Page 55 - MA12

3.30 Management Accounting (Section B)—ISC XII

Prepare a Cash Flow Statement after taking into account the following adjustments:

1. Tax paid during the year amounted to ` 1,40,000.
2. During the year machinery costing ` 3,00,000 on which depreciation charged was ` 1,00,000, was
sold for ` 1,00,000.
3. An Interim Dividend on equity shares @ 10% was paid on Opening Balance.
4. New Debentures have been issued on 1st July, 2018.

GUIDE TO ANSWER

1. Cash Flow from Operating Activities—` 1,13,600; Cash Used in Investing Activities—` 1,30,000;
Cash Flow from Financing Activities—` 9,400. Net Decrease in Cash and Bank Balances—` 7,000.
[Hints: 1. Dividend Paid (2019–20)—` 10,000.
2. Interest on 8% Debentures: `
on ` 2,00,000 for 3 months 4,000
on ` 1,10,000 for 9 months 6,600
10,600
.]
2. Cash Flow from Operating Activities—` 2,33,000; Cash Used in Investing Activities—` 2,46,000;
Cash Used in Financing Activities—` 1,25,000.
3. Cash Used in Operating Activities—` 27,000; Cash Flow from Financing Activities—` 50,000.
4. Cash Flow from Financing Activities—` 15,00,000.

5. Operating Profit before Working Capital Changes—` 3,30,000.
6. Operating Profit before Working Capital Changes—` 7,20,000.
7. Cash Flow from Operating Activities—` 4,31,000; Cash Used in Investing Activities—` 9,60,000;
Cash Flow from Financing Activities—` 5,59,000. Net Increase in Cash and Bank Balances—` 30,000.