Question 9:
From the following information, calculate Net Profit before Tax and Extraordinary Items:
|
|
` |
|
Surplus, i.e.,
Balance in Statement of Profit and Loss (Opening) |
1,00,000 |
|
Surplus, i.e.,
Balance in Statement of Profit and Loss (Closing) |
3,36,000 |
|
Dividend paid in
the current year |
72,000 |
|
Interim Dividend
Paid during the year |
90,000 |
|
Transfer to
Reserve |
1,00,000 |
|
Provision for Tax
for the current year |
1,50,000 |
|
Refund of Tax |
3,000 |
|
Loss due to
Earthquake |
2,00,000 |
|
Insurance Proceeds
from Earthquake disaster settlement |
1,00,000 |
Answer:
|
Cash Flow Statement for the year
ended… |
||
|
|
Particulars |
Amount (`) |
|
A |
Cash Flow from Operating Activities |
|
|
|
Profit as per Statement of Profit and Loss (3,36,000 − 1,00,000) |
2,36,000 |
|
|
Add: Transfer to Reserve |
1,00,000 |
|
|
Proposed Dividend |
72,000 |
|
|
Interim Dividend |
90,000 |
|
|
Provision for Tax |
1,50,000 |
|
|
Extraordinary Items (Loss due to Earthquake) |
2,00,000 |
|
|
Less: Extraordinary Items (Insurance Proceeds from Earthquake disaster settlement ) |
(1,00,000) |
|
|
Refund of Tax |
(3,000) |
|
|
Net Profit before Tax and Extraordinary Items |
7,45,000 |
|
|
|
|
Question 10:
From the following information, calculate Operating Profit before Working Capital Changes:
|
|
` |
|
Net Profit before
Tax and Extraordinary Items |
4,47,000 |
|
Depreciation on
Machinery |
84,000 |
|
Interest on
Borrowings |
16,800 |
|
Goodwill Amortised |
18,600 |
|
Loss on Sale of
Furniture |
18,000 |
|
Premium on
Redemption of Preference Shares |
6,000 |
|
Gain (Profit) on
Sale of Investments |
12,000 |
|
Interest and Dividend
Received on Investments |
27,600 |
Answer:
|
|
Cash Flow Statement for the year ended March 31, …. |
|||
|
|
Particulars |
(`) |
(`) |
|
|
A |
Cash Flow from Operating Activities |
|
|
|
|
|
Net Profit Before Taxation and Extraordinary Items |
|
4,47,000 |
|
|
|
Items to be Added: |
|
|
|
|
|
Depreciation on Machinery |
84,000 |
|
|
|
|
Loss on Sale of Furniture |
18,000 |
|
|
|
|
Interest on Borrowings |
16,800 |
|
|
|
|
Goodwill Amortized |
18,600 |
|
|
|
|
|
|
1,37,400 |
|
|
|
Items to be Deducted: |
|
|
|
|
|
Profit on Sale of Investment |
(12,000) |
|
|
|
|
Interest and Dividend Received on Investment |
(27,600) |
(39,600) |
|
|
|
Operating Profit before Working Capital Adjustments |
|
5,44,800 |
|
|
|
|
|
|
|
Note: Assuming Premium on Redemption of Preference Shares has been
paid out of the Securities Premium Reserve Balance.
Question 11:
From the following Balance Sheet of
Double Tree Ltd. as at 31st March, 2023 and additional information, calculate
Operating Profit before Working Capital Changes:
|
Particulars |
Note No. |
31st March, 2023 (`) |
31st March, 2022 (`) |
|
I. EQUITY
AND LIABILITIES |
|
|
|
|
1.
Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
5,00,000 |
5,00,000 |
|
(b) Reserves and
Surplus |
1 |
6,70,000 |
5,00,000 |
|
2. Current
Liabilities |
|
|
|
|
(a) Trade Payables |
|
60,000 |
50,000 |
|
(b) Other Current
Liabilities (Outstanding Expenses) |
|
20,000 |
15,000 |
|
(c) Short-term
Provisions (Provision for Tax) |
|
1,00,000 |
90,000 |
|
Total |
|
13,50,000 |
11,55,000 |
|
II. ASSETS |
|
|
|
|
1.
Non-Current Assets |
|
|
|
|
(a) Fixed Assets
(Tangible) |
|
7,50,000 |
7,30,000 |
|
(b) Non-Current Investments |
|
2,50,000 |
3,00,000 |
|
2. Current
Assets |
|
3,50,000 |
1,25,000 |
|
Total |
|
13,50,000 |
11,55,000 |
Notes to Accounts
|
Particulars |
31st March, 2023 (`) |
31st March, 2022 (`) |
|
I. Reserve
and Surplus |
|
|
|
General Reserve |
5,00,000 |
4,00,000 |
|
Surplus, i.e.,
Balance in Statement of Profit and Loss |
1,70,000 |
1,00,000 |
|
|
6,70,000 |
5,00,000 |
Additional Information: Depreciation for the year was `75,000.
Answer:
|
Computation of Operating Profit before Working Capital Changes for the year ended March 31, 2023 |
||||
|
|
Particulars |
Amount (`) |
Amount (`) |
|
|
|
Profit as per Statement of Profit and Loss (1,70,000 – 1,00,000) |
|
70,000 |
|
|
|
Transfer to General Reserve (5,00,000 – 4,00,000) |
|
1,00,000 |
|
|
|
Provision for Taxation (Current Year) |
|
1,00,000 |
|
|
|
Profit before Tax |
|
2,70,000 |
|
|
|
Items to be Added: |
|
|
|
|
|
|
Depreciation for the year |
|
75,000 |
|
|
Operating Profit before Working Capital Changes |
|
3,45,000 |
|
Question 12:
Calculate Cash Flow from Operating
Activities from the following details:
|
Particulars |
31st March, 2023 (`) |
31st March, 2022 (`) |
|
Surplus, i.e., Balance
in Statement of Profit and Loss |
80,000 |
60,000 |
|
Trade Receivables |
25,000 |
31,000 |
|
Provision for
Depreciation |
40,000 |
30,000 |
|
Inventories |
80,000 |
60,000 |
|
Outstanding Rent |
12,000 |
21,000 |
|
Goodwill |
30,000 |
38,000 |
|
Prepaid Insurance |
1,000 |
2,000 |
|
Trade Payables
(Creditors) |
13,000 |
19,000 |
Answer:
|
|
Particulars |
(`) |
(`) |
|
|
|
Profit as per Statement of Profit and Loss (Net Income) |
|
20,000 |
|
|
|
Items to be Added: |
|
|
|
|
|
|
Depreciation |
10,000 |
|
|
|
|
Goodwill written off |
8,000 |
18,000 |
|
|
Operating Profit before Working Capital Changes |
|
38,000 |
|
|
|
Add: Decrease in Current Assets |
|
|
|
|
|
|
Trade Receivables |
6,000 |
|
|
|
|
Prepaid Insurance |
1,000 |
|
|
|
Less: Increase in Current Assets |
|
|
|
|
|
|
Inventories |
(20,000) |
|
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
|
|
Outstanding Rent |
(9,000) |
|
|
|
|
Trade Payables |
(6,000) |
(28,000) |
|
|
Cash Generated from operations |
|
10,000 |
|
|
|
Less: Tax Paid |
|
Nil |
|
|
|
Net Cash Flows from Operating Activities |
|
10,000 |
|
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Ts Grewal Solution 2024-2025
Class 12 / Volume – 3
Chapter 4 – Cash Flow Statements