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Cash Flow Statement

The document provides balance sheet information for several companies for the years 2007 and 2008. It also provides additional financial information pertaining to each company. The task is to prepare cash flow statements for each company using the information given in the balance sheets and additional details provided. Cash flow statements summarize the cash inflows and outflows for a company during an accounting period.

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0% found this document useful (0 votes)
908 views3 pages

Cash Flow Statement

The document provides balance sheet information for several companies for the years 2007 and 2008. It also provides additional financial information pertaining to each company. The task is to prepare cash flow statements for each company using the information given in the balance sheets and additional details provided. Cash flow statements summarize the cash inflows and outflows for a company during an accounting period.

Uploaded by

anupsuchak
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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Cash Flow Statement

CASH FLOW STATEMENT


1. From the following balances you are required to calculate Cash from Operation:
Particulars 31st Dec. 2003 31st Dec. 2004
Debtors 50,000 47,000
Bills Receivable 10,000 12,500
Creditors 20,000 25,000
Bills Payable 8,000 6,000
Outstanding Expenses 1,000 1,200
Prepaid Expenses 800 700
Accrued incomes 600 750
Income received in advance 300 250
Profit made during the year -- 1,30,000
2. The following are the summarized Balance Sheet of a company as on December, 2007 and 2008.
Liabilities 2007 2008 Assets 2007 2008
Equity Share Capital 8,00,000 9,00,000 Fixed Assets 8,00,000 9,00,000
Depreciation Fund 3,00,000 3,50,000 Investment 2,00,000 --
General Reserve 3,00,000 4,00,000 Stock 14,00,000 12,30,000
Provision for Taxation 3,00,000 4,00,000 Debtors 10,80,000 17,74,000
Overdraft 3,00,000 4,64,000
Sundry Creditors 12,00,000 10,00,000
Proposed Dividend 80,000 90,000
P & L Account 2,00,000 3,00,000
34,80,000 39,04,000 34,80,000 39,04,000
Prepare Cash Flow Statement.
3. The following are the summarized Balance Sheet of a company as on December 2007 and 2008.
Liabilities 2007 2008 Assets 2007 2008
Share Capital 2,00,000 2,50,000 Land and Building 2,00,000 1,90,000
General Reserve 50,000 60,000 Machinery 1,50,000 1,69,000
Profit & Loss 30,500 30,600 Stock 1,00,000 74,000
Bank Loan (long term) 70,000 -- Sundry Debtors 80,000 64,200
Sundry Creditors 1,50,000 1,35,200 Cash 500 600
Provision for Taxation 30,000 35,000 Bank -- 8,000
Goodwill -- 5,000
5,30,500 5,10,800 5,30,500 5,10,800
Additional information:-
a. Dividend of Rs. 23,000 was paid during the year.
b. Depreciation written off on machinery Rs. 12,000.
c. Income tax provided during the year Rs. 33,000.
d. Machinery was sold for Rs. 16,000 (w. d. v. Rs. 20,000). Prepare Cash flow Statement.
4. From the following Profit and Loss Account you are required to calculate cash from operation:
Particulars Rs. Particulars Rs.
To Gross Profit 5,000 By Gross Profit 25,000
To Rent 1,000 By Profit on Sale of Land 5,000
To Depreciation 2,000 By Income tax refund 3,000
To Loss on sale of plant 1,000
To Goodwill written off 4,000
To Proposed Dividend 5,000
To Provision for Taxation 5,000
To Net Profit 10,000
33,000 33,000
5. Wearwell Ltd. Supplies you following Balance Sheet
Liabilities 2007 2008 Assets 2007 2008
Share Capital 70,000 74,000 Bank Balance 9,000 7,800
Bonds 12,000 6,000 Receivable 14,900 17,700
Accounts Payable 10,360 11,840 Inventories 49,200 42,700
Provision for bad debt 700 800 Land 20,000 30,000
Reserve & Surplus 10,040 10,560 Goodwill 10,000 5,000

