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प्रश्न
Compute Cash Flow from Operating Activities from the following information:
|
Particulars |
₹ |
| Net Profit after Provision for Tax and Payment of Dividend | 2,15,000 |
| Provision for Tax | 45,000 |
| Final Dividend paid during the year | 50,000 |
| Depreciation | 25,000 |
| Loss on Sale of Machinery | 10,000 |
| Patents Amortised | 30,000 |
| Gain on Sale of Land | 70,000 |
| Income Tax Refund | 30,000 |
उत्तर
|
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 |
APPEARS IN
संबंधित प्रश्न
Calculate Cash Flow from Operating Activities from the following details:
| Particulars | 31st March, 2019 (₹) | 31st March, 2018 (₹) |
| Surplus, i.e.,Balance in Statement of Profit and Loss | 80,000 | 60,000 |
| Trade Receivables | 25,000 | 31,000 |
| Provision for Depreciation | 40,000 | 30,000 |
| Inventories | 80,000 | 60,000 |
| Outstanding Rent | 12,000 | 21,000 |
| Goodwill | 30,000 | 38,000 |
| Prepaid Insurance | 1,000 | 2,000 |
| Trade Payables (Creditors) | 13,000 | 19,000 |
Calculate Cash Flow from Operating Activities from the following:
(i) Profit form the year is ₹ 7,00,000 after considering the following items:
|
Particulars |
(₹) |
| Depreciation on Fixed Assets | 40,000 |
| Goodwill Amortised | 20,000 |
| Gain on Sale of Land | 90,000 |
| Appropriation of Profit towards General Reserve | 60,000 |
(ii) Following is the position of Current Assets and Current Liabiliites
|
Particulars |
Closing Balance (₹) | Opening Balance (₹) |
| Trade Payables | 50,000 | 75,000 |
| Trade Receivables | 75,000 | 60,000 |
| Prepaid Expenses | 10,000 | 18,000 |
Charles Ltd. earned a profit of ₹ 1,00,000 after charging depreciation of 20,000 on assets and a transfer to General Reserve of ₹ 30,000. Goodwill amortised was ₹ 7,000, and gain on sale of machinery was ₹ 3,000. Other information available is (changes in the value of Current Assets and Current Liabilities): trade receivables showed an increase of ₹ 3,000; trade payables an increase of ₹ 6,000; Prepaid expenses an increase of ₹ 200; and outstanding expenses a decrease of ₹ 2,000.
Ascertain Cash Flow from Operating Activities.
Compute Cash Flow from Operating Activities from the following:
(i) Profit for the year ended 31st March, 2019 is ₹ 10,000 after providing for depreciation of ₹ 2,000.
(ii) Current Assets and Current Liabilities of the business for the year ended 31st March, 2018 and 2019 are as follows:
|
Particular |
31st March (₹) |
31st March |
| Trade Receivables | 14,000 | 15,000 |
|
Provision for Doubtful Debts |
1,000 | 1,200 |
|
Trade Payables |
13,000 | 15,000 |
| Inventories | 5,000 | 8,000 |
| Other Current Assets | 10,000 | 12,000 |
| Expenses Payables | 1,000 | 1,500 |
| Prepaid Expenses | 2,000 | 1,000 |
| Accrued Income | 3,000 | 4,000 |
| Income Received in Advance |
2,000 |
1,000 |
From the following Balance Sheet of Combiplast Ltd. for the year ended 31st March, 2019 and additional information, calculate Cash Flow from Investing Activities:
|
Particulars |
Note No. |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
|
I. EQUITY AND LIABILITIES |
|||
|
1. Shareholders' Funds |
|
||
|
(a) Share Capital |
7,50,000 | 5,00,000 | |
|
(b) Reserves and Surplus |
10,00,000 | 8,50,000 | |
|
2. Current Liabilities |
|
4,50,000 | 3,50,000 |
|
Total |
22,00,000 | 17,00,000 | |
| II. ASSETS | |||
|
1. Non-Current Assets |
|||
|
(a) Fixed Assets−Tangible Assets |
1 | 12,00,000 | 12,00,000 |
|
(b) Non-Current Investments |
5,00,000 | 3,00,000 | |
|
2. Current Assets |
|||
|
(a) Trade Receivables |
3,00,000 | 1,10,000 | |
|
(b) Cash and Cash Equivalents |
2,00,000 | 90,000 | |
|
Total |
22,00,000 | 17,00,000 |
Notes to Accounts
|
Particulars |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| I. Tangible Assets | ||
|
Land |
3,00,000 | 3,00,000 |
|
Building |
4,00,000 | 4,00,000 |
|
Plant and Machinery |
5,00,000 | 5,00,000 |
|
|
12,00,000 | 12,00,000 |
Additional Information:During the year the company sold machinery at Book Value of ₹ 1,50,000.
