54. following is the balance sheet of akash ltd. as at 31st march 2021 prepare cash flow statement. additional information:1. debentures were issued on 1st january 2021 2. machinery costing ₹5,00,000 on which depreciation charged was ₹1,75,000 was sold for ₹3,75,0003. depreciation charged during the year amounted to ₹2,00,0004. non current investments were sold at a profit of 20%
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Subject:
Accountancy -
Author:
leonard -
Created:
1 year ago
Answers 2
Answer:
Cash Flow Statement
for the year ended March 31, 2014
Particulars
Amount
(Rs)
Amount
(Rs)
A
Cash Flow from Operating Activities
Profit as per Statement of Profit and Loss
1,40,000
Provision for Tax
23,000
Profit Before Taxation
1,63,000
Items to be Added:
Depreciation
90,000
Loss on Sale of Fixed Assets
8,000
98,000
Operating Profit before Working Capital Adjustments
2,61,000
Less: Increase in Current Assets
Trade Receivables
(3,000)
Less: Decrease in Current Liabilities
Trade Payables
(68,000)
Add: Decrease in Current Assets
Inventory
22,000
(49,000)
Cash Generated from Operations
2,12,000
Less: Tax Paid
(16,000)
Net Cash Flows from Operating Activities
1,96,000
B
Cash Flow from Investing Activities
Sale of Fixed Assets
2,000
Purchase of Patents
(20,000)
Purchase of Fixed Assets
(3,50,000)
Net Cash Used in Investing Activities
(3,68,000)
C
Cash Flow from Financing Activities
Proceeds from Issue of Share Capital
1,00,000
Proceeds from Long term Borrowings
75,000
Raise of Bank Overdraft
2,000
Net Cash Flow from Financing Activities
1,77,000
D
Net Increase in Cash and Cash Equivalents
5,000
Add: Cash and Cash Equivalent in the beginning of the period (12,000+5,000)
17,000
Cash and Cash Equivalents at the end of the period (14,000+8,000)
Fixed Assets Account
Dr.
Cr.
Particulars
Amount
(Rs)
Particulars
Amount
(Rs)
Balance b/d
17,00,000
Bank A/c (Sale)
2,000
Bank A/c (Purchase- Bal. Fig.)
3,50,000
Accumulated Depreciation
40,000
Profit and Loss A/c (Loss on Sale)
8,000
Balance c/d
20,00,000
20,50,000
20,50,000
WN2:
Accumulated Depreciation Account
Dr.
Cr.
Particulars
Amount
(Rs)
Particulars
Amount
(Rs)
Fixed Assets A/c
40,000
Balance b/d
90,000
Balance c/d
1,40,000
Profit and Loss A/c (Dep. charged during the year- Bal. Fig.)
90,000
1,80,000
1,80,000
WN3:
Provision for Taxation Account
Dr.
Cr.
Particulars
Amount
(Rs)
Particulars
Amount
(Rs)
Bank A/c (Tax Paid)
16,000
Balance b/d
11,000
Balance c/d
18,000
Profit and Loss A/c (Bal. Fig.)
23,000
34,000
34,000
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Author:
edgarligc
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Rate an answer:
4
Answer: Cash Flow for the year 31st March 2021 will be Rs. 5,75,000
Explanation :
Cash Flow Statement for Akash Ltd. for the year 31st March 2021
PARTICULARS AMOUNT(RS.)
(A) Cash Flow from Operating Activity
Non-Cash Expenses
Add:- Depreciation charged during the year 2,00,000
(B) Cash Flow from Investing Activity
Add:- Sale of Machinery during the year 3,75,000
(C) Cash Flow from Financing Activity
Add:- Issued of Debenture (Amount not specified in the question)
Sale of Non-Current Investment (Amount not specified in the question)
Total Cash Flow during the year - Rs. 5,75,000
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Author:
spotblvw
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Rate an answer:
6