l.4iQ4SSm (a5O\A<:m5 m /3gP3TTm(a5O83^CUT\m ( m"^: m ,3L<\m m$3YI<^CT?m m m&=em*VB_4Jm*V4; m&=em =KBD m m S;D4m (AUT< m m 1<6\E`<m m f _4iQ4SS 9VQm R3EMm m ]4K=] _4hQ4SS 9VQ +<?: m '>8<m m m2=]_m)bSH47Dm 4@B m&=em =KBD m m S;D4m <c<LUW<:m5km .4Sm)ZDS_]m S;D4 m)d_ m#_; m m!Q m%DK=m-_VS= m&4_FVS4Km D@Be4j m*VB_4Jm*V4;m 0DNK4@=m*VB4; m D]__ m B4HH4[m 4[j4S4 m S;D4m R3Gm m ]4K=] _4SXZDS_] 9VQ C\8L3CP<Ym : 2AC 27C" 6C ,C+ C70C :0# C 22026C02C0+#66#0,6C#,C7"#6C19 (# 7#0, C ,C61#7 C0 C7"#6 C 22026C+ AC 2 1C#, C -AC+#67 & C 2202C02C 6 2 1 , AC,07 C+ AC C 209 "7C70C092C,07# C <"# "C6" )(C C7 & ,C 2 C0 C#,C7" C, @7C #7#0, C 7C#6C,07# C7" 7C, #7" 2C7" C19 )#6" 2C,02C7" C 97"02C02C6 )( 2C?((C C2 610,6# ( C 2C ,AC + C02C(066C0 C 7#0,C70C ,AC0, C0 C ,AC'#, C#,C ,AC+ ,, 2 C7" 2 0+ C 7C#6C69 67 C7" 7C70C :0# C ,AC 09 7C7" C2 2C6"09* C 2066 " &C )(C 7" C 76 C ( =C , C 0,7 ,76C 0 C7" C 19 )# 7#0,C ?7"C 03#!. (C 0: 5+ ,7C 19 )# 7#0,C 02C ,07# 7#0,6 C 0C1 27C0 C7"#6C 00&C+ AC C2 120 9 C02C 01# C#,C ,AC 2+C02C AC ,AC + ,6C 2 1"# C ( 720,# C02C+ " ,# ( C$. (9 #, C1"070 01B, C2 02 #, C7 1#, C02C#, 2+ 7#0,C2 74 : (C 6A67 +6 C 02C 2 120 9 C 0,C ,AC #6 C 7 1 C 1 2 2 7 C + # C 02C 07" 2C #, 2+ 7#0,C 6702 C ;# C 7 C>#7"097C8 C=2#77 ,C1 2+#66#0,C0 C7" C19 )#6" 26 C 2 "C0 C7"#6C 0, #7#0,C#6C(# ( C 2C( (C 7#0, C ((C #6197 6C 2 C69 % 7C70C ("#C%92#6 # 7#0,C0/A C
MODULE-WISE MARKS DISTRIBUTION
S. No.
Module Name
2017
2018
2019
J
J
J
D
2023
D
D
D
J
Accounting for Shares 17 17 17 17 17 16 and Debentures
7
18
15 18 15.90
2
Preparation of Statement 13 17 16 18 13 18 of P&L and Balance sheet
8
12
15 16 14.60
Cash flow Statement
15 10
8
15
15
10
Accounts of Banking, Electricity and Insurance Companies
9
10 11 12 18 11
12
10
16 16 12.50
5
Accounting Standards
12 12 13 10 12 13
24
11
6
6
Basic Concepts of Auditing
25 19 17 23 18 22
20
24
24 15 20.70
7
Provisions relating to 37 43 45 39 44 40 Audit under Companies Act, 2013
46
38
32 34 39.80
8
Auditing of different types of Undertakings
0
4
6
4
4
I-5
4
6
4
4
9
9
11
10.60
12.20
4.50
TAXMANN®
3 4
4
9
D
Average
1
9
D
2021 2022
PREVIOUS EXAMS TREND ANALYSIS
Year
Question No.
