CTF’s Sample Papers: Accountancy 12PB CTF’s Sample Papers: Accountancy 12 1
PART–A
(PARTNERSHIP AND COMPANY ACCOUNTS) 1. Yes, if all partners agree that one or more of them shall not bear the losses. 1 mark
2. Machinery Replacement Fund is in the nature of Accumulated Depreciation and not the Accumulated Profit and hence should not be distributed among the partners. 1 mark
3. General Reserve A/c Dr. 2,000 To Provision for doubtful debt 2,000 1 mark
(Being 20% of General Reserve transfer to Provision for doubtful debt) 4. 250 Shares. Total Face Value of Re-issue shares = Total Re-issue Price + Maximum discount = `3,000 + `2,000 = `5,000 Total Face Value of Re-issue shares No. of Reissue Share = --------------------------------------- 1 mark Face Value per Share `5,000 = -------- `50 = 100 Shares No. of Forfeited Shares = 100 Shares × 5/2 = 250 Shares 5. The Discount on Issue of Debenture can be written off during the life time of Debenture. 1 mark
6. Investment Fluctuation Reserve A/c Dr. 4,000 To Investment A/c 1,000 To X’s Capital A/c 1,000 To Y’s Capital A/c 1,000 1 mark
To Z’s Capital A/c 1,000 (Being Investment Fluctuation Reserve after Mkt Value fluctuation distributed among all
partners in old ratio on the retirement of Z) 7. Extract of Balance Sheet
3 marks
SOLUTIONS(PRACTICE SAMPLE PAPER-1)
Particulars Note No. (`)Equity and Liabilites I. Shareholder Fund Share capital 1 13,48,000
CTF’s Sample Papers: Accountancy 122 CTF’s Sample Papers: Accountancy 12 3
Notes to Accounts
Particulars Amount (`)Share CapitalAuthorised Share Capital2,00,000 Equity Shares of `10 each
Issued Share Capital1,80,000 Equity shares of ` eachSubscribed CapitalSubscribed but not fully paid up1,66,000 Equity Shares of `10 each, `8 Called up, 13,28,000
Less Call in Arrear (2,000 × 2) (4,000) 13,24,000 Add Share forfeited Account (4000 × 6) 24,000
20,00,000
18,00,000
13,48,000
8. Journal
Date Particulars L.F. Dr. Cr.Debenture Suspense A/c Dr.
To 15% Debenture A/c(Being the issue of 10,000, 15% Debenture of `100 each as collateral security for loan from a bank )
10,00,00010,00,000
An Extract of Balance Sheet of X Ltd.
Particulars Note No. Amount (`)
Non current LiabilitiesLong Term Borrowings 1 8,00,000
Notes to Accounts
Particulars Amount (`)
1. Long-term BorrowingLoan from ICICI Bank(Secured by Land & Building and the issue of 10,000, 15% Debenture of `100 each as collateral security)10,000, 15% Debenture of ` 100 each (issued as collateral security) 10,00,000Less: Debenture Suspense Account (10,00,000)
8,00,000
NIL8,00,000
3 marks
CTF’s Sample Papers: Accountancy 122 CTF’s Sample Papers: Accountancy 12 3
9. a) Value of Promoting Women Entrepreneurship. Value of Empathy. b) Journal S.No. Particulars L.F. Dr.(`) Cr.(`)
1 Cash A/c Dr.To Chandrika’s Capital A/cTo Premium for Goodwill A/c
(Being new partner capital and premium for Goodwill in cash)
90,00060,00030,000
2 Premium for Goodwill A/c Dr. To Ganga’s Capital A/c(Being the amount of premium brought by new partner given to old partners)
30,00030,000
3 marks
Calculation of Sacrificing Ratio— 1 – 1/4 = 3/4 Ganga's new share (3/4 × 1/2) = 3/8 Harry’s new share (3/4 × 1/2) = 3/8
Sacrificing Ratio = Old Ratio – New Ratio Ganga = 5/8 – 3/8 = 2/8 Harry = 3/8 – 3/8 = NIL
