CASH FLOW STATEMENT

WORKSHEET NO.-III

MAX.MARKS:20

Q.I

From the following Bal.Sheets of Xltd. Prepare a Cash Flow Statement:

Liabilities
1995
1996
Assets

Share Capital
Retained Earnings
Creditors
Prov.for D\debts
Prov.for Taxation
Outstanding expens
Bank Overdraft

350000
80000
53000
4000
20000
5000
-

350000
110000
40000
10000
30000
8000
12000

512000

560000

Land & Buildings

Goodwill
Machinery
Investments
Stock
Prepaid Insurance
Debtors
Cash At Bank
Discount on Shares

MAX.TIME:1 HR.

1995

1996

200000
50000
150000
20000
40000
35000
15000
2000

300000
40000
105000
62000
3000
50000
-

512000

560000

Additional Information:
a) Income Tax provision made during the year was Rs.26000.
b) Machinery of the book value of Rs.50000 was sold for Rs.20000.
c) Machinery was purchased for Rs.22000 during the year.
d)
Investments were sold at a profit of 20%.

Q.2

Calculate Cash flow from Operating Activities:

To Opening Stock
To Purchases
To Mfg.Wages
40000
Add:Outstanding : 60000
To Rent
120000
Add: outstanding 40000
To salaries
To selling & Dist.expenses
To Depreciation
To preliminary expenses
To loss on sale of assets
To Goodwill

Q.3
a)
b)
c)

10

40000
320000
100000

By Sales
By closing stock
By Dividend
By Commission Accrued
By Net loss

840000
60000
40000
20000
60000

160000
80000
120000
60000
20000
20000
100000

For each of the following items, state how it should be reported in CFS (give all effects)
Issue of 200000 equity shares of Rs.10 each at Rs.4 premium.
Purchase of equipment for Rs.485000.
Sale of old equipment for Rs.87000 (book value Rs.98000).
d) Declared and paid dividend Rs.1,25,000.

Q.4 From the following balance sheets of a company, prepare a Cash Flow Statement:
Liabilities
Equity Share Capital
12% Debentures
Profit & Loss A/c
Current Liabilities
1.
2.

3.

31.12.1983 31.12.1984 Assets

31.12.1983
1,25,000
1,25,000 Fixed Assets (Net)
1,30,000
25,000
75,000 Investments
5,000
30,000
50,000 Current Assets
60,000
20,000
10,000 Discount on Debentures
5,000
2,00,000
2,60,000
2,00,000
Additional information :
Depreciation charged during the year is Rs,.20,000.
Dividend @20% on equity share capital was proposed and paid during the year.
Debentures during the year were issued at 10% Discount.

Q.5 From the following balance sheets of R Ltd. Prepare a Cash Flow Statement:
Liabilities
1991
1990
Assets
1991
Equity Share Capital
36,000
30,000
Goodwill
5,000
Debentures
5,000
Machinery
20,000
Profit & Loss A/c
20,000
14,000
Stock
18,000
Current Liabilities
9,000
11,000
Debtors
19,000
_____
______
Cash
3,000
65,000
60,000
65,000
Additional Information :
1.
Machinery of the book value of Rs.6,000 was sold for Rs.6,500
2.
Debentures were redeemed in 1991 for Rs.4,900
3.
Depreciation on Machinery Rs.1,000.

31.12.1984
1,50,000
20,000
88,000
2,000
2,60,000

10

1990
6,000
25,000
12,000
15,000
2,000
60,000

10

Q.6 Following are the B/sheets of Good Luck Ltd. As at 31st Dec. Prepare Cash Flow Statement:
Liabilities
2000
2001
Assets
2000
2001
Share Capital
10,00,000
11,00,000
Goodwill
50,000
40,000
Debentures
5,00,000
3,00,000
Buildings
4,20,000
6,60,000
General Reserve
2,00,000
2,00,000
Machinery
6,00,000
8,00,000
P/L account
1,10,000
1,90,000
Stock
2,50,000
2,10,000
Provision for Tax
40,000
1,10,000
Debtors
3,00,000
2,40,000
Creditors
50,000
40,000
Cash
3,00,000
24,000
B/P
20,000
30,000
Preliminary expenses
30,000
20,000
Prov. For D/Debts
30,000
24,000
________
________
19,50,000
19,94,000
19,50,000
19,94,000
Additional information:
1.
During the year 2001 a part of machinery costing Rs.7,500 (accumulated depreciation being Rs.2,500)
was sold for Rs.3,000.
2.
Dividend of Rs.80,000 was paid during the year ended 2001.
3.
Income tax paid during the year 2001 for 2000 was Rs.60,000
4.
Depreciation for the year 2001 was provided as follows:
Machinery
: Rs.50,000.
Buildings
: Rs.30,000.
10