Sample Papers
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CBSE ANNUAL PAPER - 2000
ACCOUNTANCY
(SET-I)
Time allowed : 3
Hours
M.M. :
100
Note :
(i)
This paper is divided into four parts - A,B,
C,D.
(ii)
Part A is compulsory; attempt one out of parts
B,C and D.
(iii)
Each part carries 50 marks.
(iv)
Each question carries marks indicated against
it. |
| Q.1. |
Why is 'Profit and Loss
Appropriation Account' prepared ?
(3) |
| Ans. |
The net
profit as shown by profit and Loss Account is
before adjustment which cannot be divided among
the partners. Therefore, Profit Loss
Appropriation Account is prepared to as certain
the net profit after all adjustments regarding
interest on Capital, interest on drawing, salary
to partner, etc. The net profit as shown by the
Profit and Loss Appropriation is divided among
the partners in their profit sharing ratio.
|
| Q.2. |
What are the alternatives
available to a company for the allotment of
debentures when there is over-subscription of
debentures ? (3) |
| Ans.
|
Like
shares, a company cannot allot more debenture
than it has offered for subscription. when more
application are received than offered for
subscription of debentures, the same is known as
'over-subscription'. In such a situation, the
excess application money may be adjusted towards
allotment and respective calls when the amount
is payable in instalments. but money received
from applicants to whom no debenture has been
alloted will be returned to them.
|
| Q.3. |
A and B were partners sharing profits in
the ratio of 3:2. They admitted X and Y as new
partners. A surrendered 1/3rd of his share in
favour of X and B surrendered 1/4th of his share
in favour of Y. Calculated the new profit
sharing ratio of A,B, X and Y.
(3) |
| Ans. |
Old Ratio of A adn B = 3:2
or 3/5 : 2/5 A's Sacrifice in favour of X = 3/5 x 1/3 =
1/5
B's Sacrifice in favour of Y = 2/5x1/4 =
2/20
X's Share = 1/5
Y's Share = 2/20
A's Share = Old share - Sacrifice = 3/5 -
1/5 = 2/5
B's share = Old Share - Sacrifice = 2/5 -
2/20 = 6/20
\
New Ratio of A,B, X and Y = 2/5 : 6/20 :
1/5 : 2/20
= 8:6:4:2.
|
| Q.4. |
A and B were partners in a firm sharing
profits and losses equally. Their firm was
dissolved on 15th March 1999, which resulted in
a loss of Rs. 30,000. Om that date the capital
account of A showed a credit balance of Rs.
20,000 and that of B a credit balance of Rs.
30,000. The cash account had a balance of Rs.
20,000. You are required to pass the necessary
journal entries for the (i) transfer of loss to
the capital accounts of the partners and (ii)
making final payment to the partners.
(4) |
| Ans. |
| Date |
Particulars |
L.F. |
Dr. (Rs.) |
Cr. (Rs.) |
| - |
A's Capital A/c
Dr. |
- |
15,000 |
- |
| - |
B's Capital A/c
Dr. |
- |
15,000 |
30,000 |
| - |
To Realisation A/c ( Being the transfer
of loss on realisation)
|
- |
- |
- |
| - |
A's Capital A/c
Dr. |
- |
5,000 |
- |
| - |
B's Capital A/c
|
- |
15,000 |
- |
| To Cash A/c (Being the final
payment made to partners)
|
- |
- |
20,000 |
- |
|
| Q.5. |
M and J are partners in a firm sharing
profits in the ratio of 3:2. They admitted R as
a new partner. the new profit sharing ratio
between M.J and R will be 5:3:2. R brought Rs.
25,000 for his share of goodwill premium. Pass
the necessary journal entries for the treatment
of goodwill.(3) |
| Ans. |
Journal |
|
| Date
|
Particulars |
L.F. |
Dr. (Rs.) |
Cr. (Rs.) |
| - |
Bank A/c Dr. |
- |
25,000 |
- |
| - |
To R's Capital A/c ( Being the amount of goodwill
brought in by
R) |
- |
- |
25,000 |
| - |
R's Capital A/c Dr.
|
- |
25,000 |
- |
| - |
To M's Capital A/c
|
- |
- |
12,500 |
| - |
To J's Capital A/c. (Being the goodwill credited
to old partners in their
sacrificing ratio) |
- |
- |
12,500 |
|
| Q.6. |
Suvidha Ltd. purchased machinery worth Rs.