10. Journal Date Particulars L.F. Dr.(`) Cr.(`)
201631 March
Interest on 15% Debenture A/c Dr.To Debentureholder A/cTo TDS From Debenture interest A/c
(Being the Interest on Debenture is due)
4,5004050
450
31 March Debentureholder A/c Dr.To Bank A/c
(Being the payment of interest)
4,0504,050
31 March TDS From Debenture interest A/c Dr.To Bank A/c
(Being the payment of TDS is made)
450450
31 March Statement of Profit and Loss A/c (4,500 + 4,500) Dr.To Interest on Debenture A/c
(Being the transfer of Interest on Debenture to Profit & Loss A/c)
9,0009,000
3 marks
CTF’s Sample Papers: Accountancy 124 CTF’s Sample Papers: Accountancy 12 5
11. Total Capital of the firm = Adjusted Capital of all the partners 4 marks
= 33,000 + 70,500 + 90,500 Capital of the new firm = 1,94,000 David’ New Capital = 1,94,000 × 2/5 = 77,600 Aslam’ New Capital = 1,94,000 × 3/5 = 1,16,400
Cash Brought by David = 77,600 – 33,000 = 44,600 Cash Brought by Aslam = 1,16,400 – 70,500 = 45,900
Date Particulars L.F. Dr. (`) Cr. (`)1 April 2016
Cash A/c Dr.To David Capital A/cTo Aslam Capital A/c
(Being the capital of remaining partner proportionate in their new profit ratio by bringing necessary amount of cash)
90,00044,60045,900
1 April 2016
Naresh’s Capital A/c Dr.To Cash A/c
(Being Dues of Naresh Paid off)
90,50090,500
12. a) Calculation of R’s Share of Goodwill 4 marks
Total Profit = 1,20,000 + 60,000 – 20,000 + 80,000 = 2,40,000 R’s share of Profit credited during 4 years = 2,40,000 × 3/8 = 90,000 R’s share of Goodwill = 90,000 × 1/2 = 45,000 b) Calculation of R’s share of Profit Average Profit = (60,000 – 20,000 + 80,000)/3 + 10% = 40,000 + 10% of 40,000 = 44,000 R’s share of Profit = 44,000 × 73/365 × 3/8 = 3,300
Date Particulars L.F. Dr. (`) Cr. (`)14 March 2016
P’s Capital A/c Dr.S’s CapitalA/c Dr.
To R’s Capital A/c(Being R’s share of goodwill credited given by P & S in the gaining ratio of 4:11)
12,00033,000
45,000
14 March 2016
Profit and Loss Suspense A/c Dr.To R’s Capital A/c
(Being R’s share of Profit to the date of death adjusted)
3,3003,300
Working Notes: Calculation of Gaining Ratio P’s gain = 3/5 – 4/8 = 4/40 S’s gain = 2/5 – 1/8 = 11/40 Gaining Ratio = 4:11
CTF’s Sample Papers: Accountancy 124 CTF’s Sample Papers: Accountancy 12 5
13. Profit & Loss Appropriation Account for year ending 31 March, 2016
Particulars Amount (`) Particulars Amount (`)
To Partner’s Salary A/c Kalpana Capital
To Intrest on Capital A/cSanjana Capital 1,500 Kalpana Capital 900
To Divisible Profit
Sanjana’s Capital A/c 1860Kalpana’s Capital A/c 1240
1,250
2400
3100
By Profit & loss A/c(6,250 + 1,250 – 750)
6,750
6,750 6,750
Partner’s Capital Account 6 marks
Particulars Sanjana Kalpana Particulars Sanjana KalpanaBy Bal. b/d 25,000 15,000By Interest on Capital 1,500 900By Partner salary 1,250
To bal. c/d 28,360 18,390 By P&L App. (Divisible Profit) 1,860 1,24028,360 18,390 28,360 18,390
14. Journal
S.No. Particulars L.F. Dr. Cr.1 Surplus of Statement of Profit & Loss A/c Dr.
To Debenture Redemption Reserve A/c(Transfer of profit equal to 25% of the face value of debentures of `85,000 redeemed in cash)
21,25021,250
2 12% Debentures A/c Dr.Premium on Redemption A/c Dr.
