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M.98 An Aid to Accountancy—CBSE XII
PART B

18. Opening Balance Closing Balance
` `
Cash in Hand 50,000 74,000
Current Investments 60,000 70,000
Cash and Cash Equivalents 1,10,000 1,44,000
Net Increase in Cash and Cash Equivalents
= ` 1,44,000 (Closing Balance) – ` 1,10,000 (Opening Balance) = ` 34,000.
Note: Bank overdraft and Cash Credit to be treated as Short-term Borrowings.
19. (i) No Flow.
Reason: Cash withdrawn from Bank represents movement between items
of cash.
(ii) No Flow.
Reason: Marketable Securities are part of Cash and Cash Equivalents. Since,
sale of Marketable Securities is at book value, there will be no flow of cash.
20. (a) Analysis of Financial Statements is a systematic process of establishing quantitative
relationship between various related items of financial statement to understand and
make decisions regarding the Liquidity, Long-term solvency, operating efficiency
and profitability of the firm.
(b)

S.No. Items Main Head Sub-head
(i) Licence for Franchise Non-current Assets Fixed Assets (Intangible Assets)
(ii) Accrued Income Current Assets Other Current Assets
(iii) Stores and Spares Current Assets Inventories
(iv) Mastheads and Publishing Title Non-Current Assets Fixed Assets (Intangible Assets)
(v) Bank Overdraft Current Liabilities Short-term Borrowings
(vi) Unpaid Dividend Current Liabilities Other Current Liabilities

21. HMSC Ltd.
COMPARATIVE BALANCE SHEET as at 31st March, 2017 and 2018
Particulars Note No. 31st March, 31st March, Absolute Percentage
2017 2018 Change (Increase/ Change (Increase/
` ` Decrease (`) Decrease) (%)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds 24,00,000 44,40,000 20,40,000 85
2. Non-current Liabilities 12,00,000 12,00,000 ... ...
3. Current Liabilities 4,00,000 3,60,000 (40,000) (10)
Total 40,00,000 60,00,000 20,00,000 50
II. ASSETS
1. Non-Current Assets 28,00,000 50,40,000 22,40,000 80
2. Current Assets 12,00,000 9,60,000 (2,40,000) (20)
Total 40,00,000 60,00,000 20,00,000 50