Chapter-9 : Cashflow Statement

Chapter - 9

Cashflow
Statement

Basic Proforma Of Cash Flow Statement :

Particulars Rs Rs

A] Cash flow from operating activity

B] Cash flow from investment activity

C] Cash flow from Financial Activity

____________________________________
D] Net Increase in cash or cash
equivalent (A + B + C)
E] Opening Cash balance
____________________________________
F] Closing Cash balance (D + E)

Methods Of Calculating Operating Cash Flow :

There are two methods of calculating operating cash flow :

1) Direct method
2) Indirect method

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Direct Method
This method is applicable when income statement or P & L is given.

Particulars Rs Rs
Cash Flow from operating activity :

Cash received from customers

Less : Cash paid to supplier

Less : Cash paid to employee

Less : Cash paid for other operating

expenses
____________________________________
Cash generated from operations

Less : Tax paid

____________________________________
Cash flow from operating activity

› Important working notes for direct method :

(Words in bold writing represent balance figures which may be written in cash flow
statement)
1. To find cash received from customers :

Debtors A/c

To bal b/d (Opening) By Cash received from customers

To sales By bal c/d (Closing)

2. To find Cash paid to suppliers

Stock Account
To bal b/d By cogs (Cost of sales)
To Purchases By bal c/d
Creditors
To cash paid to suppliers By bal b/d
To bal c/d By Purchase

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 Chapter-9 : Cashflow Statement

3. To find cash paid to employee (or cash paid for other expenses) :

a) If outstanding salary (or expenses) are given :
O/s salary (or expense) ac

To cash paid to employee

By bal b/d
(or for other expenses)

By P & L a/c
To bal c/d
(current year salary or expenses)

b. If advance salary or expenses are given :

Advance salary (or expense) a/c

By P & L a/c
To bal b/d
(current year salary or expenses)

To cash paid to employee

By bal c/d
(or for other expenses)

4. To find tax paid :

Provision for taxation a/c or Tax payable account

To tax paid By bal b/d

To bal c/d By P & L a/c (current year tax)

5. For purchase & sale of asset

Assets A/c
To bal b/d By depreciation a/c

To profit on sale (P & L a/c ) By loss on sale ( P & L a/c)

To Purchase By sale
By bal c/d

Depreciation

To depreciation on assets
By bal b/d
sold (asset account)
To bal c/d By current year depreciation (P & L a/c

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6. To find divided paid :

To dividend paid By bal b/d

By profit & loss appropriation a/c

To bal c/d
( current year dividend )

› Items which should not be considered while using direct method :

a) Preliminary expenses
b) P & L appropriation a/c or Reserve & surplus
c) General reserve

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 Chapter-9 : Cashflow Statement

Indirect Method

Particulars Rs Rs
Net profit before tax & dividend

Add : Changes for non cash& non - operating items

(adjustment for P & L a/c)

_________________________________________________
Net operating profit before working capital changes

Add : Changes for working capital

_________________________________________________
Cash generated from operations

Less : Tax paid

_________________________________________________
Cash flow from operating activity

Note :
a) Changes for non-cash & non-operating items :
It normally includes those figures which affect P & L a/c.
Normally it includes :
Depreciation on asset ( +)
Profit on sale of asset / investment ( -)
Loss on sale of asset/ investment ( + )
Preliminary expenses written off ( +)
Goodwill written off ( +)
Interest expenses if any ( +)
Interest income if any ( - )
Amortization on capital asset ( + )
Amortization on capital fund ( -)
Foreign exchange loss ( + )

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b. Changes for working capital :

Increase in current asset (-)
Decrease in current asset (+)
Increase in current liability (+ )
Decrease in current liability (-)
Following items should not be considered in changes for working capital :
Provision for taxation
Provision for dividend
Preliminary expenses
Provision for depreciation

Working Notes For Indirect Method :

1. To find Net Profit before tax

P & l appropriation account

To Provision for tax By bal b/d

To provision for dividend By net profit before tax & dividend

To General Reserve

To bal c/d

2. To find tax paid

To tax paid By bal b/d

To bal c/d By profit & loss appropriation a/c

3. To find divided paid

To dividend paid By bal b/d

To bal c/d By profit & loss appropriation a/c

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4. For purchase & sale of asset

Assets Account
To bal b/d By depreciation a/c
To loss on sale By profit on sale

To Purchase By sale

By bal c/d

Depreciation
To depreciation on assets By bal b/d
sold (asset account)

