With Direct Method

Required: a. Income statement as per NFRS b. Statement of financial position as per NFRS (4+4) 21. The two years' Balance sheet of a Company as on 31 Chaitra are as follows. Liabilities 2076 2077 Assets 2076 2077 (Rs.) Share Capital (Rs.) 5,00,000 Fixed assets (Rs.) (Rs.) 4,00,00 0 5,25,000 6,80,000 Financial 10% Debentures 1,00,00 50,000 Inventories 50,000 75,000 Long term loan-nancial 50,000 1,50,000 Debtors 75,000 1,00,000 Creditors 50,000 50,000 Prepaid 5,000 10,000 insurance Wages payab0le 10,000 Cash & bank 45,000 15,000 Provision for tax 25,000 30,000 Retained 75,000 90,000 earnings Total 7,00,00 8,80,000 7,00,000 8,80,000 0 Additional Information: Rs. 6,00,000 i. Sales of year 2077 Rs. 2,25,000 ii. Cost of goods sold iii. Operating expenses excluding Rs. 10,000 interest on debentures Rs. 2,50,000 iv. Tax paid Rs. 25,000 Rs. 15,000 v. Fixed assets purchased Rs. 2,15,000 and fixed assets sold vi. Dividend paid Rs. 25,000 Required: Cash Flow Statement. 22. The details of manufacturing and other cost are as follow: en of raw materials Rs.4,00,000 R$ 40.000 [8]