From the following information, calculate Net Cash Flow from Operating Activities and Financing Activities:
| Particulars |
31st March 2019 (Rs.) |
31st March 2019 (Rs.) |
| Equity Share Capital |
13,75,000 |
11,25,000 |
| 5% Preference Share Capital | 5,00,000 | 7,50,000 |
| General Reserve | 3,75,000 | 3,00,000 |
| Surplus i.e., Balance in Statement of Profit and Loss | 3,75,000 | (3,50,000) |
| Securities Premium Reserve | 25,000 | ... |
| Provision for Tax | 1,00,000 | 50,000 |
| Non-current Liabilities (8% Debentures) | 6,50,000 | 3,75,000 |
| Short-term Borrowings (8% Bank Loan) | 1,00,000 | 1,25,000 |
| Trade Payables | 5,00,000 | 2,50,000 |
| Trade Receivables and Inventories |
13,00,000 |
11,50,000 |
Additional Information:
- During the year additional debentures were issued at par on 1st October and Bank Loan was repaid on the same date.
- Dividend on Equity Shares @ 8% was paid on Opening Balance.
- Income tax ₹ 1,12,500 has been provided during the year.
- Preference shares were redeemed at par at the end of the year.
From the following Balance Sheet of Young India Ltd., prepare Cash Flow Statement:
BALANCE SHEET OF YOUNG INDIA LTD.as at 31st March, 2019
|
Particular |
Note No. |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| I. EQUITY AND LIABILITIES | |||
|
1. Shareholders' Funds |
|||
|
(a) Share Capital |
|
2,50,000 |
2,00,000 |
|
(b) Reserves and Surplus: Surplus, i.e., Balance in Statement of Profit and Loss |
|
1,83,000 |
82,000 |
|
2. Non-Current Liabilities |
|
||
|
Long-term Borrowings: |
|
||
|
15% Debentures |
|
80,000 |
50,000 |
|
3. Current Liabilities |
|
||
|
(a) Trade Payables |
|
1,50,000 |
1,10,000 |
|
(b) Other Current Liabilities |
|
12,000 |
20,000 |
|
Total |
|
6,75,000 |
4,62,000 |
| II. ASSETS | |||
|
1. Non-Current Assets |
|||
|
(a) Fixed Assets (Tangible) |
|
2,74,000 |
1,17,000 |
|
(b) Non-Current Investments |
|
68,000 |
55,000 |
|
2. Current Assets |
|
||
|
(a) Inventories |
|
2,06,000 |
1,50,000 |
|
(b) Trade Receivables |
|
32,000 |
70,000 |
|
(c) Cash and Cash Equivalents |
|
95,000 |
70,000 |
|
Total |
|
6,75,000 |
4,62,000 |
Following are the Balance Sheets of Solar Power Ltd. as at 31st March, 2014 and 2013:
| Solar Power Ltd. |
| BALANCE SHEET |
|
Particulars |
Note No. |
31st March, 2014 (₹) |
31st March, 2013 (₹) |
| I. EQUITY AND LIABILITIES | |||
|
1. Shareholders' Funds |
|||
|
(a) Share Capital |
|
24,00,000 | 22,00,000 |
|
(b) Reserves and Surplus |
1 | 6,00,000 | 4,00,000 |
|
2. Non-Current Liabilities |
|||
|
Long-term Borrowings |
4,80,000 | 3,40,000 | |
| 3. Current Liabilities | |||
|
(a) Trade Payables |
3,58,000 | 4,08,000 | |
|
(b) Short-term Provisions |
|
1,00,000 | 1,54,000 |
|
Total |
39,38,000 | 35,02,000 | |
| II. ASSETS | |||
|
1. Non-Current Assets |
|||
|
Fixed Assets: |
|||
|
(i) Tangible Assets |
2 | 21,40,000 | 17,00,000 |
|
(ii) Intangible Assets |
3 | 80,000 | 2,24,000 |
|
2. Current Assets |
|||
|
(a) Current Investments |
4,80,000 | 3,00,000 | |
|
(b) Inventories |
2,58,000 | 2,42,000 | |
|
(c) Trade Receivables |
3,40,000 | 2,86,000 | |
|
(d) Cash and Cash Equivalents |
6,40,000 | 7,50,000 | |
|
Total |
39,38,000 | 35,02,000 |
Notes to Accounts
|
Particulars |
31st March, 2014 (₹) |
31st March, 2013 (₹) |
| 1. Revenue and Surplus
Surplus, i.e.,Balance in Statement of Profit and Loss |
6,00,000 | 4,00,000 |
| 2. Tangible Assets | ||
|
Machinery |
25,40,000 | 20,00,000 |
|
Less: Accumulated Deprciation |
(4,00,000) | (3,00,000) |
| 21,40,000 | 17,00,000 | |
| 3. Intangible Assets | ||
|
Goodwill |
80,000 | 2,24,000 |
Additional Iformation:
Druing the year, a piece of machinery costing ₹ 48,000 on which accumulated deprciation was ₹ 32,000. was sold for ₹ 12,000. Prepare Cash Flow Statement.
