Page 355 - MA-12

M.46 Management Accounting (Section B)—ISC XII

Section B
(20 Marks)
(Answer any two questions)
9. You are required to prepare a Cash Flow Statement for the year 2018–19 from the
following Balance Sheet and additional information:
BALANCE SHEET OF STAR LTD. as at 31st March, 2019
Particulars Note No. 31st March, 31st March,
2019 (`) 2018 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 5,00,000 4,00,000
(b) Reserves and Surplus 1 3,20,000 2,50,000
2. Non-Current Liabilities
Long-term Borrowings 2 2,00,000 1,00,000
3. Current Liabilities
(a) Trade Payables 1,50,000 90,000
(b) Short-term Provisions 3 30,000 10,000
Total 12,00,000 8,50,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets—Tangible 4 7,00,000 5,00,000
(b) Non-Current Investments 70,000 50,000
2. Current Assets
(a) Inventories 60,000 90,000
(b) Trade Receivables 1,20,000 70,000
(c) Cash and Bank Balance 2,50,000 1,40,000
Total 12,00,000 8,50,000
Notes to Accounts
Particulars 31st March, 31st March,
2019 (`) 2018 (`)
1. Reserves and Surplus
Securities Premium Reserve 5,000 ...
General Reserve 1,00,000 80,000
Surplus, i.e., Balance in Statement of Profit and Loss 2,15,000 1,70,000
3,20,000 2,50,000
2. Long-term Borrowings
10% Debentures 2,00,000 1,00,000
3. Short-term Provisions
Provision for Tax 30,000 10,000
4. Fixed Assets—Tangible
Machinery (Cost) 8,50,000 6,10,000
Less: Accumulated Depreciation 1,50,000 1,10,000
7,00,000 5,00,000
Additional Information:
(i) Machinery costing ` 1,00,000 (Accumulated Depreciation ` 70,000) was sold at a
loss of 20%. (ii) Equity Shares were issued at a premium of 15% on 1st April, 2018.
(iii) Additional debentures were issued on 1st October, 2018 at a discount of 10%. The company wrote
off the discount on issue of debentures from Securities Premium Reserve. (iv) Interim Dividend
paid during the year amounted to ` 25,000. (v) Dividend have been proposed @ 12% for both
the years. [10]