Q23.| Following is the Balance Sheets of Akash Ltd.

as at 31-3-2014: (6)
Akash Ltd.
Balance Sheet
as at 31-3-2014
PARTICULARS NOTE 2013-114 2012-13
No.

I EQUITY &LIABILITIES
(1) Shareholders' Funds 15,00,000 14.00,000
(a) Share Capital 2,50,000 1,10,000
(b) Reserves & Surplus
(2) Non- CurrentLiabilities 2,00,000 1,25,000
(a) Long Term Borrowings
(3) Current Liabilities 12,000 10,000
(a) Short term borrowings 15,000 83,000
(b) Trade Payables 3 18,000 11,000
) Shortterm provisions
TOTAL 19,95,000 17,39,000
(1) Non - Current Assets
(a) Fixed Assets
) Tangible assets 18,60,000 16,10,000
(i) Intangible assets 5 50,000 30,000
(2) Current Assets
a Current Investments
(b) Inventories 8,000 5,000
(c) Trade Recelvables 37,000 59,000
(d) Cash & Cash Equivalents 26,000 23,000
14.000 12,000
TOTAL 19,95,000L 17,39,000

Notes to Accounts:
Note No PARTICULARS 2013-14 2012-1 3

Reserves and Surplus:-

Surplus (balance in Statement of Profit and 2,50,000 1,10,000
Loss)
Short Term Borrowings
Bank Overdraft 12,000 10,000
Short term provisions
Provision for Tax 18,000 11,000
Tangible Assets
Machinery 20,00,000 17.00,000
Accumulated Depreciation (1,40,000) (90,000)
IntangibleAssets
Patents 50,000 30,000
Additional Information:
(i) Tax paid during the year amounted to 16, 000.
ii) Machine with a net book value of i0,000 (Accumulated Depreciation 40,000) was
sold for 2,000.
Prepare Cash Flow Statement.
Cash Flow Statement
For the year ended 315 March,2014
Particulars
LCASHELOW FROMOPERATING ACTIVITIES
Surplus: Balance in the Statement of Profit & Loss (closing) 2.50,000
Less: Surplus: Balance in the Statement of Profit & Loss ,10,000
(beginning
NET PROFIT 40,000
Add: Provision for Tax 23,000
Net Profit before Tax and Extraordinary Itemss 1,63,000
Add: Non-Cash and Non-operating Expenses:
Depreclation 90,000
Loss on Sale of Machine 8,000 8, ,000
1,000
Add: Decrease in Current Assets & Increase in Current
Liabilities
Inventories 22,000 22,000
2,83,000
Less: Increase in Current Assets & Decrease in Current
Liabilities
Trade Recelvabes 3,000
Trade Payables 68,000 71,000
Cash generated from Operating Activities 2.12.000
Less: Income Tax Paid (16,000)
Cash Flow From Operating Activities 1,96,000

I-CASHFLOW FROM INVESTING ACTIVTTIES

Sale Of Machinery 2,000
Purchase of Machinery (3,50.000)
Purchase of Patents (20.000)
Cash Used in Investing Activities (3,68,000)

M-CASHLELOW FROMFINANCING ACTIVITIES

Proceeds from Issue of Share Capital 1,00.000
Proceeds from Long term Borrowings 75,000
Increase in Bank Overdraft 2,000
Cash Flow From Financing Activities 1,77,000
V-NET INCREASEIN CASH&CASH EOUIVALENTSs 5,000

(0+l1-1)
V-CASH &CASH EQUIVALENTS IN THE BEGINNING
OF THE YEAR
Current Investments 5,000
Cash& Cash Equivalents 12,000| 17,000
VI-CASH&CASH EQUIVALENTS AT THE END OF 22,000
THE YEAR
Current InvestmentsS 8,000
Cash &Cash Equivalents 14,000
22.000