Compulsory
Chapter Name
Marks
Category
Dec. 2023
1
Yes
Accounting for Shares and Debentures
4
Practical & Theory
Preparation of Statement of P&L and Balance sheet
2
Theory
Cash flow Statement
2
Theory
Accounts of Banking, Electricity and Insurance Companies
2
Theory
[Syllabus 2022]
2
Theory
8
Theory
Provisions relating to Audit under Companies Act, 2013
6
Theory
Auditing of different types of Undertakings
4
Theory
2(a)
Accounting for Shares and Debentures
7
Practical
2(b)
Accounting for Shares and Debentures
7
Practical
3
Preparation of Statement of P&L and Balance sheet
14
Practical
4(a)
Accounts of Banking, Electricity and Insurance Companies
7
Practical
4(b)
Accounts of Banking, Electricity and Insurance Companies
7
Practical
5(a)
Accounting Standards
7
Practical
5(b)
Cash flow Statement
7
Practical
6(a)
Basic Concepts of Auditing
7
Theory
6(b)
Provisions relating to Audit under Companies Act, 2013
7
Theory
7(a)
Provisions relating to Audit under Companies Act, 2013
7
Theory
I-7
TAXMANN®
Accounting Standards Basic Concepts of Auditing
I-8
PREVIOUS EXAMS TREND ANALYSIS
Year
July 2023
Question No.
Chapter Name
Marks
Category
7(b)
Provisions relating to Audit under Companies Act, 2013
7
Theory
8(a)
Auditing of different types of Undertakings
7
Theory
8(b)
Provisions relating to Audit under Companies Act, 2013
7
Theory
Accounting for Shares and Debentures
1
Theory
Preparation of Statement of P&L and Balance sheet
1
Theory
Accounts of Banking, Electricity and Insurance Companies
3
Theory
1(a)
Compulsory
Yes
[Syllabus 2022]
TAXMANN®
1(b)
Yes
Cash flow Statement
1
Practical
Accounting for Shares and Debentures
1
Theory
Cash flow Statement
1
Theory
Accounting Standards
2
Theory
Accounting for Shares and Debentures
1
Theory
Preparation of Statement of P&L and Balance sheet
1
Theory
Accounts of Banking, Electricity and Insurance Companies
1
Theory
Accounting Standards
1
Theory
2(a)
Accounting for Shares and Debentures
4
Practical
2(b)
Accounting for Shares and Debentures
8
Practical
3(a)
Cash flow Statement
8
Practical
3(b)
Accounts of Banking, Electricity and Insurance Companies
4
Practical
4
Preparation of Statement of P&L and Balance sheet
12
Practical
5(a)
Accounting Standards
4
Practical
5(b)
Accounts of Banking, Electricity and Insurance Companies
8
Practical
Basic Concepts of Auditing
1
Theory
Provisions relating to Audit under Companies Act, 2013
4
Theory
Auditing of different types of Undertakings
1
Theory
1(c)
6(a)
Yes
Yes
I-9
PREVIOUS EXAMS TREND ANALYSIS
Year
Question No.
Compulsory
6(b)
Yes
6(c)
Marks
Category
Basic Concepts of Auditing
2
Theory
Provisions relating to Audit under Companies Act, 2013
2
Theory
Basic Concepts of Auditing
1
Theory
Provisions relating to Audit under Companies Act, 2013
2
Theory
Auditing of different types of Undertakings
1
Theory
7(a)
Basic Concepts of Auditing
6
Theory
7(b)
Basic Concepts of Auditing
6
Theory
8(a)
Provisions relating to Audit under Companies Act, 2013
6
Theory
8(b)
Provisions relating to Audit under Companies Act, 2013
6
Theory
9(a)
Provisions relating to Audit under Companies Act, 2013
6
Theory
9(b)
Provisions relating to Audit under Companies Act, 2013
6
Theory
10(a)
Auditing of different types of Undertakings
4
Theory
10(b)
Provisions relating to Audit under Companies Act, 2013
8
Theory
Accounting for Shares and Debentures
4
Practical & Theory
Preparation of Statement of P&L and Balance sheet
2
Theory
Cash flow Statement
2
Practical
Accounts of Banking, Electricity and Insurance Companies
2
Practical
Basic Concepts of Auditing
6
Theory
Provisions relating to Audit under Companies Act, 2013
12
Theory
Auditing of different types of Undertakings
2
Theory
2(a)
Accounting for Shares and Debentures
7
Practical
2(b)
Accounting for Shares and Debentures
7
Practical
3
Preparation of Statement of P&L and Balance sheet
14
Practical
1
[Syllabus 2022]
Yes
TAXMANN®
MTP Dec. 2023
Yes
Chapter Name
I-10
TAXMANN®
Year
PREVIOUS EXAMS TREND ANALYSIS
Question No.
