Page 246 - DMGT202_COST_AND_MANAGEMENT_ACCOUNTING

Unit 13: Cash Flow Analysis (As Per AS-3)

Debentures Account Notes

Particulars ` Particulars `
To Bank (balancing figure) 48,000 By Balance b/d 1,50,000

To Profit on redemption A/c 2,000

To Balance c/d 1,00,000
1,50,000 1,50,000

Profit on Redemption Account
Particulars ` Particulars `
To Balance c/d 2,000 By 6% Debentures A/c 2,000
2,000 2,000

Provision for Taxation
Particulars ` Particulars `
To Bank (tax paid) 60,000 By Balance b/d 50,000
To Balance c/d 1.00,000 By Transfer from P & L A/c 1,10,000
1,60,000 1,60,000
Proposed Dividend

Particulars ` Particulars `
To Bank (dividends paid) 15,000 By Balance b/d 15,000
To Balance c/d 20.000 By Transfer from P & L A/c 20,000
35,000 35,000

Task Illustrate the impact of the changes taken place on the current assets and current
liabilities to the tune of cash flows determination of the fi rm.

Self Assessment

Choose the appropriate answer
9. Cash position at the opening and closing comprises of
(a) Cash in hand
(b) Cash at bank
(c) Both cash in hand and at bank

(d) None of the above.
10. Cash flow analysis superior than the fund flow analysis due to

(a) Shorter span of cash resources are considered
(b) Real cash flows only taken into consideration

(c) Opening and closing cash balances are only considered
(d) (a), (b) & (c).

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