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Cash Flow Statement—Based on Accounting Standard-3 (Revised) 3.23
2. Dr. MACHINERY ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 6,10,000 By Bank A/c (Sale) 12,000
To Bank A/c (Balancing Figure) 2,90,000 By Loss on Sale of Machinery A/c 3,000
(Purchase) (Statement of Profit and Loss)
By Accumulated Depreciation A/c 35,000
By Balance c/d 8,50,000
9,00,000 9,00,000
3. Dr. ACCUMULATED DEPRECIATION ACCOUNT Cr.
Particulars ` Particulars `
To Machinery A/c (Transfer) 35,000 By Balance b/d 1,10,000
To Balance c/d 1,50,000 By Statement of Profit and Loss (Bal. Fig.) 75,000
1,85,000 1,85,000

4. Dr. PROVISION FOR TAX ACCOUNT Cr.
Particulars ` Particulars `
To Bank A/c (Tax paid) 50,000 By Balance b/d 20,000
To Balance c/d 40,000 By Statement of Profit and Loss (Bal. Fig.) 70,000
90,000 90,000
5. Discount on issue of debentures has been written off from Securities Premium Reserve as per
Section 52(2) of the Companies Act, 2013. The balance of ` 5,000 in Securities Premium Reserve is
after writing off discount of ` 10,000. As such discount has not been written off from Statement of
Profit and Loss, it is not considered while computing Operating Profit.
Unsolved Questions

1. The Balance Sheet of XYZ Ltd. as at 31st March, 2020 was as under:
BALANCE SHEET
Particulars Note No. 31st March, 31st March,
2020 (`) 2019 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 6,00,000 5,00,000
(b) Reserves and Surplus 1 75,000 50,000
2. Non-Current Liabilities
Long-term Borrowings: 8% Debentures 1,10,000 2,00,000
3. Current Liabilities
(a) Short-term Borrowings: Bank Overdraft 1,00,000 80,000
(b) Trade Payables 75,000 80,000
(c) Other Current Liabilities 2 5,000 ...
(d) Short-term Provisions 3 25,000 20,000
Total 9,90,000 9,30,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets:
(i) Tangible 5,40,000 5,40,000
(ii) Intangible (Goodwill) 75,000 1,00,000
(b) Non-Current Investments 2,00,000 1,50,000
2. Current Assets
(a) Current Investments ... 8,000
(b) Inventories 80,000 60,000
(c) Trade Receivables 90,000 60,000
(d) Cash and Bank Balances (Cash at Bank) 5,000 12,000
Total 9,90,000 9,30,000