Page 120 - DCOM302_MANAGEMENT_ACCOUNTING

Unit 6: Cash Flow Statement

Non-operating expenses Notes
Proposed dividend 10,000
Provision for taxation 10,000 34,000
Less
Non-Operating/cash income
Profit on sale of land 10,000

Income tax refund 6,000 16,000
38,000
2. From the following balance sheets of Sudhir Ltd., for the year ended 31st March, 2006 and
2007, prepare a cash fl ow statement.
31.3.2006 31.3.2007
` `
Assets
Property 2,00,000 2,50,000
Plant and machinery 4,00,000 4,50,000
Less: Depreciation 1,40,000 2,60,000 1,50,000 3,00,000
Loans to subsidiary Co. — 15,000
Share in subsidiary Co. 20,000 20,000
Stock in trade 1,40,000 1,50,000
Debtors 1,00,000 1,50,000
Bank 35,000 1,57,000
7,55,000 10,42,000
Liabilities
Equity Share of ` 20 each 3,00,000 4,00,000
Share premium — 10,000

Profit & Loss appropriation A/c 1,00,000 1,00,000
Profit for the year — 2,00,000

6% Debentures 1,50,000 1,00,000
Profit on Redemption of Debentures — 2,000

Sundry creditors 1,40,000 1,10,000
Provision for taxation 50,000 1,00,000
Proposed dividend 15,000 20,000
7,55,000 10,42,000
Additional Information:

During the year, plant costing ` 50,000 was sold for ` 10,000. Accumulated depreciation on

this plant was ` 30,000. Loss on sale of plant was charged to profit & Loss account. Income-
tax paid during the year was ` 60,000.

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