CASH FLOW STATEMENT

1. 1
ACC
BY
MEENAKSHI
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98882-81570

2. 2
ACC
BY
MEENAKSHI
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98882-81570
• Introduction to cash flow statement
• Operating Activities
• Investing Activities
• Financing Activities

3. 3
ACC
BY
MEENAKSHI
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98882-81570
Describes the
Inflows (sources) and
outflows(Uses) of cash
and cash equivalents
During a specified period.
(As per AS-3)

4. 4
ACC
BY
MEENAKSHI

98882-81570
Objectives of cash flow statement
Cash Management: Tool for short-term financial
planning. By preparing the statement,
a firm can know how much cash can be
generated by its operations and
how much cash is needed.
Cash Planning: It helps in planning repayment of loans,
dividend policy,
replacement of fixed assets and
capital budgeting decisions.

5. 5
ACC
BY
MEENAKSHI
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98882-81570 Answers to Difficult Questions: Explains the
causes for financial difficulties.
Even if the firm is profitable, firm experiences
difficulty for cash
Discloses Reasons for success or failure:
Important technique for evaluating success or failure of
cash planning.
If the results are not as per expectation,
reasons can be analyzed and corrective steps can be
taken.

6. 6
ACC
BY
MEENAKSHI

98882-81570
Cash Flow Statements
Operating
Activities
Financing
Activities
Investing
Activities
Cash And
Cash
Equivalent

7. 7
ACC
BY
MEENAKSHI

98882-81570 Revenue producing activities and
generally result from
the transactions and other events
that determine the net profit or loss of the organisation

8. 8
ACC
BY
MEENAKSHI
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98882-81570
Operating
Activities
Cash Inflow Cash Outflow
1. Cash Sales
2. Cash Received From Debtors
3. Cash Received From
Commission And Fees
4. Royalty
1. Cash purchases
2. Payment to creditors
3. Cash operating expenses
4. Payment of wages
5. Income tax

9. 9
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BY
MEENAKSHI
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98882-81570
Activities that result in changes in size and
composition of
owners’ capital and
long-term debts of the firm.

10. 10
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BY
MEENAKSHI
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98882-81570
Financing
activities
Cash Inflow Cash Outflow
1. Issue of shares in cash
2. Issue of debentures in
cash
3. Long term borrowing
1. Payment of loans
2. Redemption of preferences
shares
3. Buy back of equity shares
4. Payment of dividend
5. Payment of interest

11. 11
ACC
BY
MEENAKSHI

98882-81570 Investing activities relate to purchase and sale of
long-term assets or fixed assets
such as machinery, furniture, land and building
and other investments

12. 12
ACC
BY
MEENAKSHI
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98882-81570
Investing
Activities
Cash Inflow Cash Outflow
1. Sales of fixed assets
2. Sales of investment
3. Interest received
4. Dividend received
1. Purchase of fixed assets
2. Purchase of investment

13. 13
ACC
BY
MEENAKSHI

98882-81570 Short term, highly liquid investments that can be
converted into known Amounts of cash
within a reasonable period, without subjecting to
any significant risk. Includes
•Cash
•Cash in hand
•Bank balance
•Short term investment
•Marketable securities

14. 14
ACC
BY
MEENAKSHI
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98882-81570
Identify the following items as:-
Operating activities ,Investing activities, Financing activities,
Cash & Cash equivalents
1. Cash sales
2. Cash received from trade receivables
3. Purchase of building
4. Sale of building
5. Issue of share capital and debentures
6. Buy back of equity shares
7. Dividend paid
8. Cash purchases
9. Redemption of debentures
Operating activities
Operating activities
Investing activities
Financing activities
Financing activities
Financing activities
Operating activities
Financing activities
Investing activities

15. 15
ACC
BY
MEENAKSHI
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98882-81570
Identify the following items as:-
Operating activities ,Investing activities, Financing activities,
Cash & Cash equivalents
1. Purchase of goodwill
2. Sales of patents
3. Short term deposit in a bank
4. Commission received
5. Rent paid
6. Income tax paid
7. Bank balance
8. Office Expenses
9. Investment in short term securities
Investing activities
Investing activities
Cash equivalents
Operating activities
Operating activities
Cash equivalents
Operating activities
Cash equivalents
Operating activities

16. 16
ACC
BY
MEENAKSHI
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98882-81570
No Item For financing
company
For non financing
company
1
2
3
4
Interest Received
Dividend Received
Interest Paid
Dividend Paid
Operating Activities
Operating Activities
Operating Activities
Financing Activities
Investing activities
Investing activities
Financing Activities
Financing Activities
These firms like Mutual Funds, Banks , Investment companies
has a main business of borrowing and advancing loans, buying
and selling of shares, debentures, fixed deposits
Other than financial enterprises like firms deals in
Manufacturing Of Garments, Steel , Real Estate etc.

17. 17
ACC
BY
MEENAKSHI
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98882-81570
Identify the following items as:-
Operating activities ,Investing activities, Financing activities,
Cash & Cash equivalents
1. Income tax refund
2. Interest received on investment by :-
(a) Financial company(b) Non financial
company
3. Sale of investment by :- (a) Financial
company (b) Non financial company
4. Interest paid on debentures:- (a)
Financial company (b) Non financial
company
5. Rent received by a company whose
main business is :- (a) Real estate
company (b) Manufacturing company
Operating activities
(a) Operating activities
(b) Investing activities
(a) Operating activities
(b) Financing activities
(a) Operating activities
(b) Investing activities
(a) Operating activities
(b) Investing activities

18. 18
ACC
BY
MEENAKSHI

98882-81570 When does the cash
flow arises
Inflow Of
cash
Outflow Of
Cash
Transactions result in either
increase/decrease in cash
equivalent

19. 19
ACC
BY
MEENAKSHI
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98882-81570 State which of the following transactions will result in
inflow/outflow or change in cash or cash equivalent
1. Purchase of inventory for cash
2. Purchase of goods on credit
3. Sale of goods costing Rs 10,000 for Rs 12000 for cash
4. Sales of goods on credit
5. Purchase of a fixed asset by issue of shares
1. Outflow of cash
2. No effect
3. Inflow of cash
4. No effect
5. No effect

20. 20
ACC
BY
MEENAKSHI

98882-81570 State which of the following transactions will result in
inflow/outflow or change in cash or cash equivalent
1. Sale of fixed assets ( book value Rs 15000) at a loss of Rs
5000
2. Cash received from debtors Rs 90,000 and allowed him discount
of Rs 1000
3. Shares issue for cash
4. Issue of fully paid bonus shares
5. Depreciation on furniture
1. Inflow of cash
2. Inflow of cash
3. Inflow of cash
4. No effect
5. No effect

21. 21
ACC
BY
MEENAKSHI

98882-81570 State which of the following transactions will result in
inflow/outflow or change in cash or cash equivalent
1. Purchase of patents
2. Issue of debenture for the purchase of machinery
3. Declaration of final dividend
4. Cash withdrawn from bank
5. Purchase of marketable securities of cash
1. Outflow cash
2. No effect
3. No effect
4. No effect
5. No effect

22. 22
ACC
BY
MEENAKSHI
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98882-81570 Particulars Amount
Format Of Cash flow statement
Net Cash from (or used) in Investing Activities
Cash Flows from Investing Activities
Net Cash from (or used) in Financing Activities
Cash Flows from Financing Activities
Net Increase (or Decrease) in Cash & Cash Equivalents (X+Y+Z)
Add: Cash and Cash Equivalents in the beginning
Cash and cash Equivalents at the end of the year
Cash Flows from Operating Activities
Cash Generated from operations activities

23. 23
ACC
BY
MEENAKSHI
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98882-81570 Cash flow from operating activities

24. 24
ACC
BY
MEENAKSHI
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98882-81570 Particulars Amount
Format Of from operating activities
Add:
•Depreciation
•Preliminary Expenses/Discount on issue of Share and Deb written off
•Goodwill, Patents and Trademarks amortized
•Interest on long-term borrowings
•Loss on Sale of Fixed Assets
Less:
•Interest Income
• Dividend Income
• Rental Income
• Profit on sale of Fixed Assets
Operating Profit before Working Capital Changes
Add: Decrease in current Assets ,Increase in Current Liabilities
Less: Increase in current Assets. Decrease in Current Liabilities
Cash Generated from operations
Less: Income Tax Paid (Previous year)
Net Profit before Tax (see note No. 1)
Adjustments for non cash and non operating items:
A, Cash Flows from Operating Activities
Net Cash Flows from/Used in operating activities

