulars | Amount (Rs) |
Particulars | Amount (Rs) |
||
| Balance b/d | 5,50,000 | Depreciation | 80,000 | ||
| Cash A/c (Balancing Figure) | 80,000 | Balance c/d | 5,50,000 | ||
| 6,30,000 | 6,30,000 | ||||
| Provision for Tax Account | |||||
| Dr. | Cr. | ||||
| Particulars | Amount (Rs) |
Particulars | Amount (Rs) |
||
| Cash A/c (Balancing Figure) | 18,000 | Balance b/d | 20,000 | ||
| Balance c/d | 25,000 | Profit & Loss A/c | 23,000 | ||
| 43,000 | 43,000 | ||||
Note: Answer for Cash flow from Financing Activities calculated above is different from the answer given in the book.
Page No 3.115:
Answer:
| Cash Flow Statement For the Year Ending March 31, 2016 |
||
| Particulars | Details (Rs) | Amount (Rs) |
| Cash Flow from Operating Activities | ||
| Net Profit | 13,000 | |
| + Provision for Tax | ||
| + General Reserve | ||
| + Interim Dividend | ||
| Add: Non Operating Expenses | – | |
| Less: Non Operating Incomes | – | |
| Operating Profit Before Working Capital Changes | 13,000 | |
| Add: Decrease in Current Assets & Increase in Current Liabilities | ||
| Debtors | 5,000 | 5,000 |
| Less: Increase in Current Assets & Decrease in Current Liabilities | ||
| Creditors | (25,000) | |
| Inventories | (10,000) | |
| Other Current Investments | (10,000) | (45,000) |
| Cash From Operating Activities | (27,000) | |
| Less: Tax Paid | – | |
| Net Cash Used in Operating Activities (A) | (27,000) | |
| Cash From Investing Activities | ||
| Nil | ||
| Net Cash From Investing Activities (B) | NIL | |
| Cash From Financing Activities | ||
| Proceeds from Issue of Share Capital | 50,000 | 50,000 |
| Net Cash From Financing Activities (C) | 50,000 | |
| Net Increase in Cash (A + B + C) | 23,000 | |
| Add: Opening Cash and Cash Equivalents (30,000 + 10,000) | 40,000 | |
| (Cash + Short-term Investments) | ||
| Closing Cash and Cash Equivalents (47,000 + 16,000) | 63,000 | |
| (Cash + Short-term Investments) | ||
Page No 3.116:
Answer:
| Cash Flow Statement For the Year Ending March 31, 2017 |
||
| Particulars | Details (Rs) | Amount (Rs) |
| Cash Flow from Operating Activities | ||
| Net Profit | 50,000 | |
| + Provision for Tax | 15,000 | |
| + General Reserve | – | |
| + Proposed Dividend | 30,000 | |
| Add: Non Operating Expenses | ||
| Depreciation on Plant & Machinery | 10,000 | 10,000 |
| Less: Non Operating Incomes | – | |
| Operating Profit Before Working Capital Changes | 1,05,000 | |
| Add: Decrease in Current Assets & Increase in Current Liabilities | ||
| Creditors | 44,000 | |
| Bills Receivable | 4,000 | 48,000 |
| Less: Increase in Current Assets & Decrease in Current Liabilities | ||
| Debtors | (36,000) | |
| Inventories | (40,000) | (76,000) |
| Cash From Operating Activities | 77,000 | |
| Less: Tax Paid | (12,000) | |
| Net Cash From Operating Activities (A) | 65,000 | |
| Cash From Investing Activities | ||
| Proceeds from sale of Plant & Machinery | 50,000 | 50,000 |
| Net Cash From Investing Activities (B) | 50,000 | |
| Cash From Financing Activities | ||
| Payment of Land & Building | (75,000) | |
| Proposed Dividend | (20,000) | (95,000) |
| Net Cash From Financing Activities (C) | (95,000) | |
| Net Increase in Cash (A + B + C) | 20,000 | |
| Add: Opening Cash and Cash Equivalents | (32,000) | |
| (Cash + Marketable Investments- Bank Overdraft) | ||
| Closing Cash and Cash Equivalents | (12,000) | |
| (Cash + Marketable Investments- Bank Overdraft) | ||
Working Note:-
| Plant & Machinery Account | |||||
| Dr. | Cr. | ||||
| Particulars | Amount (Rs) |
Particulars | Amount (Rs) | ||
| Balance b/d | 1,50,000 | Depreciation | 10,000 | ||
| Bank A/c (Balancing Figure) | 50,000 | ||||
| Balance c/d | 90,000 | ||||
| 1,50,000 | 1,50,000 | ||||
Page No 3.117:
Answer:
|
|
Cash Flow Statement for the year ended March 31, 2017 |
||||
|
|
Particulars |
Amount (Rs) |
Amount (Rs) |
||
|
A |
Cash Flow from Operating Activities |
|
|
||
|
|
Profit as per Statement of Profit and Loss |
1,00,000 |
|
||
|
|
Provision for Tax |
1,60,000 |
|
||
|
|
Profit Before Taxation |
|
2,60,000 |
||
|
|
Items to be Added: |
|
|
||
|
|
Depreciation |
60,000 |
|
||
|
|
Goodwill written off |
60,000 |
1,20,000 |
||
|
|
Operating Profit before Working Capital Adjustments |
|
3,80,000 |
||
|
|
Less: Increase in Current Assets |
|
|
||
|
|
|
Bills Receivables |
2,00,000 |
|
|
|
|
|
Inventories |
50,000 |
|
|
|
|
Add: Increase in Current Liabilities |
|
|
||
|
|
Trade Payables |
40,000 |
(2,10,000) |
||
|
|
Cash Generated from Operations |
|
1,70,000 |
||
|
|
Less: Tax Paid |
|
(1,40,000) |
||
|
|
Net Cash Flows from Operating Activities |
|
30,000 |
||
|
|
|
|
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
||
|
|
|
Purchase of Machinery |
7,60,000 |
|
|
|
|
Net Cash Used in Investing Activities |
|
(7,60,000) |
||
|
|
|
|
|
||
|
C |
Cash Flow from Financing Activities |
|
|
||
|
|
Proceeds from Issue of Share Capital |
4,00,000 |
|
||