Cash Flow Statement:
| Statement of Cash Flow | |||
| SN | Particulars | Details | Amount |
| 1) | Cash Flow from Operating Acitivities (CFOA) | ||
| a) | Cash collection from Customers: | ||
| Sales (Total Sales - Cr Sales) | 280000 | ||
| Increase in debtors/account receivable/bills receivable | -14000 | 266000 | |
| b) | Cash paid to suppliers: | ||
| COGS | -112000 | ||
| Increase in creditors/account payable/bills payable | 28000 | ||
| Increase in inventory | -42000 | -126000 | |
| c) | Cash paid to expenses: | ||
| Office Expense | -42000 | -42000 | |
| d) | Cash paid/received to interest and taxes: | ||
| Interest on debenture | -7000 | ||
| Tax paid | -28000 | ||
| Interest on investment | 14000 | -21000 | |
| Net Cash Flow From Operating Activities (A) | 77000 | ||
| 2) | Cash Flow from Investing Acitivities (CFIA) | ||
| Purchase of Fixed Assets | -168000 | ||
| Sale of Plant | 25200 | ||
| Purchase of Investment | -14000 | -156800 | |
| Net Cash Flow From Investing Activities (B) | -156800 | ||
| 3) | Cash Flow from Financing Activities (CFFA) | ||
| Issue of share | 140000 | ||
| Share premium | 14000 | ||
| 15% Debenture | -42000 | ||
| Premium on redemption | -4200 | ||
| Dividend Paid | -14000 | ||
| 93800 | |||
| Net Cash Flow From Financing Activities (C) | 93800 | ||
| Net Changes in Cash (A+B+C) | 14000 | ||
| Opening Cash Balance | 14000 | ||
| Closing Cash Balance | 28000 | ||
Working Notes:
| Working Note 1: | |||
| Dr. | Tax Cal: | Cr. | |
| Particulars | Amount | Particulars | Amount |
| To balance b/d | 28000 | By Tax paid | 28000 |
| To provision for tax | 42000 | By Balance c/d | 42000 |
| 70000 | 70000 | ||
| Working Note 2: | |||
| Dr. | Depreciation Calculation | Cr. | |
| Particulars | Amount | Particulars | Amount |
| To balance b/d | 42000 | By Depreciation | 14000 |
| To provision for depn | 28000 | By Balance c/d | 56000 |
| 70000 | 70000 | ||
| Working Note 3: | |||
| Cost of Asset | 28000 | ||
| Dep | 14000 | ||
| Carrying Amount | 14000 | ||
| Profit on sale | 11200 | ||
| Sales Amount | 25200 | ||
| Working Note 4: | |||
| Dr. | Fixed Assets | Cr. | |
| Particulars | Amount | Particulars | Amount |
| To balance b/d | 252000 | By Acc. depn | 14000 |
| To gain on sale | 11200 | By sale | 25200 |
| To Purchase | 168000 | By loss | 0 |
| By Balance c/d | 392000 | ||
| 431200 | 431200 | ||
| Working Note 5: | |||
| Dr. | Dividiend Cal. | Cr. | |
| Particulars | Amount | Particulars | Amount |
| To balance b/d | 14000 | By Tax paid | 14000 |
| To provision for dividend | 28000 | By Balance c/d | 28000 |
| 42000 | 42000 | ||
Reference:
Q.No.16, Ashmita Publication
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