25. 25
ACC
BY
MEENAKSHI

98882-81570
Determine the net profit before tax
extraordinary items
Adjustment for non cash or non operating
income/expenses
Changes in current assets and current
liability

26. 26
ACC
BY
MEENAKSHI

98882-81570 Particulars Amount
Format Of Cash from operating activities
Add:
•Depreciation
•Preliminary Expenses/Discount on issue of Share and Deb written off
•Goodwill, Patents and Trademarks amortized
•Interest on long-term borrowings
•Loss on Sale of Fixed Assets
Less:
•Interest Income
• Dividend Income
• Rental Income
• Profit on sale of Fixed Assets
Operating Profit before Working Capital Changes
Add: Decrease in current Assets ,Increase in Current Liabilities
Less: Increase in current Assets. Decrease in Current Liabilities
Cash Generated from operations
Less: Income Tax Paid (Previous year)
Net Profit before Tax (see note No. 1)
Adjustments for non cash and non operating items:
A, Cash Flows from Operating Activities
Net Cash Flows from/Used in operating activities

27. 27
ACC
BY
MEENAKSHI

98882-81570 Particulars Amount
Calculation of Net Profit before Tax and Extraordinary Item.
Add: -
•Transfer to reserves
• Proposed dividend for Current Year –
• Provision for tax made during the current year
Net Profit of the current year (after appropriations)
Less: - Refund of tax
Net profit before tax
 Transfer to reserves
 Proposed dividend for Current Year –
 Provision for tax made during the current year
Reasons for additions and deduction of items

28. 28
ACC
BY
MEENAKSHI

98882-81570 Particulars Amount
Calculation of Net Profit before Tax and Extraordinary Item.
Add: -
•Transfer to reserves
• Interim dividend paid during the year
•Proposed dividend for Current Year –
• Provision for tax made during the current year
Net Profit of the current year (after appropriations)
Less: - Refund of tax
Net profit before tax
•Interim dividend paid during the year
Reasons for additions and deduction of items

29. 29
ACC
BY
MEENAKSHI

98882-81570 Particulars Amount
Calculation of Net Profit before Tax and Extraordinary Item.
Add: -
•Transfer to reserves
• Interim dividend paid during the year
•Proposed dividend for Current Year –
• Provision for tax made during the current year
Net Profit of the current year (after appropriations)
Less: - Refund of tax
Net profit before tax
Refund of tax
Reasons for additions and deduction of items

30. 30
ACC
BY
MEENAKSHI

98882-81570 Particulars 31.03.2011 31.03.2010
Balance in Statement of Profit and Loss 75,000 60,000
Provision for tax 12,000 21,000
Proposed dividend 19,000 13,000
General reserves 12000 10,000
Refund of tax 12,000
Particulars Amount
Working Note: Calculation of net profit before Tax
A, Cash Flows from Operating Activities
15,000
Net Profit after appropriations:
12,000
Add: Provision for Tax (current year)
Net Profit before tax 30,000
Add: Proposed Dividend (Previous year) 13,000
Add: Transferred to general reserves 2,000
Less: :- Refund of tax 12,000

31. 31
ACC
BY
MEENAKSHI

98882-81570 Particulars Amount
Format Of Cash from operating activities
Add:
•Depreciation
•Preliminary Expenses/Discount on issue of Share and Deb written off
•Goodwill, Patents and Trademarks amortized
•Interest on long-term borrowings
•Loss on Sale of Fixed Assets
Less:
•Interest Income
• Dividend Income
• Rental Income
• Profit on sale of Fixed Assets
Operating Profit before Working Capital Changes
Add: Decrease in current Assets ,Increase in Current Liabilities
Less: Increase in current Assets. Decrease in Current Liabilities
Cash Generated from operations
Less: Income Tax Paid (Previous year)
Net Profit before Tax (see note No. 1)
Adjustments for non cash and non operating items:
A, Cash Flows from Operating Activities
Net Cash Flows from/Used in operating activities

32. 32
ACC
BY
MEENAKSHI

98882-81570
Reasons for additions and deduction of items
 Depreciation
 Preliminary Expenses/Discount on issue of
Share and Deb written off
 Goodwill, Patents and Trademarks
amortized
Loss on Sale of Fixed Assets
 Interest Income
 Dividend Income
 Rental Income
 Profit on sale of Fixed Assets

33. 33
ACC
BY
MEENAKSHI

98882-81570 Particulars Amount
Format Of Cash from operating activities
Add:
•Depreciation
•Preliminary Expenses/Discount on issue of Share and Deb written off
•Goodwill, Patents and Trademarks amortized
•Interest on long-term borrowings
•Loss on Sale of Fixed Assets
Less:
•Interest Income
• Dividend Income
• Rental Income
• Profit on sale of Fixed Assets
Operating Profit before Working Capital Changes
Add: Decrease in current Assets ,Increase in Current Liabilities
Less: Increase in current Assets. Decrease in Current Liabilities
Cash Generated from operations
Less: Income Tax Paid (Previous year)
Net Profit before Tax (see note No. 1)
Adjustments for non cash and non operating items:
A, Cash Flows from Operating Activities
Net Cash Flows from/Used in operating activities

34. 34
ACC
BY
MEENAKSHI

98882-81570
Reasons For Additions
Decrease in current assets
Particulars 2013 2014
Debtors 20,000 15,000
Amount received from debtors (assumed) = Rs 20,000
Amount due from debtors at the end = Rs 15,000
Net amount received from debtors Rs 5000 ( Inflow)
Increase in current liability
Particulars 2013 2014
creditors 10,000 20,000
Amount paid to creditors ( assumed) = Rs 10,000
Amount due to creditors at the end = Rs 20,000
Amount paid less to creditors Rs 10,000 ( Inflow)

35. 35
ACC
BY
MEENAKSHI

98882-81570
Reasons For deductions
Increase in current assets
Particulars 2013 2014
Inventory 25,000 40,000
Amount received from sale of inventory (assumed) = Rs 25,000
Inventory unsold at the end of year = Rs 40,000
Net amount paid for inventory Rs 15000 ( outflow)
Increase in current liability
Particulars 2013 2014
Outstanding expenses 10,000 8,000
Amount paid for outstanding exp ( assumed) = Rs 10,000
Amount due for outstanding the end = Rs 8,000
Amount paid more for outstanding exp Rs 2,000 ( outflow)

36. 36
ACC
BY
MEENAKSHI

98882-81570
Operating profit before working capital changes = 2,10,000
Particulars Amount
Inventory
Add: Decrease in current Assets ,Increase in Current Liability
Less: Increase in current Assets. Decrease in Current Liability
Net Cash flow from operating activities
(31,000)
13,000
2,23,000
(57,000)
2,10,000
Operating Profit before Working Capital Changes
Trade Payables 13,000
Trade Receivables (24,000)
1,66,000
Office Exp Outstanding (2,000)
Particulars 31.03.2012 31.03.2011
Trade Receivables 1,64,000 1,40,000
Inventory 1,15,000 84,000
Trade Payables 73,000 60,000
Office Expenses Outstanding 4,000 6,000

37. 37
ACC
BY
MEENAKSHI

98882-81570 Particulars 31.03.2011 31.03.2012
Trade receivables 65,000 63,000
Trade payables 50,000 59,000
Expenses outstanding 2,000 1600
Prepaid expenses 900 1200
Inventory 70,000 58,000
Operating profit before working capital changes = 1,87,000
Particulars Amount
Inventory
Add: Decrease in current Assets ,Increase in Current Liability
Less: Increase in current Assets. Decrease in Current Liability
Net Cash flow from operating activities
12,000 23,000
2,10,000
(7,00)
1,87,000
Operating Profit before Working Capital Changes
Trade Receivables 2,000
Trade Payables 9,000
2,09,300
Office Exp Outstanding (400)
Prepaid expenses (300)

