Page 335 - MA-12

M.26 Management Accounting (Section B)—ISC XII

Section B

(20 Marks)
(Answer any two questions)

9. (a) From the following information, calculate Cash Flow from Investing Activities:
Particulars 31st March, 31st March,
2019 (`) 2018 (`)
Investment in shares of Star Ltd. 1,50,000 1,50,000
Machinery 4,00,000 3,00,000
Patents 50,000 80,000
Goodwilll 45,000 60,000
10% Investments 2,00,000 1,50,000
Building 25,00,000 25,00,000

Additional Information:
(i) A part of Building was let out for commercial purpose and the rent received
was ` 30,000.
(ii) Dividend received from Star Ltd. @ 10%.
(iii) Patents of ` 10,000 were written off. A part of patents was sold at a loss of ` 5,000.

(iv) During the year, 10% investments were purchased for ` 1,00,000 and some
investments were sold at a profit of ` 10,000. Interest on investments of ` 12,000
for the year was duly received.
(b) From the following extract of Balance Sheet of Orpat Ltd., calculate Cash Flow from
Financing Activities:

Particulars 31st March, 31st March,
2019 (`) 2018 (`)

Equity Share Capital 6,00,000 4,00,000
10% Preference Share Capital 2,00,000 3,00,000
Securities Premium Reserve 15,000 ...
10% Debentures 5,00,000 4,00,000

Additional Information:
(i) Equity Shares were issued at a premium of 10% on 31st March, 2019.
(ii) Preference Shares were redeemed on 31st March, 2019, at a premium of 5%. The
company met premium on redemption from Securities Premium Reserve.
(iii) Additional Debentures were issued on 1st April, 2018.

(iv) The company declared and paid equity dividend @ 9% and also paid preference
dividend for the year 2017–18. [5 + 5 = 10]