To bal c/d By current year depreciation (P & L

a/c [this amount should be taken at
non – cash items place )

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P ractical
Questions

PROBLEMS

Q UESTION 1 :
From the following information as contained in the income statement and
balance sheet of Strong Ltd., you are required to prepare a cash flows state-
ment using (i) direct method; and (ii) indirect method :
Income Statement and Reconciliation of Earnings
For the year ended 31st March, 1998
Rs.
Net sales 40,32,000
Less : Cost of sales 31,68,000
Depreciation 96,000
Salaries and wages 3,84,000
Operating expenses 1,28,000
Provision for taxation 1,40,800
39,16,800
Net operating profit 1,15,200
Non-recurring income : Profit on sale of equipment 19,200
Profit for the year 1,34,400
Retained earnings (balance in profit and loss account 2,42,880
brought forward)
3,77,280
Dividend declared and paid during the year 1,15,200

Profit and loss account balance as on 31st March,1998 2,62,080

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Comparative Balance Sheets

Fixed assets : As on 31:3:1997 As on 31:3:1998
Land 76,800 1,53,600

Building and equipments 5,76,000 9,21,600

Current assets :
Cash 96,000 1,15,200
Debtors 2,68,000 2,97,600
Stock 4,22,400 1,53,600
Advances 12,480 14,400___
Total 14,52,480 16,56,000

Capital 5,76,480 7,10,400

Surplus in P & L A/c 2,42,880 2,62,080

Sundry creditors 3,84,000 3,74,400

Outstanding expenses 38,400 76,800
Income - tax payable 19,200 21,120
Accumulated depreciation on
building and equipment 1,92,000 2,11,200
Total 14,52,480 16,56,000

Cost of equipment sold was Rs. 1,15,200.

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Q UESTION 2
A From the following information as contained in income statement and
balance sheet of Ril Ltd., you are required to prepare a cash flow statement
using (i) direct method; and (ii) indirect method :
Income statement for the year ended 31st March, 2000

Rs. in Crores

Net sales 20,301

Less : Cost of sales 15,984

Depreciation 2,534

Salaries and wages 375

Operating expenses 891

Provision for taxation 57

19,841

460

Add : Other income 645

Profit on sale of asset 42

687

Profit for the year 1,147

Add : Balance of profit and loss account 11,183

Brought forward 12,330

Less : Dividend declared 420

Tax on dividend 46466

11,864

Add : Share premium account 772

Profit and loss account as on 31st March, 2000 12,636

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Comparative Balance Sheets

Assets : As on As on 31:3:1999
31:3:2000 (Rs. in Crores)
Fixed assets :

Land 1,029 901

Building and equipments 23,634 21,187

Gross block 4,663 22,088

Less : Accumulated depreciation 9,214 6,692

Net block 15,449 15,396

Investment 6,067 4,295

Current assets
Cash 1,082 4,898
Debtors 842 457
Stock 1,823 1,409
Advances 4,059 1,676

Other current Assets 487,854 258,465

29,370 28,156
Liabilities As on As on 31:3:1999
31:3:2000 (Rs. in Crores)

Equity capital 1,053 933

Preference capital 293 253

Reserves and surplus 12,636 11,183

Loans 11,520 11,650

Sundry creditors 2,959 3,345

Provision for tax 266 544

Other liabilities 643 248

Total 29,370 28,156

Cost of equipment sold was Rs. 40 crore.

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Q UESTION 3 :
From the following information, prepare a cash flow statement showing
net cash flows from operating activities, investing activities and financing
activities as per Accounting Standard - 3 (Revised) :

Rs. in Lakhs
Net Profit 25,000
Dividend paid (including dividend tax) 8,535
Book value of assets sold 185
Amortisation of capital grant 6
Carrying amounts of investments sold 27,765

Interest expenses 10,000

Increase in working capital (excluding cash and bank balance) 56,075

Expenditure on construction work - in - progress 34,740

Receipt of grant for capital projects 12

Proceeds from short term borrowings 20,575

Closing cash and bank balance 6,988

Provision for taxation 5,000
Income - tax paid 4,248
Loss on sale of assets 40
Depreciation charged 20,000
Profit on sale of investments 100
Interest on investments 2,506
Interest paid during the year 10,520
Purchas of fixed assets 14,560

Investment in joint venture 3,850

Proceeds from calls - in - arrears 2

Proceeds from long - term borrowings 25,980
Opening cash and bank balances 5,003

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Q UESTION 4 :
A company has provided you the following details :

Liabilities 31:12:2007 (Rs.) 31:12:2008 (Rs.)