To Debenture holders A/c(Amount due to debenture holders redeemable at a premium of 2%)
4,00,0008,000
4,08,000
3 Debenture holders A/c Dr.To 8% Preference Share Capital A/cTo Securities Premium Reserve A/c
(Redemption of Debentures by conversion into preference shares)
1,74,4201,55,040
19,380
CTF’s Sample Papers: Accountancy 126 CTF’s Sample Papers: Accountancy 12 7
Notes: 1. Holders of `1,71,000 Debentures have accepted the proposal (a) Total amount payable to them = `1,71,000 + 2% premium on `1,71,000 = `1,71,000 + `3,420 = `1,74,420 As a preference share of `20 is to be issued at `22.50, therefore The number of preference share to be issued = 1,74,420/22.50 = 7,752 shares Amount of preference share = 7,752 × ` 20 = `1,55,040 Premium on issue of preference shares = 7,752 × `2.50 = `19,380
2. Holders of ` 1,44,000 Debentures have accepted the proposal (b) Total amount payable to them = `1,44,000 + 2% premium on 1,44,000 = `1,44,000 + `2,880 = ` 1,46,880 As a new Debenture of ` 100 is to be issued at `96, therefore The number of new debentures to be issued = 1,46,880/96 = 1,530 debentures Amount of new 10% debentures = `1,530 × `100 = `1,53,000 Discount on issue of debentures = 1530 × `4 = `6,120 3. Amount of remaining debentures = `4,00,000 – `1,71,000 – `1,44,000 = `85,000 Amount payable to them in cash = `85,000 + 2% premium on `85,000 = `85,000 + `1700 = `86,700 4. Redemption of debentures in the first two cases was by conversion into new shares and
debentures. Hence there was no need to transfer to debenture redemption reserve. It is only in the third case, the debentures have been redeemed for cash. In this case, it is necessary to transfer 25% of the face value of debentures redeemed to debenture redemption reserve.
6 marks
4 Debenture holders A/c Dr.Discount on Issue of Debenture A/c Dr.
To 10% Debentures A/c(Redemption of Debentures by conversion into 10% debentures)
1,46,8806,120
1,53,000
5 Debenture holders A/c Dr.To Bank A/c
(Redemption of Debentures by Cash)
86,70086,700
6 Debenture Redemption Reserve A/c Dr. To General Reserve A/c(Transfer of Debenture Redemption Reserve to General Reserve on the redemption of all debentures)
21,25021,250
CTF’s Sample Papers: Accountancy 126 CTF’s Sample Papers: Accountancy 12 7
15. Journal
S.No. Particulars L.F. Dr. (`) Cr. (`)(a) i. X’s Capital A/c Dr.
To Realisation A/c(Being some debtors taken by X)
1,17,2001,17,200
(a) ii. Cash A/c Dr.To RealisationA/c
(Being the remaining debtor sold to debt collecting agency)
2,1002,100
(b) i. Y’s Capital A/c Dr.To Realisation A/c
(Being the sundry assets taken over by Y)
72,00072,000
(b) ii. Z’s Capital A/c Dr.To Realisation A/c
(Being the sundry assets taken over by Z)
29,60029,600
(c) Realisation A/c Dr.To Z’s Capital A/c
(Being Mrs Z’s Loan assumed by Z)
13,80013,800
(d) i. Realisation A/c Dr.To Bank A/c
(Being bill discounted with bank dishonoured)
1,0001,000
(d) ii. Bank A/c Dr.To Realisation A/c
(Being a first and final dividend of 25% received from the estate of Z)
250250
8 marks
16. Journal of Tushar Ltd.
S.No. Particulars L.F. Dr. (`) Cr. (`)1 Bank A/c (30,000 × 2) Dr.
To Share Application A/c(Being the Application Money received on 30,000 shares)
60,00060,000
2 Share Application A/c (30,000 × 2) Dr.To Share Capital A/c (20,000 × 2) To Bank A/c (6,000 × 2)To Share Allotment A/c (4,000 × 2)
(Being the Application Money adjusted & Surplus refunded)
60,00040,00012,000
8,000
3 Share Allotment A/c (20,000 × 5) Dr.To Share Capital A/c (20,000 × 3)To Securities Premium Reserve A/c (20,000 × 2)
(Being the allotment money due)
1,00,00060,00040,000
CTF’s Sample Papers: Accountancy 128 CTF’s Sample Papers: Accountancy 12 9
4 Bank A/c (`1,00,000 – 8,000 – 1,840) Dr.To Share Allotment A/c
(Being the remaining allotment money received on 19,600 shares)(See Working Notes 1, 2, 3)
90,16090,160
5 Share First Call A/c (20,000 × 3) Dr.To Share Capital A/c (20,000 × 3)
(Being the First Call Money due)
60,00060,000
6 Bank A/c (19,000 × 3) Dr.To Share First Call A/c
(Being the First Call Money received on 19,000 shares @ `3 per share)
