COMPILED BY: DARSHANA PATEL, J.M.PATEL COLLEGE OF COMMERCE, TYBCOM SEM: V CHAPTER 5: CASH FLOW STATEMENT CASH FLOW

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1 Total CASH FLOW 1. Horizon ltd. engaged in the following transaction. Identify wether it is (a) an operating (b) an investing (c) a financing (d) none of the above. 1) Dividend paid 2) Interest paid. 3) Issued long term bonds. 4) Purchased long term investment. 5) Equipment sold. 6) Dividend received on shares held. 7) Purchased land. 8) Received cash from customers. 9) Wages paid to workers. 10) Issued bonus shares out of general reserves. 2. Find out funds from operations from the following : Net profit after tax and appropriations 1, 00,000 Transfer to general reserve 25,000 Proposed dividend 15,000 Provision for income tax Depreciation w/off 25,000 Profit on sale of fixed assets 3. Telestar Ltd. gives you the following summary Balance Sheets for the year ended 31 st march 2013 and. Prepare a Cash Flow statement for the year ended 31 st march as per AS3 by indirect method. Liabilities Equity Share Capital 1, 5% Preference Share Capital 90,000 General Reserve 30,000 Profit & Loss A/c 15,240 Provision for Tax 17,000 3,37,920 Assets , Building 2,85,000 27,000 40,400 Prepaid Expenses 25,880 Bank Balance 15,480 Misc. Expenditure 6,000 Total 2, 2, 36,300 38,460 17,000 3,240 5,400 6,10,160 6,40,400 6,10,160 6,40,400 Other information for the year ended 31 st march, : 1) The company has paid interim dividend of 5% on Equity shares. 2) Preference shares redeemed during the year at 10% premium. 3) Income tax paid during the year 15,000.

2 4. The summary Balance Sheet of Dinesh Ltd. are as follows : Balance Sheet as at 31 st March, 201 and Liabilities 2013 Equity shares capital 3,00,000 General reserve Profit & loss A/C Debentures Sundry creditors 1,14,000 Bills payable Provision for income tax Proposed dividend 5,00, , Assets , & Building 1, Plant & machinery 84,000 1, Advance income tax Bills receivable 16,000 Prepaid expenses 12,000 Cash in hand Profit & loss A/C 12,000 90,000 1, 1,06,000 1,56,000 24,000 8,12,000 8,12,000 AdditionalInformation: 1) During the year ended 313 Depreciation of 16,000 and have been charged on land and building and plant and machinery respectively. 2) An Interim Dividend of 15,000 was paid during the year ended on ) During the year having bookvalue of 16,000 was sold for 14,000. Prepare cash flow statement by indirect method for the year ended 31 st march, as per AS3. 5. Following are summarized Balance Sheets of BDM Ltd. as on 31 st March, 2013 and. Balance Sheet Liabilities 2013 Equity shares capital 12% debentures 1,00,000 10% pref. share capital Bank loan Reserves Profit & loss A/C Bills payable 5,90,000 2, 1, 25,000 33,000 7,13,000 Assets 2013 Bank 35,000 90,000 Furniture 1, Buildings 1, 30,000 5,90,000 16,000 1, 2, 99,000 25,000 7,13,000

3 6. From the following summary balance sheets of XYZ Ltd. as on 313, prepare cash flow statement for the year ended 313 as per AS3 by indirect method : Liabilities Equity Share Capital 45,00,000 General Reserve 3,00,000 Capital Reserve Profit & Loss A/c 3,00,000 6,00,000 Provision for Tax 5,00,000 Proposed Dividend 3,95,000 52, 5,00,000 3,00,000 4,00,000 5, 4, Assets ,00,000 13, Investments 14,00,000 Bills Receivables 2,45,000 Cash/Bank Balance 3,00,000 11, 28, 7,00,000 16,00,000 13, 2,90,000 3,90,000 65,95,000 83, 65,95,000 83, Additional information for the year ended 31 st march,: 1) During the year machinery was sold for 2, 00,000 (W.D.V 2, 25,000). 2) During the year depreciation provided on machinery was 3, 00,000. 3) Profit on sale of land was transferred to capital reserve. 4) Interim dividend paid during the year 5) Profit on sale of investment was transferred to general reserve. 6) Income tax paid during the year is 4,. 7. Following are the Summary Balance Sheets of Rudraksha Ltd. as on 31 st March 2013 and 31 st March. Liabilities ,00,000 1,00,000 3, 1,04,000 1, 24,000 76,000 Equity Share Capital 10% Pref. share Capital 12% Debentures Profit & Loss A/c Other Reserves Security Premium Bills Payable Bank Overdraft Prov. For Taxation Proposed Dividend Equity Share Preference Share 1, 16,00,000 6,00,000 3,04,000 1,90, , Assets & Building 4,04,000 8, Patents Investments 8,02,000 Inventory 5, 2, Prepaid Expenses Cash Balance Advance Tax 4,32,000 10, 4 8,02,000 2,92,000 4,000 30,74,000 33,92,000 30,74,000 33,92,000

4 Additional Information 1) Liability for taxation for the year 2013 amounted to 65,000. 2) having W.D.V of 22,000 was sold at profit of 3,000 and new machinery purchased at 2, 30,000. 3) Equity shares are 15% premium. 4) Preference shares were redeemed at a premium of 10%. 5) Debentures were redeemed at a premium of 10%. You are required to prepare cash flow statement for the year ended 31 st march. 8. From the following summary balance sheet of FYCOM Ltd. as on and 313, prepare the cash flow statement for the year ended 313. Liabilities Assets Equity Share Capital General Reserve Capital Reserve Profit & Loss Provision for Tax Proposed Dividend 22, 1, 1,35,000 3,30,000 2, 2,02,000 26,25,000 2,25,000 1,87,500 2,02,000 4,87,500 2, 2,47,500 Investments Insurance Prepaid Cash & Bank Balance Bills Receivable 4, 6, 7, 6,37,500 4, 1,17,500 1,12,500 3,52,500 14,32,500 5,62,500 2,62,500 5,85,000 6, 1,35,000 32,77,500 42,15,000 32,77,500 42,15,000 Additional Information 1) During the year machinery was sold for 90,000 (W.D.V 1, 12,500). 2) During the year depreciation provided machinery was 1, 35,000. 3) Profit on sale land was transferred to capital reserve. 4) During the year interim dividend paid was. 5) Dividend received on investment was 15,750 out of which 4,500 was preacquisition dividend.

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