WORKING NOTES
Machinery Account
PARTICULARS
To Balance b/d
PARTICULARS
17,00,000 By Bank Ac (Sale) 2,000
To Bank A/c (purchase) 3,50,000 By Loss on Sale of Machinery Alc 8,000
By Deprecilation Alc 40,000
By Balance c/d_ 20,00,000
20.50.000 20.50.000
Accumulated Depreciation Account
PARTICULARS
To Macinery A/c
PARTICULARS
40,000 By Balance b/d 90,000
(sold Asset) By Statement of Profit & Loss 90,000
To Balnce c/d 1,40.000
L80,000 L.80.000

Provision for Tax Account

PARTICULARS PARTICULARS
To Bank Alc (Tax Paid) 16,000 By Balance b/d 11.000
To Balance cld 18,000 By Statement of Profit &Loss 23,000
34,000 34.000
23. From the following Balance Sheet of Ajanta Limited as on March 31, 2017, prepare a Cash Flow
Statement:

Particulars Note 31-3-2017 31-3-2016

Number (Rs.) (Rs.)
I.Equity and Liabilities
(1) Shareholders' Funds
(a) Equity Share Capital 10,00,000 10,00,000
(6) Reserves and Surplus 2,40,000 1,20,000
(2) Non- Current Liabilities
3,20,000 2,40,000
Long-Term Borrowings-9 % Debentures
(3) Current Liabilities
(a) Trade Payables
2 1,80,000 2,40,000
(b) Other Current Liabilities
1,80,000 1,60,000
Total 19,20,000 17,60,000
II. Assets
(1) Non-Current Assets
(a) Fixed Assets
Tangible Assets 13,40,000 12,00,000
5 2,40,000 1,60,000
(6) Non-Current Investments
(2) Current Assets
1,20,000 1,60,000
(a) Inventories
1,60,000 1,60,000
(b) Trade Receivables
60,000 80,000
C) Cash and Cash Equivalents
Total 19,20,000 17,60,000

Notes to Accounts

Note Particulars 31-3-2017 | 31-3-2016

Number (Rs.) (Rs.)

1
Reserves and Surplus
General Reserve 1,20,000 1,20,000
Balance in Statement of Profit & Loss 1,20,000
2,40,000 1,20,000
2 Trade Payables

Creditors 1,40,000 1,20,000

Bills Payable 40,000 1,20,000
3
1,80,000 2,40,000
Other Current Liabilities
Outstanding Rent 1,80,000 1,60,000
1,80,000 1,60,000
Tangible Assets
4
Plant & Machinery 14,90,000 13,00,000
Accumulated Depreciation (1,50,000) (1,00,000)
13,40,000 12,00,000
sNon-Current Investments
Shares in XYz Limited 2,40,000 1,60,000
2,40,000 | 1,60,000
Additional Information:

(a) During the year 2016-17, a machinery costing Rs. 50,000 and accumulated
depreciation thereon Rs. 15,000 was sold for Rs. 32,000.
(b) 9% Debentures Rs. 80,000 were issued on April 1, 2016.
Solution: Ajanta Limited

Cash Flow Statement

for the year ended 31st March, 2014

Particularss Amount
(Rs.)
1-CASH FLOW FROM OPERATING ACTIVITIES
Surplus: Balance in the Statement of Profit & Loss
Adjustment for Non- Cash and Non-Operating ltems 1,20,000
Depreciation 65,000
Loss on sale of Machinery 3,000
Interest on Debentures 28,800
96,800
Operating Profit before changes in working capital 2,16,800
Add: Decrease in Current Assets and Increase in Current Liabilities
Inventories 40,000
Outstanding Rent 20,0
Creditors 20,000 80,000

Less: Increase in Current Assets and Decrease in Current Liabilities

Bills Payable
(80,000)
Cash Flow from Operating Activities
2,16,800 2,16,800

I- CASH FLoW FROM INVESTING ACTIVITIES

Purchase of Machinery (2,40,000)
Sale of Machinery 32,000
Purchase of Shares in XYZ Limited
(80,000)
| (2,88,000)