1,98,000 from Suppliers LTd. The payment was
made by issue of 12 % debentures of Rs. 100
each. Pas necessary journal entries for the
purchase of machinery and issue of debentures
when :
(i) Debentures
are issued at par.
(ii)
Debentures are issued at 10 % discount.
(iii)
Debentures are issued at 10 % premium.
(4) |
| Ans. |
Journal |
|
| Date
|
Particulars |
L.F. |
Dr. (Rs.) |
Cr. (Rs.) |
| - |
Machinery A/c Dr.
|
- |
1,98,000 |
- |
| - |
To Suppliers Ltd. A/c
( Being machinery
purchased) |
- |
- |
1,98,000 |
| - |
(i) Debentures are issued
at par Suppliers Ltd. A/c Dr.
To 12 % Debentures A/c
(Being 1980, 12 % Debentures
of Rs. 100 each
alloted to vendor)
|
- |
1,98,000 |
1,98,000 |
| - |
(ii) Debentures are issued
at 10 % Discount
|
- |
- |
- |
| - |
Suppliers Ltd. A/c
Dr. |
- |
1,98,000 |
- |
| - |
Discount on issue of Debt
A/c Dr. |
- |
22,000 |
- |
| - |
To 12 % Debentures A/c
( Being 2,200 12 % Debentures
of Rs. 100 each issued at a
discount
of 10 %
to vendor)
|
- |
- |
2,20,000 |
| - |
(iii) Debentures are
issued at 10 % Premium
|
- |
- |
- |
| - |
Suppliers Ltd. A/c
|
- |
1,98,000 |
- |
| - |
To 12 % Debentures A/c
|
- |
- |
1,80,000 |
| - |
To Debenture Premium
A/c ( Being the issue of 1,8002
debentures Rs. 100 each at
a premium of Rs. 10 per debenture)
|
- |
- |
18,000 |
| Working Notes
: (1) No. of Debentures = Purchase Price /
Issue
= Rs. 1,98,000/Rs. 90 = 2,200 Debentures
(2) = 1,98,000/1,10 = 1,800 Debentures
|
|
| Q.7. |
X Ltd. has an authorised capital of Rs,
10,00,000 disvided into Equity shares of Rs. 10
each. The company invited applications for
50,000 shares, Applications for 40,000 shares
were received. All calls were made and were duly
received except the final call of Rs. 2 per
share on 1000 shares. 500 of the shares on which
the final call was not received were forfeited.
Show how Share Capital will appear in the
Balance Sheet of the Company as per Schedule VI
Part I of the Comapneis Act 1956 ?
(5) |
| Ans. |
Extract from Balance -
Sheet |
|
| Liabilities |
- |
Rs. |
| Share Capital |
- |
- |
| Authorised |
- |
- |
| 1,00,000 equity shares of
Rs. 10 each |
- |
10,00,000 |
| Issued Capital
|
- |
- |
| 50,000 equity shares of Rs.
10 each. |
- |
5,00,000 |
| Subscribed |
- |
- |
| 39,500 equity shares of Rs.
10 each |
3,95,000 |
3,94,000 |
| Less : Call in arrears
|
1,000 |
4,000 |
| Share Forfeited
A/c |
- |
- |
|
| Q.8. |
AB Ltd. invited applications for 1,00,000
12 % Preference Shares of Rs. 100 each issued at
a discount of 10 %. The amount was payable as
follows : |
|
| On Application
|
Rs.20 |
| On Allotment
|
Rs. 30 |
| On first and Final call -
balance
|
|
|
Applications for 1,50,000 shares were
received. Applications for 30,000 shares were
rejected and pro-rata allotment was made to the
remaining applicants. All calls were made and
were duly received except the first and final
call on 100 shares held by Kumar. His shares
were forfeited. Out of the forfeited shares 750
shares were reissued at Rs. 120 per share fully
paid up. Pass necessary journal entries in the
books of AB Ltd.(11) |
| Ans. |
Journal
Entries |
|
| Date
|
Particulars |
L.F. |
Dr. (Rs.) |
Cr (Rs.) |
| - |
Bank A/c Dr. |
- |
3,00,000 |
- |
| - |
To 12 % Pref. Share
Application A/c
(Being the application
money received for 1,50,000
shares @ at Rs. 20 per
Share)
|
- |
- |
3,00,000 |
| - |
12 % Pref. Share
|
- |
- |
- |
| - |
Application A/c
Dr. |
- |
30,00,000 |
- |
| - |
To 12 % Pref.