Share capital 70,000 74,000

Debentures 12,000 6,000

Reserve for doubtful debts 700 8,00

Trade creditors 10,360 11,000

Profit and loss a/c 10,040 10,560

1,03,100 1,03,200

Assets 31:12:2007 (Rs.) 31:12:2008 (Rs.)

Cash 9,000 7,800

Debtors 14,900 17,700

Stock 49,200 42,700

Land 20,000 30,000

Goodwill 10,000 5,000

1,03,100 1,03,200

Additional information -
 Dividend paid Rs. 3,500; and
 Land was purchased for Rs. 10,000.
Prepare a cash flow statement as per Accounting Standard - 3

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Q UESTION 5 :
The Balance sheet of a company as on 31st march 2001 and 2002 is given
below :

Liabilities 2001 2002 Assets 2001 2002

Equity Share capital 14,40,000 19,20,000 Fixed Assets 38,40,000 45,60,000

Less :
Capital reserve - 48,000 11,04,000 13,92,000
Depreciation

General reserve 8,16,000 9,60,000 Net Block 27,36,000 31,68,000

Profit & loss A/c 2,88,000 3,60,000 Investments 4,80,000 3,84,000

9% Debentures 9,60,000 6,72,000 Sundry debtors 12,00,000 14,00,000

Sundry Creditors 5,50,000 5,90,000 Stock 1,40,000 1,84,000

Bills payable 26,000 34,000 Cash in Hand 4,000 --

Proposed Dividend 1,44,000 1,72,800 Preliminary exps 96,000 48,000

Provision for taxation 4,32,000 4,08,000

Unpaid dividend - 19,200

Total 46,56,000 51,84,000 Total 46,56,000 51,84,000

Additional information : during the year ended 31st March 2002, the company -
(A) Sold one machine for Rs. 1,20,000, the cost of the machine was Rs. 2,40,000 and
the depreciation provided on it was Rs. 84,000.
(B) Provided Rs. 4,20,000 as depreciation on fixed assets.
(C) Sold some investments at a profit credited to Capital Reserve.
(D) Redeemed 30% of the Debentures at Rs. 105.
(E)Decided to write off fixed assets costing Rs. 60,000 on which depreciation amounting
to Rs. 48,000 has been provided.
You are required to prepare cash flow statement as per AS - 3.

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Q UESTION 6
The balance sheet JK Limited as on 31st March for two years are given below
– (Rs. 000s)
Liabilities 2001 2002 Assets 2001 2002
Equity Share capital 1,440 1,920 Fixed Assets 3,840 4,560
Capital reserve - 48 Less: 1,104 1,392
Depreciation
General reserve 816 960 Net Block 2,736 3,168
Profit & loss A/c 288 360 Investments 480 384
9% Debentures 960 672 Cash 210 312

Current liabilities 576 624 OtherCurrent 1,134 1,272

Assets (in-
cluding stock)
Proposed Dividend 144 174 Preliminary 96 48
expenses
Provision for tax 432 408

Unpaid dividend - 18
Total 4,656 5,184 Total 4,656 5,184

Prepare a cash Flow statement from the above and the following additional information.
(A) During the year, certain fixed assets with a book value of Rs. 2,40,000
(accumulated depreciation Rs. 84,000) was sold for Rs. 1,20,000.
(B) Provided Rs. 4,20,000 as depreciation.
(C) Some investments are sold at a profit of Rs. 48,000 and profit was credited to
capital reserve.
(D) It decided that stocks be valued at cost, whereas previously the practice was
to value stock at cost less 10%. The stock was Rs. 2,59,200 as on 31st March
of year 1. The stocks as on 31st march of year 2 was correctly valued at Rs.
3,60,000.
(E) Decided to write off fixed assets costing Rs. 60,000 on which depreciation of Rs.
48,000 has been provided.
(F) Debentures are redeemed at Rs. 105.

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Q UESTION 7
Prepare a cash Flow statement as per AS- 3 (revised) from the following
information-
Summarised balance sheet of XYZ Ltd as on 31st march 2009 and 2010 (Rs. 000’)
Liabilities 31.03.2009 31.03.2010 Assets 31.03.2009 31.03.2010

Share Capital 3,900 5,200 Plant & 3,978 5,525

machinery
Reserves & Sur- 1,690 2,600 Land & 1,040 1,040
plus building
12% debentures -- 1,300 Investments 130 130

Sundry creditors 936 1,222 Inventories 676 975

Outstanding 52 65 Sundry Debtors 728 1,131

Rent
Income tax pay- 520 195 Prepaid selling 26 52
able expenses

Cash at Bank 494 1,677

Cash in hand 26 52
Total 7,098 10,582 Total 7,098 10,582

Profit and Loss account for the year ended 31st march 2010
Particulars Rs. 000s Particulars Rs. 000s
To opening stock 806 By sales 6,331
To Purchases 2,080 By closing stock 1,105
To wages 650
To Gross Profit c/d 3,900
Total 7,436 Total 7,436
To depreciation 390 By Gross Profit b/d 3,900
To office expenses 390 By Discount 39
To Rent 130 By commission 91
To selling & distribution 780 By dividend 260
expenses
Income tax 1,040
To Net profit c/d 1,560
Total 4,290 Total 4,290
To Dividend 650 By balance b/d 1,690
To balance c/d 2,600 By Net profit b/d 1,560
Total 3,250 Total 3,250

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Q UESTION 8
Balance Sheets of a company as on 31st March, 2021and 2022 are as follows :

Liabilities 31.03.21 31.0322 Assets 31.03.21 31.03.22

Equity share capital 10,00,000 10,00,000 Goodwill 1,00,000 80,000

8% Pref. Share capital 2,00,000 3,00,000 Land and Building 7,00,000 6,50,000

General Reserve 1,20,000 1,45,000 Plant and Machinery 6,00,000 6,60,000

Securities Premium -- 25,000 Investments (non trading) 2,40,000 2,20,000

Profit & Loss A/c. 2,10,000 3,00,000 Stock 4,00,000 3,85,000

11% Debentures 5,00,000 3,00,000 Debtors 2,88,000 4,15,000

Creditors 1,85,000 2,15,000 Cash and Bank 88,000 93,000

Provision for tax 80,000 1,05,000 Prepaid Expenses 15,000 11,000

Proposed Dividend 1,36,000 1,44,000 Premium on Redemption -- 20,000

of debenture
Total 24,31,000 25,34,000 Total 24,31,000 25,34,000

Additional Information :
(A) Investment were sold during the year at a profit of Rs. 15,000
(B) During the year, an old machine costing Rs. 80,000 was sold for Rs. 36,000. Its
wdv was Rs. 45,000
(C) Depreciation charged on plant & Machinery at 20% on the opening balance.
(D) There was no purchase or sale of land & building.
(E) Provision for tax made during the year was Rs. 96,000.
(F) Preference shares were issued for consideration of cash during the year.
From the above, prepare Cash Flow statement as per AS - 3

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Q UESTION 9
Following are the summarised balance sheet of Metlife Ltd as on 31st March
2009 and 2010;
Liabilities 2009 2010 Assets 2009 2010
Share Capital 2,00,000 2,50,000 Land & Buildings 2,00,000 1,90,000
General Reserve 50,000 60,000 Machinery 1,50,000 1,69,000
P/L account 30,500 30,600 Stock 1,00,000 74,000
Bank Loan (long -term) 70,000 ---- Sundry debtors 80,000 64,200
Sundry Creditors 1,50,000 1,35,200 Cash 500 800

Provision for taxation 30,000 35,000 Bank ---- 7,800

Goodwill --- 5,000

Total 5,30,500 5,10,800 Total 5,30,500 5,10,800
Prepare the Cash flow statement from the following information: During the year ended
31st March 2010 -
(A) Dividend of Rs. 23,000 was paid.
(B) Assets of another company were purchased for a consideration of Rs. 50,000
payable in shares. The following assets were purchased- Stock = Rs. 20,000;
Machinery = Rs. 25,000
(C) Machinery was further purchased for Rs. 8,000.
(D) Loss on sale of Machinery Rs. 200 was written off to General Reserve.
(E) Depreciation written off on Machinery Rs. 12,000, and
(F) Income - tax provided during the year Rs. 33,000

Q UESTION 10
The following are the summary of cash transactions extracted from the
books of Zigzag ltd.
Rs. In thousand
Balance as on st
Jully 2001 70
Receipts from customers 5,566
Issue of shares 600
Sales of fixed assets 256
Sub total 6,492
Payment of suppliers 4,094
Payment for fixed assets 460

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Payment for overheads 230

Wages & salaries 138
Taxation 486
Dividends 160
Repayment for bank loan 500
Sub total 6,068
Balance as on 30th June 2002 424

You are required to prepare a cash statement of the company for the period ended
30th June 2002 in accordance with accounting standard - 3 (revised)

Q UESTION 11
Swastika oils ltd. has furnished the following information for the year ended
31st March 2003.
Rs. In lakhs
Net profit 37,500.00
Divided (including interim dividend paid ) 12,000.00
Provision for income tax 7,500.00
Income tax paid during the year 6,372.00
Loss on sale of assets (net) 60.00
Book value of assets sold 277.50
Depreciation charged to profit & loss account 30,000.00
Profit on sale of investment 150.00
Value of investment sold 41,647.50
Interest income on investment 3,759.00
Interest expense s 15,000.00
Interest paid during the year 15,780.00
Increase in working capital (excluding cash & bank balance) 84,112.50
Purchase of fixed assets 21,840.00
Invest in joint venture 5,775.00
Expenditure on construction work in progress 69,480.00
Proceeds from long – term borrowings 38,970.00
Proceeds from short – term borrowings 30,862.50
Opening cash & bank balances 11,032.50
Closing cash & bank balances 2,569.50

You are required to prepare the cash flow statement in according with AS - 3 for the
year ended 31st March 2003 (Make assumption wherever necessary)

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Q UESTION 12
The following information is available from the books of exclusive ltd. for
the year ended 31st March 2005.
i) Cash sales for the year were Rs.10,00,000 & sales on account Rs. 12,00,000.
ii) Payments on accounts payable for inventory totaled Rs. 7,80,000.
iii) Collection against accounts receivable were Rs. 7,60,000.
iv) Rent paid in cash Rs. 2,20,000 outstanding rent being Rs. 20,000.
v) 4,00,000 equity shares of Rs. 10 per vale were issued for Rs. 48,00,000.
vi) Equipment was purchased for cash Rs. 16,80,000.
vii) Dividend amounting to Rs. 10,00,000 was declared but yet to be paid.
viii) Rs. 4,00,000 of dividend declared in the previous year were paid.
ix) An equipment having a book value of Rs. 1,60,000 was sold for Rs. 2,40,000.
x) The cash account was increased by Rs. 37,20,000.
Prepare a cash flow statement using direct method

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FUND FLOW STATEMENT

Q UESTION 13
The following is the condensed Balance Sheet of Grow More Ltd. at the
Liabilities As at 1st As at Assets As at 1st As at 31st
Jan. 31st Dec. Jan. Dec.

Sundry Creditors 1,03,000 96,000 Cash & Bank Balances 50,000 40,000
Outstanding Expenses 13,000 22,000 Sundry Debtors 77,000 73,000
5% Debentures 90,000 70,000 Short Term Investment 1,10,000 84,000
depreciation Fund 40,000 44,000 Prepaid Expenses 1,000 2,000
contingencies Reserve 60,000 50,000 Stock - in - Trade 92,000 1,06,000
Profit & Loss A/c. 16,000 23,000 Freehold Land & Sheds 1,00,000 1,00,000
Share Capital 1,80,000 1,80,000 Plant and Machinery 72,000 80,000

Total 5,02,000 4,85,000 Total 5,02,000 4,85,000

beginning and at the end of a year –

The following additional information is available –
1. Dividend at 10% was paid.
2. New Machinery of Rs. 20,000 was purchased during the year and old machinery
costing Rs. 12,000 was sold for Rs. 4,000 on which Accumulated Depreciation
was Rs. 6,000. The Factory Sheds are fully depreciated.
3. 5% Debentures of face value of Rs. 100 each worth Rs. 20,000 were redeemed
by purchase from the open market at Rs. 96 each.
4. Rs. 10,000 was debited to the Contingency Reserve for settlement of previous
tax liability.
5. Investment worth Rs. 26,000 were sold at Book Value.
Prepare a Schedule of Changes in Working Capital and a Statement showing Sources
and Application of Funds.

