Page 118 - DCOM302_MANAGEMENT_ACCOUNTING

Unit 6: Cash Flow Statement

Less: Creditors at the end 2,34,000 Notes
Stock at the beginning 2,64,000
Advances at the beginning 7,800
Outstanding expenses at the end 48,000 5,53,800
21,15,200
(iii) Income tax paid
Tax payable at the beginning 12,000
Add: Provision for taxation 88,000
1,00,000
Less: Tax payable at the end 13,200
Tax paid during the year 86,800
(iv) Accumulated depreciation written off on equipments (sold)
Accumulated depreciation at the beginning 1,20,000
Add: Depreciation for the year 60,000
1,80,000
Less: Accumulated depreciation at the end 1,32,000
48.000
(v) Sale price of equipment
Cost price 72,000
Less: Accumulated depreciation 48,000
24,000
Add: Profit on sale 12,000

36,000
(vi) Purchase of building and equipments
Balance at the beginning 3,60,000
Less: Cost of equipment sold 72,000
Balance 2,88,000
Balance at the end 5,76,000
Purchased during the year 2,88.000

Indirect Method
SLV Limited
Cash flow statement for the year ended 31.3.2007

Dr. Cr.
Cash Flows from Operating Activities: ` `
Net profit before taxation and extra-ordinary item 1,60,000

Adjustments for:
Depreciation 60,000
Operating profit before working capital changes 2,20,000

Increase in debtors (18,000)
Decrease in stock 1,68,000
increase in advances (1,200)
Decrease in creditors (6,000)
Increase in outstanding expenses 24,000
Cash generated from operation 3,86,800
Contd…

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