share |
- |
- |
20,00,000 |
| - |
Capital A/c |
- |
- |
6,00,000 |
| - |
To Bank A/c |
- |
- |
- |
| - |
To 12 % Pref. Share
allotment A/c
( Being the application
money adjusted and surplus money
refunded) |
- |
- |
4,00,000 |
| - |
12 % Pre Share
|
- |
- |
- |
| - |
Allotment A/c
Dr. |
- |
30,00,000 |
- |
| - |
Discount on issue of shares
A/c Dr. |
- |
10,00,000 |
- |
| - |
To 12 % Pref. Share Capital
A/c ( Being the allotment money due on
1,00,000 shares @ Rs. 40 per
share) |
- |
- |
4,00,000 |
| - |
Bank A/c Dr. |
- |
24,00,000 |
- |
| - |
To 12 % Pref. share
Allotment a/c (Being the remaining allotment money
received on 1,00,000 shares) |
- |
- |
24,00,000 |
| - |
12 % Pref. Share first and
final call A/c Dr.
|
- |
40,00,000 |
- |
| - |
To 12 % Pref. Share Capital
A/c ( Being the first final call money due)
|
- |
- |
40,00,000 |
| - |
Bank A/c Dr. |
- |
39,60,000 |
- |
| - |
To 12 % Profit Share
first final call A/c
( Being the first and final call money
received on 99000 shares) |
- |
- |
39,60,000 |
| - |
12 % Pre. Share
|
- |
- |
- |
| - |
Capital A/c Dr.
|
- |
1,00,000 |
- |
| - |
To 12 % Pre. Share First Final call A/c |
- |
- |
40,000 |
| - |
To Discount on issue of
shares A/c |
- |
- |
10,000 |
| - |
To Forfeited Shares A/c
(Being 1000 shares forfeited for
non-payment of the first final call)
|
- |
- |
50,000 |
| - |
Bank A/c Dr. |
- |
90,000 |
- |
| - |
To 12 % Pre. Share Capital A/c
|
- |
- |
75,000 |
| - |
To share Pxremium a/c
( Being re-issue of 750 shares @ Rs. 120
per share)
|
- |
- |
15,000 |
| - |
Share Forfeited A/c Dr.
|
- |
37,500 |
- |
| - |
To Capital Reserve A/c
( Being net gain on the reissue of 750
forfeited
shares transferred to
Capital Reserve A/c) |
- |
- |
37,500 |
|
| Q.9. |
A,B and C were partners sharing profits in
the proportions of 1/2, 1/3 and 1/6
respectively. the Balance Sheet of the firm onn
31st March 1998 was as follows :
|
|
| Liabilities
|
Amount (Rs.) |
Assets |
- |
Amount (Rs.) |
| Sundry Creditors
|
12,600 |
Cash at Bank
|
- |
- |
| Provident Fund
|
3,000 |
Debtors |
30,000 |
- |
| Reserve Fund
|
9,000 |
Less Provision |
1,000 |
- |
| Capitals
|
- |
Stock |
- |
25,000 |
| A |
40,000 |
Investments |
- |
10,000 |
| B |
36,500 |
Patents |
- |
5,000 |
| C |
20,000 |
Plant Machinery |
- |
48,000 |
| - |
1,21,100 |
- |
- |
1,21,100 |
| C retired on the above date
on the following terms :
(i) Goodwill
of the firm was valued at Rs. 27,000, but it was
not to remain in the books of the new
firm.
