Q.1 From the following particulars calculate Cash Flow from operating Activities by Indirect Method.

Profit & Loss Account of Tulsian Ltd.

For the year ended 31st March 2014

Particulars
To Depreciation
To Discount of issue of Deb. w/o
To Interest on Long-Term Borrowings
To Loss on Sale of machine
To Patents w/o
To Provision for Tax
To Transfer to Reserve
To Interim Dividend
To Proposed Dividend
To Premium payable on redemption
Of Red. Pref. Shares
To Net Profit

Additional Information:
Particulars
Stock
Trade Debtors
Trade Creditors
Provision for Tax
Prepaid Manufacturing Overheads
Outstanding Office & Adm. Expenses
Prepaid selling & Distribution Expenses
Outstanding Trading Commission Payable
Accrued Trading Commission Receivable

Amount
84,000
600
16,800
18,000
18,000
90,000
60,000
54,000
43,200

Particulars
By Operating Profit before
depreciation
By Profit on Sale on Investments
By Dividend on Shares
By Interest on Investments
By Rent from a plot of Land
By Insurance Proceeds from
earthquake Disaster settlement
By Refund of Tax

6,000
2,61,600
6,52,200

Amount
5,50,800
12,000
6,000
3,600
18,000
60,000
1,800

6,52,200

31.03.2013
60,000
6,000
3,000
30,000
9,600
6,000
6,000
6,000
6,000

31.03.2014
90,000
3,60,000
90,000
49,200
6,000
9,000
8,400
9,000
18,000

Q.2 From the following particulars, calculate Cash Flows from Operating Activities by Direct Method as
well as Indirect Method.
Profit & Loss Account of X Ltd.
Particulars
Amount
Particulars
Amount
To Opening Stock
60,000 By Sales
To Purchases
Cash
1,20,000
Cash
30,000
Credit
6,30,000
Credit
1,56,000
Less: Returns
30,000
7,20,000
Less: Returns
6,000
1,80,000 By Closing Stock
90,000
To Wages & Salaries
24,000 By Trading Commission
To Depreciation
84,000 (Incl. Accrued commission Rs.
To Other Mfg. Overheads
12,000)
72,000
(Prepaid in the beginning Rs. 3,600)
21,600 By Discount received from
To Office & Admin. Expenses
suppliers
3,000
(including outstanding at the end Rs.
By Profit on Sales of Investment
12,000
3,000)
15,000 By Dividend on Shares
6,000
To Selling & Dist. Expenses
By Interest on Investments
3,600
(Prepaid at the end Rs. 2,400)
3,600 By Rent from a plot of land
18,000
To Trading Commission
By Insurance Proceeds from
(Incl. outstanding at the end Rs. 3,000)
18,000
earthquake disaster settlement
60,000
To Discount allowed to customers
6,000 By Refund of Tax
1,800
To Discount on issue of debentures w/o
600
To Interest on Long-term Borrowings
16,800
To Rent
6,000
To Loss on Sale of Machine
18,000
To Patents w/o
18,000
To Provision for Tax
90,000
To Transfer to Reserve
60,000
To Interim Dividend
54,000
To Proposed Dividend
43,200
To Premium Payable on redemption
of Red. Pref. Shares
6,000
To Net Profit
2,61,600
9,86,400
9,86,400
Additional Information:
Trade Debtors
Trade Creditors
Provision for Tax

31.12.2012
6,000
3,000
30,000

31.12.2013
3,60,000
90,000
49,200

Solutions