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M.24 An Aid to Accountancy—CBSE XII
3. Dr. PATENTS ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 2,80,000 By Bank A/c (Sale) (Balancing Figure) 1,00,000
To Gain (Profit) on Sale of Patents A/c (Given) 20,000 By Amortisation A/c (Statement of Profit and Loss) 40,000
(Statement of Profit and Loss) By Balance c/d 1,60,000
3,00,000 3,00,000
(b) CASH FLOW FROM FINANCING ACTIVITIES
Particulars `
Proceeds from the Issue of 8% Debentures 2,00,000
Redemption of 10% Debentures (1,00,000)
Interest Paid on Debentures (10,000)
Dividend Paid (50,000)
Cash Flow from Financing Activities 40,000
Notes: (i) Bonus shares are not shown in the Cash Flow Statement because there is no cash flow.
(ii) It is assumed that 10% Debentures have been redeemed and fresh 8% Debentures have been issued
on 31st March, 2018.