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By Anup K Suchak
Cash Flow Statement
1,03,100 1,03,200 1,03,100 1,03,200
Additional information:
a. Dividend amounting to Rs. 3,500 was paid during the year.
b. Land was purchased for Rs. 10,000.
c. Rs. 5,000 was written off on goodwill during the year.
d. Bonds of Rs. 6,000 were paid during the year. You are required to prepare Cash Flow Statement.
6. Following are the Balance Sheets of Tiny Toys Ltd., you are required to prepare Cash Flow Statement:
Liabilities 2007 2008 Assets 2007 2008
Equity Share Capital 10,000 10,000 Goodwill 1,200 1,200
General Reserve 1,400 1,800 Land 4,000 3,600
Profit & Loss A/c 1,600 1,300 Buildings 3,700 3,600
Sundry Creditors 800 540 Investments 1,000 1,100
Outstanding expenses 120 80 Inventories 3,000 2,340
Provision for Taxation 1,600 1,800 Receivables 2,000 2,220
Provision for bad debts 40 60 Bank Balance 660 1,520
15,560 15,580 15,560 15,580
Additional information:
a. A piece of land has been sold for Rs. 400.
b. Depreciation amounting to Rs. 700 has been charged on buildings.
c. Provision for taxation has been made for Rs. 1,900 during the year.
7. The following are the summarized balance sheets of X Ltd., on 31st Dec., 2007 and 2008:
Liabilities 2007 2008 Assets 2007 2008
Share Capital 12,00,000 16,00,000 Plant & Machinery at cost 8,00,000 12,90,000
Debentures 4,00,000 6,00,000 Land & Building at cost 6,00,000 8,00,000
Profit & Loss A/c 2,50,000 5,00,000 Stock 6,00,000 7,00,000
Creditors 2,30,000 1,80,000 Bank 40,000 80,000
Provision for Bad debts 12,000 6,000 Preliminary Expenses 14,000 12,000
Provision for Depreciation Debtors 1,38,000 1,22,000
On Land & Building 40,000 48,000
On Plant & Machinery 60,000 70,000
21,92,000 30,04,000 21,92,000 30,04,000
Additional information:
i. During the year a part of Machinery costing Rs. 1,40,000 (accumulated depreciation thereon Rs. 4,000) was sold for Rs.
1,20,000.
ii. Dividend of Rs. 1,00,000 was paid during the year. Prepare Cash flow Statement.
8. The following are the balance sheets of Good Luck Ltd. As on31st December 2007 and 2008
Liabilities 2007 2008 Assets 2007 2008
Equity Share Capital 4,00,000 4,80,000 Land and Building 2,10,000 3,00,000
8% Debentures 1,00,000 -- Plant & Machinery at cost 5,80,000 6,40,000
Share Premium -- 20,000 Furniture at cost 18,000 20,000
General Reserve 60,0000 1,00,000 Inventories 2,60,000 2,10,000
Sundry Creditors 2,60,000 3,00,000 Sundry Debtors 1,50,000 1,70,000
Proposed Dividend 40,000 48,000 Cash 30,000 52,000
Provision for Depreciation
Plant & Machinery 2,80,000 3,00,000
Furniture 12,000 8,000
12,48,000 13,92,000 12,48,000 13,92,000
Additional information:-
a. Furniture which cost Rs. 10,000, written down value Rs. 2,000 was sold for Rs. 4,000.
b. Plant & Machinery which cost Rs. 40,000 and in respect of which Rs. 26,000 had been written off as depreciation was sold
during the year for Rs. 6,000.
c. The dividend of 2007 was paid during 2008. Prepare Cash flow Statement.
9. Balance Sheet of Circuit & Co. Ltd. Are as follows:
Liabilities 2007 2008 Assets 2007 2008
Share Capital 12,00,000 17,00,000 Cash 30,000 47,000
Debentures 4,20,000 3,40,000 Stock 2,80,000 1,90,000
P&L A/c 2,80,000 3,25,000 Debtors 1,20,000 1,15,000
Bills Payable 1,40,000 1,52,000 Machinery 14,00,000 18,50,000
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By Anup K Suchak
Cash Flow Statement
Bank Overdraft 2,90,000 1,80,000 Land 5,00,000 4,95,000
23,30,000 26,97,000 23,30,000 26,97,000
Adjustment:-
a. Dividend paid during the year Rs. 2,00,000
b. Machine costing Rs. 1,20,000 was sold for Rs. 90,000 and depreciation charged on account Rs. 1,40,000.
c. Tax paid during the year Rs. 90,000.
d. A part of land purchased during the year for Rs. 1,00,000.
e. Redemption of debentures are made on 5% discount. Prepare Cash Flow Statement.