Following is the Balance Sheet of Mevanca Limited as at 31st March, 2017:
Mevanca Limited BALANCE SHEET as at 31st March, 2017:
|
Particulars |
Note No. |
31st March, 2017 (₹) |
31st March, 2016 (₹) |
|
I. EQUITY AND LIABILITIES |
|||
|
1. Shareholders' Funds |
|||
|
(a) Share Capital |
3,00,000 |
1,00,000 |
|
|
(b) Reserves and Surplus |
1 |
25,000 |
1,20,000 |
|
2. Non-Current Liabilities |
|||
|
Long-term Borrowings |
2 |
80,000 |
60,000 |
|
3. Current Liabilities |
|||
|
(a) Trade Payables |
6,000 |
20,000 |
|
|
(b) Short-term Provisions |
3 |
68,000 |
70,000 |
|
Total |
4,79,000 |
3,70,000 |
|
|
II. ASSETS |
|||
|
1. Non-Current Assets |
|||
|
Fixed Assets |
4 |
3,36,000 |
1,92,000 |
|
2. Current Assets |
|||
|
(a) Inventories |
67,000 |
60,000 |
|
|
(b) Trade Receivables |
51,000 |
65,000 |
|
|
(c) Cash and Cash Equivalents |
25,000 |
49,000 |
|
|
(d) Other Current Assets |
… |
4,000 |
|
|
Total |
4,79,000 |
3,70,000 |
Notes to Accounts
|
Particulars |
31st March, 2017 (₹) |
31st March, 2016 (₹) |
|
1. Reserves and Surplus |
||
|
Surplus, i.e.,Balance in Statement of Profit and Loss |
25,000 |
1,20,000 |
|
25,000 |
1,20,000 |
|
|
2. Long-term Borrowings |
||
|
10% Long-term Loan |
80,000 |
60,000 |
|
80,000 |
60,000 |
|
|
3. Short-term Provisions |
||
|
Provision for Tax |
68,000 |
70,000 |
|
|
68,000 |
70,000 |
|
4. Fixed Assets |
||
|
Machinery |
3,84,000 |
2,15,000 |
|
Accumulated Depreciation |
(48,000) |
(23,000) |
|
3,36,000 |
1,92,000 |
Additional Information :
(i) Additional loan was taken on 1st July, 2016.
(ii) Tax of ₹ 53,000 was paid during the year.
Prepare Cash Flow Statement.