(ii) Value of
the patents was to be reduced by 20 5 and that
of Plant and Machinery by 10 %
(iii)
Provision for doubtful debts was to be raised to
6 %.
(iv) C took
over the Investments at a value of Rs. 15,800.
(v) Liability
on account of Provident Fund was only Rs. 2,500.
Show the
necessary Journal Entries for the treatment of
goodwill, prepare revaluation account, Capital
accounts of the partners and the Balance Sheet
of A and B after C's retirement. (14)
|
|
|
|
|
| Date
|
Particulars |
L.F. |
Dr. (Rs.) |
Cr. (Rs.) |
| - |
Goodwill A/c
Dr. |
- |
27,000 |
- |
| - |
To A's Capital A/c
|
- |
- |
13,500 |
| - |
To B's Capital
A/c |
- |
- |
9,000 |
| - |
To C's Capital A/c ( Being the goodwill raised so as to bring
up to its present value)
|
- |
- |
4,500 |
| - |
A's Capital A/c
Dr. |
- |
16,200 |
- |
| - |
B's Capital A/c
Dr. |
- |
10,800 |
- |
| - |
To Goodwill A/c ( Being the goodwill written off in new
ratio of 3:2)
|
- |
- |
27,000 |
|
|
Revaluation Account
|
|
| Dr. |
- |
- |
Cr. |
| Particulars |
Rs. |
Particulars |
Rs. |
| To Patents |
1,000 |
By Investments
|
5800 |
| To Plant Machinery
|
4,800 |
By Loss on Revaluation t/f
to : |
- |
| To Provision for Doubtful
Debts |
800 |
A's Capital A/c
400 |
- |
| - |
- |
B's Capital A/c
267 |
- |
| - |
- |
C's Capital A/c
133 |
800 |
| - |
6,600 |
- |
6,600 |
|
|
Dr.Cr. |
|
| Particulars |
A Rs. |
B Rs. |
C Rs. |
Particulars |
A Rs. |
B Rs. |
C Rs. |
| To Revaluation A/c
Loss |
400 |
267 |
133 |
By Balance b/d
|
40,000 |
36,500 |
20,000 |
| To Investments
|
-- |
-- |
15,800 |
By Reserve Fund
|
4,500 |
3,000 |
1,500 |
| To Goodwill A/c
|
16,200 |
10,800 |
-- |
By Provident
Fund |
250 |
167 |
83 |
| To C's Loan A/c
|
-- |
-- |
10,150 |
By Goodwill
A/c |
13,500 |
9,000 |
4,500 |
| To Balance c/d
|
41,650 |
37,600 |
-- |
- |
- |
- |
- |
| - |
58,250 |
48,667 |
26,083 |
- |
58,250 |
48,667 |
26,083 |
|
|
Balance Sheet of A and B
as at 31st March
|
|
| Liabilities |
Rs. |
Assets |
Rs. |
| Sundry Creditors
|
12,600 |
Cash at Bank |
- |
4,100 |
| Provident Fund
|
2,500 |
Debtors |
30,000 |
- |
| C's Loan A/c |
10,150 |
Less Provision
|
1,800 |
28,200 |
| Capitals : |
- |
Stock |
- |
25,000 |
| A
|
41,650 |
Patents |
- |
4,000 |
| B |
37,600 |
Plant
Machinery |
- |
43,2000 |
| - |
1,04,500 |
- |
- |
1,04,500 |
|
|
Part - II |
| Q.10. |
When does flow of funds take place ?
Explain briefly.(3) |
| Ans. |
Flow of funds take place
when a business transaction makes a change in
the amount of fund (net working capital) which
exists just before the happening of the
transaction.
In order to know whether a transaction
makes any change in the existing amount of fund
the following procedure is suggested :
(a) Make a journal entry of the
transaction
(b) Find out which category the accounts
involved in the transaction belong to. For this
purpose accounts of the journal entries are
classified into current assets, current
liabilities, non-current assets or non-current
liabilities. For example, if Journal entry is
Cash A/c Dr. To Machinery A/c then cash account
is classified as current asset and machinery as
non-current assets.
(c) If it is found than all accounts
involved in the transaction belong to Current
Category Or non-current Category than the
transaction does not results in the flow of
fund.