57,00057,000
7 Share Capital A/c (400 × 8) Dr.Securities Premium Reserve A/c (400 × 2) Dr.
To Share Allotment A/c (`2,000 – 160)To Share First call A/c (`400 × 3)To Forfeited Shares A/c (`480 × 2)
(Being 600 shares forfeited for non-payment of allotment money and the First call money)
3,200800
1,8401,200
960
8 Share Second & Final Call A/c (19,600 × 2) Dr.To Share Capital A/c
(Being the second and final call due on 19,600 shares)
39,20039,200
9 Bank A/c (19,000 × 2) Dr.To Share Second and Final Call A/c
(Being the second and final call received on 19,000 shares)
38,00038,000
10 Share Capital A/c (600 × `10) Dr.To Share First Call A/c (600 × 3)To Share Second and Final Call A/c (600 × 2)To Forfeited Shares A/c (600 × 5)
(Being 600 shares forfeited for non-payment of the first call and final call)
6,0001,8001,2003,000
11 Bank A/c ( 800 × 9) Dr.Forfeited Shares A/c (800 × 1) Dr.
To Share Capital A/c (800 × 10)(Being the re-issue of 800 shares @ `9 as fully paid up)
7,200800
8,000
12 Forfeited Shares A/c (`560 + 1600) Dr.To Capital Reserve A/c
(Being the transfer of profits on re-issue)
2,1602,160
8 marks
Working Notes:
1. No. of Shares allotted to Ramesh = 480 × 20,000/24,000 = 400 Shares
CTF’s Sample Papers: Accountancy 128 CTF’s Sample Papers: Accountancy 12 9
2. Calculation of amount due but not received on allotment. Application received on applied shares (480 × 2) = 960 Less: Application money of allotted shares (400 × 2) = (800) ------ Excess Money 160
Allotment due on allotted shares (400 × 5) = 2,000
Less Excess Money = (160) ------ 1,840 ------3. Amount received on allotment (1,00,000 − 8,000 – 1,840) = 90,160
4. Calculation of Capital Reserve: Forfeited amount of 400 shares of Ramesh = 960 Forfeited amount of 400 shares of Mohan 3,000 × 400/600 = 2,000 ------- Total Forfeited amount of Re-issue shares = 2,960 Less Re issue discount = (800) ------- Capital Reserve 2,160 -------
OR
Journal of Sangam Ltd.
S.No. Particulars L.F. Dr. (`) Cr. (`)1 Bank A/c (92,000 × 2) Dr.
To Share Application A/c(Being the Application Money received on 92,000 shares)
1,84,0001,84,000
2 Share Application A/c (92,000 × 2) Dr.To Share Capital A/c (60,000 × 2) To Bank A/c (2,000 × 2)To Share Allotment A/c (30,000 × 2)
(Being the Application Money adjusted & Surplus refunded)
1,84,0001,20,000
4,00060,000
3 Share Allotment A/c (60,000 × 3) Dr.To Share Capital A/c
(Being the allotment money due)
1,80,0001,80,000
4 Bank A/c Dr.To Share Allotment A/c
(Being the Allotment money received)
1,08,0001,08,000
CTF’s Sample Papers: Accountancy 1210 CTF’s Sample Papers: Accountancy 12 11
5 Share First & Final Call A/c (60,000 × 5) Dr.To Share Capital A/c
(Being the First Call Money due)
3,00,0003,00,000
6 Bank A/c Dr.To Share First & Final Call A/c
(Being the First Call Money received)
2,50,0002,50,000
7 Share Capital A/c (4000 × 10) Dr.To Share Allotment A/c (4,000 × 3)To Share First & Final call A/c (4,000 × 5)To Forfeited Shares A/c (4,000 × 2)
(Being 4,000 shares forfeited for non-payment of allotment money and the call money)
40,00012,00020,000
8,000
Notes: Allotment Money Not Received No. of Shares Forfeited = ------------------------------------ Allotment Money per Share
(`1,80,000 – `60,000 – `1,08,000) = --------------------------------------- `3 = 4,000 Shares17. Dr. Revaluation Account Cr.
