The Following are the financial statement of a company: Liabilities Last Year Current year Assets Last Year Current year Share capital 150,000…
BBS Financial Accounting and Analysis · 2083 · Solved Question with Answer
The Following are the financial statement of a company:
| Liabilities | Last Year | Current year | Assets | Last Year | Current year |
| Share capital | 150,000 | 300,000 | Fixed assets | 250,000 | 360,000 |
| Pref. share capital | 60,000 | 90,000 | Investment | 60,000 | 75,000 |
| 10% bank loan | 75,000 | 30,000 | Sundry debtors | 45,000 | 60,000 |
| Accounts payable | 40,000 | 30,000 | Inventories | 30,000 | 75,000 |
| Retained earnings | 30,000 | 75,000 | Cash at bank | 15,000 | 30,000 |
| Prov. for dividend | 15,000 | 30,000 | |||
| Prov. for tax | 30,000 | 45,000 | |||
| Total | 400,000 | 600,000 | Total | 400,000 | 600,000 |
Income Statement for the current year
| Particulars | Rs. | Rs. |
| Sales | 300,000 | |
| Less: Cost of goods sold | 120,000 | |
| Gross profit | 180,000 | |
|
Less: Operating expenses (Including depreciation Rs. 30,000 and Interest Rs. 12,000) |
87,000 | |
| Provision for tax | 45,000 | |
| Provision for dividend | 30,000 | 162,000 |
| 18,000 | ||
|
Add: Gain on sale of plant (Cost Rs. 30,000 accumulated depreciation Rs. 15,000) |
12,000 | |
| Interest on investment | 15,000 | |
| Net income | 45,000 |
Required: Cash flow statement by using direct method.