Cash Flow from Investing Activities (2,88,000)

IIl-CASH FLOw FROM FINANCING ACTIvITIES

Issue of 9 % Debentures
80,000
(28,8
Interest on Debentures 51,200
Cash Flow from Financing Activities 51,200
Net Cash Flow (20,000)
Add: Opening Balance of Cash and Cash Equivalents 80,000
Closing Balance of Cash and Cash Equivalents 60,000
241+1

Plant & Machinery Account

Particulars Amount Particulars Amount

(Rs.) (Rs.)
To Balance b/d 13,00,000 By Bank Account 32,000
To Bank Account 2,40,000 By Accumulated Depreciation Account 15,000
By Statement of Profit & Loss 3,000
y Balance c/d 14,90,000
15,40,000 15,40,000

Accumulated Depreciation Account

Particulars Amount Particulars Amount

(Rs.) (Rs)
To Plant& Machinery Account 15,000 By Balance b/d L,00,000
To Balance c/d 1,50,000 By Statement of Profit & Loss 65,000
1,65,000| 1,65,000
23
From the following Balance Sheets of Vishva Ltd., prepare Cash Flow Statement as per
AS-3 (revised) for the year ending 31" March, 2018

Particulars Note 31.3.2018 31.3.2017

No.
I EQUITY AND LIABILITIES
1. Shareholder's Funds:
a. Share Capital 1,02,000 84,000
b. Reserve and Surplus 36,000 22,560
2. Non-Current Liabilities

a. Long Term Borrowings 60,000 48,000

3. Current Liabilities:
a. Short term Borrowings 10,000 5,000
b. Trade Payable 28,800 36,000
C. Short 1Term provisions_ 16,800 18,000
Total 253,600 2,13,560
II ASSETS
1. Non-Current Assets:
a. Fixed Assets:
i. Tangible Assets 1,18,800 1,32,000
2. Current Assets
a. Inventories 61,800 45,600
b. Trade Receivables 33,600 27,600
C. Cash and Cash Equivalents 39,400 8,360
Total 253,600| 2,13,560
Notes to Accounts
Note No. Particulars 31.3.2018(|31.3.2017()|
Reserve and Surplus
Balance in Statement of Profit and 15,600 5,760
Loss
General Reserve 20,400| 16,800
36,000 | 22,560
Long Term Borrowings
10% Debentures 60,000 48,000
60,000 | 48,000
Short- term Borrowings
Bank Overdraft 10,000 5,000
10,000 5,000
Short-term Provisions
Provision for Income Tax 16,800 18,000
16,800 18,000
Tangible assets
Land and Building 96,000 ,200
Plant and Machinery 22,800 ,800
1,18,800 1,32,000
Trade Receivables
Debtors 19,200 24,000
Bills Receivables 14,400 3,600
33,600 27,600
Additional Information: 8
(a) Tax paid during the year 2017-18 T14,400
(b) Depreciation on plant charged during the year 2017-18 was T14,400
(c) Additional debentures were issued on March 31,2018
32 From the following Balance Sheet of Dreams Converge Ltd as at 31.3.2018 and 31.3.2017;
Calculate Cash from operatingactivities. Showing yourworkings clearly
Particulars Note 31.3.2018 31.3.2017||
No.
. EQUITY AND LIABILITY
1. Shareholder's Fund: 7,00,000 5,00,000
a. Share Capital
b. Reserve and Surplus 3,50,000 2,00,000
2. Non-Current Liabilities:
Long Term Borrowings5 50,000 1,00,000
3. Current Liabilities:
a. Trade Payables 1,22,000 1,05,000
b. Shortterm Provisions (Provision for tax) 50.000 30,000
TOTAL 12,72,000 9,35,000
=======|======
II. ASSETS:
1. Non Current Assets:
a. Fixed Assets:
i. Tangible Assets 5,00,000 5,00,000
i. Intangible Assets 2 95,000 0,000
b. Non-current Investments 1,00,000 Nil
2. Current Assets:
a. Inventory 1,30,000 55,000
b. Trade Receivable 1,47,000 80,000
C. Cash and Cash Equivalents 3,00,000 2.00,000
TOTAL 12,72,000 9,35,000
======|======

