The following figures have been extracted from the books of X Limited for the year ended...
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The following figures have been extracted from the books of X Limited for the year ended on 31.3.2019. You are required to prepare a cash flow statement as per AS 3 using indirect method. (i) Net profit before taking into account income tax and income from law suits but after taking into account the following items was 20 lakhs: (a) Depreciation on Property, Plant & Equipment * 5 lakhs. (b) Discount on issue of Debentures written off * 30,000. (c) Interest on Debentures paid * 3,50,000. (d) Book value of investments 3 lakhs (Sale of Investments for 3,20,000). (e) Interest received on investments * 60,000. (f) Compensation received 90,000 by the company in a suit filed. (ii) Income tax paid during the year * 10,50,000. (iii) 15,000, 10% preference shares of 100 each were redeemed on 31.3.2019 at a premium of 5%. Further the company issued 50,000 equity shares of 10 each at a premium of 20% on 2.4.2018. Dividend on preference shares were paid at the time of redemption. (iv) Dividend paid for the year 2017-2018 * 5 lakhs and interim dividend paid 3 lakhs for the year 2018- 2019. (v) Land was purchased on 2 4.2018 for 2,40,000 for which the company issued 20,000 equity shares of 10 each at a premium of 20% to the land owner as consideration. (vi) Current assets and current liabilities in the beginning and at the end of the years were as detailed below: Inventory Trade receivables Cash in hand Trade payables Outstanding expenses As on 31.3.2018 12,00,000 2,58,000 1,96,300 2,11,000 75,000 As on 31.3.2019 13,18,000 2,53100 35,300 2,11,300 81,800 The following figures have been extracted from the books of X Limited for the year ended on 31.3.2019. You are required to prepare a cash flow statement as per AS 3 using indirect method. (i) Net profit before taking into account income tax and income from law suits but after taking into account the following items was 20 lakhs: (a) Depreciation on Property, Plant & Equipment * 5 lakhs. (b) Discount on issue of Debentures written off * 30,000. (c) Interest on Debentures paid * 3,50,000. (d) Book value of investments 3 lakhs (Sale of Investments for 3,20,000). (e) Interest received on investments * 60,000. (f) Compensation received 90,000 by the company in a suit filed. (ii) Income tax paid during the year * 10,50,000. (iii) 15,000, 10% preference shares of 100 each were redeemed on 31.3.2019 at a premium of 5%. Further the company issued 50,000 equity shares of 10 each at a premium of 20% on 2.4.2018. Dividend on preference shares were paid at the time of redemption. (iv) Dividend paid for the year 2017-2018 * 5 lakhs and interim dividend paid 3 lakhs for the year 2018- 2019. (v) Land was purchased on 2 4.2018 for 2,40,000 for which the company issued 20,000 equity shares of 10 each at a premium of 20% to the land owner as consideration. (vi) Current assets and current liabilities in the beginning and at the end of the years were as detailed below: Inventory Trade receivables Cash in hand Trade payables Outstanding expenses As on 31.3.2018 12,00,000 2,58,000 1,96,300 2,11,000 75,000 As on 31.3.2019 13,18,000 2,53100 35,300 2,11,300 81,800
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Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
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