From the following Balance Sheet of Kumar Ltd. as at 31st March, 2019, prepare Cash Flow Statement
|
Particulars |
Note No. |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| I. EQUITY AND LIABILITIES | |||
|
1. Shareholders' Funds |
|||
|
(a) Share Capital |
1 | 16,00,000 | 10,40,000 |
|
(b) Reserves and Surplus, |
2 | 5,50,000 | 2,60,000 |
|
2. Non-Current Liabilities |
|||
|
Long-term Borrowings: |
|||
|
9% Debentures |
4,00,000 | 6,00,000 | |
|
3. Current Liabilities |
|||
|
Trade Payables |
4,50,000 | 1,00,000 | |
|
Total |
30,00,000 | 20,00,000 | |
| II. ASSETS | |||
|
1. Non-Current Assets |
|||
|
Fixed Assets |
20,00,000 | 15,00,000 | |
|
2. Current Assets |
|||
|
(a) Inventories |
3,00,000 | 2,00,000 | |
|
(b) Trade Receivables |
2,00,000 | 1,00,000 | |
|
(c) Cash and Cash Equivalents |
5,00,000 | 2,00,000 | |
|
Total |
30,00,000 | 20,00,000 |
Notes to Accounts
|
Particulars |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| 1. Share Capital | ||
|
Equity Share Capital |
15,00,000 | 10,00,000 |
|
7% Preference Share Capital |
1,00,000 | 40,000 |
| 16,00,000 | 10,40,000 | |
| 2. Reserves and Surplus | ||
|
General Reserve |
4,00,000 | 60,000 |
|
Surplus, i.e., Balance in Statement of Profit and Loss |
1,50,000 | 2,00,000 |
| 5,50,000 | 2,60,000 |
Additional Information:
1. During a year, a machinery costing ₹ 20,000 was sold for ₹ 6,000.
2. Dividend paid during the year ₹ 50,000.
Following was the Balance Sheet of M.M. Ltd. as at 31st March, 2015
| Particulars | Note No. |
(₹) |
(₹) |
| I. EQUITY AND LIABILITIES | |||
|
1. Shareholders' Funds |
|||
|
(a) Share Capital |
5,00,000 | 4,00,000 | |
|
(b) Reserves and Surplus |
1 | 2,00,000 | (50,000) |
|
2. Non-Current Liabilities |
|||
|
Long-term Borrowings |
2 | 4,50,000 | 5,00,000 |
|
3. Current Liabilities |
|||
|
(a) Short-term Borrowings |
3 | 1,50,000 | 50,000 |
|
(b) Short-term Provisions |
4 | 70,000 | 90,000 |
|
Total Total Expenses |
13,70,000 | 9,90,000 | |
| II. ASSETS | |||
|
1. Non-Current Assets |
|||
|
(a) Fixed Assets: |
|||
|
(i) Tangible Assets |
5 | 10,03,000 | 7,20,000 |
|
(ii) Intangible Assets |
6 | 20,000 | 30,000 |
|
(b) Non-Current Investments |
1,00,000 | 75,000 | |
|
2. Current Assets |
|||
|
(a) Current Investments |
50,000 | 60,000 | |
|
(b) Inventories |
7 | 1,07,000 | 45,000 |
|
(c) Cash and Cash Equivalents |
90,000 | 60,000 | |
|
Total |
13,70,000 | 9,90,000 |
Notes to Accounts :
|
Particular |
31st March 2015 (₹) |
31st March 2014 (₹) |
|
|
1. |
Reserves and Surplus | ||
|
|
Surplus, i.e., Balance in Statement of Profit and Loss |
2,00,000 |
(50,000) |
|
|
2,00,000 |
(50,000) |
|
|
2. |
Long-term Borrowings |
|
|
|
|
12% Debentures |
4,50,000 |
5,00,000 |
|
|
4,50,000 |
5,00,000 |
|
|
3. |
Short-term Borrowings |
|
|
|
|
Bank Overdraft |
1,50,000 |
50,000 |
|
|
1,50,000 |
50,000 |
|
|
4. |
Short-term Provisions |
|
|
|
|
Provision for Tax |
70,000 |
90,000 |
|
|
70,000 |
90,000 |
|
|
5. |
Tangible Assets |
|
|
|
|
Machinery |
12,03,000 |
8,21,000 |
|
|
Less: Accumulated Depreciation |
(2,00,000) |
(1,01,000) |
|
|
10,03,000 |
7,20,000 |
|
|
6. |
Intangible Assets |
|
|
|
|
Goodwill |
20,000 |
30,000 |
|
|
20,000 |
30,000 |
|
|
7. |
Inventories |
|
|
|
|
Stock-in-Trade |
1,07,000 |
45,000 |
|
|
1,07,000 |
45,000 |
|
Additional Information:
1. 12% Debentures were redeemed on 31st March, 2015.
2. Tax ₹ 70,000 was paid during the year.
Prepare Cash Flow Statement.