10. From the following balance sheets of Nagarajan Ltd. You are required to prepare Cash Flow Statement.
Liabilities 2007 2008 Assets 2007 2008
Share Capital 3,20,000 3,40,000 Buildings 2,00,000 2,00,000
Profit & Loss A/c 58,000 98,000 Machinery 96,000 1,36,000
Creditors 36,000 20,000 Stock 36,000 28,000
Reserve for Bad debts -- 20,000 Debtors 66,000 78,000
Bank 16,000 36,000
4,14,000 4,78,000 4,14,000 4,78,000
Additional information:
a. Taxes paid during the year were Rs. 4,000.
b. During the year dividend of Rs. 8,000 was paid.
c. Depreciation on machinery was Rs. 12,000.
d. A machine with a book value of Rs. 20,000 was sold during the year for Rs. 24,000.

11. From the following Balance Sheets of Cyclone Co. Ltd., prepare Cash Flow Statement:
Liabilities 2007 2008 Assets 2007 2008
Equity Share Capital 6,00,000 8,00,000 Goodwill 2,30,000 1,80,000
Preference Capital 3,00,000 2,00,000 Land & Buildings 4,00,000 3,40,000
General Reserve 80,000 1,40,000 Plant & Machinery 1,60,000 4,00,000
Profit & Loss Account 60,000 96,000 Debtors 3,20,000 4,00,000
Proposed Dividend 84,000 1,00,000 Stock 1,54,000 2,18,000
Creditors 1,10,000 1,66,000 Bills Receivable 40,000 60,000
Bills Payable 40,000 32,000 Cash 30,000 20,000
Tax Provision 80,000 1,00,000 Bank 20,000 16,000
13,54,000 16,34,000 13,54,000 16,34,000
Additional information:
a. Proposed dividend made during 2007 had been paid during 2008.
b. Depreciate: Plant & Machinery by Rs. 20,000 and Land & Building by Rs. 40,000.
c. Interim Dividend has been paid Rs. 40,000 in 2008.
d. Income-tax Rs. 70,000 has been paid during 2008.

12. From the following Balance Sheets of News Products Ltd., prepare Cash Flow Statement
Liabilities 2007 2008 Assets 2007 2008
Share Capital 5,00,000 5,00,000 Land & Buildings 1,80,000 2,00,000
General Reserve 2,00,000 2,20,000 Plant & Machinery 2,10,000 2,76,000
Profit & Loss Account 40,000 32,000 Other Fixed Assets 30,000 45,000
Bank Loan (Ling-term) -- 1,00,000 Investments 50,000 50,000
Creditors 1,58,000 1,72,000 Stock 2,00,000 1,90,000
Provision for Taxation 45,000 30,000 Debtors 1,70,000 1,95,000
Cash at Bank 1,03,000 98,000
9,43,000 10,54,000 9,43,000 10,54,000
Additional information:
a. Dividend amounting to Rs. 30,000 was paid during the year.
b. Provision for taxation made Rs. 12,000.
c. Machinery worth Rs. 15,000 (book value) was sold at a loss of Rs. 3,000.
d. Investment costing Rs. 10,000 was sold for Rs. 12,000.
e. Depreciation provided on assets: Land & Building Rs. 5,000 & Plant & Machinery Rs. 20,000.

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By Anup K Suchak

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