The balance sheet of a company for two years are given below: Liabilities Year 1 Year 2 Equity Share capital 900,000 1,000,000 Share premium 90,000…
BBS Financial Accounting and Analysis · 2080 · Solved Question with Answer
The balance sheet of a company for two years are given below:
| Liabilities | Year 1 | Year 2 |
| Equity Share capital | 900,000 | 1,000,000 |
| Share premium | 90,000 | 100,000 |
| 10% Debentures | 100,000 | 50,000 |
| Provision for tax | 20,000 | 30,000 |
| Provision for dividend... | 10,000 | 20,000 |
| Accounts payable | 60,000 | 110,000 |
| Profit and loss a/c | 30,000 | 160,000 |
| 1,210,000 | 1,470,000 | |
| Assets | ||
| Fixed assets | 800,000 | 1,000,000 |
| Inventory | 100,000 | 150,000 |
| Accounts receivable | 190,000 | 150,000 |
| Prepaid expenses | 20,000 | 30,000 |
| Cash | 100,000 | 140,000 |
| Total | 1,210,000 | 1,470,000 |
Income Statement for the Year 2
| Particulars | Rs. | |
| Sales revenue | 11,00,000 | |
| Less: Cost of goods sold | 710,000 | |
| Gross Profit | 390,000 | |
| Less: Operating expenses: | ||
| Administrative expenses | 157,000 | |
| Depreciation | 50,000 | |
| Provision for tax | 30,000 | |
| Provision for dividend | 20,000 | |
| Interest paid | 10,000 | |
| Premium on redemption of debentures | 5,000 | |
| Total operating expenses | 272,000 | |
| Net income | 118,000 | |
| Add: Gain on sale of fixed assets | 12,000 | |
| Retained earning | 130,000 |
Required: Cash flow statement