TOPPER Sample Papers 223 TOPPER SAMPLE PAPER 3 ACCOUNTANCY XII Time Allowed - 3 Hrs. Max. Marks - 80 General Instructions:1. This question paper contains two parts A & B only. 2. All parts of questions should be attempted at one place. 3. There is internal choice in some questions. Part – A Q 1. State the nature of Receipts & Payment A/c. (1) Q 2. Outgoing partner is compensated for parting with firms future profits by the remaining partners. In what ratio do the remaining partners contribute to such compensation amount? (1) Q 3. List any two items that may appear on the credit side of a partner’s fluctuating capital account. (1) Q 4. Mention any one difference between premium on issue of debentures and premium on redemption of debentures. (1) Q 5. Calculate interest on drawings of X @ 10% p.a. for the year ended 31.12.08 if he withdrew Rs.6,000 in the beginning of each quarter. (1) Q 6. How will you deal with the following items while preparing the final accounts of not for profit organisation for the year ending 31.03.08 Tournament Fund on 1.04.07 Rs.4,800 9% Tournament Fund Investment Rs.4,800 Donation received for tournament during the year Rs.15,000 Expenses incurred during the year on conducting Tournament Rs.18,000 (3) Q 7. Y Ltd. forfeited 700 shares of Rs.100 each, issued at a premium of Rs.5 per share for the non payment of allotment of Rs.35 per share and first call of Rs.20 per share. The second & final call of Rs.20 has not yet been called. 500 of these shares were reissued as Rs.80 paid up for Rs.92 per share. (3) Q 8. S Ltd. took over assets of Rs.8,50,000 and liabilities of Rs.1,50,000 of C Ltd. at an agreed price of Rs.7,20,000. The purchase consideration was discharged by issuing 12% Debentures of Rs.100 each at a premium of 20%. Journalise. (3) Q 9. P & Q were partners in a firm sharing profits in the ratio of 7:3. Their fixed capital were PRs.5,00,000 and Q – Rs.8,00,000. For the year ended 2007, interest on capital was credited @ 12% instead of 10%. Show the necessary adjusting entry with workings. (3) Q 10. Following is the Balance Sheet of A & B who were sharing profits & losses as 3:2. Liabilities Amount (Rs.) Assets Amount (Rs.) Sundry Creditors 20,000 Cash 30,000 Reserves 30,000 Stock 1,00,000 A’s capital 90,000 Debtors 50,000 224 Accounts–XII B’s capital 60,000 Furniture 20,000 2,00,000 2,00,000 B died on 1.05.02. His heirs would be entitled to : (a) Capital to his credits at the date of last Balance Sheet (b) His share of reserve. (c) His share of profit to the date of death based on the average profit of the last 3 year. (d) By way of goodwill his share of total profits for the preceding three years. Profits were- 1999 – Rs.41,800; 2000 – Rs.39,200; 2001 – Rs.45,000 Prepare B’s capital A/c. (4) Q 11. On 31.03.03 G Ltd. had Rs.8,00,000 9% debentures due for redemption. The company had a balance of Rs.3,40,000 in its Debenture Redemption Reserve Account. Pass necessary journal entries for redemption of debentures. (4) Q 12. (a) M Ltd. invited application for issue of 2,00,000, 9% debentures of Rs.100 each at par on 25.01.09, redeemable at 5% premium after 3 years. The amount was payable on application and the debentures were issued on 25.01.09. Pass journal entries for the issue of debentures. (b) Rs.95,000, 14% debentures of Rs.100 each issued at par and redeemable at 10% premium were converted into equity shares of Rs.10 each issued at premium of 25%. Journalise. (2+2) Q 13. A, B & C were partners in a firm sharing profits in 3:2:1. On 31.03.01, B retired and the balance in his capital account was Rs.34,000. The other assets & liabilities were as follows: Cash Rs.10,000; Building Rs.1,00,000; Plant Rs.40,000; Stock Rs.20,000 ; Debtors Rs.20,000; Investment Rs.30,000. The following was agreed between the