cr.

MachineryAccount
To Balance b/d
To Bank (Bal. Particulars
Fig.) 12,000
75.000 By Depreciation 15.000
16,000 By Bank (Sold) 4.000
By Profit& Loss A/c (Loss on Sale) 60,000
By Balance c/d
(2) Dr. 91.000 91.000
FurnitureAccount cr.
Particulars
10,000 By Depreciation 4.000
2.000 By BalanceCid 8.000
12,000 12.000
Building Account
Pamcu;ars
To Balance b/d Particulars
I By Depreciation 20,000
By Bank (Bal. Fig.) 21.000
By Balance cid 99.000
140,000 1.40.ooo
lustrations:
From the following Summary
financial statements prepare a cash flow statement of EPABX Ltd. for
ne year ended 31st March 2017.
Balance Sheet as on
Liabilities 3t-9-i7, Assets 31-3-16 31-3-17

EquityCapital Goodwill 13,950 4.950

54,000 70,200 Land & Buildings 32,400 45.000
Loans 45,000 27,000 Plant & Machinery 1.13.400 85.050
fixed Deposits 67,950 62,010 Furniture 40.500
Creditors 71 ,640 43,920 Investments 40.500 49,500
Provisionfor Taxation 10,800 12,600 Debtors 94,500
Bank Balance 89.640 11,610
3.84.390

Other Information :
on Furniture.
(a) Depreciation is provided @
is 5,000,
(b) Depreciation on Land & Building the year.
8,000 were sold for 10,000 during
(c) Investment costing Y.B.Com., Oct. 95, adapted)
the year ended 31st March, 2017.(T.
for
(d) Tax of 13,000 was paid
Solution: Year Ended 31st March, 2017
statement for the
cash Flow

ACTIVITIES 16,200
1• CASH FLOWS FROM OPERATING 54,000)
: 70,200
1.1 Net Profit (Reserves 37,850
1.2 Adjust Non-Cash Items 9,000
 CashFlow Statement
245
solution :
cash Flow from Operations
•d in the for Tax + Depreciation N.P.
- Profit on after tax & apProprjation+ Transfer to General Reserve +
Prov.
ration. InCash + 25,000 + 25,000 Sales Of F.A.
(b)
Is. In (c) the +25,000- 10,000= 1
7.2 CORPORATES
for planning Illußtratioh 3 :
•ment: F0110Wingare th Summary Balance
Sheets of Young India Ltd.:
Vabilltles 20f7 2017 2016
2016 Assets
Share Capital Fixed Assets 4,00.ooo
General Reserve Debtors 2,00.ooo
Profit& Loss A/c Stock
14% Debentures Issued for Cash 1 ,oo.ooo
purchase of fixed Assets NIL UnderwritingCommission NIL 70,000
13,80.ooo

Assuming the depreciation for the year to be 50,000 and interimdividend paid during the year to
be 5% on opening capital, prepareCash Flow Statement. (T.Y.B.Com.,Oct 98, adapted)
Solution:
g (b) an cash Flow Statement for 2014

No. Particulars
FROM OPERATINGACTIVITIES
1. CASH FLOWS
1.1 Net Profit (280,000-
Items
1.2 Adjust Non-Cash 50,000
Depreciation 50,000
aserves
 246
Accounting For Managerial Decisions (SYBMS : SEM-no
Iu tration4:
Teles r Ltd. gives
you
and 2017. Prepare a the following Summary Balance Sheets for the year ended 31st March,2016
Cash Flow statementfor the year ended31st March,2017 as per AS-3 by

abilities 310-16 -31-3-17Assets 31-3-16 31-3-17'