Compulsory
Chapter Name
Marks
Category
4(a)
Accounts of Banking, Electricity and Insurance Companies
7
Practical
4(b)
Accounts of Banking, Electricity and Insurance Companies
7
Practical
5(a)
Accounting Standards
7
Practical
5(b)
Accounting Standards
7
Practical
6(a)
Basic Concepts of Auditing
7
Theory
6(b)
Provisions relating to Audit under Companies Act, 2013
7
Theory
7(a)
Provisions relating to Audit under Companies Act, 2013
7
Theory
7(b)
Provisions relating to Audit under Companies Act, 2013
7
Theory
8(a)
Auditing of different types of Undertakings
7
Theory
8(b)
Provisions relating to Audit under Companies Act, 2013
7
Theory
MODULE-WISE COMPARISON WITH STUDY MATERIAL Module No.
Study Material Module
Name of Module SECTION A: CORPORATE ACCOUNTING Accounting for Shares and Debentures
Module 1
2
Preparation of Statement of P&L and Balance sheet
Module 2
3
Cash flow Statement
Module 3
4
Accounts of Banking, Electricity and Insurance Companies
Module 4
5
Accounting Standards
Module 5
SECTION B: AUDITING 6
Basic Concepts of Auditing
Module 6
7
Provisions relating to Audit under Companies Act, 2013
Module 7
8
Auditing of different types of Undertakings
Module 8
I-11
TAXMANN®
1
CONTENTS
PAGE
Module-wise Marks Distribution
I-5
Previous Exams Trend Analysis
I-7
Module-wise Comparison with Study Material
I-11
SECTION A Module 1 u
ACCOUNTING OF SHARES AND DEBENTURES
1.3
Module 2 u
PREPARATION OF STATEMENT OF PROFIT AND LOSS AND BALANCE SHEET (AS PER SCHEDULE III OF COMPANIES ACT, 2013)
2.1
Module 3 u
3.1
CASH FLOW STATEMENT
Module 4 u
ACCOUNTS OF BANKING, ELECTRICITY AND INSURANCE COMPANIES
4.1
Module 5 u
5.1
ACCOUNTING STANDARDS
SECTION B AUDITING Chapter-wise Marks Distribution
6.2
Module 6 u
6.3
BASIC CONCEPTS OF AUDITING
I-13
TAXMANN®
CORPORATE ACCOUNTING
I-14
CONTENTS
Module 7 u
PROVISIONS RELATING TO AUDIT UNDER COMPANIES ACT
PAGE
7.1
Module 8 AUDITING OF DIFFERENT TYPES OF UNDERTAKING
8.1
Module-wise Solved Paper : Dec. 2023 (Suggested Answers)
P.1
TAXMANN®
u
3
CASH FLOW STATEMENT
M O D U L E
A QUICK REVIEW The statement of cash flows shall report cash flows during the period classified under the following three categories — (a) Cash flow from operating activities; (b) Cash flow from investing activities; and (c) Cash flow from financing activities. Note: Sum of these three types of cash flows reflects the net change in cash and cash equivalent of the entity. (a) Cash shall consist of cash in hand and demand deposits; and (b) Cash equivalent consist of short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Types of Cashflows: (a) Cash flow from operating activities Cash flows from operating activities are primarily derived from the principal revenue producing activities of the entity. Therefore, they generally result from the transactions and other events that enter into the determination of profit or loss. Examples of cash flows from operating activities are: (i) cash receipts from the sale of goods and the rendering of services; (ii) cash receipts from royalties, fees, commissions and other revenue; (iii) cash payments to suppliers for goods and services; (iv) cash payments to and on behalf of employees; (v) cash receipts and cash payments of an insurance entity for premiums and claims, annuities and other policy benefits; (vi) cash payments or refunds of income taxes unless they can be specifically identified with financing and investing activities; and (vii) cash receipts and payments from contracts held for dealing or trading purposes. 3.1
TAXMANN®
Cash and Cash Equivalents:
3.2
SECTION A : CORPORATE ACCOUNTING
