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) | 800000 | ||
| Increase in debtors/account receivable/bills receivable | -20000 | 780000 | |
| b) | Cash paid to suppliers: | ||
| COGS | -480000 | ||
| Increase in creditors/account payable/bills payable | 40000 | ||
| Increase in inventory | -30000 | -470000 | |
| c) | Cash paid to expenses: | ||
| Office salaries | -120000 | -120000 | |
| d) | Cash paid to interest and taxes: | ||
| Interest on debenture | -30000 | ||
| Tax paid | -20000 | -50000 | |
| Net Cash Flow From Operating Activities (A) | 140000 | ||
| 2) | Cash Flow from Investing Acitivities (CFIA) | ||
| Purchase of Fixed Assets | -290000 | ||
| Sale of Assets | 20000 | -270000 | |
| Net Cash Flow From Investing Activities (B) | -270000 | ||
| 3) | Cash Flow from Financing Activities (CFFA) | ||
| Issue of share | 200000 | ||
| Share premium | 20000 | ||
| 15% Debenture | -100000 | ||
| Premium on redemption | -10000 | ||
| Dividend Paid | -10000 | ||
| Bank Loan | 50000 | 150000 | |
| Net Cash Flow From Financing Activities (C) | 150000 | ||
| Net Changes in Cash (A+B+C) | 20000 | ||
| Opening Cash Balance | 20000 | ||
| Closing Cash Balance | 40000 | ||
Working Notes:
| Working Note 1: | |||
| Dr. | Tax Cal: | Cr. | |
| Particulars | Amount | Particulars | Amount |
| To balance b/d | 20000 | By Tax paid | 20000 |
| To provision for tax | 40000 | By Balance c/d | 40000 |
| 60000 | 60000 | ||
| Working Note 2: | |||
| Dr. | Depreciation Calculation | Cr. | |
| Particulars | Amount | Particulars | Amount |
| To balance b/d | 200000 | Depreciation | 40000 |
| To provision for t | 50000 | By Balance c/d | 210000 |
| 250000 | 250000 | ||
| Working Note 3: | |||
| Cost of Asset | 100000 | ||
| Dep | 40000 | ||
| Carrying Amount | 60000 | ||
| Profit on sale | 20000 | ||
| Sales Amount | 80000 | ||
| Working Note 4: | |||
| Dr. | Fixed Assets | Cr. | |
| Particulars | Amount | Particulars | Amount |
| To balance b/d | 900000 | By Acc. depn | 40000 |
| To gain on sale | 20000 | By sale | 20000 |
| To Purchase | 290000 | By loss | 0 |
| By Balance c/d | 1150000 | ||
| 1210000 | 1210000 | ||
| Working Note 5: | |||
| Dr. | Dividiend Cal. | Cr. | |
| Particulars | Amount | Particulars | Amount |
| To balance b/d | 10000 | By Tax paid | 10000 |
| To provision for dividend | 20000 | By Balance c/d | 20000 |
| 30000 | 30000 | ||
Reference:
Q.No.20, Ashmita Publication
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