(d) If it is found that one account of the
Journal entry belongs to current category and
another to none- current category then the
transaction results in the flow of fund.
|
| Q.11. |
A company earns a gross profit of 20% on
cost. Its credit sales are twice its cash sales.
If the credit sales are Rs. 4,00,000, calculate
the gross profit ratio of the company.
(4) |
| Ans. |
Credit Sales = Rs.
4,00,000 Cash Sales = Rs. 2,00,000
Total Sales = Rs. 6,00,000
Calculation of Gross Profit :
Let the cost = Rs. 100
Gross Profit = Rs. 20
Sales = Rs. 120
If the sales is Rs. 120, then cost = Rs.
100
If the sales is Rs. 6,00,000, the cost of
goods sold = 100/120 x 6,00s. 5,00,000
Gross Profot = Sales - Cost of goods sold
= Rs. 6,00,000 - Rs. 5,00,000
= Rs. 1,00,000
Calculation of Gross Profit Ratio :
Gross Profit Ratio = Gross Profit / Sales
x 100
= 1,00,000 / 6,00,000 x 100
= 16.67 %
|
| Q.12. |
Find out the sources and application of
funds from the details given below extracted
from the Balance Sheet of Arun Ltd. :
|
|
| - |
31.12.1997 Rs. |
31.12.1998 Rs. |
| Machinery at cost
|
8,00,000 |
14,00,000 |
| Provision for Depreciation on Machinery
|
1,00,000 |
1,50,000 |
|
|
Additional Information :
During the
year a piece of machinery costing Rs. 30,000 on
which accumulated depreciation was Rs. 10,000
was sold for Rs. 25,000. (5)
|
| Ans. |
Machinery
Account |
|
| Particulars |
Rs. |
Particulars |
Rs. |
| To Balance b/d
|
8,00,000 |
By Bank A/c
(Source) |
25,000 |
| To profit Loss A/c
|
- |
By Provision for
|
- |
| (Profit on sales of
much.) |
- |
depreciation on
|
- |
| To Bank A/c (Application)
|
- |
- |
- |
| ( Balancing figure being
machinery purchased) |
6,30,000 |
machinery By Balance c/d |
10,000 14,00,000 |
| - |
14,35,000 |
- |
14,35,000 |
|
| Q.13. |
Briefly explain the meaning and
significance of any two of the following ratios
: (i) Return on
Investment,
(ii) Debt -
Equity Ratio and
(iii) Stock
Turnover ratio.
|
|
OR |
|
Write the method of computation of the
following ratios : (a) Gross
Profit Ratio
(b) Interest
Coverage Ratio
(c) Stock
Turnover Ratio
(5) |
| Ans. |
(a) Gross Profit Ratio =
Gross Profit / Sales x 100 Gross Profit = Sales - cost of goods sold
Cost of goods sold = Opening Stock +
Purchase + Direct Expenses +-Closing Stock
(b) Interest coverage Ratio
= Net profit before interest and tax /
Interest on fixed ( long - term ) loans or
debentures
(c) Stock Turnover Ratio
= Cost of goods sold / Average stock
Average Stock = Opening Stock + Closing
Stock / 2
|
| Q.14. |
Prepare a comparative income statement of
X Ltd., with the help of the following
information : (5) |
|
| - |
1997 Rs. |
1998 Rs. |
| Sales |
1,00,000 |
2,00,000 |
| Cost of goods sold
|
60 % of Sales
|
70 % of Sales
|
| Indirect expenses
|
10 % of Gross Profit
|
- |
| Rate of Income Tax |
50 % of Net Profit before Tax.
|
- |
|
| Ans. |
Comparative Income
Statement |
|
| Particulars |
1997 Rs. |
1998 Rs. |
Absolute Change
Rs. |
Proportionate Change
% |
| Sales
Less : Cost of
|
1,00,000 |
2,00,000 |
1,00,000 |
100 |
| Goods Sold |
60,000 |
1,40,00 |
80,000 |
133.33 |
| Gross Profit |
40,000 |
60,000 |
20,000 |
50 |
| Less : Indirect Exp.
|
4,000 |
6,000 |
2,000 |
50 |
| Net profit before
tax |
36,000 |
54,000 |
18,000 |
50 |
| Less : Income tax
|
18,000 |
27,000 |
9,000 |
50 |
| Net profit after tax
|
18,000 |
27,000 |
9,000 |
50
|
|
| Q.15. |
What is meant by analysis of financial
statements ? Briefly explain horizontal
analysis. (6) |
| Ans. |
Analysis of financial
statement is a systematic process of analysing
and evaluating the relationship between the
component parts of financial statements.