Notes
Note Particulars 31.3.2018 31.3.2017
Number
Tangible Assets:
Machinery_ 2,80,000 2,00,000
Accumulated depreciation (1,00,000)_ |(80,000)
1,80,000 |1,20,000

Equipment 3,20,000 3,80,000

5,00,000 5,00,000
Intangible Assets
Goodwill 95,000 |1.00,000
Additional Information:
. Machinery of the book value of 80,000 (accumulated depreciation 20,000 ) was
sold at a loss of 18,000 DANTR
 Vinod Ltd on 31st March 2021
. Following information is provided by 2019
Note No. 2020
Particnlars

I. Equity and Liabilities

(1) Shareholders Funds:

(a) Share Capital 8,00,000 8.00.000
(6) Reserves & Surplus 2 3.50,000 (40,000)
(2) Non-current Liabilities:
Long term borrowings 2,50,000 2,00,000
0 o

3) Current Liabilities:
(a) Short-erm Borrowings 4 60,000 1,00,000
b) Trade Payables 2,40,000 1,90,000
(c) Short-erm Provision 5 80,000 50,000
Total 17,80,000 13,00,000
1. Assets

(1) Non-current Assets:

Property, Plant & Equipment (Fixed Assets):
( Tangible Assets 6 8,00,000 6,00,000
(in Intangible Assets 7 20,000 50,000
Non-current Investment
2,50,000 2,00,000
(2) Current Assets:
(a) Current Investments
5,000 20,000
(b) Inventories
(c) Trade Receivables 3,05,000 2,30,000
(d) Cash and Cash Equivalents 3,00,000 1,60,000
1,00,000 40,000
Total
17,80,000 13,00,000
 p s t oA c r o u n t s

177
Particulars
Share Captal 2020 2019
Bquity Share Capital
6% Preterence Share 5,00,000
Capital 5,00,000
3,00,000 3,00,000
8,00,000 8,00,000
Reserves and Surplus
Securities Premium Reserve
General Reserve 10,000
1,40,000 20,000
Surplus i.e. Balance in Statement of P/L
2,00.000 (60,000)
3,50.000 (40,000)
3. Long-term Borrowings
8% Debentures
2,50,000 2,00,000
Short-term Borrowings
8% Bank Loan
60,000 1,00,000
Short-term Provisions
Provision for Tax
80,000 50,000
D. Tangible Assets
Plant and Machinery 6,00,000
8,00,000
Intangible Assets
Patents 20,000 s0,000
Prepare a Cash Flow Statement after taking into account the following adjustment:
(a At the end of the year Non-current investments were sold for 1,50,000 (including 50% profit).
Income tax 1,00,000 was provided
Additional debentures were issued at premium on 1st April 2019.
d Bank Loan was repaid on 1st October 2019.
 178

11. Assets:

. Non-Current Assets:
Assets):
(a) Property, Plant & Equlpment (Fixed 50,15,000o 36,00 00)
Tangible Assets
6
1,00,000
1,50.0
(ii) Intangible Assets 5,00,000
3,75,000
2 (b) Non-current Investment

3. Current Assets: ,50.00 3,00,000

(a) Current Investments 5.35,000 2,25.000
(b) Inventories
8 4,50,000 3,00,000
(c) Cash and Cash equivalents
68,50,000 49,50,000
Total