38. 38
ACC
BY
MEENAKSHI

98882-81570 Particulars 31.03.2011 31.03.2010
Operating loss before working capital chg 5,000
•Trade Receivables 25,000 31,000
•Outstanding Rent 12,000 21,000
Bank balance 40,000 38,000
•Prepaid Expenses 4,000 2,000
•Trade Payables 13,000 19,000
Particulars Amount
Trade Receivables
Add: Decrease in current Assets ,Increase in Current Liabilities
Less: Increase in current Assets. Decrease in Current Liabilities
Net Cash used in operating activities
Operating loss before working capital changes
A, Cash Flows from Operating Activities
(5,000)
Prepaid Expenses
Trade Payables
Outstanding Rent
(2,000)
(6,000)
(9,000)
6,000 6,000
1,000
(17,000)
(16,000)

39. 39
ACC
BY
MEENAKSHI

98882-81570 Particulars 31.03.2011 31.03.2012
Debtors 80,000 60,000
Bills receivables 7,000 10,000
Creditors 50,000 55,000
Bills payable 8000 6,000
Outstanding expenses 1,000 1,500
Prepaid expenses 1,800 1,600
Accrued income 8,00 900
Income received in advance 700 -
Operating profit before working capital changes = 1,00,000

40. 40
ACC
BY
MEENAKSHI

98882-81570
Particulars Amount
Prepaid Expenses
Add: Decrease in current Assets ,Increase in Current Liability
Less: Increase in current Assets. Decrease in Current Liability
Net Cash flow from operating activities
2,00
25,700
1,25,000
(58,00)
1,00,000
Operating Profit before Working Capital Changes
Debtors 20,000
Creditors 5,000
1,19,900
Bills payables (2,000)
Accrued income (100)
Income received in advance (7,00)
Exp Outstanding 5,00
Bills payables (3000)

41. 41
ACC
BY
MEENAKSHI

98882-81570 Adjustment regarding provision for
taxation
As per the guidelines ( Circular no 43 dated 2nd July by
C.B.S.E ) Accounting treatment of Deferred tax liability is
Non-evaluative)

42. 42
ACC
BY
MEENAKSHI

98882-81570
Note no 1 Amount
15,000
Net Profit after appropriations( 45,000 – 30,000)
20,000
Add: Provision for Tax
35,000
Particulars 2013 2014
Profit and loss A/c 30000 45000
Provision for taxation 20000
When only current year data is given
Particulars Amount
35,000
(20,000)
Net Profit before Tax (see note No. 1)
Less: Tax paid
Working Note: Calculation of net profit before Tax
Cash Flows from Operating Activities

43. 43
ACC
BY
MEENAKSHI

98882-81570
Note no 1 Amount
15,000
Net Profit after appropriations ( 45,000-30,000)
20,000
Add: Provision for Tax
35,000
Particulars 2014
Profit and loss A/c 30,000 45,000
Provision for taxation 14000 20000
When data for two years are given
Particulars Amount
35,000
(14,000)
Net Profit before Tax (see note No. 1)
Less: Tax paid
Working Note: Calculation of net profit before Tax
Cash Flows from Operating Activities

44. 44
ACC
BY
MEENAKSHI

98882-81570
Adjustment Regarding
Dividend

45. 45
ACC
BY
MEENAKSHI

98882-81570
Note no 1 Amount
15,000
Net Profit after appropriations:
14,000
Add: Proposed dividend
29,000
Particulars 2013 2014
Profit and loss A/c 5,000 20,000
Proposed dividend 14,000 20,000
Particulars Amount
Cash Flows from financing Activities
(14,000)
Less: Dividend Paid
Working Note: Calculation of net profit before Tax

46. 46
ACC
BY
MEENAKSHI

98882-81570

47. 47
ACC
BY
MEENAKSHI

98882-81570
Particulars 2013 2014
Goodwill 25,000 20,000
If goodwill is decreasing:- It will be added back to non-
cash items in cash from operating activities (Goodwill
written off)
Particulars 2013 2014
Goodwill 25,000 32,000
If goodwill is increasing:- It will be deduced from cash
from investing activities (Purchase of goodwill)

48. 48
ACC
BY
MEENAKSHI

98882-81570
No. Particulars Amount
1 Depreciation on Fixed Tangible Assets (Machinery) 20,000
2 Loss on sale of Fixed Tangible Assets (Furniture) 2,000
3 Goodwill written off 9,000
4 Provision for Taxation 35,000
5 Transfer to General Reserve 17,500
6 Gain on sale of Fixed Tangible Assets (Machinery) 8,000
Particulars 31.03.2011 31.03.2012
Trade Receivables (all good) 50,000 62,000
Trade payables 45,000 55,000
Inventory 12,000 8,000
Income received in Advance 8,000 -------
Outstanding Expenses 6,000 3,000
Prepaid Expenses -- 5,000
The profit of Philips Ltd. after appropriations was 2,50,000.
This profit was arrived at after taking into consideration the
following items
C.B.S.E guidelines

49. 49
ACC
BY
MEENAKSHI

98882-81570
Particulars Amount
Working Note: Calculation of net profit before Tax
A, Cash Flows from Operating Activities
2,50,000
Net Profit after appropriations:
35,000
Add: Provision for Tax
Add: Transfer to General Reserve
Net Profit before tax
17,500
3,02,500

50. 50
ACC
BY
MEENAKSHI

98882-81570 Particulars Amount
Cash from operating activities
Trade Payables
Add: Decrease in current Assets ,Increase in Current Liabilities
Less: Increase in current Assets. Decrease in Current Liabilities
Net Cash Flows from operating activities
A, Cash Flows from Operating Activities
3,02,500
Prepaid Expenses
Outstanding Expenses
Income received in Advance
(5,000)
(3,000)
(8,000)
10,000 14,000
3,39,500
3,11,500
(35,000)
Net Profit before Tax (see note No. 1)
Adjustments for non cash and non operating items:
Depreciation on Fixed Tangible Assets
Loss on sale of Fixed Tangible Assets
Goodwill written off
Less: Gain on sale of Machinery
20,000
2,000
9,000 3,33,500
3,25,500
8,000
Operating Profit before Working Capital Changes
Inventory 4,000
Trade Receivables (12,000)
Less: Tax paid
2,76,500

51. 51
ACC
BY
MEENAKSHI

98882-81570 Particulars Note no Amount
1 Revenue from operation 12,00,000
11 Other Income 1 18,000
111 Total Revenue 12,18,000
1V. Expenses
Employee benefit expenses 10,000
Depreciation and amortization expenses 20,000
Other expenses 2 31,000
Total expenses 61000
V Profit before tax (111 – 1V.) 55,000
Less:- provision for tax 21,000
Profit for the period 34,000
(1)Other income (2) Other expenses
Profit on sale of machinery 5,000 Goodwill written off 8,000
Dividend received 3,000 Rent 18,000
Rent received 4,000 Loss on sale of building 5,000
Income tax refund 6,000

52. 52
ACC
BY
MEENAKSHI

98882-81570 Particulars Amount
Profit of the period 80,000
Provision for taxation 36,000
Depreciation and amortization exp 45,000
Profit on sale of land 15,000
Interest received 3,000
Goodwill written off 10,000
Loss on sale of plant 30,000
Particulars 31.03.2012 31.03.2013
Trade Receivables (All Good) 1,40,000 1,64,000
Trade payables 84,000 1,15,000
Inventory 60,000 73,000
Office expenses outstanding 6,000 4,000
Particulars Amount
Working Note: Calculation of net profit before Tax
A, Cash Flows from Operating Activities
80,000
Net Profit after appropriations:
36,000
Add: Provision for Tax
Net Profit before tax 1,16,000

53. 53
ACC
BY
MEENAKSHI

98882-81570
Particulars Amount
Inventory
Add: Decrease in current Assets ,Increase in Current Liabilities
Less: Increase in current Assets. Decrease in Current Liabilities
Net Cash Flows from operating activities
A, Cash Flows from Operating Activities
1,16,000
(31,000)
13,000
2,23,000
(57,000)
(36,000)
Net Profit before Tax (see note No. 1)
Adjustments for non cash and non operating items:
Depreciation And amortization exp
Loss on sale of Plant
Goodwill Written off
Less: Gain on sale of Land
72,000
30,000
10,000 1,12,000
2,10,000
2,28,000
Operating Profit before Working Capital Changes
Trade payables 13,000
Outstanding expenses (2,000)
Less: Tax paid
1,30,000
Less: interest received
(15,000)
(3,000) (18,000)
Trade receivables (24,000)
1,66,000
Cash generated from operating activities