partners on B’s retirement: (i) Building to be appreciated by 20%. (ii) Plant & Machinery to be depreciated by 10% (iii) A provision of 5% on debtors to be created for doubtful debts. (iv) Stock was to be valued at Rs.18,000 and investment at Rs.35,000. (v) A old photo copier previously written off was sold for Rs.2,000. (vi) Partners had to pay Rs.5,000 to the family of an employee who died in an accident. (vii)B was paid Rs.7,500 in cash and the balance in three equal yearly installment with interest @ 10% p.a. Prepare Revaluation A/c , B’s capital A/c and B’s loan A/c till it is finally paid. The books are closed on 31 st March every year. (6) Q 14. Prepare an Income & Expenditure Account from the following particulars for the year ended 31.03.08 (6) Receipts & Payment Account Receipts Amount (Rs.) Payments Amount (Rs.) Balance b/d 18,000 Salaries 1,20,000 Subscription Printing 9,820 2006-2007 8,100 Electricity & water 2,000 TOPPER Sample Papers 2007-2008 2,10,000 Sundry Expenses 4,190 2,20,600 Entertainment material (including Rs.2,000 for 0607) 58,200 Donation for Buildings 42,000 Office Expenses 7,820 Miscellaneous receipts 17,190 Mobile phone bills 2,600 Sale of Old Furniture ( book value Rs.4,000) 6,000 10% Investments (face value Rs.12,500, Purchased on 1.10.07) 10,000 Legacies 7,200 Advance for construction of Building 15,000 Receipts from charity show 55,000 Internal Charges 1,200 Balance c/d 1,35,160 2008-2009 2,500 3,65,990 225 3,65,990 Balance Sheet as at 31.03.07 Liabilities Amount (Rs.) Assets Amount (Rs.) Creditors for entertainment material 5,000 Cash 18,000 Subscription received in advance 2,100 Outstanding Subscription 16,000 Building Fund 50,000 10% Investments (face value Rs.1,50,000) 1,10,000 Capital Fund 2,52,100 Mobile phones 17,000 Musical Instrument 12,200 Computers & printers 56,000 Furniture 80,000 3,09,200 3,09,200 (6) Q 15. R Ltd. invited applications for issuing 2,00,000 equity shares of Rs.10 each at a discount of Re.1 payable: On application Rs.2 per share, On allotment Rs.3 per share, on first & final call Rs.4 per share. Application were received for 3,00,000 shares and pro-rata allotment was made to all applicants as follows: Applicants for 1,60,000 shares were allotted 1,20,000 shares. Applicants for 1,40,000 shares were allotted 80,000 shares. Ekta to whom 1,200 shares were allotted out of the group applying for 1,60,000 shares, failed to pay the allotment money. Her shares were forfeited immediately after allotment. Manisha who had applied for 2,800 shares out of the group applying for 1,40,000 shares failed to pay the first & final call. Her shares were also forfeited. All the forfeited shares were reissued @ Rs.8 per share, as fully paid up. Journalise. OR 226 Accounts–XII S Ltd. invited applications for issuing 2,00,000 equity shares of RS.100 each at a premium of Rs.10 per share. The amount was payable as follows: On application Rs.40 per share( including premium), On allotment Rs.30 per share, on first & final call balance. Application were received for 3,00,000 shares. Applications for 40,000 shares were rejected and pro-rata allotment was made to remaining applicants. Manoj who was allotted 2,000 shares failed to pay the allotment and first call money. His shares were forfeited. The forfeited shares were reissued at Rs.90 per share fully paid up. Journalise. (8) Q 16. A, B and C are partners sharing profits & losses in the ratio of 2:2:1. Balance Sheet as on 31.03.09 Liabilities Amount (Rs.) Assets Amount (Rs.) Bills Payable 40,000 Cash 10,000 Sundry Creditors 1,50,000 Stock Outstanding Expenses 10,000 Debtors Less: P/D/D A’s capital 2,00,000 Plant & Machinery 2,00,000 B’s capital 2,00,000 Land & Buildings 4,00,000 C’s capital 1,00,000 40,00 51,000 1,000 7,00,000 50,000 7,00,000 The