Notes to Accounts:
2021 2020
Particulars

1. Reserves and Surplus

Surplus i.e. Balance in Statement of P/L 10,00,000 (2,50,000)
2. Long-term Borrowings
12% Debentures
22,50,000 25,00,000
3. Short-term Borrowings
Cash Credit 7,50,000 2.50,000
4. Short-term Provision
Provision for Tax 3,50,000 4,50,000
S. Tangible Assets
Machinery (cost) 60,15,000 41,05,000
Less: Accumulated Depreciation (10,00,000) (5,05,000)
50,15,000 36,00,000
6. Intangible Assets
Trademarks 1,00,000 1,50,000
7. Inventories
Stock-in-Trade 5,35,000 2,25,000
8. Cash & Cash Equivalents
Cash in Hand
1,50,000 3,00,000
Marketable Securities
3,00,000
Additional Information
)Interest paid on Cash Credit 7 10,000.
Jit) 12% Debentures were redeemed on 31st March 2021.
in Tax paid3 3,50,000 during the year.
Prepare Cash Flow Statement
 31st March 2021:
is provided by Vinod Ltd on
Following information
Note No. 2020 2019
Particulars

I Equity and Liabilities

Shareholders Funds: 8,00.000 8.00.000

(a) Share Capital
(b) Reserves & Surplus
3.50,000 (40,000)
(2) Non-current Liabilities:
Long term borrowings 2,50,000 2,00,000
(3) Current Liabilities:
(a) Short-erm Borrowings 60,000 1,00,000
(6) Trade Payables 2,40,000 1,90,000
) Short-erm Provision / 80,000
S0,000
Total 17,80,000 13,00,000
I. Assets

(1) Non-current Assets:

Property, Plant & Equipment (Fixed Assets):
() Tangible Assets 6,00.000
8,00,000
( ) Intangîble Assets
,000 50,000
Non-current Investment
2,50,000 2,00,000
(2) Curent Assets:
(a) Current Investments
5,000 20,000
(b) Inventories
3,05,000 2,30,000
(C)TradeReceivables 3,00,000 1,60,000
(Cash and Cash Equivalents 40,000
1.00,000
Total
17,80,000 13,00,000

177
w s f o A c r o u n t s :

Particulars
Share Capltal 2020 2019
Equity Share Capital
6% Preference Share 5,00,000
Capital 5.00,000
3,00,000
,,0M
000

Reserves and Surplus 8.00,000 8,00,000

Securities Premium Reserve
General Reserve 000
1,40,000 20,000
Surplus i.e. Balance in Statement of
P/L 2,00.000 (60,000)
3,50,000 (40,000)
. Long-term Borrowings
8% Debentures
2,50,000 2,00,000
Short-term Borrowings
8% Bank Loan
60,0 1,00,000
Short-term Provisions
Provision for Tax
80,000 50,000
Tangible Assets
Plant and Machinery
8,00,000 6,00,000
Intangible Assets
Patents 20,0 50,000
-

Prepare a Cash Flow Statement after taking into account the following adjustment:
a At the end of the year Non-current investments were sold for R 1,50,000 (including 50% profit).
Iocome tax ? 1,00,000 was provided
Pr Additional debentures were issued at premium on Ist April 2019.

d Bank Loan was repaid on lst October 2019.

 Cash Flow Statement from the following information:
3. Prepare
Particulars Note No. 31st March 2021 31st March 2020
I. EQUTTY AND LIABILITIES:
Shareholders' Funds
a ) Share Capital 15,00,000 11,00,000
(b) Reserve and Surplus 5,00,000 4,00,000
2. Non-Current Liabilities
Long-term Borrowings 5,00,000 1,40,000
3. Current Liabilities
) Short-Term Borrowings 20,000 30,000
Sb) Trade Payables 1,00,000 60,000
Short-Term Provisions 60,000 30,000
TO tal 26,80,000 17,60,000
I. ASSETS

1. Non-Current Assets
(a) Property, Plant and Equipment (Fixed Assets):
Tangible Assets
i) Intangible Assets (Goodwill) 16,00,000 9,00,000
Current Assets: 1,40,000 2.00,000
Inventories
b) Trade Receivables 3,50,000 3,00,000
C) Cash and Cash Equivalents (Bank Balance) 5,00,000 3,00,000
90,000 60,000
Total
26,80,000 17,60,000

8JECTIVE TYPE QUESTIONS CHAPTER 6

SUE
Notes t o A c c o u n t s 183

Particulars
31.3.2021 31.3.2020
Reserves and Surplus
Surplus i.e. Balance in Statement of Profil & Loss
5,00,000 4,00,000
Long-term Borrowings
10% Debentures
5,00,000 1,40,000
Short-Term Borrowlngs
Bank Overdraft
20,000 30,000
Short-Term Provisions
Provision for Taxation
60,000 30,000
Tangible Assets
Machinery 17,60,000 10,00,000
Less: Provision for Depreciation (1,60,000) (1,00,000)
16,00,000 9,00,000

Addiional
A
Information:
part of the machine (costing R50.000) accumulated depreciation thereon being 20,000 was sold at a loss of 40%
on book value.
fTax Paid ? 20,000
(i) 10% Debentures were issued on Ist April 2020. Interest was paid on Debentures on 31st March 2021.
 alate Cash from Operating Activities from the
Particulars following:
i.e. Balance in 31st March 2021
/ Surplus Statement of Profit 31st March 202
Trade Receivables and Loss

Goodwill 80000 1,00,000

2,50,000 ,40,000
/ Outstanding Expenses
15,000 20,0
General Reserve
8,000
Provision for Depreciation on Plant 80,000 50,000
Prepaid Expenses 1,00,000 82,000
Trade Payables 6,000
inional Information:
,000 60,000
Plant costing 60,000 having book value of 7 36,000 was sold for 7 40,000 during the year.
Income1axDividend
paid during the year 30,000
) Ioterim paid during the year ? 18,000.
 18,000.
inod Ltd. has provided the tolowing information on 31st March 2021:
Particularss
Note No. | 31st March 2021 31st Marc 2020
L BQUITY AND LIABILITIES:
Shareholders' Funds
(a) Share Capita 4,00,000 3,00,0
(b) Reserve and Surplus 50.000
70,000
1. Non-Current Liabilities
Long-term Borrowings 80,000 80,000
3. Current Liabilities
() Trade Payables 1,60,000 60,000
(b) Other Current Liabilities 20,000 45,000

Total 7,30,000 5,35,000

L ASSETS
. Non-Current Assets
(a) Property, Plant and Equipment (Fixed Assets):
3,50,000 2.50.000
A Tangible Assets
2,000 10,000
A) Intangible Assets (Software) 1,30,000 1,00.000
b) Long-term Loans and Advances
2Current Assets: 90.000 70.000
ta) Inventories 60.000 40.000
b) Trade Receivables 98,000 65,000
()Cash and Cash Equivalents 5.35,000
7,30,000
Total

Notes to Accounts:
31.3.2021 31.3.2020
Particulars
1. Reserves and Surplus
i.e. Balance in Statement of Profit & Loss
70,000 50,000
Surplus
. Long-term Borrowings 80,000 80,000
12% Debentures
Trade Payables 160,000 40,000
Creditors 20,000
Bills Payables
Other Current Liabilltles 20,000 25,000
Outstanding Expenses 20,000
12% Debentures Current Maturities
Tangible Assets
4,00,000 2,90,000
Machinery (50,000) (40,000)
Less: Provision for Depreciation
3,50,000 2.50,000

Addiional Information: for depreciation on it 10,000)

During theyear machinery with a book
a value of 80,000 (after deducting provision
was sold at a loss of 40% on book value.

i) Debenrures were redeemed on 31st December 2020.

Prepare Cash Flow Statement.
Castam 11essGNC infor