Page 266 - MA-12

3.22 Management Accounting (Section B)—ISC XII

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. PROVISION FOR DEPRECIATION ACCOUNT Cr.
Particulars ` Particulars `
To Machinery A/c 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 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 adjusted 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 through Statement of
Profit and Loss, it is not considered while computing Operating Profit.

Unsolved Questions

1. 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