Page No 5.95:
Question 9:
From the following
information, calculate Net profit before tax and extraordinary item.
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Opening
Surplus, i.e., Balance in Statement of Profit and Loss Closing
Surplus, i.e., Balance in Statement of Profit and Loss Dividend
paid in the current year (Last years proposed dividend) Interim
Dividend Paid during the year Transfer
to Reserve Provision
for Tax for the current year Refund
of Tax Loss
due to Earthquake Insurance
Proceeds from Earthquake disaster settlement |
(2,00,000)
6,72,000
1,44,000
1,80,000
2,00,000
3,00,000
6,000
4,00,000
2,00,000
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Answer:
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Cash Flow Statement For the year ended… |
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Particulars |
Amount (
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A |
Cash Flow from Operating Activities |
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Profit as per Statement of Profit and Loss (-2,00,000 +6,72,000) |
8,72,000 |
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Add: Transfer to Reserve |
2,00,000 |
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Proposed Dividend |
1,44,000 |
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Interim Dividend |
1,80,000 |
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Provision for Tax |
3,00,000 |
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Extraordinary Items
(Loss due to Earthquake) |
4,00,000 |
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Less: Extraordinary Items (Insurance
Proceeds from Earthquake
disaster
settlement ) |
(2,00,000) |
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Refund of Tax |
(6,000) |
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Net Profit before Tax and
Extraordinary Items |
18,90,000 |
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Page No 5.95:
Question 10:
From the following information, calculate Operating Profit before Working Capital Changes:
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Net
Profit before Tax and Extraordinary Items |
4,47,000 |
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Depreciation
on Machinery |
84,000 |
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Interest
on Borrowings |
16,800 |
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Goodwill
Amortised |
18,600 |
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Loss on
Sale of Furniture |
18,000 |
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Premium
on Redemption of Preference Shares |
6,000 |
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Gain
(Profit) on Sale of Investments |
12,000 |
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Interest
and Dividend Received on Investments |
27,600 |
Answer:
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Cash Flow Statement for
the year ended March 31, …. |
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Particulars |
Amount ( `) |
Amount ( `) |
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A |
Cash Flow from Operating Activities |
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Net Profit Before Taxation and Extraordinary Items |
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4,47,000 |
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Items to be Added: |
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Depreciation on Machinery |
84,000 |
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Loss on Sale of Furniture |
18,000 |
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Interest on Borrowings |
16,800 |
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Goodwill Amortized |
18,600 |
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1,37,400 |
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Items to be Deducted: |
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Profit on Sale of Investment |
(12,000) |
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Interest and Dividend Received on Investment |
(27,600) |
(39,600) |
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Operating Profit before
Working Capital Adjustments |
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5,44,800 |
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Note: Assuming Premium on Redemption of Preference Shares has been
paid out of the Securities Premium Reserve Balance.
Page No 5.96:
Question 11:
From the following
Balance Sheet of Double Tree Ltd. as at 31st March, 2021 and additional
information, calculate Operating Profit before Working Capital Changes:
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Particulars |
Note No. |
31st March, 2021 ( `) |
31st March, 2020 ( `) |
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I.
EQUITY AND LIABILITIES |
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1.
Shareholders' Funds |
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(a)
Share Capital |
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5,00,000 |
5,00,000 |
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(b)
Reserves and Surplus |
1 |
6,70,000 |
5,00,000 |
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2.
Current Liabilities |
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(a)
Trade Payables |
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60,000 |
50,000 |
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(b)
Other Current Liabilities (Outstanding Expenses) |
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20,000 |
15,000 |
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(c)
Short-term Provisions (Provision for Tax) |
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1,00,000 |
90,000 |
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Total |
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13,50,000 |
11,55,000 |
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II.
ASSETS |
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1.
Non-Current Assets |
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(a)
Fixed Assets (Tangible) |
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7,50,000 |
7,30,000 |
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(b)
Non-Current Investments |
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2,50,000 |
3,00,000 |
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2.
Current Assets |
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3,50,000 |
1,25,000 |
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Total |
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13,50,000 |
11,55,000 |
Notes to Accounts
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Particulars |
31st March, 2021 ( `) |
31st March, 2020 ( `) |
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I.
Reserve and Surplus |
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General
Reserve |
5,00,000 |
4,00,000 |
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Surplus,
i.e., Balance in Statement of Profit and Loss |
1,70,000 |
1,00,000 |
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6,70,000 |
5,00,000 |
Additional Information: Depreciation for the year was `75,000.
Answer:
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Computation of Operating
Profit before Working Capital Changes for the year ended March 31, 2021 |
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Particulars |
Amount ( `) |
Amount ( `) |
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Profit as per Statement of Profit and Loss (1,70,000 – 1,00,000) |
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70,000 |
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Transfer to General Reserve (5,00,000 – 4,00,000) |
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1,00,000 |
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Provision for Taxation (Current Year) |
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1,00,000 |
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Profit before Tax |
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2,70,000 |
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Items to be Added: |
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Depreciation for the year |
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75,000 |
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Operating Profit before Working Capital Changes |
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3,45,000 |
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Page No 5.96:
Question 12:
Calculate Cash
Flow from Operating Activities from the following details:
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Particulars |
31st March, 2021 ( `) |
31st March, 2020 ( `) |
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Surplus,
i.e., Balance in Statement of Profit and Loss |
80,000 |
60,000 |
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Trade
Receivables |
25,000 |
31,000 |
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Provision
for Depreciation |
40,000 |
30,000 |
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Inventories |
80,000 |
60,000 |
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Outstanding
Rent |
12,000 |
21,000 |
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Goodwill |
30,000 |
38,000 |
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Prepaid
Insurance |
1,000 |
2,000 |
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Trade
Payables (Creditors) |
13,000 |
19,000 |
Answer:
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Particulars |
( `) |
( `) |
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Profit as per Statement of Profit and Loss (Net Income) |
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20,000 |
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Items to be Added: |
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Depreciation |
10,000 |
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Goodwill written off |
8,000 |
18,000 |
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Operating Profit before Working Capital Changes |
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38,000 |
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Add: Decrease in Current Assets |
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Trade
Receivables |
6,000 |
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Prepaid
Insurance |
1,000 |
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Less: Increase in Current Assets |
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Inventories |
(20,000) |
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Less: Decrease in Current Liabilities |
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Outstanding Rent |
(9,000) |
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Trade Payables |
(6,000) |
(28,000) |
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Cash Generated from operations |
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10,000 |
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Less: Tax Paid |
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Nil |
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Net Cash Flows from Operating Activities |
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10,000 |
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