Page 49 - MA12

3.24 Management Accounting (Section B)—ISC XII

Notes to Accounts
Particulars 31st March, 31st March,
2020 (`) 2019 (`)
1. Reserves and Surplus
Securities Premium Reserve 50,000 50,000
Surplus, i.e., Balance in Statement of Profit and Loss 25,000 ...
75,000 50,000
2. Other Current Liabilities
Dividend Payable 5,000 ...
3. Short-term Provisions
Provision for Tax 25,000 20,000

Note: Dividend proposed for the years 2018–19 and 2019–20 are ` 15,000 and ` 50,000 respectively.

Additional Information:
1. Net Profit for the year 2019–20 before Tax and Dividend amounted to ` 63,000.
2. Provision for Tax made during the year 2019–20 was ` 23,000.
3. Depreciation provided on Fixed Assets for the year 2019–20 ` 80,000.
4. Debentures amounted to ` 90,000 were redeemed on 1st July, 2019. Interest on Debentures was
paid regularly through cheque.
You are required to prepare Cash Flow Statement as per Accounting Standard-3 (Revised).

2. From the following particulars, prepare Cash Flow Statement:
BALANCE SHEET
Particulars Note No. 31st March, 31st March,
2019 (`) 2018 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 5,50,000 5,00,000
(b) Reserves and Surplus 1 1,95,000 1,55,000
2. Non-Current Liabilities
Long-term Borrowings: 8% Debentures 1,50,000 2,50,000
3. Current Liabilities
(a) Trade Payables 2 35,000 35,000
(b) Short-term Provisions: Provision for Tax 55,000 20,000
Total 9,85,000 9,60,000
II. ASSETS
1. Non-Current Assets
Fixed Assets:
(i) Tangible 3 7,40,000 5,25,000
(ii) Intangible (Goodwill) 20,000 25,000
2. Current Assets
(a) Inventories 1,05,000 1,25,000
(b) Trade Receivables 4 1,08,000 1,35,000
(c) Cash and Bank Balances 12,000 1,50,000
Total 9,85,000 9,60,000