54. 54
ACC
BY
MEENAKSHI

98882-81570 Particulars Amount
Profit after tax 1,30,000
Tax paid 15,000
Depreciation 32,000
Share issue expenses 10,000
Particulars 31.03.2012 31.03.2013
Trade Receivables (All Good) 65,000 63,000
Trade payables 50,000 59,000
Office expenses outstanding 2,000 1,600
Prepaid expenses 900 12,00
Inventory 70,000 58,000
Particulars Amount
Working Note: Calculation of net profit before Tax
A, Cash Flows from Operating Activities
1,30,000
Net Profit after appropriations:
15,000
Add: Provision for Tax
Net Profit before tax 1,45,000

55. 55
ACC
BY
MEENAKSHI

98882-81570
Particulars Amount
Inventory
Add: Decrease in current Assets ,Increase in Current Liabilities
Less: Increase in current Assets. Decrease in Current Liabilities
Net Cash Flows from operating activities
A, Cash Flows from Operating Activities
1,45,000
12,000
23,000
2,10,000
(700)
(15,000)
Net Profit before Tax (see note No. 1)
Adjustments for non cash and non operating items:
Depreciation
Share issue expenses written off
32,000
10,000 42,000
1,87,000
Operating Profit before Working Capital Changes
Trade payables 9,000
Prepaid Expenses (300)
Less: Tax paid
1,94,300
Trade receivables 2,000
2,09,300
Cash generated from operating activities
Outstanding expenses (400)

56. 56
ACC
BY
MEENAKSHI

98882-81570
The Net income of M Ltd. for the year ended March 31, 2007 was
Rs. 4,89,000.Depreciation charged for the year was Rs. 87,000.
Income for the year was arrived at after adjusting for gain on sale of
land Rs.1,05,000,loss on sale of equipment Rs.48,000 and writing off
cost of equity issue Rs. 25,000.
Particulars March 31,2006 March 31,2007
Inventory 1,67,000 1,85,000
Receivables 1,45,000 1,42,000
Prepaid expenses 8,000 12000
Cash in hand and at bank 32,000 17,000
Payables 1,07,000 95,000
Expenses outstanding 9,000 13,000
Bank overdraft 80,000 60,000

57. 57
ACC
BY
MEENAKSHI

98882-81570 Particulars Amount
Format Of Cash flow statement
Inventory
Add: Decrease in current Assets ,Increase in Current Liabilities
Less: Increase in current Assets. Decrease in Current Liabilities
Net Cash Flows from operating activities
A, Cash Flows from Operating Activities
4,89,000
18,000
34,000
5,78,000
7,000
(4,000)
Net Profit before Tax (see note No. 1)
Adjustments for non cash and non operating items:
Depreciation on Fixed Tangible Assets
Loss on sale of Equipment
Writing off preliminary expense
Less: Gain on sale of Land
87,000
48,000
25,000 1,60,000
5,44,000
105,000
Operating Profit before Working Capital Changes
Payables 12,000
Trade creditors (3,000)
Expenses outstanding
5,71,000
Prepaid expenses 4,000

58. 58
ACC
BY
MEENAKSHI

98882-81570 Particulars Note no Amount
1 Revenue from operation 98000
11 Other Income 1 18,000
111 Total Revenue 1,16,000
1V. Expenses
Employee benefit expenses 10,000
Depreciation and amortization expenses 20,000
Other expenses 2 31,000
Total expenses 61000
V Profit before tax (111 – 1V.) 55,000
Less:- provision for tax 21,000
Profit for the period 34,000
Less :- Proposed Dividend 10,000
Balance of profit 24,000
(1)Other income (2) Other expenses
Profit on sale of machinery 5,000 Goodwill written off 8,000
Dividend received 3,000 Rent 18,000
Commission accrued 4,000 Loss on sale of building 5,000
Income tax refund 6,000

59. 59
ACC
BY
MEENAKSHI

98882-81570
Particulars Amount
A, Cash Flows from Operating Activities
49,000
(15,000)
Net Profit before Tax (see note No. 1)
Adjustments for non cash and non operating items:
Depreciation
Loss on sale of Building
Goodwill Written off
Less: Gain on sale of machinery
20,000
5,000
8,000 33,000
70,000
82,000
Less: Tax paid
Interest received
(5,000)
(3,000)
(12,000)
55,000
Cash generated from operating activities
Rent received (4,000)
Particulars Amount
Working Note: Calculation of net profit before Tax
A, Cash Flows from Operating Activities
24,000
Net Profit after appropriations:
15,000
Add: Provision for Tax (21000) - Refund of tax (6,000)
Net Profit before tax 49,000
10,000
Add: Proposed dividend
Cash flow from operating activities

60. 60
ACC
BY
MEENAKSHI

98882-81570 Adjustment regarding provision for
taxation
As per the guidelines ( Circular no 43 dated 2nd July by
C.B.S.E ) Accounting treatment of Deferred tax liability is
Non-evaluative)

61. 61
ACC
BY
MEENAKSHI

98882-81570
Note no 1 Amount
15,000
Net Profit after appropriations:
18,000
Add: Provision for Tax (current year)
33,000
Particulars 2013 2014
Profit and loss A/c 30,000 45,000
Provision for taxation 14,000 20,000
When two years data are given with adjustment
Particulars Amount
A, Cash Flows from Operating Activities
33,000
(12,000)
Net Profit before Tax (see note No. 1)
Less: Tax paid
Particulars Amount Particulars Amount
By Balance b/d 14,000
To balance c/d 20,000
32,000
32,000
By Statement Of Profit
And Loss A/c (current
years provision
balancing figure)
18,000
To Cash A/c 12,000
Provision For Taxation A/c
Adjustment:- Tax paid during the year Rs 12000

62. 62
ACC
BY
MEENAKSHI

98882-81570
Note no 1 Amount
15,000
Net Profit after appropriations:
18,000
Add: Provision for Tax (current year)
33,000
Particulars 2013 2014
Profit and loss A/c 30,000 45,000
Provision for taxation 14,000 20,000
When two years data are given with adjustment
Particulars Amount
A, Cash Flows from Operating Activities
15,000
(12,000)
Net Profit before Tax (see note No. 1)
Less: Tax paid
Particulars Amount Particulars Amount
By Balance b/d 14,000
To balance c/d 20,000
32,000
32,000
By Statement Of Profit
And Loss A/c (current
years provision)
18,000
To Cash A/c
(balancing figure)
12,000
Provision For Taxation A/c
Adjustment:- Provision for tax made during the year Rs 18000

63. 63
ACC
BY
MEENAKSHI

98882-81570
Items Amount
Provision for tax made during the year 44,000
Transfer to general reserves 5,000
Depreciation on tangible assets 50,000
Loss on sale of machinery 16,000
Provision for doubtful debts 10,000
Gain on sale of land 7,000
Particulars 2013 2014
Provision For Tax 10,000 25,000
Proposed Dividend 78,000 52,000
Prepaid Expenses 3,000 2,000
Inventory 51,000 40,000
Creditors 20,000 15000

64. 64
ACC
BY
MEENAKSHI

98882-81570
Particulars Amount
Working Note: Calculation of net profit before Tax
A, Cash Flows from Operating Activities
4,75,000
Net Profit after appropriations:
44,000
Add: Provision for Tax
Add: Transfer to General Reserve
Net Profit before tax
5,000
5,76,000
Particulars Amount Particulars Amount
By Balance b/d 10,000
To balance c/d 25,000
54,000
54,000
By Statement Of Profit
And Loss A/c
44,000
To Cash A/c( bal
fig
29,000
Provision For Taxation A/c
Add: Proposed Dividend
52,000

65. 65
ACC
BY
MEENAKSHI

98882-81570 Particulars Amount
Format Of Cash flow statement
Inventory
Add: Decrease in current Assets ,Increase in Current Liabilities
Less: Increase in current Assets. Decrease in Current Liabilities
Net Cash Flows from operating activities
A, Cash Flows from Operating Activities
6,12,000
11,000 12,000
6,93,000
6,88,000
(29,000)
Net Profit before Tax (see note No. 1)
Adjustments for non cash and non operating items:
Depreciation on Fixed Tangible Assets
Loss on sale of Machinery
Provision for doubtful debts
Less: Gain on sale of Land
50,000
16,000
10,000 ,76,000
6,81000
7,000
Operating Profit before Working Capital Changes
Prepaid Expenses 1,000
Trade creditors (5,000)
Less: Tax paid
6,59,000

