Question

2. From the following extracts from the Balance Sheets of JAL Ltd., Calculate Net Cash Inflow from Operating Activities
after Tax to be disclosed in the Cash Flow Statement as per AS-3 issued by ICAL
Particulars
31.3.2020 31.3.2019 )
Equity Share Capital
10,92,000 6,00,000
General Reserve
2,52,000 3,00.000
Profit & Loss A/c
11,40,000
48,000
Securities Premium
60,000
Capital Redemption Reserve
1.20,000
Capital Grant
9.60,000
Nil
Convertible Debentures (into equity shares at 25% premium)
2.40.000
Trade Payables
1,26,000 120,000
Goodwill
18,000
Plant & Machinery
9,18,000 6,00.000
Inventories
1,14,768 6,48,000
Trade Receivables
9,00,000 750,000
Less: Provision for Doubtful Debts
(2,28,000) (1,80,000)
Voluntary Separation Payments
1,50,000
78,000
Additional Information:
(a) Depreciation on Plant & Machinery written off @ 15%.
(b) It was decided to value Inventories at cost whereas previously the practice was to value Inventories at cost less 10%
However the closing stock on 31.03.2020 was correctly valued at cost.
(c) On 31st March 2020, the business of Y Ltd. was purchased for 372,000 payable in fully paid equity shares of 10 each at a
premium of 20%. The assets included Inventories 31,968, Trade Receivables 12,000, and Machine 22,032. In
addition Trade Payables of 18,000 were taken over,
(d) Debtors of 2,76,000 were written off against the Provision for Doubtful Debts Alc during the year. Grant of 12,00,000
amortised in P&L A/c. Compensation received in a suit filed by the company 1,08,000. Voluntary Separation Payments
[18.751
60,000 adjusted against General Reserve.​

Answer 1

Answer:

GR8 Question, No time to Read LOL

Explanation: