Cash Flow Statement — Accountancy STD 12 Commerce — Question

Describe the steps for creating Sinking Fund for redemption of debentures.

The following information has been extracted from the books of Pure Con Company. Using the information, calculate the Cash Flow from Investing Activities.

What is the importance of comparative statements? Illustrate your answer with particular reference to comparative income statement.

Moon Ltd. has 5,000; 10% 0f ₹ 100 each outstanding as on 31st March, 2017. These Debentures are due for redemption on 31st March, 2018. The company has a Debentures Redemption Reserve of ₹ 75,000 on that date. Determine the missing values in the following Journal entries of Moon Ltd.

X Ltd. forfeited 900 Equity Shares of ₹ 100 each for the non-payment of allotment money of ₹ 30 per share and the first call of ₹ 20 per share. The second and final call of ₹ 25 per share has not been made. The forfeited shares were reissued for ₹ 90 per share, ₹ 75 paid-up. Journalise the above.

The balance in Plant & Machinery account and Accumulated depreciation account as on March 31, 2015 and 2016 stood as follows:
Plant & machinery costing ₹ 12,80,000 accumulated depreciation thereon ₹ 5,30,000 was sold at a loss of ₹ 2,60,000.
You are required to:

1. Compute the amount of plant and machinery purchased, sold and depreciation charged for the year.
2. How each of the item related to plant & machinery will be reported in the statement of cash flows.

Calculate Cash Flow from Investing Activities from the following information:

Particulars	31st March, 2018 ₹	31st March, 2017 ₹
Investments in Land Shares in Z Ltd. 12% Long-term Investments Plant and Machinery Patents Goodwill	3,00,000 1,50,000 80,000 7,50,000 70,000 1,50,000	3,00,000 1,50,000 50,000 6,00,000 1,00,000 1,00,000

Additional Information:

1. A plece of land was purchased as an investment out of surplus. It was let out for commercial purpose and the rent received was ₹ 20,000.
2. Dividend received from Z Ltd. @ 12%.
3. Patents written off to the extent of 20,000. Some patents were sold at a profit of ₹ 10,000.
4. A machine costing ₹ 80,000 (depreciation provided thereon ₹ 30,000) was sold for ₹ 35,000. Depreciation charged during the year was ₹ 70,000.
5. During the year 12% investments were purchased for ₹ 1,00,000 and some investments were sold at a profit of ₹ 10,000. Interest on investments for the year was duly received.

To provide employment to the youth and to develop the Naxal affected backward areas of Chhattisgarh, X Ltd. decided to set-up a power pIant. For raising funds the company decided to issue 7,50,000 equity shares of ₹ 10 each at a premium of 50%. The whole amount was payable on application. Applications for 20,00,000 shares were received.
Applications for 50,000 shares were rejected and shares were allotted to the remaining applicants on pro-rata basis.
Pass necessary Journal entries for the above transactions in the books of the company and identify any two values which X Ltd. wants to propagate.

From the following information, calculate Cash Flow from Investing Activities:

	₹		₹
Purchase of Machine Purchase of Goodwill Sale of Machine Sale of Investment	2,50,000 1,00,000 35,000 50,000	Purchase of Investments Sale of Patents Interest and Dividend Received	1,50,000 40,000 10,000

A building was purchased as investment out of surplus which was let out for commercial purposes. Rent received ₹ 20,000.

Star Ltd. forfeited 500 Equity Shares of ₹ 100 each for non-payment of first call of ₹ 30 per share. The final call of ₹ 10 per share was not yet made. Out of these, 60% shares were reissued for ₹ 39,000 fully paid. journalise the forfeiture and reissue of shares.