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i.
How will you treat the following adjustments in Cash Flow Statement? Show all of your
working clearly
The opening and closing balance of Plant & Machinery were Rs. 62,000 and 66.000
and accumulated depreciation on that were Rs. 37,000 and 26,200 respectively.
During the year a piece of machinery costing Rs. 16,000 on which Rs. 14,800
depreciation was charged sold for Rs. 1,200.
Building of Rs. 2.00.000 was acquired during the vear. In addition to the Rs. 80.000
cash payment. 7ºo mortgage loan was raised for the balance.
iii. The opening and closing balance of provision for tax were Rs. 4,00,000 and 4,80,000
respectively. Tax paid during the year was Rs. 1,50,000.
iv. Proposed Dividend Rs. 1,00,000 of previous year was paid in current year and Rs.
2,00.000 dividend is proposed for the current year.
Equity shares of Rs. 10.00.000 were issued on 10% premium during the year
Debentures of Rs 2.00.000 were redeemed during the year
vii. Interim Dividend of Rs. 1,50,000 paid in the current year.
viii. Goodwill and Preliminary expenses were reduced by 1,50,000 and 50,000
respectively
Current assets were increased by Rs. 1,00,000 however current liabilities reduced by
Rs. 80,000
Amount Rs. 50,000 was transferred to general reserve.
V.
VI.
X.
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