66. 66
ACC
BY
MEENAKSHI

98882-81570
Tax paid during the year is Rs 18000
Particulars 31.03.2011 31.03.2010
Balance in Statement of Profit and Loss 75,000 60,000
Trade Receivables 25,000 31,000
Provision for tax 12,000 21,000
Goodwill 40,000 38,000
Prepaid Expenses 4,000 2,000
Proposed dividend 13,000 19,000

67. 67
ACC
BY
MEENAKSHI

98882-81570
Particulars Amount
Working Note: Calculation of net profit before Tax
A, Cash Flows from Operating Activities
15,000
Net Profit after appropriations:
9,000
Add: Provision for Tax
Add: Transfer to General Reserve
Net Profit before tax
5,000
48,000
Particulars Amount Particulars Amount
By Balance b/d 21,000
To balance c/d 12,000
30,000
30,000
By Statement Of Profit
And Loss A/c ( bal fig
9,000
To Cash A/c 18,000
Provision For Taxation A/c
Add: Proposed Dividend
19,000

68. 68
ACC
BY
MEENAKSHI

98882-81570 Particulars Amount
Format Of Cash flow statement
Add: Decrease in current Assets ,Increase in Current Liabilities
Less: Increase in current Assets. Decrease in Current Liabilities
Net Cash Flows from operating activities
A, Cash Flows from Operating Activities
48,000
6,000
60,000
58,000
(18,000)
Net Profit before Tax (see note No. 1)
Adjustments for non cash and non operating items:
Provision for Depreciation 6,000 ,6,000
54,000
Operating Profit before Working Capital Changes
Trade Receivables 6,000
Prepaid expenses (2,000)
Less: Tax paid
40,000
(2,000)
Note:- Goodwill is increasing it will come in investing activities

69. 69
ACC
BY
MEENAKSHI

98882-81570 Cash flow from
investing activities

70. 70
ACC
BY
MEENAKSHI

98882-81570 Particulars Amount
•Proceeds from Sale of Tangible Fixed Assets
•Proceeds from Sale of intangible Fixed Assets
•Proceeds from Sale of Non-Current Investments
•Interest and Dividend received, Rent received
•Purchase of Tangible Fixed Assets
•Purchase of intangible Fixed Assets like goodwill
•Purchase of Non-Current Investments
Net Cash from (or used) in Investing Activities
B. Cash Flows from Investing Activities

71. 71
ACC
BY
MEENAKSHI

98882-81570 Particulars Purchases sales
Plant 6,20,000 2,00,000
Investment 2,40,000 80,000
Goodwill 1,00,000 -
Patents --- 1,50,000
1. Interest received on debentures held as investment Rs 8,000
2. Interest paid on debentures issued Rs 15,000
3. Dividend received on shares held as investment Rs 20,000
4. Dividend paid on equity share capital Rs 25,000
5. A plot of land was purchased out of surplus for investment purposes
was let out for commercial use . rent received was Rs 30,000
Prepare cash flow from investing activities

72. 72
ACC
BY
MEENAKSHI

98882-81570 Particulars Amount
Purchase of investment
Sales of investment
Goodwill purchase
Purchase of plant
Proceeds from sale of Plant
Sale of patents
Interest received
Dividend received
Rent received
Net from Investing Activities
Cash Flows from Investing Activities
8,000
(2,40,000)
80,000
(1,00,000)
1,50,000
2,00,000
(6,20,000)
4,72,000
30,000
20,000

73. 73
ACC
BY
MEENAKSHI

98882-81570
Finding out the missing amount
regarding fixed assets and
depreciation when adjustments are
given

74. 74
ACC
BY
MEENAKSHI

98882-81570
Particulars Amount Particulars Amount
By Balance b/d XXXX
To Bank A/c XXXX
XXXX
XXXX
By Bank A/c XXXX
To Balance b/d XXXX
Machinery A/c ( At Written down value)
To Statement of P/L
( Profit On Sale)
By Dep. A/c XXXX
XXXX
Inflow
(Add)
Outflow
(Less)
When the fixed assets are shown at the written down value
By Statement of P/L
( Loss On Sale)
XXXX

75. 75
ACC
BY
MEENAKSHI

98882-81570 Particulars 2013 2014
Machinery 4,00,000 4,20,000
Additional information
1. During the year machinery costing Rs 40,000 with its accumulated
depreciation of Rs 24,000 was sold for Rs 20,000
2. Depreciation on machinery was Rs 30000
Prepare cash flow from investing activities
Particulars Amount Particulars Amount
By Balance b/d 4,20,000
To Bank A/c (Bal Fig) 66,000
4,70,000
4,70,000
By Bank A/c 20,000
To Balance b/d 4,00,000
Machinery A/c(written down value
To Statement of P/L
( profit on sale)
By Dep A/c 30,000
4,000
Inflow
(Add)
Outflow
(less)
Note:- Accumulated depreciation will not be consider because it
has already been deducted in the previous years

76. 76
ACC
BY
MEENAKSHI

98882-81570
Particulars Amount Particulars Amount
By Balance b/d XXXX
To Balance c/d XXXX
XXXX
XXXX
By Statement Of P/L A/c
(Current Year Dep.)
XXXX
24,000
Provision For Depreciation A/c
Particulars Amount Particulars Amount
By Balance b/d XXXX
To Bank A/c XXXX
XXXX
XXXX
By Bank A/c XXXX
To Balance b/d XXXX
Machinery A/c ( At Cost)
To Statement of P/L
( Profit On Sale)
By Acc Dep A/c XXXX
XXXX
To Machinery A/c
Inflow
(Add)
Outflow
(Less)
When the fixed assets are shown at original cost and
accumulated depreciation account is separately given
By Statement of P/L
( Loss On Sale)
XXXX

77. 77
ACC
BY
MEENAKSHI

98882-81570 Particulars 2002 2003
Equipment ( at cost) 65,00,000 78,70,000
Accumulated depreciation( 10,80,000 16,32,000
Additional information
1. During the year equipment costing Rs 12,30,000 with its accumulated
depreciation of Rs 7,18,000 was sold for Rs 4,68,000
Prepare cash flow from investing activities
Particulars Amount Particulars Amount
By Balance b/d 10,80,000
To Balance c/d 16,32,000
23,50,000
23,50,000
By Statement Of P/L A/c (Bal fig) 12,70,000
7,18,000
Provision For Depreciation A/c
Particulars Amount Particulars Amount
By Balance b/d 78,70,000
To Bank A/c (Purchase Bal Fig) 26,00,000
91,00,000
91,00,000
By Bank A/c (sale) 4,68,000
To Balance b/d 65,00,000
Office Equipment A/C
By Statement of profit & loss
( Loss on sale)
By Acc Dep A/c
7,18,000
44,000
To Machinery A/c
Inflow
Outflow

78. 78
ACC
BY
MEENAKSHI

98882-81570 Particulars 2013 2014
Machinery ( at cost) 4,00,000 4,20,000
Accumulated depreciation( 1,00,000 1,10,000
Patents 2,80,000 1,60,000
Additional information
1. During the year machinery costing Rs 40,000 with its accumulated depreciation of Rs
24,000 was sold for Rs 20,000
2. Patents were written off to the extent of Rs 40,000 and some patents were sold at a
profit of Rs 20,000
Prepare cash flow from investing activities
Particulars Amount Particulars Amount
By Balance b/d 1,00,000
To Balance c/d 1,10,000
1,34,000
1,34,000
By Statement Of P/L A/c (Bal fig) 34,000
24,000
Provision For Depreciation A/c
Particulars Amount Particulars Amount
By Balance b/d 4,20,000
To Bank A/c (Bal Fig) 60,000
4,64,000
4,64,000
By Bank A/c 20,000
To Balance b/d 4,00,000
Machinery A/c
To Statement of profit & loss
( profit on sale)
By Acc Dep A/c 24,000
4,000
To Machinery A/c
Inflow
Outflow

