Cash flow statement

1. The net Income reported in the Income Statement for the year was Rs. 110,000 and depreciation of fixed assets for the year was Rs. 44000. The balances of the current assets and current liabilities at the beginning and end of the year are as follows. Calculate cash from operating activities. End of the year Beginning of the year Current Items Amount(Rs.) Amount (Rs.) Cash Debtors Inventories Prepaid expenses Account payables 130,000 200,000 290,000 15,000 102,000 140,000 180,000 300,000 16,000 1,16,000

2. From the following information calculate the cash flow from investing activities Particulars Opening Closing Machinery (at cost) 400,000 420,000 Accumulated Depreciation 100,000 110,000 Patents 280,000 160,000 Additional Information: (i) During the year a machine costing Rs 40,000 with this accumulated depreciation Rs 24000 was sold for Rs 20,000 (ii) Patents were written off to the extent of Rs 40,000 and some patents were sold at a profit of Rs 20,000 3. From the following information. Calculate the Cash from financing activities: Particulars 31.12.2006 31.12.2007 Rs Rs Equity share capital 400,000 500,000 10% debentures 150,000 100,000 Securities premium 40000 50000 Additional Information: Interest paid on debentures Rs10000. 4. The comparative balance sheets of Bansal Private Limited at two different dates provide the following information. Assets 2006 2007 Amount (Rs) Amount (Rs) Plant and machinery 1350000 1440000 It is informed that depreciation amounting to Rs. 60,000 has been provided during the year. Find the changes that have taken place in the asset and also state their effect on cash flows. 5. In the comparative balance sheet of Wilson Pvt., the position of Building Account is given as under. Liabilities 2006 2007 Assets 2006 2007 Amount Rs. Amount Rs. Amount Rs. Amount Rs . Accumulated 700000 790000 Building 3840000 3910000 depreciation (Building) Additional Information A part of the building of Rs.74,000 was sold for Rs.60,000. The accumulated depreciation on building sold was Rs.20,000 Analyse the transaction. 6. The following information is given to you about the provision for taxation for 2006 and 2007 of M/s Gill Private Limited . Liabilities 2006 2007 Rs Rs Provision for taxation 15000 20000 Net Income for the year 2006 is Rs.50,000. How would you deal with this item assuming it as non-current liability?

7. The following relevant Information is obtained from the book of Venugopalan Limited (Ltd.). Liabilities 2006 2007 Rs Rs Provision for Taxation 50000 70000 The amount of tax paid during 2007 amounted to Rs.40000. How would you deal with this item presuming to be non current? You are also given net profit after taxation was Rs.80000. 8. The following comparative balance sheets contain the relevant information about provision for taxation. Labilities 2006 2007 Rs. Rs. Provision for Taxation 20000 30000 You are informed that Rs. 50,000 was charged to Profit and Loss Account for the year 2007. Ascertain how much cash was used. 9. From the summarised cash account of ABC Limited (Ltd.) prepare cash flow statement for the year ended 31st December 2006 in accordance with AS-3 (Revised) using the direct method and indirect method. The company does not have any cash equivalents : Summarized Cash A/c
Particulars Amount(Rs. 000) Balance on 1.1.2006 50 Issue of equity shares 300 Receipts from customers 2800 Sale of fixed assets 100 Particulars Amount(Rs. 000) Payment to Suppliers 2000 Purchase of fixed assets 200 Overhead expenses 200 Wages and salaries 100 Taxation 250 Dividend 50 Repayment of Bank Loan 300 Balance on 31.12.2006 150 ----------------------------------------------------------------------------------------------------------------------------3250 3250

Additional information: Net profit before tax for the year 2006 was Rs 500000. 10. From the following Information, you are required to prepare the cash flow statement of Classic Ltd. for the year ended 31st March (both methods): Balance Sheets as at 31st March Liabilities 2005 Rs. 2006 Rs. Assets 2005 Rs. 2006 Rs. Share Capital 70,000 70,000 Fixed Assets 50,000 91,000 Secured Loans 40,000 Inventory 15000 40,000 Creditors 14,000 39,000 Debtors 5,000 20,000 Tax payable 1,000 3,000 Cash 20,000 7,000 Profit & Loss A/c 7,000 10,000 Prepaid expenses 2,000 4,000 92,000 162,000 92,000 1,62,000 Profit and loss Account for the year ended 31st March 06 Amount Rs. Particulars 15,000 Sales 98,000 Closing Inventory 27,000 --------1,40,000 General Expenses 11,000 Gross profit c/d Depreciation 8,000 Provision for tax 4,000 Net Profit c/d 4,000 --------Particulars Opening Stock Purchases Gross profit c/d 27,000 Dividend (interim) Balance c/d 1,000 10000 11,000 Balance b/d Net profit b/d 7,000 4,000 11,000 Amount Rs. 100,000 40,000 ----------1,40,000 27000

-------------- 27,000