Thanks to visit codestin.com
Credit goes to www.scribd.com

Scribd
Upload
330 views8 pages

Cash Flow Statement Preparation Guide

This document provides information needed to prepare cash flow statements for three companies - X Ltd, Suryan Ltd, and Exe Ltd - for the year ended March 31, 2007 or 2004. For Suryan Ltd, it gives details of assets acquired through share issuance, provision for tax, debenture premium, and depreciation. For Exe Ltd, it provides depreciation amounts, interim dividend paid, and income tax paid. The direct method is to be used to prepare X Ltd's cash flow statement using information from its cash account summary.

Uploaded by

SaravananSrvn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
330 views8 pages

Cash Flow Statement Preparation Guide

This document provides information needed to prepare cash flow statements for three companies - X Ltd, Suryan Ltd, and Exe Ltd - for the year ended March 31, 2007 or 2004. For Suryan Ltd, it gives details of assets acquired through share issuance, provision for tax, debenture premium, and depreciation. For Exe Ltd, it provides depreciation amounts, interim dividend paid, and income tax paid. The direct method is to be used to prepare X Ltd's cash flow statement using information from its cash account summary.

Uploaded by

SaravananSrvn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 8

From the following summary of Cash Account of X Ltd.

, prepare
Cash Flow Statement for the year ended 31st March 2007 in
accordance with AS-3 using the direct method. The company does
not have any cash equivalents.
Prepare Cash Flow Statement of Suryan Ltd. from the
following:

(a) During 2006, the business of a sole trader was purchased by


issuing shares for Rs. 2, 00,000. The assets acquired from him
were: Goodwill Rs. 20,000, Machinery Rs. 1, 00,000, Stock Rs.
50,000 and Debtors Rs. 30,000.

(b) Provision for tax charged in 2006 was Rs. 35,000.

(c) The debentures were issued at a premium of 5% which is


included in the retained earnings.

(d) Depreciation charged on machinery was Rs. 30,000.


From the following Balance Sheets of Exe Ltd. make-out
Cash Flow Statement:

(a) Depreciation of Rs. 10,000 and Rs. 20,000 have been charged
on Plant and Land and Buildings in 2004.

(b) An interim dividend of Rs. 20,000 has been paid in 2004.

(c) Rs. 35,000 Income tax was paid during 2004.

You might also like