79. 79
ACC
BY
MEENAKSHI

98882-81570
Particulars Amount Particulars Amount
By Balance b/d 1,60,000
3,00,000
3,00,000
By Bank A/c 1,00,000
To Balance b/d 2,80,000
Patents
To Statement of profit &
loss ( profit on sale)
By Depreciation 40,000
20,000
Inflow
Particulars Amount
•Sale of machinery
•Purchase of machinery
•Sale of patents
Net Cash from Investing Activities
B. Cash Flows from Investing Activities
(60,000)
20,000
60,000
1,00,000
Particulars 2013 2014
Machinery ( at cost) 4,00,000 4,20,000
Accumulated depreciation( 1,00,000 1,10,000
Patents 2,80,000 1,60,000
Additional information
1. During the year machinery costing Rs 40,000 with its accumulated depreciation
of Rs 24,000 was sold for Rs 20,000
2. Patents were written off to the extent of Rs 40,000 and some patents were
sold at a profit of Rs 20,000
Prepare cash flow from investing activities

80. 80
ACC
BY
MEENAKSHI

98882-81570 Particulars 2013 2014
Investment 34,000 28,000
1. During the year the company sold 40% of its investment held in
the beginning of the period at a profit of Rs 8400. Calculate the
cash flow from investment activities.
Prepare cash flow from investing activities
Particulars Amount Particulars Amount
By Balance b/d 28,000
To Statement of P/L
( profit on sale) 8,400
50,000
50,000
By Bank A/c 22,000
To Balance b/d 34,000
Investment A/c
To bank (bal fig) 7,600
Particulars Amount
•Sale of investment
•Purchase of investment
Net Cash from Investing Activities
B. Cash Flows from Investing Activities
(7,600)
22,000
14,400
Outflow Inflow

81. 81
ACC
BY
MEENAKSHI

98882-81570 Particulars 2013 2014
Investment A/c 2,50,000 5,00,000
Fixed assets A/c 8,75,000 11,90,000
1. Half of the investment held in the beginning of the year were sold at 10% profit
2. Depreciation on fixed assets was Rs 1,00,000 for the year
3. Interest received on investment Rs 35,000
4. Dividend received on investment Rs 15,000
5. Rent received Rs 10,0000
Prepare cash flow from investing activities
Particulars Amount Particulars Amount
By Balance b/d 5,00,000
To Statement of P/L
( profit on sale)
12,500
6,37,500
6,37,500
By Bank A/c 1,37,500
To Balance b/d 2,50,000
Investment A/c
To bank (bal fig) 3,75,000
Inflow
Outflow
Particulars Amount Particulars Amount
By Balance b/d 11,90,000
To Bank A/c (Bal Fig)
12,90,000 12,90,000
4,15,000
By Depreciation A/c 100,000
To Balance b/d 8,75,000
Fixed Assets A/c
Outflow

82. 82
ACC
BY
MEENAKSHI

98882-81570 Particulars 2013 2014
Investment A/c 2,50,000 5,00,000
Fixed assets A/c 8,75,000 11,90,000
1. Half of the investment held in the beginning of the year were sold at
10% profit
2. Depreciation on fixed assets was Rs 1,00,000 for the year
3. Interest received on investment Rs 35,000
4. Dividend received on investment Rs 15,000
5. Rent received Rs 10,0000
Prepare cash flow from investing activities
Particulars Amount
•Sale of investment
•Purchase of investment
•Purchase of fixed assets
•Interest received
•Dividend received
•Rent received
Net Cash used Investing Activities
B. Cash Flows from Investing Activities
(3,75,000)
1,37,500
5,92,500
4,15,,000
100,00
15,000
35,000

83. 83
ACC
BY
MEENAKSHI

98882-81570
Cash flow from
financing activities

84. 84
ACC
BY
MEENAKSHI

98882-81570 Particulars Amount
•Proceeds from issue of Shares and Debentures
•Proceeds from Long-term Borrowings
•Final Dividend Paid ,Interim Dividend Paid
•Interest on Long-term borrowings paid
•Repayment of Loan ,- Redemption of Debentures
Net Cash from (or used) in financing Activities
C. Cash Flows from Financing Activities

85. 85
ACC
BY
MEENAKSHI

98882-81570 Particulars 31st March 2007 31st March 2006
Equity share capital 8,00,000 6,00,000
12% preference shares capital - 2,00,000
14% debentures 1,00,000 --
1. Equity shares were issued at a premium of 15%
2. Underwriting commission on equity shares Rs 10,000
3. 12% preference shares were redeemed at a premium of 5%
4. 14% debentures were issued at a discount of 1%
5. Interim dividend paid on equity shares Rs 90,000
6. Dividend paid on old preferences shares Rs 24000
7. Interest paid on debentures Rs 14,000
Prepare Cash Flow From Financing Activities
Particulars Amount
Proceeds from issue of equity share capital ( Rs 2,00,000 + Premium
Rs 30,000 – underwriting commission Rs 10000)
Redemption of preference shares ( RS 2,00,000 + RS 10000 (Premium)
 Proceeds from issue of debentures(1,00,000 – 1,000)
Interim dividend paid on equity shares
Dividend paid on preference shares ( 12% on 2,00,000)
 Interest paid on debentures ( 14% on 1,00,000)
Net Cash used in Financing Activities
Cash Flows from Financing Activities
(19,000)
2,20,000
(2,10,000)
99,000
(14,000)
(24,000)
(90,000)

86. 86
ACC
BY
MEENAKSHI

98882-81570 Particulars 31st March 2006 31st March 2007
Equity share capital 6,00,000 10,00,000
18% preference shares capital 4,00,000 3,00,000
Securities premium 1,00,000 2,60,000
14% debentures 2,00,000 2,50,000
Discount on debentures 5,000 6,000
Underwriting commission on issue of shares 20,000
1. Dividend on preference shares and an interim dividend @ 15% were paid on
equity shares on march 31st 2007
2. Preferences shares were redeem on march 31st 2007 at a premium on 5% such
premium has been provided out of profit
3. New shares and debentures were issued on march 31st 2007
Prepare cash flow from financing activities
Particulars Amount
Proceeds from issue of equity share capital ( Rs 4,00,000 + Premium
Rs 1,60,000 – underwriting commission Rs 20000)
Redemption of preference shares ( RS 1,00,000 + RS 5000 (Premium)
 Proceeds from issue of debentures(50,000 – 1,000)
Interim dividend paid on equity shares ( 15% on 6,00,000)
Dividend paid on preference shares ( 18% on 4,00,000)
 Interest paid on debentures ( 14% on 2,00,000)
Net Cash from Investing Activities
Cash Flows from Financing Activities
294,000)
5,40,000
(1,05,000)
49,000
(28,000)
(72,000)
(90,000)

87. 87
ACC
BY
MEENAKSHI

98882-81570 Particulars 31st March 2004 31st March 2005
Equity share capital 20,00,000 30,00,000
18% preference shares capital 2,00,000 1,00,000
Securities premium - 1,00,000
Profit and loss balance 4,00,000 8,00,000
10% debentures 10,00,000 10,00,000
1. Preference shares were redeemed on 31st march, 2005 at a premium of 5%.
2. Dividend on equity shares was paid 8%.
3. Fresh issue of equity shares was done on 1st April 2004
Prepare cash flow from financing activities
Particulars Amount
Proceeds from issue of equity share capital ( Rs 10,00,000 + Premium
Rs 1,00,000
Redemption of preference shares ( RS 1,00,000 + RS 5000 (Premium)
 Dividend paid on equity shares
Dividend paid on preference shares ( 10% on 2,00,000)
 Interest paid on debentures ( 10% on 10,00,000)
Net Cash Used in Investing Activities
Cash Flows from Financing Activities
6,35,000)
11,00,000
(1,05,000)
(1,00,000)
(20,000)
(2,40,000)

88. 88
ACC
BY
MEENAKSHI

98882-81570

89. 89
ACC
BY
MEENAKSHI

98882-81570 Particulars Amount
Format Of Cash flow statement
Net Cash from (or used) in Investing Activities
Cash Flows from Investing Activities
Net Cash from (or used) in Financing Activities
Cash Flows from Financing Activities
Net Increase (or Decrease) in Cash & Cash Equivalents (X+Y+Z)
Add: Cash and Cash Equivalents in the beginning
Cash and cash Equivalents at the end of the year
Cash Flows from Operating Activities
Cash Generated from operations activities

90. 90
ACC
BY
MEENAKSHI

98882-81570 Particulars Amount
Cash from operating activities 103800
Net cash used in investing activities (1,86,000)
Cash from financing activities 72200
Prepare cash flow statement.
Particulars 31st March 2012 31st March 2011
Cash and cash equivalent
Cash in hand 40,000 20,000
Current investment 20,000 50,000
Particulars Amount
Cash flow statement
Net cash used in Investing Activities
Net cash from Financing Activities
Net Decrease in Cash & Cash Equivalents (X+Y+Z)
Add: Cash and cash equivalents in the beginning
Cash and cash equivalents at the end of the year
Net cash from Operations Activities
70,000
1,03,800
(10,000)
72,200
(1,86,000)
60,000

91. 91
ACC
BY
MEENAKSHI

98882-81570 Particulars Amount
Cash from operating activities (16,000)
Net cash used in investing activities (1,05,000)
Cash from financing activities 1,30,000
Prepare cash flow statement.
Particulars 31st March 2012 31st March 2011
Cash and cash equivalent
Cash 7,000 15,000
Bank 32,000 20,000
Short term investment 15,000 10,000
Particulars Amount
Cash flow statement
Net cash used in Investing Activities
Net cash from Financing Activities
Net increase in Cash & Cash Equivalents (X+Y+Z)
Add: Cash and cash equivalents in the beginning
Cash and cash equivalents at the end of the year
Net cash used in Operations Activities
45,000
(16,000)
9,000
1,30,000
(1,05,000)
54,000

92. 92
ACC
BY
MEENAKSHI

98882-81570

93. 93
ACC
BY
MEENAKSHI

98882-81570 Particulars Note No. 31.03.2012 31.03.2011
I. Equity And Liabilities
1. Shareholders’ funds
(a) Share capital
(b) Reserve and surplus
2. Non Current Liabilities
Long Term borrowing
3. Current Liabilities
Trade payables
1
2
5,00,000
3,05,000
3,10,000
95,000
4,00,000
2,10,000
3,00,000
80,000
Total 12,10,000 9,90,000
II. ASSETS
(1) Non-Current Assets
Fixed Assets ( tangible)
Long term investment
(2) Current Assets
a) Inventories
b) Trade Receivable
c) Cash & Cash Equivalents
7,00,000
56,000
2,80,000
1,14,000
60,000
5,00,000
70,000
2,10,000
140,000
70,000
Total 12,10,000 9,90,000
.Prepare cash flow statement.

94. 94
ACC
BY
MEENAKSHI

98882-81570
Note no 31.03.2012 31.03.2011
1 Reserves and surplus
General Reserves 1,15,000 1,00,000
Profit And Loss 1,90,000 1,10,000
2 Long term borrowing
12% Debentures 1,50,000 2,00,000
14% Mortgage Loan 1,60,000 1,00,000
Interest paid during the year Rs 37,800

95. 95
ACC
BY
MEENAKSHI

98882-81570
Particulars Amount
Trade Payables
Add: Decrease in CA ,Increase in CL
Less: Increase in CA. Decrease in CL
Net Cash Flows from operating activities
Cash Flows from Operating Activities
95,000
15,000 41,000
1,73,800
(70,000)
1,03,800
Net Profit before Tax (see note No. 1)
Adjustments for non cash and non operating items:
Interest paid 37,800
1,32,800
Operating Profit before Working Capital Changes
Trade Receivables 26,000
Inventory (70,000)
37,800
X
Particulars Amount
Working Note: Calculation of net profit before Tax
80,000
Net Profit after appropriations: : ( 1,90,000 – 1,10,000)
Add: Transfer to General Reserve
Net Profit before tax
15,000
95,000

96. 96
ACC
BY
MEENAKSHI

98882-81570
Particulars Amount
Cash Flows from Investing Activities
(2,00,000)
Purchase of fixed assets
Sale of long term investment
Net cash used in Investing Activities
14,000
(186,000)
Issue of shares
Proceeds from mortgage loan
Redemption of debentures
Interest paid
Net Cash from financing activities
Cash Flows from Financing Activities
1,00,000
60,000
(50,000)
(10,000)
(37800)
72,200
Net Decrease in Cash & Cash Equivalents (X+Y+Z)
Add: Cash and cash equivalents in the beginning
Cash and cash equivalents at the end of the year
70,000
60,000
Y
Z

97. 97
ACC
BY
MEENAKSHI

98882-81570
Particulars Note No. 31.03.2012 31.03.2011
I. Equity And Liabilities
1. Shareholders’ funds
(a) Share capital
(b) Reserve and surplus (P/L Acc.
2. Non Current Liabilities
Long term borrowing
3. Current Liabilities
Trade payables
Other current liability
1
2
3,00,000
54,000
95,000
90,000
35,000
2,00,000
40,000
50,000
75,000
25,000
Total 5,74,000 3,90,000
II. Assets
(1) Non-Current Assets
Fixed Assets
Tangible Assets
Intangible assets
Long term investment
(2) Current Assets
a) Current investment
b) Inventories
c) Trade Receivable
d) Cash & Cash Equivalent
e) Other current assets
3
4
5
6
1,70,000
67,000
65,000
15,000
90,000
1,20,000
39,000
8,000
90,000
1,05,000
40,000
10,000
50,000
50,000
35,000
10,000
Total 5,74,000 3,90,000
.Prepare cash flow statement.

98. 98
ACC
BY
MEENAKSHI

98882-81570
Note 31.03.2012 31.03.2011
1 Long term borrowing
Public deposits 95,000 50,000
2 Other Current Liabilities
Outstanding expenses 35,000 25,000
3 Tangible assets
Land and building 1,70,000 90,000
4 Intangible assets
Goodwill 60,000 90,000
Patents 7,000 15,000
5 Current investment
marketable securities 15,000 10,000
6 Other current assets
Prepaid Expense 8,000 10,000
Interest paid on public deposits Rs 9000
On 1st April 2011 10,000 shares of 10 each were issued at 6% discount

99. 99
ACC
BY
MEENAKSHI

98882-81570
Particulars Amount
Trade payables
Add: Decrease in CA ,Increase in CL
Less: Increase in CA. Decrease in CL
Net Cash used in operating activities
Cash Flows from Operating Activities
14,000
15,000
27,000
94,000
(1,10,000)
(16,000)
Net Profit before Tax (see note No. 1)
Adjustments for non cash and non operating items:
Patents written off
Interest Paid
8,000
9,000
67,000
Operating Profit before Working Capital Changes
Prepaid Expenses 2,000
Inventory (40,000)
53,000
X
Goodwill written off 30,000
Outstanding Expenses 10,000
Trade receivables (70,000)
Particulars Amount
Working Note: Calculation of net profit before Tax
14,000
Net Profit after appropriations: : ( 54,000 – 40,000)
Net Profit before tax 14,000
Discount written off 6,000

100. 10
0
ACC
BY
MEENAKSHI

98882-81570
Particulars Amount
Cash Flows from Investing Activities
(80,000)
Purchase of land and building
Purchase of long term investment
Net cash used in Investing Activities
(25,000)
(105,000)
Issue of shares (1,00,000 – 6,000 )
Proceeds from public deposits
Interest paid
Net Cash from financing activities
Cash Flows from Financing Activities
9,4,000
45,000
(9,000)
9,000
1,30,000
Net Increase in Cash & Cash Equivalents (X+Y+Z)
Add: Cash and cash equivalents in the beginning
Cash and cash equivalents at the end of the year
45,000
54,000
Y
Z

101. 10
1
ACC
BY
MEENAKSHI

98882-81570 Particulars Note No. 31.03.2012 31.03.2011
I. Equity And Liabilities
1. Shareholders’ funds
(a) Share capital
(b) Reserve and surplus
2. Non Current Liabilities
Long term borrowing
3. Current Liabilities
short term provision
Trade payables
Short term provisions
1
2
3
80,000
80,000
--
25,000
90,000
45,000
80,000
30,000
75,000
37,000
46,000
32,000
Total 3,20,000 3,00,000
II. ASSETS
1 Non-Current Assets
Fixed Assets
2 Current Assets
a) Current investment
b) Inventories
c) Trade Receivable
d) Cash & Cash Equivalents
4 90,000
30,000
90,000
97,000
13,000
1,50,000
20,000
60,000
65,000
5,000
Total 3,20,000 3,20,000
34.Prepare cash flow statement.