Equity Share Capital Land 2, 10,000

5% Preference Building
Share Capital 90,000 60,000 Stock 27,000 36,300
General Reserve 30,000 42,330 Debtors 40,440 38,460
Profit & Loss A/c 15,240 28,080 PrepaidExpenses 25.880 17,000
Provision for Tax 17,000 8,000 Bank Balance 15,480 3,240
Creditors Misc. Expenditure 6,000 5,400
Total Total
Other information for the year ended 31st March,2017 :
(1) The Company has paid Interimdividendof 5% on Equityshares.
(2) Preference shares were redeemed during the year at 10% premium.
(3) Income Tax paid duringthe year 15,000.
(SYBMS, Nov. 2017, T.Y.B.Com., Oct. 08, adapted)
Solution :
TELESTAR LTD.
Cash Flow Statement for tY<Ä 'S ended 31st Marce.
 '
as Per
Provision
AS by for Tax
Account
Jars
To Bank Particulars
TOBalance c/d 15,000 By
Balance b/d
8,000 By 17000
,000 2, (Bal. Fig.)
,000 70,000
2, 70,000 uction in Building A/c is
23,000 6,000
,000 2 assumed to be
36,300 due to depreciation.
'440 38,460 it can also be
,880 Il tråiion5 :
480 17,000 Following are the summÅrised Balance
3,240 Sheets Of Mayur Industries
'000 5,400 Private Limitedason 31st March

Balance Sheet
ilities 2016 Assets 2017 2016
Share Capital Premises 4.75.000 s.oo.ooo
GeneralReserve Machinery 422,500 3,75,000
. 08, adapted) Profitand Loss A/c 76,500 76,250 Equipments 40.500 45.000
TermLoan from ICICI Stock 74.000
SundryCreditors 2,31,250 Sundry Debtors 1.60.ooo 2.00.ooo
Provision for Taxation 76,250 84,250 Cash 7.000 3.000
Bank 10,000
Goodwill 12.500
11,89.OOO 't 89000 1235.500

Other Informations :
during the year.
(1) Dividend (Interim) of 25,000 was paid
at 5%.
(2) Depreciation on Premises is provided
during the year.
(3) Machinery of? 75,000 was acquired
was 75.000.
(4) Income Tax provision for the year
statement (b) statement showing cash from operati0n•
Prepare (a) a cash flow (T.YB.com„Oct. 97, adapted)
Solution :
Statement for Year Ended 31st March, 2017
Cash Flow
 250 Accounting For Managerial Decisions (SYBMS: SEM-Ilo
(3) Dr. Provision for Tax Account
cr.
articulars Particulars
To Bank 6,000 By Balance b/d
To Balance c/d 5,000
10,000 By Profit & Loss A/c 11 ,ooo
(Prov. for the year Bal. Fig
16,000 16,000
31uStration 7:
The Summary Balance Sheets of Dinesh Ltd. are as follows :
Balance Sheet as at 31st March, 2016 and 2017
bilities 2016 2017

Equity Share Capital Goodwill 1,10,000 90,000

General Reserve 60,000 Land & Building
Profit & Loss A/c 98,000 Plant & Machinery 80,000
Debentures Stock 84,000
Sundry Creditors 1,14,000 92,000 Debtors 1.80,ooo
Bills Payable 60,000 12,000 Advance Income Tax 40,000
Provision for Income Tax 50,000 Bills Receivables 16,000 24,000
Prepaid Expenses 12,000 8,000
Cash in Hand 20,000 8,000
Profit & Loss A/c 12,000
8.12,000 8, 1 2,000

Additional Information :
(1) During the year ended 31-03-2017 Depreciationof 16,000 and 20,000 have been charged
on Land and Building and Plant and Machineryrespectively.
paid during the year ended on 31-03-2017,
(2) An Interim Dividend of 15,000 was
(3) During the year Machinery having book-value of 16,000 was sold for 14,000.
Prepare Cash Flow Statements by Indirect Method for the year ended 31st March, 2017 as pet
AS-3. (T.Y.B.com., Oct. 06, adapted)

Solution :
Cash Flow Statement For the Year Ended 31st March, 20' —

Particulars
CASH FLOWS FROM ACTIVITIES
1.1 Net Profit