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Cash Flow Statement 4.49
[Hints:
1. Dr. PLANT AND MACHINERY ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 5,00,000 By Bank A/c (Sale) 4,000
To Bank A/c (Purchase) 1,20,000 By Accumulated Depreciation A/c 15,000
(Bal. Fig.) By Loss on Sale (Statement of Profit & Loss) 1,000
By Balance c/d 6,00,000
6,20,000 6,20,000

2. Dr. ACCUMULATED DEPRECIATION ACCOUNT Cr.
Particulars ` Particulars `

To Fixed Assets A/c (Transfer) 15,000 By Balance b/d 1,00,000
To Balance c/d 1,25,000 By Depreciation A/c (Depreciation Provided) 40,000
(Bal. Fig.)
1,40,000 1,40,000
3. Dr. PROVISION FOR TAX ACCOUNT Cr.
Particulars ` Particulars `
To Bank A/c (Tax Paid) 37,500 By Balance b/d 35,000
To Balance c/d 38,000 By Statement of Profit & Loss (Provision Made) 40,500
(Bal. Fig.)
75,500 75,500

4. Dr. INVESTMENT ACCOUNT Cr.
Particulars ` Particulars `

To Balance b/d 90,000 By Bank A/c (Sale) 45,000
To Capital Reserve A/c 5,000 (` 40,000 + ` 5,000 profit)
To Bank A/c—Purchase 40,000 By Balance c/d 90,000
(Bal. Fig.)
1,35,000 1,35,000
]
15. Calculate Net Profit before Tax and Extraordinary Items from the following Balance Sheets of
AB Trades Ltd. as at 31st March, 2024 and 2023:
Particulars Note No. 31st March, 31st March,
2024 (`) 2023 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 10,00,000 8,00,000
(b) Reserves and Surplus 1 4,00,000 2,50,000
2. Current Liabilities
(a) Short-term Borrowings 50,000 60,000
(b) Trade Payables 50,000 80,000
(c) Other Current Liabilities 25,000 15,000
(d) Short-term Provisions 2 80,000 40,000
Total 16,05,000 12,45,000
II. ASSETS
1. Non-Current Assets
(a) Property, Plant and Equipment and Intangible Assets:
—Property, Plant and Equipment 10,00,000 8,00,000
(b) Non-Current Investments 3,00,000 2,00,000
2. Current Assets 3,05,000 2,45,000
Total 16,05,000 12,45,000