Horizontal Analysis : Analysis of
financial statement involves making comparisons
and establishing relationship among related
items. Such comparison or establishing of
relationship may be based on - (i) financial
statements of an enterprise for a number of
years, or
(ii) Financial statements of different
enterprise for the same year. Such analysis is
called horizontal analysis.
|
| Q.16. |
Calculate any three of the following ratio
with the help of the following information :
(i) Operation
ratio,
(ii) Current
ratio,
(iii) Capital
turnover ratio and
(iv) Debt to
total funds ratio.
Information :
Equity Capital Rs. 5,00,000 ; 12 % Debentures
Rs. 6,00,000; 9% Preference Share Capital Rs.
3,00,000; General Reserve Rs. 1,00,000; Sales
Rs. 10,00,000; Opening Stock Rs. 80,000;
Purchases Rs, 6,00,000; Wages Rs. 1,00,000;
Closing Stock Rs. 1,00,000; Selling and
distribution expenses Rs. 20,000; Other current
assets Rs. 5,00,000 and Current liabilities Rs.
3,00,000. (6) |
| Ans. |
Operating Ratio = Cost of goods Sold* + Operating Exps. /
Net Sales x 100
= 6,80,000 + 20,000 / 10,00,000 x 100
= 70 %
Cost of goods Sold = Opening Stock +
Purchase + Wages - Closing Stock
= 80,000 + 6,00,000 + 1,00,000 -1,00,000 +
Rs. 6,80,000
(ii) Current Ratio = Current Assets /
Current Liabilities
= Rs. 1,00,000 (Closing Stock) + Rs.
5,00,000 / Rs. 3,00,000
= Rs. 6,00,000 / Rs. 3,00,000 = 2:1
(iii) Capital Turnover Ratio = Net Sales /
Capital Employed
= Rs. 10,00,000 / Rs. 15,00,000 = .67
Times
* Capital employed = Equity share Capital
+ Debentures + Pref. Share Capital + General
Reserve.
(iv) Debt to total Funds Ratio = Long -
term Debt / Capital Employed
Where\, the capital Employed comprises the
long - term debt and the shareholders funds.
= 6,00,000 / 15,00,000 = 2.5
|
| Q.17. |
Prepare a Cash Budget of Rama Ltd. for the
months of January to March 1999 from the
following information :
|
|
| - |
Credit Purchases
Rs.
|
Credit Sales
Rs.
