Cash Flow Statement-Set2

Q1

Balance Sheet of Mr. A on 01.01.2015 & 31.12.2015 were as follows.

LIABILITIES 1.1.2015 31.12.2015 ASSETS 1.1.2015 31.12.2015

Capital 150000 190000 Cash  20,000  26,000
Mrs B's Loan 30,000 0 Debtors. 54,000 76,000
Loan from SBI 60,000 80,000 Stock 48,000 42,000
Sundry
Creditors  50,000  56,000 Furniture 2,000 2,000
      Machinery 90,000 65,000
      Land 36,000 45,000
      Buildings 40,000 70,000
  2,90,000 3,26,000   2,90,000 3,26,000

During the year.

1. A Machine costing is 12,000/- (accumulated depreciation of Rs 4000/-) was sold for Rs.5, 500/-

2. The accumulation for depreciation against machinery as on 1.1.2015 was Rs.24,000/- and on
31.12.2015 was Rs.37,000/-

3. Net profit for the year 2015 amounted to Rs.60, 000/-

You are required to prepare cash flow statement.

Q2

Prepare a cash flow statement of Mr. Kumar.

LIABILITIES 1.1.2006 31.12.2006 ASSETS 1.1.2006 31.12.2006

Current Liabilities 35,000 40,000 Cash 5,000 4,000
Loan from Mrs.X 0 25,000 Debtors 40,000 45,000
Bank Loan 40,000 30,000 Stock 30,000 25,000
Capital 1,50,000 1,54,000 Land 30,000 40,000
      Building 50,000 55,000
      Machinery 70,000 80,000
  2,25,000 2,49,000   2,25,000 2,49,000

During the year Mr. Kumar brought in additional capital of Rs.10,000 and his drawings during the
year was Rs.31,000.

Provision for depreciation on machinery opening balance Rs.30,000 and closing balance Rs 40,000.
No depreciation needs to be provided for other assets.
Cash Flow Statement-Set2

Q3

The following details are available from a company. Prepare Cash flow statement  

LIABILITIES 2019 2020 ASSETS 2019 2020

Share capital 70,000 74,000 Cash 9,000 7,800
Debentures 12,000 6,000 Debtors 14,900 17,700
Reserve for doubtful debts 700 800 Stock 49,200 42,700
Trade Creditors 10,360 11,840 Land 20,000 30,000
Profit and Loss A/c 10,040 10,560 Goodwill 10,000 5,000
  1,03,100 1,03,200   1,03,100 1,03,200

In addition, you are given:

1. Dividend paid total Rs.3,500

2. Land purchased for Rs.10,000
3. Amount provided for amortisation of goodwill Rs.5,000
4. Debentures paid off Rs.6,000

Q4

LIABILITIES 2005 2006 ASSETS 2005 2006

Share Capital 3,50,000 3,70,000 Land 1,00,000 1,50,000
(shares of Rs.10 each)   Stock 2,46,000 2,13,500
Profit and Loss a/c 50,400 52,800 Goodwill 50,000 25,000
9% Debentures 60,000 30,000 Cash & Bank 42,000 35,000
Creditors 51,600 59,200 Investments 3,000 4,000
      Debtors 71,000 84,500
  5,12,000 5,12,000   5,12,000 5,12,000
Other particulars provided to you are :

(a) Dividends declared and paid during the year Rs.17,500

(b) (b) Land was revalued during the year at Rs.1,50,000 and the profit on revaluation
transferred to profit and loss a/c. you are required to prepare a cash flow statement for the
year ended 31-12-2006.
Cash Flow Statement-Set2

Q5

ABC Ltd. has submitted the following condensed balance sheet as on 31st December 2006 and 31st
December 2007 and the statement of income and reconciliation of retained earnings for the year
ended 31st December, 2007.  

Balance Sheet
2006 2007 2006 2007
LIABILITIES     ASSETS    
Rs. Rs. Rs. Rs.
Share Capital 3,00,000 4,00,000 Fixed Assets 7,00,000 8,00,000
Less: Acc
General Reserve 80,000 1,00,000 2,25,000 2,60,000
depreciation
Retained Earnings 60,000 90,000   4,75,000 5,40,000
6% Debentures 2,00,000 1,25,000 Stock 1,25,000 2,00,000
Loans 40,000 Sundry Debtors 1,80,000 1,50,000
-
Cash in
Sundry Creditors 1,85,000 1,05,000 95,000 89,000
hand/bank
Wages
3,000 5,000 Prepaid Expenses 3,000 6,000
Outstanding
Provision for Preliminary
75,000 1,40,000 25,000 20,000
income tax expenses
  9,03,000 10,05,000   9,03,000 10,05,000

STATEMENT OF INCOME AND RECONCILIATION OF RETAINED EARNINGS

(For the year ended 31 st

December 2007)    
Sales   15,00,000
Less: Cost of goods sold: stock of 1st Jan,2007 1,25,000  
Add: Purchases 10,00,000  
  11,25,000  
Less: Stock on31st Dec, 2007 2,00,000 9,25,000
    5,75,000
Less: Wages   40,000
Gross Income   5,35,000
Less: sundry expenses 2,05,000  
Preliminary expenses written off 5,000  
Depreciation 35,000 2,45,000
PBT   2,90,000
Less: provision for income tax   1,40,000
PAT   1,50,000
General reserve 20,000  
Dividend paid 1,00,000 1,20,000
Net income for the year (Retained)   30,000
Add: retained earnings on 31-12-2006   60,000
    90,000
Cash Flow Statement-Set2

Additional Information

During 2007, the company purchased a building for Rs.1,00,000 you are required to prepare cash
flow statement for the year ended 31st December 2007

Q6

The following are the summarised Balance Sheets of X Ltd as on March 31,2017 and 2018

  2017 2018
Share Capital 1000000 1250000
Reserve & Surplus    
Capital Reserve 0 10000
General Reserve 250000 300000
Profit & Loss 150000 180000
Long-term borrowing 500000 400000
Creditors 500000 400000
Provision for taxation 50000 60000
Proposed dividend 100000 125000
Total 2550000 2725000
Land & Building 500000 480000
Machinery 750000 920000
Investment 100000 50000
Inventories 300000 280000
Receivables 400000 420000
Cash & Cash Equivalents 500000 575000
Total 2550000 2725000

Additional Information:
1. Dividend of Rs 100000 was paid during the year ended March 31,2018
2. Machinery during the year purchased for Rs 125000
3. Machinery of another company was purchased for a consideration of Rs 100000 payables in
equity shares
4. Income tax provision during the year Rs 55000
5. Company sold some Investment at a profit of Rs 10000 which was credited in Capital
Reserve
6. There was no sale of machinery during the year
7. Depreciation written-off on land & building Rs 20000
Prepare the cash flow statement for the year ended 31.03.2018