Particulars Amount (`) Particulars Amount (`)
To Provision for Doubtful Debts A/c 3,000 By Unexpired Fire Insurance Premium A/c 10,000
To Depreciation on Machinery A/c 12,000 By Land and Building A/c 50,000To Provision for outstanding Repairs A/c 15,000To Gain transferred to:
A’s Capital A/c 15,000B’s Capital A/c 10,000C’s Capital A/c 5,000 30,000
60,000 60,000
Dr. Partner’s Capital Account Cr.Particulars A (`) B (`) C (`) Particulars A (`) B (`) C (`)
To B’s Capital A/c 45,000 ------ 15,000 By Balance b/d 4,50,000 3,00,000 1,50,000
To Cash A/c ----- 50,000 ----- By Revaluation Gain A/c 15,000 10,000 5,000To Bills Payable ----- 20,000 ----- By A’s Capital A/c ----- 45,000 -----To B’s loan Transfer ----- 3,00,000 ----- By C’s Capital A/c ----- 15,000 -----To Balance c/d 4,20,000 ----- 1,40,000
4,65,000 3,70,000 1,55,000 4,65,000 3,70,000 1,55,000
CTF’s Sample Papers: Accountancy 1210 CTF’s Sample Papers: Accountancy 12 11
Balance Sheet of A and C as at 31 March, 2016Liabilities Amount (`) Assets Amount (`)
Creditors 1,08,000 Cash at Bank 30,000
Outstanding Bill for Repairs 15,000 Stock 90,000B’s Loan 3,00,000 Debtors 1,00,000Bills Payable 20,000 Less: Provision 5,000 95,000Capital A/cs:
A 4,20,000C 1,40,000
Unexpired Fire Insurance 10,000Machinery 2,40,000
5,60,000 Less: Depreciation 12,000 2,28000Land & Building 5,00,000Add: Appreciation 50,000 5,50,000
10,03,000 10,03,000
OR
Dr. Revaluation Account Cr.
Particulars Amount (`) Particulars Amount (`)
To Stock 7,000 By Provision for doubtful debt 500By Land and Building A/c 5,000By Accrued Income 1,000
To Gain transferred to:A’s Capital A/c 2,100B’s Capital A/c 1,400 3,500
By Bad Debt Recovered 4,000
10,500 10,500
Dr. Partner’s Capital Account Cr.Particulars A (`) B (`) C (`) Particulars A (`) B (`) C (`)
To Goodwill 600 400 ----- By Balance b/d 17,600 25,400 -----To Adv. Sus. A/c 600 400 ----- By C’s loan A/c 30,000
By Revaluation Gain A/c 2,100 1,400 -----By Premium A/c 7,200 3,600 -----
To Bank ----- 2,600 ----- By C’s Current A/c 4,800 2,400 -----To Balance c/d 40,000 30,000 30,000 By Workmen Comp. fund 600 400 -----
By Invest. Flu. Fund 300 200 -----By Bank 8,600 -----
41,200 33,400 30,000 41,200 33,400 30,000
CTF’s Sample Papers: Accountancy 1212 CTF’s Sample Papers: Accountancy 12 13
Balance Sheet as at 31 March, 2016
Liabilities Amount (`) Assets Amount (`)
A’s Capital 40,000 Land & Building 11,000B’s Capital 30,000 Investments 4,500C’s Capital 30,000 Debtors 10,000
Less: Provision – 500 9,500Employees Provident Fund 1,000 Stock (30,000 – 7,000) 23,000Workmen Compensation Claim 1,000 Bank Balance 45,800
Accrued Income 1,000C’s Current Account 7,200
1,02,000 1,02,000
Working Notes: 8 marks
i) Calculation of Incoming Partner’s share, Sacrificing ratio and New ratio. New Share = Old Share – Share Surrendered A’s New share = 3/5 – (1/3 × 3/5) = 3/5 – 1/5 = 2/5 B’s New share = 2/5 – 1/10 = 3/10 C’s Share = 1/5 + 1/10 = 3/10 New Profit sharing ratio = 2/5:3/10:3/10 = 4:3:3 Sacrificing Ratio of A and B = 1/5:1/10 = 2:1 ii) Calculation of Incoming Partner’s Share of Goodwill
A. Average Profits = `(48,000 + 93,000 + 1,38,000)/3 = `93,000B. Normal Profit = `63,000C. Super Profit = `93,000 – `63,000 = `30,000D. Firms Goodwill = 30,000 × 2 = `60,000E. C’s Share of Goodwill = 60,000 × 3/10 = `18,000
iii) Total Capital = `30,000 × 10/3 = `1,00,000 A’s New Capital = `1,00,000 × 4/10 = `40,000 B’s New Capital = `1,00,000 × 3/10 = `30,000
Bank Account
Particulars Amount (`) Particulars Amount (`) To Balance b/d 25,000 By B’s Capital A/c 2,600
To Premium for Goodwill A/c 10,800 By Balance c/d 45,800To Bad debts recovered 4,000To A’s Capital 8,600
48,400 48,400
CTF’s Sample Papers: Accountancy 1212 CTF’s Sample Papers: Accountancy 12 13
PART–B(ANALYSIS OF FINANCIAL STATEMENTS)
18. Short term Marketable Securities and Treasury Bill. 1 mark
19. Yes, the statement is correct. Operating activity. 1 mark
20. a) Window dressing refers to the presentation of a better financial position that what it actually is by manipulating the books of accounts. On account of such a situation financial analysis may give false information to the users.
b) Other Current Liabilities— i) Interest accrued and due/not due on borrowings ii) Income received in advance iii) Unpaid Dividend Other Current Assets— i) Prepaid Expenses ii) Accrued Income iii) Advance Tax 1+2 marks
21. a) Solvency means ability of the firm to pay long term Liabilities b) (Any Two Ratio) Debt 4,00,000 Debt Equity Ratio = = = 4:13 = 0.31:1 Equity 13,00,000 Equity = Share Capital + Reserve & surplus = 9,00,000 + 1,00,000 + 3,00,000 = 13,00,000 Revenue from operation 3,00,000Working Capital Turnover Ratio = = = 3 Times 1+2 marks Working Capital 1,00,000 Total Assets = Equity + Debt + Current Liabilities = 13,00,000 + 4,00,000 + 3,00,000 = 20,00,000 Current Assets = Total Assets – Non Current Assets = 20,00,000 – (13,00,000 + 3,00,000) = 4,00,000 Working Capital = Current Assets – Current Liabilities = 4,00,000 – 3,00,000 = 1,00,000 Net Profit before Interest, Tax and Dividend × 100 c) Return on Investment = Capital Employed
6,48,000 × 100 = = 38.12% 17,00,000 100 Profit before Tax = 3,00,000 × = 6,00,000 50 Profit before Tax and Interest = 6,00,000 + (4,00,000 + 12/100) = 6,48,000
CTF’s Sample Papers: Accountancy 1214 CTF’s Sample Papers: Accountancy 12 15
22. Comparative Statement of Profit and Loss for the year ended 31 March, 2015 & 2016. 4 marks
A B C D = C – B E = D × 100/C
Particulars 2015 2016 Absolute Change %
I Revenue from Operation 3,00,000 3,60,000 60,000 20%II Other Income 1,20,000 1,44,000 24,000 20%Total Income 4,20,000 5,04,000 84,000 20%ExpensesCost of Material consumed
(1,80,000) (1,98,000) 18,000 10%
Expenses (18,000) (39,600) 21,600 20%Total Expenses 1,98,000 2,37,600 39,600 20%Profit before Tax 2,22,000 2,66,400 44,400 20%Tax (66,600) (79,920) 13,320 20%Profit after Tax 1,55,400 1,86,480 31,080 20%
23. Cash flow Statementfor the year ended 31st March, 2015
Particulars Amount (`) Amount (`)
A. Cash Flow from Operating ActivitiesNet Profit Before TaxAdjustment for:Depreciation on Plant & MachineryInterest on Mortgage Loan
Operating Profit before working capital changesAdd: Decrease in Current Assets: Inventory 1,20,000Add: Increase in Current Liability: Trade Payables 2,75,000 Less: Increase in Current Assets Trade Receivables Net Cash flow from Operating Activities
B. Cash Flow from Investing Activities
Purchase of Plant & Machinery
Net Cash used in Investing Activities
1,19,000
1,75,000 35,000
3,29,000
3,95,000
(4,40,000)
(7,25,000)
2,84,000
(7,25,000)
CTF’s Sample Papers: Accountancy 1214 CTF’s Sample Papers: Accountancy 12 15
Working Notes: Profit after Tax & Extraordinary Items 45,000 Add: Transfer to General Reserve 30,000 Add: Dividend 44,000 Profit before Tax & Extraordinary Items 1,19,000
C. Cash Flow from Financing ActivitiesProceeds from Issue of SharesProceeds from Mortgage LoanPayment of Interest on Mortgage LoanPayment of Dividend
Net Cash Flow from Financing Activities
Net Decrease in Cash and Cash Equivalents
Add: Opening Balance of Cash & Cash Equivalents
3,50,0001,50,000
(35,000)
(44,000)4,21,000
(20,000)
40,000
Closing Balance of Cash & Cash Equivalents_______
20,000