firm was dissolved on 31.03.09 on the following terms (i) Stock was taken over by one of the creditors at a discount of 10%. (ii) The remaining creditors were paid at a discount of 5%. (iii) Debtors realized Rs.49,000: Plant & Machinery Rs.1,00,000 and Land & Buildings Rs.3,00,000. (iv) Bills payable were discharged at a discount of 2% and the outstanding expenses were paid in full. (v) Realisation expenses of Rs.5,000 were paid by B. (vi) The firm had a JLP which was surrendered for RS.50,000. Prepare Realisation A/c, partners’ capital A/c and Cash A/c. OR P and Q are partners in a firm sharing profits & losses in the ratio of 3:1. Their Balance Sheet as on 31.03.09 was as follows: Liabilities Amount (Rs.) Assets Amount (Rs.) Sundry Creditors 75,000 Cash 5,000 227 TOPPER Sample Papers Reserves 8,000 Bank 40,000 P’s capital 60,000 Stock 40,000 Q’s capital 32,000 Debtors 32,000 Furniture 2,000 Buildings 50,000 Profit & Loss A/c 6,000 1,75,000 1,75,000 They admit R as a partner for 1/5 share in profits on the following terms: (i) Goodwill of the firm valued at Rs.40,000 and R brings his share og goodwill in cash. (ii) The value of stock and Furniture be reduced by 10%. (iii) A provision for Doubtful debts be created @ 5% on debtors. (iv) Building be appreciated by 20%. (v) The total capital of the new firm was fixed at Rs.2,50,000, which will be shared by the partners in their new profit sharing ratio. th Prepare Revaluation A/c, Partners’ capital A/c and Balance Sheet of the new firm. (8) PART – B Q 17. What is the impact of a purchase of a fixed assets on a current ratio? (1) Q 18. Dividend received by a financing company will be classified under which activity? (1) Q 19. Explain the term Cash Equivalent. (1) Q 20. List any three items that can be shown under the heading ‘Reserves & Surplus’ in a company’s Balance Sheet. (3) Q 21. With the help of following information prepare a comparative income statement: Particulars 2007(Rs.) 2008(Rs.) Sales 50,000 80,000 Cost of goods sold 60% of sales 70% of sales Indirect expenses 10% of G.P 10% of G.P Rate of income tax 50% of N.P 50% of N.P (4) Q 22. Calculate the following ratio from the details given below: (i) Current Ratio (ii) Liquid Ratio (iii) Operating Ratio (iv) Gross Profit Ratio Details: Current assets Rs.70,000; Sales Rs.1,40,000; Cost of goods sold Rs.68,000; Net working capital Rs.30,000; Inventories Rs.30,000 (4) 228 Accounts–XII Q 23. Prepare a Cash Flow Statement from the given Balance Sheets: Liabilities 2007 2008 Assets 2007 2008 Share capital Reserves Profit & Loss A/c Bank Loan Creditors Bills Payable Prov. For Tax 4,00,000 1,00,000 61,000 1,40,000 2,80,000 20,000 60,000 5,00,000 1,20,000 61,200 --2,60,000 10,400 70,000 Machinery Debtors Business Premises Stock Cash 3,00,000 2,00,000 4,00,000 1,60,000 1,000 3,38,000 1,48,000 3,80,000 1,28,400 27,200 10,61,000 10,21,600 10,61,000 10,21,600 Additional information: 1. 2. Depreciation on Machinery Rs.28,000. 3. Provision for tax was made Rs.66,000. (6) 1. Real accounts (1) 2. Gaining Ratio (1) 3. (i) Interest on partners’ capital Dividend paid during the year Rs.46,000. (ii) Partners’ share of profit (1/2 x 2) 4. Premium on issue of debentures is a capital profit whereas premium on redemption of debentures is a capital loss. (1) 5. Interest on X’s drawings = (6,000 x 4) x 10/100 x 7.5/12 6. Balance Sheet = Rs.1,500 Liabilities (1) Rs. Assets Tournament fund 4,800 Add: Donation received for Tournament fund 15,000 Add: Accrued Interest 432 Less: Expenses (18,000) Rs. Tournament fund Investment Accrued interest on Tournament fund investment 4,800 432 2,232 7. Date (1/2 x 6 = 3) Journal Entries Particulars Share Capital A/c Securities premium A/c To Share Forfeited A/c To Calls in Arrears A/c (being 700 shares forfeited) L.F. Dr. Dr. Rs.