|
Wages
Rs. |
| 1998 |
- |
- |
- |
| November
|
2,00,000 |
2,50,000 |
50,000 |
| December
|
3,50,000 |
3,00,000 |
60,000 |
| 1999 |
- |
- |
- |
| January
|
3,00,000 |
4,50,000 |
70,000 |
| February
|
4,00,000 |
2,00,000 |
80,000 |
| March
|
5,00,000 |
3,50,000 |
70,000 |
|
|
Additional Information : (i) Expected Cash
balance as on 1.1.1999 Rs. 75,000. (ii)
Suppliers allowed credit of two months and a
credit of two months is allowed to the
customers. (iii) Lag in payment of wages one
month. (6) |
| Ans. |
Cash Budget for the period of 3 months ending on 31st
March, 1999 |
|
| Particulars |
Jan Rs. |
Feb. Rs. |
March Rs. |
| A. Total Cash Available
|
- |
- |
- |
| Opening Balance
|
75,000 |
65,000 |
-55,000 |
| Collection from Debtors
|
2,50,000 |
3,00,000 |
4,50,000 |
| - |
3,25,000 |
3,65,000 |
3,95,000 |
| - |
- |
- |
- |
| B. Total Cash Payment
|
- |
- |
- |
| Payment to creditors
|
2,00,000 |
3,50,000 |
3,00,000 |
| Payment of wages
|
60,000 |
70,000 |
80,000 |
| - |
2,60,000 |
4,20,000 |
3,80,000 |
| C. Closing Balance (A-B)
|
65,000 |
-55,000 |
15,000 |
|
| Q.18. |
From the following Balance Sheets of Rajan
Ltd., prepare Cash Flow Statement :
|
|
| Liabilities
|
1997 (Rs.) |
1998 (Rs.) |
Assets |
1997 (Rs.) |
1998 (Rs.) |
| Equity Share Capital
|
1,50,000 |
2,00,00 |
Goodwill |
36,000 |
20,000 |
| 12 % Preference
|
- |
- |
Building
|
80,000 |
60,000 |
| Share Capital
|
75,000 |
50,000 |
Plant
|
40,000 |
1,00,000 |
| General Reserve
|
20,000 |
35,000 |
Debtors |
1,19,000 |
1,54,000 |
| P & L A/c
|
15,000 |
24,000 |
Stock
|
10,000 |
15,000 |
| Creditors |
37,5000 |
49,500 |
Cash
|
12,500 |
9,000 |
| - |
2,97,500 |
3,58,500 |
- |
2,97,500 |
3,58,500 |
|
|
Depreciation charged on Plant was Rs.
10,000 and on Building Rs. 60,000.
(10) |
| Ans. |
Cash Flow Statement
For the year ended December 31,1998
|
|
| Sources |
Amount (Rs.) |
Uses |
Amount
(Rs.) |
| Cash Balance as on
1.1.98 |
12,500 |
Redemption of |
- |
| Issue of Equity Share
|
50,000 |
Pref. Shares |
25.000 |
| Cash from operations
|
81,500 |
Purchase of Plant
|
70,000 |
| - |
- |
Purchase of Building
|
40,000 |
| - |
- |
Cash Balance as on
31.12.98 |
9,000 |
| - |
1,44,000 |
- |
1,44,000 |
|
|
Working Notes : (i) Calculation of Funds from operations
Adjusted Profit Loss Account
|
|
| Particulars |
- |
Rs. |
Particulars |
Rs. |
| To Depreciation :
|
- |
- |
By Balance b/d |
15,000 |
| Plant |
10,000 |
- |
By Funds from operations
|
1,10,000 |
| Building |
60,000 |
70,000 |
(Balancing
figure) |
- |
| To General Reserve
|
- |
15,000 |
- |
- |
| To Goodwill written
off |
- |
16,000 |
- |
- |
| To Balance c/d
|
- |
24,000 |
- |
- |
| - |
- |
1,25,000 |
- |
1,25,000 |
|
|
(ii) Calculation of Cash
from operations
|
|
Rs. |
|
| A. Funds from operation
|
- |
1,10,000 |
| B. Add : Decreases in
Current Assets : Increase in current liabilities
|
- |
NIL |
| Creditors |
- |
12,000 |
| - |
- |
1,22,000 |
| C. Less : Increase in
Current Assets |
- |
- |
| Debtors |
35,500 |
- |
| Stock |
5,000 |
40,5000 |
| D. Less : Decrease in
Current Liabilities
|
- |
81,500 |
| - |
- |
NIL
|
| - |
- |
81,500 |
|
|
(iii) Plant Account
|
|
| Particulars |
RS. |
Particulars |
Rs. |
| To Balance b/d
|
40,000 |
- |
- |
| To Bank A/c
(Purchases) |
70,000 |
- |
- |
| (Balancing Figure)
|
- |
- |
- |
| - |
1,10,000 |
- |
- |
|
|
(iv)Building Account
|
|
| Particulars |
RS. |
Particulars |
Rs. |
| To Balance b/d
|
80,000 |
By Depreciation A/c
|
60,000 |
| To Bank A/c (Purchases)
|
40,000 |
By Balance c/d |
60,000 |
| (Balancing
Figure) |
- |
- |
- |
| - |
1,20,000 |
- |
1,20,000 |
|
|
|
