Page 50 - MA12

Cash Flow Statement—Based on Accounting Standard-3 (Revised) 3.25

Notes to Accounts
Particulars 31st March, 31st March,
2019 (`) 2018 (`)
1. Reserves and Surplus
General Reserve 1,00,000 1,00,000
Surplus, i.e., Balance in Statement of Profit and Loss 95,000 55,000
1,95,000 1,55,000
2. Trade Payables
Sundry Creditors 20,000 25,000
Bills Payable 15,000 10,000
35,000 35,000
3. Fixed Assets (Tangible)
Building 3,40,000 2,25,000
Plant and Machinery 4,00,000 3,00,000
7,40,000 5,25,000
4. Trade Receivables
Debtors 1,20,000 1,50,000
Less: Provision for Doubtful Debts 12,000 15,000
1,08,000 1,35,000
Additional Information:
1. During the year, a part of Plant and Machinery having a book value of ` 2,500 was sold for ` 1,500.
2. Dividend of ` 50,000 was paid during the year.
3. Income Tax of ` 25,000 was paid during the year.
4. Depreciation charged during the year—
Building: ` 5,000; Plant and Machinery: ` 25,000.
5. 8% Debentures were redeemed on 31st March, 2019.
6. Equity Shares of the face value of ` 50,000 were issued during the year at a discount of 10% and
the discount was written off from Statement of Profit and Loss.
[Hints:
1. Interest on debentures ` 20,000 (i.e., ` 2,50,000 × 8/100) has been paid.
2. Dr. BUILDING ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 2,25,000 By Depreciation A/c 5,000
To Bank A/c (Bal. Fig.) 1,20,000 By Balance c/d 3,40,000
(Purchase)
3,45,000 3,45,000

3. Dr. PLANT ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 3,00,000 By Bank A/c (Sale) 1,500
To Bank A/c (Bal. Fig.) 1,27,500 By Loss on Sale of Plant A/c (Statement of P & L) 1,000
(Purchase) By Depreciation A/c 25,000
By Balance c/d 4,00,000
4,27,500 4,27,500

4. Cash Used in Investing Activities = ` 1,20,000 + ` 1,27,500 – ` 1,500 = ` 2,46,000.]