Following is the summarised Balance Sheet of Philips India Ltd. as at 31st March 2018:
|
Particulars |
Note No. |
31st March, 2018 (₹) |
31st March, 2017 (₹) |
| I. EQUITY AND LIABILITIES | |||
|
1. Shareholders' Funds |
|||
|
(a) Share Capital |
13,50,000 | 13,50,000 | |
|
(b) Reserves and Surplus |
1 | 11,34,000 | 10,68,000 |
|
2. Non-Current Liabilities |
|||
|
Long-term Borrowings: |
8,10,000 | ... | |
|
3. Current Liabilities |
|||
|
(a) Trade Payables (Creditors) |
4,20,000 | 5,04,000 | |
|
(b) Short-term Provisions: |
|||
|
Provision for Tax |
30,000 | 2,25,000 | |
|
Total |
37,26,000 | 31,47,000 | |
| II. ASSETS | |||
|
1, Non-Current Assets |
|||
|
(a) Fixed Assets (Tangible) |
9,60,000 | 12,00,000 | |
|
(b) Non-Current Investments |
1,80,000 | 1,50,000 | |
|
2. Current Assets |
|||
|
(a) Current Investments |
21,000 | 17,000 | |
|
(b) Inventories |
63,30,000 | 7,82,000 | |
|
(c) Trade Receivables |
13,65,000 | 6,30,000 | |
|
(c) Cash and Cash Equivalents |
5,70,00 | 4,30,000 | |
|
Total |
37,26,000 | 31,47,000 | |
Notes to Accounts
|
Particulars |
31st March, 2018 (₹) |
31st March, 2017 (₹) |
| I. Reserves and Surplus | ||
|
General Reserve |
9,30,000 | 9,00,000 |
|
Surplus, i.e., Balance in Statement of Profit and Loss |
2,04,000 | 1,68,000 |
|
|
11,34,000 | 10,68,000 |
Additional Information:
1. Investments costing ₹ 24,000 were sold during the year for ₹ 25,5000.
2. Provistion for Tax made during the year was ₹ 27,000.
3. During the year, a part of the Fixed Assets costing ₹ 30,000 was sold for ₹ 36,000. The rofits were included in the Statement of Profit and Loss.
4. The Interim Dividend paid during the year amounted to ₹ 1,20,000.
You are required to prepare Cash Flow Statement.
From the following Balance Sheet, prepare Cash Flow Statement:
| Particulars | Note No. | 31st March, 2019 (₹) |
31st March, 2018 (₹) |
| I. EQUITY AND LIABILITIES | |||
| 1. Shareholders' Funds | |||
| (a) Share Capital | 2,50,000 | 2,00,000 | |
| (b) Reserves and Surplus, | 1 | 90,600 | 80,500 |
| 2. Current Liabilities | |||
| (a) Short-term Borrowings: Bank Loan | - | 70,000 | |
| (b) Trade Payables | 1,35,200 | 1,50,000 | |
| (c) Short-term Provisions: Provision for Tax | 35,000 | 30,000 | |
| Total Expenses | 5,10,800 | 5,30,500 | |
| II. ASSETS | |||
| 1. Non-Current Assets | |||
| Fixed Assets: | |||
| (i) Tangible Assets | 2 | 3,59,000 | 3,50,000 |
| (ii) Intangible Assets: Goodwill | 5,000 | - | |
| 2. Current Assets | |||
| (a) Inventories | 74,000 | 1,00,000 | |
| (b) Trade Receivables | 64,200 | 80,000 | |
| (c) Cash and Cash Equivalents | 8,600 | 500 | |
| Total | 5,10,800 | 5,30,500 |
Notes to Accounts
| Particulars | 31st March, 2019 (₹) |
31st March, 2018 (₹) |
| 1. Reserves and Surplus | ||
| General Reserve | 60,000 | 50,000 |
| Surplus, i.e., Balance in Statement of Profit and Loss | 30,600 | 30,500 |
| 90,600 | 80,500 | |
| 2. Tangible Assets | ||
| Land and Building | 1,90,000 | 2,00,000 |
| Plant and Machinery | 1,69,000 | 1,50,000 |
| 3,59,000 | 3,50,000 |
Additional Information:.
- Proposed Dividend for the year ended 31st March, 2019 was ₹ 25,000 and for the year ended 31st March, 2018 was ₹ 14,000.
- Interim Dividend paid during the year was ₹ 9,000.
