Duma Ltd. finds on 31st December, 2016 that it is short of funds with which to...
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Duma Ltd. finds on 31st December, 2016 that it is short of funds with which to implement its branch expansion programme. On 1st January, 2016, it had a bank balance of $3,00,000 in its current account. From the following information, prepare a statement of Cash Flow to show how the overdraft of $53,750 at 31st December, 2016 has arisen. Figures as per Balance Sheet (as on 31st December) Fixed Assets Stock and stores Debtors Bank Balance/(Overdraft) Trade Creditors Share Capital (in shares of '10 each) Bills Receivable 2015 2016 5,50,000 12,00,000 1,90,000 3,00,000 3,20,000 3,00,000 3,00,000 -53,750 3,50,000 3,00,000 2,80,000 2,60,000 77,500 90,000 The profit for the year ended 31st December, 2016 before charging depreciation and taxation amounted to $1,50,000. The 6,000 shares were issued on 1st January, 2016 at a premium of $5 per share. $1,37,500 was paid in March 2016 by way of income tax including tax on distribution of dividend. Dividend was paid as follows for 2016 (final) on the capital on 31-12- 2015@ 10% less tax 25%. For 2016 (interim) 5% on capital on 31st March, 2016 free of tax. Duma Ltd. finds on 31st December, 2016 that it is short of funds with which to implement its branch expansion programme. On 1st January, 2016, it had a bank balance of $3,00,000 in its current account. From the following information, prepare a statement of Cash Flow to show how the overdraft of $53,750 at 31st December, 2016 has arisen. Figures as per Balance Sheet (as on 31st December) Fixed Assets Stock and stores Debtors Bank Balance/(Overdraft) Trade Creditors Share Capital (in shares of '10 each) Bills Receivable 2015 2016 5,50,000 12,00,000 1,90,000 3,00,000 3,20,000 3,00,000 3,00,000 -53,750 3,50,000 3,00,000 2,80,000 2,60,000 77,500 90,000 The profit for the year ended 31st December, 2016 before charging depreciation and taxation amounted to $1,50,000. The 6,000 shares were issued on 1st January, 2016 at a premium of $5 per share. $1,37,500 was paid in March 2016 by way of income tax including tax on distribution of dividend. Dividend was paid as follows for 2016 (final) on the capital on 31-12- 2015@ 10% less tax 25%. For 2016 (interim) 5% on capital on 31st March, 2016 free of tax.
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South Western Federal Taxation 2017 Essentials Of Taxation Individuals And Business Entities
ISBN: 9780357109144
20th Edition
Authors: William A. Raabe, David M. Maloney, James C. Young, Annette Nellen
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