102. 10
2
ACC
BY
MEENAKSHI

98882-81570
Note 31.03.2012 31.03.2011
1 Long term borrowing
15 % loan - 75,000
2 Short term borrowing
Bank overdraft 25,000 37,000
3 Short term provisions
Provision for taxations 15,000 12,000
Proposed divided 30,000 20,000
4 Fixed assets
Plant and machinery 1,50,000 2,00,000
Less provision for deprecation (60,000) (50,000)
1. Loan was repaid on 1st April, 2011

103. 10
3
ACC
BY
MEENAKSHI

98882-81570
Particulars Amount
Trade payables
Add: Decrease in CA ,Increase in CL
Less: Increase in CA. Decrease in CL
Cash generated in operating activities
Cash Flows from Operating Activities
95,000
44,000 44,000
1,49,000
(72,000)
77,000
Net Profit before Tax (see note No. 1)
Adjustments for non cash and non operating items:
Depreciation on plant 10,000
1,05,000
Operating Profit before Working Capital Changes
Inventory (30,000)
10,000
Trade receivables (32,000)
Net Cash used in operating activities 65,000
X
Less:- payment of tax ( previous year ) (12,000)
Particulars Amount
50,000
Net Profit after appropriations: (80,000 – 30,000)
15,000
Add: Provision for Tax ( current year)
Add: Proposed dividend ( current year)
Net Profit before tax
30,000
95,000
Working Note: Calculation of net profit before Tax
Current investment (10,000)

104. 10
4
ACC
BY
MEENAKSHI

98882-81570
Particulars Amount
Cash Flows from Investing Activities
50,000
Sale of plant and machinery
Net cash from Investing Activities 50,000
Repayment of Loan
Payment of dividend
Net Cash used in financing activities
Cash Flows from Financing Activities
(75,000)
(20,000)
20,000
(95,000)
Net Increase in Cash & Cash Equivalents (X+Y+Z)
Add: Cash and cash equivalents in the beginning
Cash and cash equivalents at the end of the year
(32,000)
(12,000)
Y
Z

105. 10
5
ACC
BY
MEENAKSHI

98882-81570 Particulars Note No. 31.03.2012 31.03.2011
I. Equity And Liabilities
1. Shareholders’ funds
(a) Share capital
(b) Reserve and surplus (P/L
Acc.
3. Current Liabilities
Trade payables
1
2
2,50,000
59,000
49,500
2,25,000
35,000
37,500
Total 3,58,500 2,97,500
II. ASSETS
1 Non-Current Assets
Fixed Assets ( tangible)
Intangible assets
2 Current Assets
a) Inventories
b) Trade Receivable
c) Cash & Cash Equivalents
3
4
1,60,000
20,000
15,000
1,54,500
9,000
1,20,000
36,000
10,000
1,19,000
12,500
Total 3,58,500 2,97,500
35.Prepare cash flow statement.

106. 10
6
ACC
BY
MEENAKSHI

98882-81570
Note no 31.03.2012 31.03.2011
1 Share capital
Equity share capital 2,00,000 1,50,000
Preference share capital 50,000 75,000
2 Reserves and surplus
General reserves 35,000 20,000
Profit and loss account 24,000 15,000
3 Tangible Assets
Building 60,000 80,000
Plant 1,00,000 40,000
4 Intangible assets
Goodwill 20,000 36,000
1. Depreciation charges on plant Rs 10,000
2. Depreciation charges on building Rs 60,000

107. 10
7
ACC
BY
MEENAKSHI

98882-81570
Particulars Amount
Trade payables
Add: Decrease in CA ,Increase in CL
Less: Increase in CA. Decrease in CL
Cash Flows from Operating Activities
24,000
12,000 12,000
1,22,000
(40500)
81,500
Net Profit before Tax (see note No. 1)
Adjustments for non cash and non operating items:
Depreciation on plant 10,000
1,10,000
Operating Profit before Working Capital Changes
Inventory (5,000)
86,000
Trade receivables (35,500)
Net Cash from operating activities
Depreciation on Building 60,000
Goodwill written off 16,000
Particulars Amount
9,000
Net Profit after appropriations:
15,000
Add: Transfer to General Reserve
Net Profit before tax 24,000
Working Note: Calculation of net profit before Tax

108. 10
8
ACC
BY
MEENAKSHI

98882-81570
Particulars Amount Particulars Amount
By Balance b/d 60,000
To Bank A/c (Bal Fig )
Purchase
40,000
1,20,000
1,20,000
By depreciation A/c 60,000
To Balance b/d 80,000
Building A/c ( At Cost)
Particulars Amount Particulars Amount
By Balance b/d 1,00,000
To Bank A/c (Bal Fig)
purchase
70,000
1,10,000
1,10,000
By depreciation A/c 10,000
To Balance b/d 40,000
Plant A/c ( At Cost)

109. 10
9
ACC
BY
MEENAKSHI

98882-81570
Particulars Amount
Cash Flows from Investing Activities
(40,000)
Purchase of Building
Net cash from Investing Activities (1,10,000)
 Issue of equity share capital
 Redemption of preference share capital
Net Cash used financing activities
Cash Flows from Financing Activities
50,000
(25,000)
(3,500)
25,000
Net decrease in Cash & Cash Equivalents (X+Y+Z)
Add: Cash and cash equivalents in the beginning
Cash and cash equivalents at the end of the year
12,500
9,000
Y
Z
(70,000)
Purchase of Plant

110. 11
0
ACC
BY
MEENAKSHI

98882-81570 Particulars Note No. 31.03.2012 31.03.2011
I. Equity And Liabilities
1. Shareholders’ funds
(a) Share capital
(b) Reserve and surplus (P/L Acc.
2. Non Current Liabilities
Loan from borrowing
3. Current Liabilities
Trade payables
7,00,000
2,00,000
3,00,000
30,000
6,00,000
1,10,000
2,00,000
25,000
Total 12,30,000 9,35,000
II. ASSETS
(1) Non-Current Assets
Fixed Assets ( tangible)
Tangible Assets
(2) Current Assets
a) Inventories
b) Trade Receivable
c) Cash & Cash Equivalents
11,00,000
70,000
32,000
28,000
8,00,000
60,000
40,000
35,000
Total 12,30,000 9,35,000
1. At the beginning of the year a piece of machinery of the book
value of Rs 80,000 was for Rs 65,000
2. Depreciation charges on tangible assets amounted to Rs 2,00,000.
Prepare cash flow statement.

111. 11
1
ACC
BY
MEENAKSHI

98882-81570
Particulars Amount
Trade payables
Add: Decrease in CA ,Increase in CL
Less: Increase in CA. Decrease in CL
Cash Flows from Operating Activities
90,000
8,000
13,000
3,18,000
(10,000)
3,08,000
Net Profit before Tax (see note No. 1)
Adjustments for non cash and non operating items:
Depreciation on fixed assets(machinery) 2,00,000
3,05,000
Operating Profit before Working Capital Changes
Inventory (10,000)
2,15,000
Trade receivables 5,000
Net Cash flow from operating activities
Depreciation on Building 15,000
X
Particulars Amount
Working Note: Calculation of net profit before Tax
90,000
Net Profit after appropriations: ( 2,00,000 – 1,10,000)

112. 11
2
ACC
BY
MEENAKSHI

98882-81570
Particulars Amount Particulars Amount
By Balance c/d 11,00,000
To Bank A/c (Bal Fig) 5,80,000
13,80,000
13,80,000
By depreciation A/c 2,00,000
To Balance b/d 8,00,000
Fixed assets Tangible A/c
By Bank (sale) 65,000
By statement of profit
and loss a/c
15,000

113. 11
3
ACC
BY
MEENAKSHI

98882-81570 Particulars Amount
Cash from operating activities
Add: Decrease in current Assets ,Increase in Current Liabilities
Less: Increase in current Assets. Decrease in Current Liabilities
Net Cash Flows from operating activities
A, Cash Flows from Operating Activities
48,000
6,000
60,000
58,000
(18,000)
Net Profit before Tax (see note No. 1)
Adjustments for non cash and non operating items:
Provision for Depreciation 6,000 ,6,000
54,000
Operating Profit before Working Capital Changes
Trade Receivables 6,000
Prepaid expenses (2,000)
Less: Tax paid
40,000
(2,000)