Page 141 - MA12

Model Test Papers M.47

Section B

(20 Marks)
(Answer any two questions)

9. (a) From the following information, calculate Cash Flow from Investing Activities:
Particulars 31st March, 31st March,
2020 (`) 2019 (`)
Machinery 4,00,000 3,00,000
Patents 50,000 80,000
Goodwill 45,000 60,000
Investment in Shares of Star Ltd. 1,50,000 1,50,000
10% Investments 2,00,000 1,50,000
Building 25,00,000 25,00,000

Additional Information:
(i) A part of Building was let out for commercial purpose and the rent received
was ` 30,000.
(ii) Dividend received from Star Ltd. @ 10%.
(iii) Patents of ` 10,000 were written off. A part of patents was sold at a loss of ` 5,000.

(iv) During the year, 10% investments were purchased for ` 1,00,000 and some
investments were sold at a profit of ` 10,000. Interest on investments of ` 12,000
for the year was duly received.
(b) From the following extract of Balance Sheet of Orpat Ltd., calculate Cash Flow from
Financing Activities:

Particulars 31st March, 31st March,
2020 (`) 2019 (`)

Equity Share Capital 6,00,000 4,00,000
10% Preference Share Capital 2,00,000 3,00,000
Securities Premium Reserve 20,000 ...
10% Debentures 5,00,000 4,00,000

Additional Information:

(i) Equity Shares were issued at a premium of 10% on 31st March, 2020.
(ii) Preference Shares were redeemed on 31st March, 2020, at par.
(iii) Additional Debentures were issued on 1st April, 2019.
(iv) The company declared and paid equity dividend @ 9% and also paid preference
dividend for the year 2018–19. [5 + 5 = 10]