- Income Tax paid during the year was ₹ 28,000.
- Machinery was purchased during the year ₹ 33,000.
- Depreciation to be charged on machinery ₹ 14,000 and building ₹ 10,000.
From the following Balance Sheet and information of Volvo Ltd., prepare Cash Flow Statement:
|
Particulars |
Note No. |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| I. EQUITY AND LIABILITIES | |||
|
1. Shareholders' Funds |
|||
|
(a) Share Capital |
1 | 2,25,000 | 2,50,000 |
|
(b) Reserves and Surplus |
2 | 1,27,500 | 50,000 |
|
2. Non-Current Liabilities |
|||
|
Long-term Borrowings: 10% Debentures |
1,00,000 | 50,000 | |
|
3. Current Liabilities |
|||
|
(a) Trade Payables |
72,500 | 35,000 | |
|
(b) Other Current Liabilities−Premium on Redemption of Preference Shares |
2,500 | 5,000 | |
|
Total |
5,27,500 | 3,90,000 | |
| II. ASSETS | |||
|
1, Non-Current Assets |
|||
|
(a) Fixed Assets−Tangible |
3,10,000 | 2,55,000 | |
|
(b) Non-Current Investments (10% Investments) |
40,000 | 15,000 | |
|
2. Current Assets |
|||
|
(a) Current Investments |
5,000 | 4,000 | |
|
(b) Inventories |
45,000 | 50,000 | |
|
(c) Trade Receivables |
3 | 92,500 | 45,000 |
|
(d) Cash and Cash Equivalents |
4 | 35,000 | 21,000 |
|
Total |
5,27,500 | 3,90,000 |
Notes to Accounts
|
Particulars |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
|
1. Share Capital |
||
|
Equity Share Capital |
1,75,000 |
1,50,000 |
|
12% Preference Share Capital |
50,000 |
1,00,000 |
|
2,25,000 |
2,50,000 |
|
|
2. Reserves and Surplus |
||
|
General Reserve |
10,000 |
15,000 |
|
Surplus, i.e., Balance in Statement of Profit and Loss |
1,17,500 |
35,000 |
|
1,27,500 |
50,000 |
|
|
3. Trade Receivables |
||
|
Sundry Debtors |
1,00,000 |
50,000 |
|
Less:Provision for Doubtful Debts |
7,500 |
5,000 |
|
92,500 |
45,000 |
|
|
4. Cash and Cash Equivalents |
||
|
Cash in Hand |
12,500 |
6,000 |
|
Cash in Bank |
22,500 |
15,000 |
|
35,000 |
21,000 |
Additional Information :
(i) You are informed during the year:
| Proposed Dividend |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| Equity Share Capital | NIL | NIL |
| Preference Share Capital | 12% | 12% |
(ii) A machine with a book value of ₹20,000 was sold for ₹12,500;
(iii) Depreciation charged during the year was ₹35,000;
(iv) Preference shares were redeemed on 31st March, 2018 at a premium of 5%;
(v) An Interim dividend of ₹5,000 was paid on equity shares on 31st March, 2019 out of General Reserve;
(vi) Fresh equity shares were Issued on 31st March, 2019; and
(vii) Additional Investments were purchased on 31st March, 2019.
