Hero Ltd. had the following balances :
Non-Current Investments on 31st March, 2016 3,40,000
Non-Current Investments on 31st March, 2017 2,80,000
During the year the company had ·sold 40% of its original investments at a profit of
84,000.
Calculate sources and uses of cash.
Answers
340000±280000= 620000
Given:
Non-Current Investments 2016 = 3,40,000
Non-Current Investments 2017 = 2,80,000
Original amount sold percentage = 40%
Profit = 84,000
To FInd:
Sources and uses of cash.
Solution:
Since original investments are sold, thus,
40% of 3,40,000
= 1,36,000
Adding Profit = 1,36,000 + 84,000
= 2,20,000
Preparing Non - Current Investments A/c for sources and uses of cash.
Date Particulars Amount Date Particulars Amount
1/4/16 To balance b/d 3,40,000 2016/17 By bank a/c 2,20,000
2016/17 Profit 84,000 31/3/17 By balance c/d 2,80,000
Bank A/c( bal) 76,000
5,00,000 5,00,000