(Dr.) Rs.(Cr.) 56,000 3,500 21,000 38,500 229 TOPPER Sample Papers Bank A/c To Share Capital A/c To Securities premium A/c (being 500 shares reissued) Dr. 46,000 40,000 6,000 Share Forfeited A/c Dr. To Capital Reserve A/c (being balance of shares forfeited A/c transferred to capital reserve A/c ) 15,000 15,000 8. (1x3=3) Journal Entries Date Particulars L.F. Rs.(Dr.) Assets A/c Dr. Goodwill A/c Dr. To Liabilities A/c To C Ltd. (Being S ltd. took over the assets & liabilities of C ltd.) 8,50,000 20,000 C Ltd. Dr. To 12% Debentures A/c To Securities Premium A/c (Being 600 debentures issued to C Ltd. at premium) 7,00,000 Rs.(Cr.) 1,50,000 7,20,000 6,00,000 1,20,000 9. (2+1) Adjustment Table P Q Total Amt. already credited(2%) Amt to be credited (7:3) 10,000 18,200 16,000 7,800 26,000 26,000 Difference 8,200 8,200 --- Journal Entry Particulars L.F Q’s Current A/c To P’s Current A/c Dr. Dr. (Rs.) 8,200 10. (2+1) B’s Capital A/c Particulars To B’s executor A/c Rs. Particulars 1,28,000 1,28,000 11. Cr. (Rs.) 8,200 Journal Entries By By By By balance b/d A’s capital A/c Reserves P & L Suspense A/c Rs. 60,000 50,400 12,000 5,600 1,28,000 (1x4 = 4) 230 Accounts–XII Date Particulars L.F. Profit & Loss Appropriation A/c To Debenture Redemption Reserve A/c (being Debenture Redemption Reserve created) Dr. 9% Debentures A/c To Debentures holders A/c (Being debentures redeemed) Dr. Debentures holders A/c To Bank A/c (Being Debentures holders paid) Dr. Rs.(Dr.) Rs.(Cr.) 60,000 60,000 8,00,000 8,00,000 8,00,000 8,00,000 Debenture Redemption Reserve A/c To general reserve (Being D.R.R. transferred to general reserve) 4,00,000 4,00,000 12. (1x4=4) (a) Date Particulars L.F. Bank A/c To Debenture application & allotment A/c (Being Debenture application money received) Dr. Rs.(Cr.) 2,00,00,000 2,00,00,000 Debenture application & allotment A/c Dr. Loss on issue of debenture A/c Dr. To 9% Debentures A/c To Premium on Redemption A/c (Being application money transferred to Debenture A/c.) Rs.(Dr.) 2,00,00,000 10,00,000 2,00,00,000 10,00,000 (b) Date Particulars L.F. Rs.(Dr.) 14% Debentures A/c Dr. Premium on redemption A/c Dr. To Debentures holders A/c (Being amt. due to Debentures holders on conversion) 95,000 9,500 Debentures holders A/c Dr. To Equity share capital A/c To Securities premium A/c (Being issue of 8,360 equity shares at a premium of 25%) 1,04,500 Rs.(Dr.) 1,04,500 83,600 20,900 (1 x 4 = 4) 13. Revaluation A/c Particulars To To To To To Plant & Machinery Provision for doubtful debts Stock Liability for compensation profit (b/fig) Rs. Particulars 4,000 1,000 2,000 5,000 15,000 27,000 By Buildings By Investments By Photo Copier Rs. 20,000 5,000 2,000 27,000 231 TOPPER Sample Papers B’s Capital A/c Particulars C Particulars A To Cash To B’s loan A/c 7,500 31,500 By balance b/d By Revaluation profit 34,000 5,000 39,000 39,000 B’s Loan A/c Date Particulars Amt. Date Particulars 31.03.02 To bank A/c To Balance c/d 13,650 21,000 34,650 1.04.01 31.03.02 By B’s capital By interest 31.03.03 To bank A/c To Balance c/d 12,600 10,500 23,100 11,550 1.04.02 31.03.03 By Balance b/d By Interest 31,500 3,150 34,650 21,000 2,100 23,100 31.03.04 To bank A/c 1.04.03 31.03.04 By Balance b/d By Interest 10,500 1,050 11,550 11,550 Amt. (2+1+3) 14. Income & Expenditure A/c For the year ending 31.03.08 Particulars To To To To To To To To To Printing salaries Electricity & water Sundry expenses Entertainment material Office expenses Mobile phone bills Internal charges Surplus Rs. Particulars 9,820 1,20,000 2,000 4,190 56,200 7,820 2,600 1,200 98,085 Rs. By Subscription 2,10,000 Add: Advance subs. 2,100 By Miscellaneous receipts By profit on sale of furniture By Receipts from charity show By interest on invest. 15,000 Add: Accrued interest 625 2,12,100 17,190 2,000 55,000 15,625 3,01,915 3,01,915 15. Date (1/2 x 12 = 6) Journal Entries Particulars L.F. Bank A/c To Share application A/c (Being share application money received on 3,00,000 shares) Dr. Share Application A/c To Share Capital To Share Allotment (Being application money transferred) Dr. Rs.(Dr.) Rs.(Cr.) 6,00,000 marks ½ 6,00,000 6,00,000 ½ 4,00,000 2,00,000 232 Accounts–XII Share Allotment A/c Discount on shares A/c To share capital A/c (Being allotment due on 2,00,000 shares ) Dr. Dr. Bank A/c Calls in arrears A/c To share allotment A/c (Being allotment money received) Dr. Dr. Share capital A/c To Share forfeiture A/c To Calls in arrears A/c To Discount on shares A/c (Being shares forfeited) Dr. Share First & final call A/c To share capital A/c (Being share first call due) Dr. Bank A/c Calls in arrears A/c To share first & final call (Being call money received ) Dr. Dr. 6,00,000 2,00,000 ½ 8,00,000 3,97,200 2,800 1 4,00,000 7,200 1 3,200 1,200 2,800 7,95,200 ½ 7,95,200 7,88,800 6,400 1 7,95,200 Share capital A/c To Share forfeiture A/c To Calls in arrears A/c To Discount on shares A/c (Being shares forfeited) Dr. Bank A/c Discount on shares A/c Share forfeited A/c To Share capital A/c (Being shares reissued) Dr. Dr. Dr. 16,000 1 8,000 1,600 6,400 22,400 2,800 2,800 1 28,000 Share forfeited A/c Dr. To Capital Reserve A/c ( Being share forfeited A/c transferred to capital reserve A/c) 5,200 1 5,200 OR Journal Entries Date Particulars L.F. Bank A/c To Share application A/c (Being share application money received on 3,00,000 shares) Dr. Share Application A/c To Share Capital To Securities premium A/c To Share Allotment To Bank (Being application money transferred) Dr. Rs.(Dr.) Rs.(Cr.) 1,20,00,000 1,20,00,000 ½ 1,20,00,000 1 60,00,000 20,00,000 24,00,000 16,00,000 233 TOPPER Sample Papers Share Allotment A/c Dr. To share capital A/c (Being allotment due on 2,00,000 shares ) 60,00,000 Bank A/c Calls in arrears A/c To share allotment A/c (Being allotment money received) Dr. Dr. 35,64,000 36,000 Share First & final call A/c To share capital A/c (Being share first call due) Dr. Bank A/c Calls in arrears A/c To share first & final call (Being call money received ) Dr. Dr. Share capital A/c To Share forfeiture A/c To Calls in arrears A/c (Being shares forfeited) Dr. Bank A/c Share forfeiture A/c To Share capital A/c (Being shares reissued) Dr. Dr. 80,00,000 79,20,000 80,000 1 80,00,000 2,00,000 1 84,000 1,16,000 1,80,000 20,000 1 2,00,000 Working notes: Manoj applied for = 2,60,000/2,00,000 x 2,000 = 2,600 Unpaid allotment by Manoj = (2,000 x 30) – 600 x 40 = 36,000 Unpaid first call = 2,000 x 40 = Rs.80,000 16. Realisation A/c To B’s Capital (realization exp.) 1 80,00,000 To debtors To stock To Plant & machinery To Land & Building To Cash Creditors 1,08,300 O/S Expenses 10,000 Bills payable 39,200 1 36,00,000 Share forfeited A/c Dr. To Capital Reserve A/c ( Being share forfeited A/c transferred to capital reserve A/c) Particulars ½ 60,00,000 Rs. 64,000 Particulars 40,000 51,000 2,00,000 4,00,000 1,57,500 5,000 7,00,000 By provision for bad debts By creditors By Bills payable By O/s Expenses By Cash Debtors 49,000 Plant & Mach. 1,00,000 Land & Building 3,00,000 JLP 50,000 By LossA – 61,400 B – 61,400 C – 30,700 1 64,000 Rs. 1,000 1,50,000 40,000 10,000 4,99,000 1,53,500 7,00,000 234 Accounts–XII Partners’ Capital A/c Particulars A B C Particulars A B C To realization loss To cash 61,400 61,400 30,700 2,00,000 2,00,000 5,000 1,00,000 1,38,600 1,43,600 69,300 By balance b/d By realization 2,00,000 2,05,000 1,00,000 2,00,000 2,05,000 1,00,000 Cash A/c Particulars Rs. To balance b/d To realization Particulars 10,000 4,99,000 By By By By Rs. A’s capital B’s capital C’s capital realization 1,57,500 1,38,600 1,43,600 69,300 5,09,000 5,09,000 (8) OR Revaluation A/c Particulars Rs. Particulars Rs. To Stock To Provision for doubtful debts To Furniture To profit transferred to P- 3,150 Q - 1050 4,000 1,600 200 By Buildings 10,000 4,200 10,000 10,000 Partners’ Capital A/c Particulars P Q To profit & loss To balance c/d 4,500 1,50,000 1,500 50,000 1,54,500 R 51,500 50,000 Particulars P Q R By balance b/d By cash A/c By premium A/c By revaluation Profit By Reserves By Cash 60,000 --6,000 32,000 ---2,000 --50,000 ------ 3,150 1,050 6,000 79,350 2,000 14,450 1,54,500 51,500 50,000 --- 50,000 Cash A/c Particulars To To To To To balance b/d R’s capital Premium P’s capital Q’s capital Rs. 5,000 50,000 8,000 79,350 14,450 1,56,800 Particulars Rs. By Balance c/d 1,56,800 1,56,800 TOPPER Sample Papers Balance Sheet As on 1st April 2008 Liabilities Rs. Assets Creditors P’s capital Q’s capital R’s capital 75,000 1,50,000 50,000 50,000 Rs. Cash Bank Debtors Less: Provision for doubtful debts Stock Furniture Building 1,56,800 40,000 32,000 1,600 3,25,000 235 30,400 36,000 1,800 50,000 3,25,000 (8) PART – B 17. Current ratio will decline (1) 18. Operating Activity (1) 19. These are short term highly liquid investments that are readily convertible into known amount of cash. (1) 20. (i) Capital Reserves (ii) Securities premium (iii) Capital redemption reserve 21. (1 x 3 = 3) Comparative Income Statement Particulars 2007(Rs.) 2008(Rs.) Absolute change Percentage Sales Less: Cost of goods sold 50,000 30,000 80,000 56,000 30,000 26,000 60 86.67 Gross profit Less: Indirect expenses 20,000 2,000 24,000 2,400 4,000 400 20 20 Net profit before tax Less: Tax payable 18,000 9,000 21,600 10,800 3,600 1,800 20 20 9,000 10,800 1,800 20 Net profit after tax (1 x 4 = 4) 22. (i) Current Ratio = Current assets/Current liabilities Current liabilities = Current assets – Net working capital = 70,000 – 30,000 = 40,000 Current ratio = 70,000 / 40,000 = 1.75:1 (ii) Liquid Ratio = Liquid assets/Current liabilities Liquid assets = Current assets – Inventories = 70,000 – 30,000 = 40,000 Liquid ratio = 40,000 / 40,000 = 1:1 (iii) Operating Ratio = Cost of goods sold + Operating expenses / Sales x 100 = 68,000 / 1,40,000 x 100 = 48.57% (iv) Gross profit ratio = Gross profit / Net sales x 100 236 Accounts–XII Gross profit = Sales – cost of goods sold = 1,40,000 – 68,000 = 72,000 Gross profit ratio = 72,000 / 1,40,000 x 100 = 51.43% (1 x 4 = 4) 23. Calculation of Profit before tax Profit earned during the year = Rs.200 Add: Transfer to reserve = Rs.20,000 Add: dividend paid = Rs.46,000 Add: Tax made Cash Flow Statement = Rs.66,000 = Rs.1,32,200 Particulars Amount(Rs.) (A) Cash flow from Operating Activities Net profit before tax Add: Non operating expenses Depreciation Add: Decrease in stock Add: Decrease in debtors Less: Decrease in creditors Less: Decrease in Bills payable Operating profit before tax Less: tax paid Cash flow from Operating Activities Amount(Rs.) 1,32,200 48,000 48,000 31,600 52,000 (20,000) (9,600) (B) Cash Flow from Investing Activities Purchase of Machinery Cash used in Investing Activities (66,000) (C) Cash flow from Financing Activities Issue of share capital Bank loan repaid Dividend paid Cash used in Financing Activities 1,00,000 (1,40,000) (46,000) 1,02,000 2,34,200 56,000 1,78,200 (66,000) (86,000) 26,200 1,000 27,200 Net increase in cash ( A+B+C) Add: Opening balance of cash & equivalents Closing balance of cash & equivalents Provision for taxation A/c Particulars Rs. Particulars Rs. To cash A/c To Balance c/d 56,000 70,000 By Balance b/d By P & L A/c 60,000 66,000 1,26,000 1,26,000 Machinery A/c Particulars Rs. Particulars Rs. To Balance b/d To Bank (pur.) 3,00,000 66,000 By Depreciation By balance c/d 28,000 3,38,000 3,66,000 3,66,000 (6)
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