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Question
From the following information, calculate Cash Flow from Investing Activities:
| ₹ | ₹ | ||
| Purchase of Machine | 2,50,000 | Purchase of Investments | 1,60,000 |
| Purchase of Goodwill | 1,00,000 | Sale of Patents | 40,000 |
| Sale of Machine | 35,000 | Interest and Dividend Received | 10,000 |
| Sale of Investment | 50,000 |
A building was purchased as investment out of surplus which was let out for commercial purposes.
Rent Received ₹20,000.
Solution
|
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) |
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Following is the extract from the Balance Sheet of Zee Ltd.
| Particular | 31st March 2019 (₹) |
31st March 2018 (₹) |
| Equity Share Capital | 8,00,000 | 8,00,000 |
| 10% Preference Share Capital | 6,00,000 | 6,00,000 |
| Surplus i.e., Balance in Statement of Profit and Loss | 7,20,000 | 4,00,000 |
| Unpaid Dividend | 20,000 | − |
Additional Information:
- Proposed dividends on equity shares for the years 2017-18 and 2018-19 are ₹ 1,60,000 and ₹ 2,00,000, respectively.
- An Interim Dividend of ₹ 40,000 on Equity Shares was paid.
Calculate Net Profit before Tax and Extraordinary Items.
Calculate Net Profit before Tax and Extraordinary Items of Premier Sales Ltd. from its Balance Sheet as at 31st March, 2019:
|
Particulars |
Note No. |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| I. EQUITY AND LIABILITIES | |||
| 1. Shareholders' Funds: | |||
| (a) Share Capital | 5,00,000 | 5,00,000 | |
| (b) Reserves and Surplus (Surplus, i.e.,Balance in Statement of Profit and Loss) |
2,00,000 | 1,45,000 | |
| 2. Current Liabilities: | |||
| (a) Trade Payables | 90,000 | 50,000 | |
| (b) Other Current Liabilities | 20,000 | 10,000 | |
| (c) Short-term Provisions | 1 | 50,000 | 30,000 |
| Total | 8,60,000 | 7,35,000 | |
| II. ASSETS | |||
| 1. Non-Current Assets: | |||
| (a) Fixed Assets | 4,50,000 | 4,00,000 | |
| (b) Non-Current Investments | 50,000 | 1,50,000 | |
| 2. Current Assets: | 2,60,000 | 1,85,000 | |
| Total | 8,60,000 | 7,35,000 |
Notes to Accounts:
| Particulars | 31st March, 2019 (₹) |
31st March, 2018 (₹) |
| I. Short-term Provisions: | ||
| Provision for Tax | 50,000 | 30,000 |
Additional Information:
(i) Proposed Dividend for the years ended 31st March 2018 and 2019 are ₹ 50,000 and ₹ 75,000 respectively.
(ii) Interim Dividend paid during the year was ₹ 10,000.
From the following information, calculate Operating Profit before Working Capital Changes:
| ₹ | |
| Net Profit before Tax and Extraordinary Items | 4,47,000 |
| Depreciation on Machinery | 84,000 |
| Interest on Borrowings | 16,800 |
| Goodwill Amortised | 18,600 |
| Loss on Sale of Furniture | 18,000 |
| Premium on Redemption of Preference Shares | 6,000 |
| Gain (Profit) on Sale of Investments | 12,000 |
| Interest and Dividend Received on Investments | 27,600 |
From the following Balance Sheet of Double Tree Ltd. as at 31st March, 2019 and additional information, calculate Operating Profit before Working Capital Changes:
|
Particulars |
Note No. |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| I. EQUITY AND LIABILITIES | |||
|
1. Shareholders' Funds |
|||
|
(a) Share Capital |
|
5,00,000 | 5,00,000 |
|
(b) Reserves and Surplus |
1 | 6,70,000 | 5,00,000 |
|
2. Current Liabilities |
|||
|
(a) Trade Payables |
60,000 | 50,000 | |
|
(b) Other Current Liabilities (Outstanding Expenses) |
20,000 | 15,000 | |
|
(c) Short-term Provisions (Provision for Tax) |
|
1,00,000 | 90,000 |
|
Total |
13,50,000 | 11,55,000 | |
| II. ASSETS | |||
|
1. Non-Current Assets |
|||
|
(a) Fixed Assets (Tangible) |
7,50,000 | 7,30,000 | |
|
(b) Non-Current Investments |
2,50,000 | 3,00,000 | |
|
2. Current Assets |
3,50,000 | 1,25,000 | |
|
Total |
13,50,000 | 11,55,000 |
Notes to Accounts
|
Particulars |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| I. Reserve and Surplus | ||
|
General Reserve |
5,00,000 | 4,00,000 |
|
Surplus, i.e., Balance in Statement of Profit and Loss |
1,70,000 | 1,00,000 |
|
|
6,70,000 | 5,00,000 |
Additional Information: Depreciation for the year was ₹75,000.
