From the following information, prepare Comparative Balance Sheets of ABC Ltd. (4)
Particulars 31-03-2020 31-03-2019
Reserve and Surplus
Share Capital
Trade Payables
Lands and Buildings
Plant and Machinery
Goodwill
Investments
Current Assets
Long term Borrowings
12,00,000
10,00,000
12,70,000
16,00,000
6,30,000
---
1,20,000
15,20,000
4,00,000
6,00,000
10,00,000
9,00,000
15,00,000
5,00,000
1,00,000
1,00,000
8,00,000
5,00,000
Answers
Answer:
From the following information, calculate Cash Flow from Investing Activities:
Particulars
31st March,
2019 (₹) 31st March,
2018 (₹)
Machinery (At cost) 5,50,000 5,00,000
Accumulated Depreciation 1,70,000 1,00,000
During the year, a machinery costing ₹ 50,000 (accumulated depreciation provided thereon ₹ 20,000) was sold for ₹ 26,000.
ANSWER:
Cash Flow from Investing Activities
Particulars
Amount
(₹)
Amount
(₹)
Purchase of Machinery
(1,00,000)
Sale of Machinery
26,000
Net Cash Used in Investing Activities
(74,000)
Working Notes:
Machinery Account
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
To Balance b/d
5,00,000
Accumulated Depreciation A/c
20,000
To Bank A/c (Purchase- Bal. Fig.)
1,00,000
Bank A/c (Sale)
26,000
Profit and Loss A/c (Loss on Sale)
4,000
Balance c/d
5,50,000
6,00,000
6,00,000
Accumulated Depreciation Account
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
To Machinery A/c
20,000
Balance b/d
1,00,000
Balance c/d
1,70,000
Profit and Loss A/c (Dep. charged during the year- Bal. Fig.)
90,000
1,90,000
1,90,000
Page No 5.100:
Question 31:
From the following particulars, calculate Cash Flow from Investing Activities
Particulars
Purchased (₹) Sold (₹)
Machinery 6,20,000 2,00,000
Investments 2,40,000 80,000
Goodwill 1,00,000 ...
Patents ... 1,50,000
Additional Information:
1. Interest received on debentures held as investment ₹ 8,000.
2. Interest paid on debentures issued ₹ 20,000.
3. Dividend received on shares held as investment ₹ 20,000.
4. Dividend paid on Equity Share Capital ₹ 30,000.
5. A plot of land was purchased out of the surplus funds for investment purposes and was let out for commercial use. Rent received ₹ 50,000 during the year.
ANSWER:
Cash Flow from Investing Activities
Particulars
Amount
(Rs)
Amount
(Rs)
Purchase of Machinery
(6,20,000)
Purchase of Investments
(2,40,000)
Purchase of Goodwill
(1,00,000)
Sale of Machinery
2,00,000
Rent Received
50,000
Dividend Received
20,000
Sale of Investments
80,000
Interest on Debentures
8,000
Sale of Patents
1,50,000
Net Cash Used in Investing Activities
(4,52,000)
Note: Dividend paid and interest paid is a part of Financing Activities.
Page No 5.100:
Question 32:
From the following information, calculate Cash Flow from Financing Activities:
1st April,
2018 (₹) 31st March,
2019 (₹)
Long-term Loan 2,00,000 2,50,000
During the year, the company repaid a loan of ₹1,00,000.
ANSWER:
Cash Flow Statement
Particulars
Amount
(₹)
Amount
(₹)
Cash Flow from Financing Activities
Loan Repaid
(1,00,000)
New Loan Raised
1,50,000
50,000
Cash Flows from Financing Activity
50,000
Working Notes:
Long Term Loan Account
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Bank A/c (Repayment of Loan)
1,00,000
Balance b/d
2,00,000
Balance c/d
2,50,000
Bank A/c (Loan Raised)
1,50,000
3,50,000
3,50,000
Page No 5.100:
Question 33:
From the following information, calculate Cash Flow from Financing Activities:
Particulars
31st March,
2019
(₹)
31st March,
2018
(₹)
Equity Share Capital
10,00,000
9,00,000
Securities Premium Reserve 2,60,000 2,50,000
12% Debentures
1,00,000
1,50,000
Additional Information: Interest paid on debentures ₹ 18,000.
ANSWER:
Cash Flow from Financing Activities
Particulars
Amount
(₹)
Amount
(₹)
Proceeds from Issue of Equity Shares
1,10,000
Redemption of 12% Debentures
(50,000)
Interest Paid
(18,000)
Net Cash Flows from Financing Activities
42,000
Page No 5.101:
Question 34:
From the following extracts of Balance Sheet of Exe Ltd., calculate Cash Flow from Financing Activities:
Particulars
31st March,
2019
(₹)
31st March,
2018
(₹)
Equity Share Capital
5,25,000
4,00,000
10% Preference Share Capital 4,00,000 5,50,000
Securities Premium Reserve 2,25,000 1,00,000
12% Debentures
4,00,000
3,00,000
Additional Information:
1. Equity Shares were issued on 31st March, 2019.
2. Interim dividend on Equity Shares was paid @ 15%.
3. Preference Shares were redeemed on 31st March, 2019 at a premium of 5%. Premium paid was debited to Statement of Profit and Loss.
4. 12% Debentures of face value ₹ 1,00,000 were issued on 31st March, 2019.
Explanation: