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Model Test Papers M.287

Notes to Accounts
Particulars 31st March, 31st March,
2018 (`) 2017 (`)
1. Reserves and Surplus
Securities Premium Reserve 20,000
Less: Share Issue Expenses Written off 5,000
Discount on Issue of Debentures Written off 10,000 15,000 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. 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:
(a) Machinery costing ` 50,000 (Accumulated Depreciation ` 35,000) was sold at a
loss of 20%.
(b) Equity Shares were issued at a premium of 20% on 1st April, 2017. The company
paid share issue expenses amounting to ` 5,000.
(c) Additional debentures were issued on 1st October, 2017 at a discount of 10%.

(d) Interim dividend paid during the year amounted to ` 25,000.
(e) At the end of the year, investments costing ` 30,000 were sold at a profit of 20%.
New investments were also purchased at the end of current accounting year.
Prepare a Cash Flow Statement for the year ended 31st March, 2018, as per
AS-3 (Revised). (6)