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Model Test Papers M.23

(b) COMPARATIVE STATEMENT OF PROFIT AND LOSS
for the years ended 31st March, 2018 and 2019
Particulars Note 31st March, 31st March, Absolute Change Percentage
No. 2018 2019 (Increase/ Change (Increase/
Decrease) Decrease)
` ` ` %
Ê C ˆ
˜
(A) (B) (C = B – A) Á Ë D = A ¥100
¯
I. Revenue from Operations 25,00,000 40,00,000 15,00,000 60.00
II. Expenses:
(a) Employee Benefit Expenses 1,25,000 2,00,000 75,000 60.00
(b) Other Expenses 5,90,000 6,80,000 90,000 15.25
Total Expenses 7,15,000 8,80,000 1,65,000 23.08
III. Profit before Tax (I – II) 17,85,000 31,20,000 13,35,000 74.79
IV. Less: Taxes @ 35% 6,24,750 10,92,000 4,67,250 74.79
V. Profit after Tax (III – IV) 11,60,250 20,28,000 8,67,750 74.79

23. (a) CASH FLOW FROM INVESTING ACTIVITIES
Particulars `

Proceeds from Sale of Machinery 20,000
Payment for Purchase of Machinery (WN 1) (60,000)
Proceeds from Sale of Patents(WN 3) 1,00,000

Cash Flow from Investing Activities 60,000

Working Notes:
1. Dr. MACHINERY ACCOUNT Cr.
Particulars ` Particulars `

To Balance b/d 4,00,000 By Bank A/c (Sale of Machinery) 20,000
To Gain (Profit) on Sale of Machinery A/c* 4,000 By Accumulated Depreciation A/c 24,000
(Statement of Profit and Loss) (Depreciation on Machinery Sold)
To Bank A/c (Purchases) (Balancing Figure) 60,000 By Balance c/d 4,20,000
4,64,000 4,64,000

*Gain (Profit) on Sale = Sale Price – Book Value of Machinery = ` 20,000 – ` 16,000 (i.e., ` 40,000 – ` 24,000) = ` 4,000.

2. Dr. ACCUMULATED DEPRECIATION ACCOUNT Cr.
Particulars ` Particulars `
To Machinery A/c (Depreciation on 24,000 By Balance b/d 1,00,000
Machinery Sold) (Transfer) By Depreciation A/c (Statement of Profit and Loss) 34,000
To Balance c/d 1,10,000 (Balancing Figure)
1,34,000 1,34,000