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Q UESTION 14
From the following balances calculate cash from operations :

Profit made during the year 31st December

2021 2022
Bills receivable 5,000 4700
Debtors 1000 1250
Bills payable 2000 2500
Creditors 800 600
Outstanding Expenses 100 120
Prepaid Expenses 80 70
Accrued Income 60 75
Income received in advanced 80 25
Profit made during the year – 7,000

Module Quetion

Q UESTION 15
Given below are the balance sheets of Veer & Sons.
I. Equity and Liabilities 01 Jan 2022 Rs. 31 Dec. 2022 Rs.
Creditors 4,000 4,400
Mrs. A’s Loan 2,500 -
Loans from Bank 4,000 5000
Capital 12,500 15300
Total 23,000 24,700
II. Assets
Cash 1,000 700
Debtors 3,000 5,000
Stock 3,500 2,500
Machinery 8,000 5,500
Land 4,000 5,000
Building 3,500 6,000
Total 23,000 24,700

During the year a machine costing Rs. 1000 (accumulated depreciation Rs. 300) is
sold for Rs. 500. The provisions for depreciation against machinery as on 01 Janu-
ary 2022 was Rs. 2500 and on 31 December 2022 Rs. 4000. Net profit for the year
amounts to Rs. 4500.
You are required to prepare a Cash Flow Statement.
Module Quetion

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Q UESTION 16
Following is the Balance Sheet of ABC Co. Ltd., on at 01st January, 2022
and 31st December 2022.
(Amount In Rs.)

Particulars 01-01-2022 31-12-2022

I. Equity and Liabilities :
Equity share capital 30,000 35000
Share premium -- 3000
General Reserve 4500 6500
Profit and Loss 3000 8080
6% Debentures -- 7000
Sundry creditors 8500 9070
Provision for taxation 2250 4050
Proposed Divided 3000 3500
Total 51250 76200
II. Assets :
Land and building 23,000 39000
Plant and machinery 8540 14000
Furniture 550 650
Stock 8240 9570
Sundry debtors 7500 8550
Bank balance 3420 4430
Total 51250 76200

Additional Information :

Depreciation written off during the year

Land and building 6000
Plant and machinery 5000
Furniture 120
You are required to prepare a cash flow statement
Module Quetion

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Q UESTION 17
The following Balance Sheets are given :
I. Equity and Liabilities 2021 (Rs.) 2022 (Rs.)
Equity Share Capital 30000 40,000
Redeemable Pref. Capital 15000 10,000
General Reserve 4000 7000
Profit and Loss Account 3000 4800
Proposed Dividend 4200 5000
Creditors 5500 8300
Bills Payable 2000 1600
Provision for Taxation 4000 5000
Total 67700 81700
II. Assets
Goodwill 11500 9000
Land and Building 20000 17000
Plant 8000 20000
Debtors 16000 20000
Stock 7700 10900
Bills Receivable 2000 3000
Cash in Hand 1500 1000
Cash at Bank 1000 800
Total 67700 81700

It is also given that :

(a) Depreciation of Rs. 2000 on land and building and Rs.1000 on plant has been
charged in 2022.
(b) Interim dividend of Rs. 2000 has been paid in 2022.
(c) Income tax Rs.3500 has been paid during 2022.
Prepare Cash Flow Statement for the year 2022.

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Q UESTION 18
From the following condensed comparative Balance Sheets of Hotel Hills
Ltd., and additional information, prepare a Cash Flow Statement for the
year 2022.
I. Equity and Liabilities 2021 (Rs.) 2022 (Rs.)
Share Capital 7000 8000
Share Premium 900 1100
Retained earnings 2382 3082
7% Mortgage loan -- 2000
Creditors 690 600
Outstanding salaries 200 140
Provision for taxation 100 140
Total 11272 15062
II. Assets
Plant & Machinery 6200 6600
Accumulation Dep. on plant and mach (3700) (2620)

Building 9500 11600

Accumulation depreciation on Building (4300) (4500)
Land 1000 1200
Stock 1022 962
Debtors 860 760
Prepaid expenses 72 80
Cash 618 980
Total 11272 15062

Additional information :
1. Plant costing Rs. 1600 (accumulated depreciation Rs. 1480) was sold during the
year for Rs. 120.
2. Building was acquired during the year at a cost of Rs. 2100. In addition to cash
payment of Rs. 100 a 7% mortgage loan was raised for the balance.
3. Dividend of Rs. 800 was paid during the year.
4. A sum of Rs. 1390 was transferred to provision for taxation account in 2022.

CAFM with Raj Awate - Amazing journey of logic and concepts 9.25
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NOTES

9.26 CAFM with Raj Awate - Amazing journey of logic and concepts