Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 28 views

    Liabilities 31.03.20X1 Rs. 31.03.20X 2 Rs. Assets 31.03.20X 1 Rs. 31.03.20X2 Rs

    Uploaded by

    Amit Godara
    The document shows the balance sheets of a company as of March 31, 2021 and March 31, 2022, with increases in assets such as machinery and investments, and increases in liabilities including share capital, reserves, debentures, and creditors. Additional information provided notes the sale of investments, depreciation charged on machinery, new debenture issuance and investments purchased. The cash flow statement is to be prepared for the year ending March 31, 2022.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Liabilities 31.03.20X1 Rs. 31.03.20X 2 Rs. Assets 31.03.20X 1 Rs. 31.03.20X2 Rs

    Uploaded by

    Amit Godara
    28 views3 pages
    The document shows the balance sheets of a company as of March 31, 2021 and March 31, 2022, with increases in assets such as machinery and investments, and increases in liabilities including share capital, reserves, debentures, and creditors. Additional information provided notes the sale of investments, depreciation charged on machinery, new debenture issuance and investments purchased. The cash flow statement is to be prepared for the year ending March 31, 2022.

    Original Title

    Sec D

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document shows the balance sheets of a company as of March 31, 2021 and March 31, 2022, with increases in assets such as machinery and investments, and increases in liabilities including share capital, reserves, debentures, and creditors. Additional information provided notes the sale of investments, depreciation charged on machinery, new debenture issuance and investments purchased. The cash flow statement is to be prepared for the year ending March 31, 2022.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    28 views3 pages

    Liabilities 31.03.20X1 Rs. 31.03.20X 2 Rs. Assets 31.03.20X 1 Rs. 31.03.20X2 Rs

    Uploaded by

    Amit Godara
    The document shows the balance sheets of a company as of March 31, 2021 and March 31, 2022, with increases in assets such as machinery and investments, and increases in liabilities including share capital, reserves, debentures, and creditors. Additional information provided notes the sale of investments, depreciation charged on machinery, new debenture issuance and investments purchased. The cash flow statement is to be prepared for the year ending March 31, 2022.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 3

    Liabilities 31.03.20X1 31.03.20X Assets 31.03.20X 31.03.

    20X2
    Rs. 2 1 Rs.
    Rs. Rs.
    Equity Share Capital 30,000 35,000 Goodwill 10,500 8,000
    General Reserve 10,000 15,000 Machinery 41,000 54,000
    Profit and Loss A/c. - 7,000 10% Investments 3,000 8,000
    10% Debentures 21,000 25,000 Stock 6,000 24,500
    Creditors & Bills 17,500 21,500 Marketable 10,000 9,000
    payables Securities
    Bank Over draft - 4,000 Cash and Bank 8,000 4,000
    Balance
    78,500 1,07,500 78,500 1,07,500
    COURSE : FAC SECTION : D DATE : 03/09/2019 QUIZ : 5

    Additional Information:
    Investments costing Rs.3,000 were sold for Rs.2,800 on 31.03.20x2. .
    Depreciation charged on Machinery is Rs. 4,000
    It has been assumed that new debentures have been issued and new Investments
    have been purchased on 31.03.20x2.
    Prepare Cash flow statement for the year ending on 31.03.20X2
    Ans: Cash Flow Statement for the year ended 31st December, 20X2

    Particulars Rs. Rs.


    I. Cash Flows from Operation Activities:
    Closing Balance as per Profit & Loss A/c. 7,000
    Add: Opening Balance as per Profit & Loss A/c. 0
    Add: Transfer to general reserve 5,000

    Add: Depreciation 4000


    2500
    Goodwill written off 200
    2100
    Loss on sale of Investments

    Interest on Debentures
    Less: Interest on Investments (300) 13,500
    Operating Profit before Working Capital Changes 20,500
    Add: Increase in Creditors for goods 4,000
    Less: Increase in stock (18,500)
    Net Cash from Operating Activities 6,000
    II Cash Flows from Investing Activities:
    Purchase of Machinery (17,000)
    Purchase of Investments (8,000)
    Proceeds from Sale of Investments 2,800
    Interest on Investments 300

    Net Cash used in investing Activities (21,900)


    III Cash Flows from Financing Activities:
    Proceeds from Issue of Equity Share Capital 5,000
    Proceeds from Issue of Debentures 4,000
    Interest on Debentures (2,100)
    Net Cash from Financing Activities 6,900
    IV Net Increase in Cash and Cash Equivalents ( I + II + III) -9,000
    (6000-21,900+6900)
    V Cash and Cash Equivalents at Beginning of Period
    Cash and Bank Balance & Marketable Securities 18,000
    8000+10000
    VI Cash and Cash Equivalents at end of Period ( IV + V)
    Cash and Bank Balance & Marketable Securities 9,000
    4000+9000-4000
    Comment: She should continue this business as she had earned cash from Operating activity & invested
    in Machinery & Investment, also received cash by financing activities-Issue of shares & Debentures.

    (1)

    Dr. Machinery A/c Cr.


    To Balance b/d 41,000 By Depreciation 4,000
    To Purchases* 17,000 By Balance c/d 54,000
    58,000 58,000

    Dr. Investments A/c Cr.


    To Balance b/d 3,000 By Cash 2,800
    To Purchases* 8,000 By Loss on sale of Investment 200
    By Balance c/d 8,000
    11,000 11,000

    You might also like