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    AS Book 1

    Uploaded by

    Vashu Shrivastav
    ICAI

    Copyright:

    © All Rights Reserved
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    AS Book 1

    Uploaded by

    Vashu Shrivastav
    13 views3 pages
    ICAI

    Original Title

    AS book 1 (7)

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    ICAI

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    13 views3 pages

    AS Book 1

    Uploaded by

    Vashu Shrivastav
    ICAI

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    a 11.

    120 ADVANCED ACCOUNTING

    Additional Information:
    (i) A piece of land has been sold out for `1,50,000 (Cost – `1,20,000) and
    the balance land was revalued. Capital Reserve consisted of profit on
    revaluation of land.
    (ii) On 1st April, 20X0 a plant was sold for `90,000 (Original Cost – `70,000
    and W.D.V. – ` 50,000) and Debentures worth `1 lakh were issued at
    par as part consideration for plant of `4.5 lakhs acquired.
    (iii) Part of the investments (Cost – `50,000) was sold for `70,000.
    (iv) Pre-acquisition dividend received `5,000 was adjusted against cost of
    investment.
    (v) Interim dividend was declared and paid @ 15% during the current year.
    (vi) Income-tax liability for the current year was estimated at `1,35,000.
    (vii) Depreciation @ 15% has been charged on Plant and Machinery but no
    depreciation has been charged on Building.

    12. The Balance Sheet of New Light Ltd. as at 31st March, 20X1 and 20X0 (for the
    years ended) are as follows: Comins
    ` `
    st st
    Notes 31 March 31 March
    20X0 20X1
    Equity and Liabilities
    1 Shareholders’ funds
    A Share capital 1 16,00,000 18,80,000
    B Reserves and Surplus 2 8,40,000 11,00,000
    2 Non-current liabilities
    Long term borrowings 3 4,00,000 2,80,000
    3 Current liabilities
    A Other current liabilities 4 6,00,000 5,20,000
    B Short term provision
    (provision for tax) 3,60,000 3,40,000
    Total 38,00,000 41,20,000

    © The Institute of Chartered Accountants of India


    FINANCIAL STATEMENTS OF COMPANIES 11.121 a

    Assets

    1 Non-current assets

    A Property, plant and 22,80,000 26,40,000


    Equipment 5

    B Non-Current Investments 4,00,000 3,20,000

    2 Current assets

    A Cash and Cash equivalents 10,000 10,000

    B Other Current assets 11,10,000 11,50,000

    Total 38,00,000 41,20,000

    Notes to accounts
    No. Particulars 31st March, 31st March,
    20X0
    20X1

    1. Share capital
    Equity share capital 12,00,000 16,00,000
    10% Preference share capital 4,00,000 2,80,000
    Total 16,00,000 18,80,000
    2 Reserves and Surplus
    General reserve 6,00,000 7,60,000
    Profit and Loss account 2,40,000 3,40,000
    Total 8,40,000 11,00,000
    3 Long term borrowings
    9% Debentures 4,00,000 2,80,000
    Total 4,00,000 2,80,000
    4. Other current liabilities
    Dividend payable 1,20,000 -
    Current Liabilities 4,80,000 5,20,000
    Total 6,00,000 5,20,000

    © The Institute of Chartered Accountants of India


    a 11.122 ADVANCED ACCOUNTING

    5 Property, plant and


    equipment
    Property, plant and equipment 32,00,000 38,00,000

    Less: Depreciation (9,20,000) (11,60,000)


    Net carrying value 22,80,000 26,40,000

    Additional information:

    (i) The company sold one property, plant and equipment for ` 1,00,000, the
    cost of which was ` 2,00,000 and the depreciation provided on it was
    `80,000.

    (ii) The company also decided to write off another item of property, plant
    and equipment costing ` 56,000 on which depreciation amounting to
    ` 40,000 has been provided.

    (iii) Depreciation on property, plant and equipment provided ` 3,60,000.

    (iv) Company sold some investment at a profit of ` 40,000.

    (v) Debentures and preference share capital redeemed at 5% premium.


    Debentures were redeemed at the year end.

    (vi) Company decided to value inventory at cost, whereas previously the


    practice was to value inventory at cost less 10%. The inventory
    according to books on 31.3.20X0 was ` 2,16,000. The inventory on
    31.3.20X1 was correctly valued at ` 3,00,000.

    Prepare Cash Flow Statement as per revised Accounting Standard 3 by indirect


    method.

    13. ABC Ltd. gives you the Balance sheets as at 31st March 20X0 and 31st March
    20X1. You are required to prepare Cash Flow Statement by using indirect
    method as per AS 3 for the year ended 31st March 20X1:

    © The Institute of Chartered Accountants of India

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