From the following Balance Sheet as at 31st March, 2019 and Statement of Profit and Loss for the year ended 31st March, 2019 of RSB Ltd. and additional information, prepare Cash Flow Statement:
|
Particulars |
Note No. |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| I. EQUITY AND LIABILITIES | |||
| 1. Shareholders' Funds | |||
| (a) Share Capital |
7,50,000 |
5,00,000 |
|
| (b) Reserves and Surplus |
1 |
9,50,000 |
3,00,000 |
| 2. Non-Current Liabilities | |||
| Long-term Borrowings (5% Debentures) |
7,00,000 |
4,00,000 |
|
| 3. Current Liabilities | |||
| (a) Trade Payables |
1,10,000 |
90,000 |
|
| (b) Other Current Liabilities |
2 |
39,000 |
25,000 |
| (c) Short-term Provisions (Provision for Tax) |
2,60,000 |
2,25,000 |
|
|
Total |
28,09,000 |
15,40,000 |
|
| II. ASSETS | |||
| 1. Non-Current Assets | |||
| (a) Fixed Assets – Tangible |
3 |
6,85,000 |
7,45,000 |
| (b) Non-current Investments |
7,50,000 |
2,50,000 |
|
| 2. Current Assets | |||
| (a) Current Investments |
6,74,000 |
95,000 |
|
| (b) Inventories |
1,00,000 |
2,00,000 |
|
| (c) Trade Receivables |
4,00,000 |
1,50,000 |
|
| (d) Cash and Cash Equivalents |
2,00,000 |
1,00,000 |
|
|
Total |
28,09,000 |
15,40,000 |
STATEMENT OF PROFIT AND LOSS for the year ended 31st March, 2019
|
Particulars |
Note No. |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| I. Revenue from Operations |
4 |
40,00,000 |
35,00,000 |
| II. Other Income |
5 |
35,000 |
30,000 |
| III. Total Revenue (I + II) |
40,35,000 |
35,30,000 |
|
| IV. Expenses: | |||
| Purchases of Stock-in-Trade |
27,00,000 |
24,70,000 |
|
| Change in Inventories of Stock-in-Trade |
6 |
1,00,000 |
50,000 |
| Finance Cost |
27,500 |
20,000 |
|
| Depreciation |
40,000 |
45,000 |
|
| Other Expenses |
22,500 |
20,000 |
|
| Total Expenses |
28,90,000 |
26,05,000 |
|
| V. Profit before Tax (III – IV) |
11,45,000 |
9,25,000 |
|
| VI. Less: Tax |
3,45,000 |
2,25,000 |
|
| VII. Profit after Tax (V – VI) |
8,00,000 |
7,00,000 |
Notes to Accounts
|
Particular |
31st March 2019 (₹) |
31st March 2018 (₹) |
|
|
1. |
Reserves and Surplus | ||
| Debenture Redemption Reserve |
1,00,000 |
1,00,000 |
|
| Surplus, i.e., Balance in Statement of Profit and Loss |
8,50,000 |
2,00,000 |
|
|
9,50,000 |
3,00,000 |
||
|
2. |
Other Current Liabilities | ||
| Interest on Debentures |
35,000 |
20,000 |
|
| Outstanding Expenses |
4,000 |
5,000 |
|
|
39,000 |
25,000 |
||
|
3. |
Fixed Assets–Tangible | ||
| Cost |
8,90,000 |
9,90,000 |
|
| Less: Accumulated Depreciation |
2,05,000 |
2,45,000 |
|
|
6,85,000 |
7,45,000 |
||
|
4. |
Revenue from Operations | ||
| Sales |
42,00,000 |
35,75,000 |
|
| Less: Sales Return |
2,00,000 |
75,000 |
|
|
40,00,000 |
35,00,000 |
||
|
5. |
Other Income | ||
| Interest on Deposits |
15,000 |
12,500 |
|
| Dividend on Investments |
10,000 |
17,500 |
|
| Gain (Profit) on Sale of Fixed Assets |
10,000 |
… |
|
|
35,000 |
30,000 |
||
|
6. |
Change in Inventories of Stock-in-Trade | ||
| Opening Stock |
2,00,000 |
2,50,000 |
|
|
|
Less: Closing Stock |
1,00,000 |
2,00,000 |
|
|
1,00,000 |
50,000 |
|
Additional Information:
1. Additional debentures were issued on 1st October, 2018 of ₹5,00,000. On the same date, part of outstanding debentures were redeemed and interest was paid, whereas interest on outstanding debentures was paid on 10th April, 2019.
2. Board of Directors proposed dividend in both the years @ 10%.
3. Interim Dividend of ₹ 1,00,000 was paid during the year.
4. A fixed asset with original cost of 1,00,000, on which depreciation till date was provided of ₹ 80,000 was sold at a profit of ₹ 10,000.
Which of the following transactions will result in 'Flow of Cash'?
From the following information, find out the inflow of cash:
| 31st March, 2015 | 31st March, 2014 | |
| Plant and Machinery Account | ₹ 6,00,000 | ₹ 4,50,000 |
| Accumulated Depreciation | ₹ 1,60,000 | ₹ 1,00,000 |
Additional Information:
Depreciation for the years 2014-2015 is ₹ 80,000
During the year Machinery was purchased for ₹ 2,50,000 and a part of the asset was sold at a profit of ₹ 40,000.
Assertion (A): Depreciation is added to the net profit before tax.
Reason (R): Depreciation is a non-cash item that is an expense.