Grand Hospitality Ltd., reported Net Profit after Tax of ₹ 6,40,000 for the year ended 31st March, 2019. The relevant extract from Balance Sheet as at 31st March, 2019 is:
|
Particulars |
31st March, 2019 (₹) | 31st March, 2018 (₹) |
| Inventories | 1,15,000 | 1,25,000 |
| Trade Receivables | 1,50,000 | 1,10,000 |
| Prepaid Expenses | 20,000 | 6,000 |
| Trade Payables | 1,10,000 | 80,000 |
| Provision for Tax | 20,000 | 15,000 |
Depreciation charged on Plant and Machinery ₹ 55,000, insurance claim received ₹ 50,000, gain (profit) on sale of investment ₹ 20,000 appeared in the Statement of Profit and Loss for the year ended 31st March, 2019. Calculate Cash Flow from Operating Activities.
Compute Cash Flow from Operating Activities from the following:
|
Particulars |
Closing Balances (₹) | Opening Balances (₹) |
| Surplus, i.e., Balance in Statement of Profit and Loss | 65,000 | 60,000 |
| Trade Receivables: | ||
|
Debtors |
67,000 | 1,02,000 |
|
Bills Receivable |
1,03,000 | 62,000 |
| General Reserve | 2,37,000 | 2,02,000 |
| Provision for Depreciation | 30,000 | 20,000 |
| Outstanding Expenses | 12,000 | 30,000 |
| Goodwill | 70,000 | 80,000 |
An asset costing ₹ 40,000 having book value of ₹ 28,000 was sold for ₹ 36,000.
Mars Ltd. has Plant and Machinery whose written down value on 1st April, 2017 was ₹9,60,000 and on 31st March, 2018 was ₹10,50,000. Depreciation for the year was ₹35,000. In the beginning of the year, a part of plant was sold for ₹45,000 which had a written down value of ₹30,000.
Calculate Cash Flow from Investing Activities
From the following details. calculate Cash Flow from Investing Activities
|
Particulars |
Closing (₹) | Opening (₹) |
| Machinery (At Cost) | 10,00,000 | 9,50,000 |
| Accumulated Depreciation | 1,50,000 | 1,10,000 |
| Patents | 2,00,000 | 3,00,000 |
Additional Information:
1. During the year, machine costing ₹ 90,000 with accumulated depreciation of ₹ 60,000 was sold for ₹ 50,000.
2. Patents written off were ₹ 50,000 while a part of patents were sold at a profit of ₹ 40,000.
From the following details. Calculate Cash Flow from Investing Activities
|
Particulars |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| Investment in 10% Debentures | 10,00,000 | 5,00,000 |
| Land and Building | 15,00,000 | 9,00,000 |
Additional Information:
1. Half of the investment held in the beginning of the year were sold at 10% profit.
2. Depreciation on Land and Building was ₹ 50,000 for the year.
3. Interest received on investments ₹ 75,000.
From the following information, calculate Cash Flow from Investing Activities
|
Particular |
31st March, (₹) |
31st March, |
| Plant and Machinery | 10,00,000 | 8,50,000 |
| Investment (Long-term) | 1,00,000 | 40,000 |
| Land (At Cost) |
1,00,000 |
2,00,000 |
Additional Information:
1. Depreciation charged on Plant and Machinery ₹ 50,000.
2. Plant and Machinery with a Book Value of ₹ 60,000 was sold for ₹ 40,000.
3. Land was sold at a profit of ₹ 60,000.
4. No investment was sold during the year.
From the following extracts of a company, calculate Cash Flow from Investing Activities:
|
Particular |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| Goodwill |
75,000 |
1,00,000 |
| Patents | 1,00,000 | 75,000 |
| Land | 90,000 | 1,00,000 |
| Furniture | 2,46,000 | 21,000 |
| Plant and Machinery (Net) | 2,00,000 | 2,00,000 |
| 10% Investments | 1,80,000 | 2,00,000 |
| Accrued Interest on Investments |
6,000 |
... |
From the following information, calculate Cash Flow from Investing Activities:
|
Particulars |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| Machinery (At cost) | 5,50,000 | 5,00,000 |
| Accumulated Depreciation | 1,70,000 | 1,00,000 |
During the year, a machinery costing ₹ 50,000 (accumulated depreciation provided thereon ₹ 20,000) was sold for ₹ 26,000.
From the following information, calculate Cash Flow from Financing Activities:
| 1st April, 2018 (₹) |
31st March, 2019 (₹) |
|
| Long-term Loan | 2,00,000 | 2,50,000 |
During the year, the company repaid a loan of ₹1,00,000.
From the following extracts of Balance Sheet of Exe Ltd., calculate Cash Flow from Financing Activities:
|
Particulars |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| Equity Share Capital |
5,25,000 |
4,00,000 |
| 10% Preference Share Capital | 4,00,000 | 5,50,000 |
| Securities Premium Reserve | 2,25,000 | 1,00,000 |
| 12% Debentures |
4,00,000 |
3,00,000 |
Additional Information:
1. Equity Shares were issued on 31st March, 2019.
2. Interim dividend on Equity Shares was paid @ 15%.
3. Preference Shares were redeemed on 31st March, 2019 at a premium of 5%. Premium paid was debited to Statement of Profit and Loss.
4. 12% Debentures of face value ₹ 1,00,000 were issued on 31st March, 2019.
From the following information, calculate Cash Flow from Investing and Financing Activities:
|
Particulars |
31st March 2019 |
31st March 2018 |
| Machinery (At cost) |
50,000 |
40,000 |
| Accumulated Depreciation | 12,000 | 10,000 |
| Capital | 35,000 | 30,000 |
| Bank Loan |
... |
10,000 |
During the year, a machine costing ₹ 10,000 was sold at a loss of ₹ 2,000. Depreciation on machinery charged during the year amounted to ₹ 6,000.
Read the following hypothetical text and answer the question given below on the basis of the same:
Aditi, initiated her start-up Fizz Ltd. in 2019, ‘Fizz Ltd. is an organic juice extracting unit. Its profits are increasing year-after-year because of the increasing awareness towards health.
Following information has been extracted from the Balance Sheet of ‘Fizz Ltd.” for the year ended 31" March, 2022:
| 31st March, 2022 | 31st March, 2021 | |
| Equity Share Capital | 90,00,000 | 60,00,000 |
| 11 % Debentures | 30,00,000 | 50,00,000 |
| Machinery (at cost) | 28,00,000 | 20,00,000 |
| Accumulated Depreciation on Machinery | 90,000 | 60,000 |
Additional Information:
- During the year, a machine costing ₹ 4,00,000 was sold at a gain of ₹ 30,000.
- Depreciation charged on machinery during the year was ₹ 50,000.
- Interest paid on 11% debentures amounted at ₹ 5,50,000.
- Dividend of ₹ 3,00,000 was paid on equity shares.
- Debentures were redeemed at a premium of 10% on 31st March,2022.
Calculate cash flows of 'Fizz Ltd.' from 'Investing Activities' and 'Financing Activities.