Note: Cash received on account of sale of an item of plant is a cash flow from investing activities. Again, cash flows arising from the purchase and sale of dealing or trading securities are classified as operating activities. Similarly, cash advances and loans made by financial institutions are usually classified as operating activities since they relate to the main revenue-producing activity of that entity. (b) Cash flow from investing activities The activities of acquisition and disposal of long-term assets and other investments not included in cash and cash equivalents are investing activities. However, only expenditures that result in a recognized asset in the balance sheet are eligible for classification as investing activities. Examples of cash flows arising from investing activities are: (i) cash payments to acquire property, plant and equipment, intangibles and other long-term assets. These payments include those relating to capitalised development costs and self-constructed property, plant and equipment;
TAXMANN®
(ii) cash receipts from sales of property, plant and equipment, intangibles and other long-term assets; (iii) cash payments to acquire equity or debt instruments of other entities and interests in joint ventures (other than payments for those instruments considered to be cash equivalents or those held for dealing or trading purposes); (iv) cash receipts from sales of equity or debt instruments of other entities and interests in joint ventures (other than receipts for those instruments considered to be cash equivalents and those held for dealing or trading purposes); (v) cash advances and loans made to other parties (other than advances and loans made by a financial enterprise); (vi) cash receipts from the repayment of advances and loans made to other parties (other than advances and loans of a financial enterprise); (vii) cash payments for futures contracts, forward contracts, option contracts and swap contracts except when the contracts are held for dealing or trading purposes, or the payments are classified as financing activities; and (viii) cash receipts from futures contracts, forward contracts, option contracts and swap contracts except when the contracts are held for dealing or trading purposes, or the receipts are classified as financing activities. (c) Cash from financing activities These are activities that result into change in size and composition of owner’s capital and borrowing of the organisation. Accordingly, it includes receipts from issue of shares, bonds and other instruments, borrowing and repayment of loans.
3.3
MOD. 3 : CASH FLOW STATEMENT
Examples of cash flows arising from financing activities are: (i) cash proceeds from issuing shares or other similar instruments; (ii) cash proceeds from issuing debentures, loans, notes, bonds, mortgages and other short-term or long-term borrowings; (iii) cash repayments of amounts borrowed.
PAST EXAMINATION QUESTIONS OBJECTIVE QUESTIONS Q. 1. Interest and Dividends received in the case of a manufacturing concern should be classified as cash flow from: (A) Operating activities (B) Financing activities (C) Investing activities (D) None of the above. [June 2013, 1 Mark] Ans. (C) Investing activities Q. 2. Which of the following items is not a part of cash flow from operating activities? (B) Payment of outstanding wages (C) Payment to suppliers of machinery (D) Advances to foreign suppliers for raw materials
[June 2017, 1 Mark]
Ans. (C) Payment to suppliers of machinery Q. 3. Interest received by a finance company is a part of cash flow from investing activities. (True/ False) [June 2017, 1 Mark] Ans. False Q. 4. While preparing Cash Flow Statement of XY Ltd., a finance company, interest received on loans should be shown as: (A) Cash Flow from Operating Activities (B) Cash Flow from Investing Activities (C) Cash Flow from Financing Activities (D) Cash and Cash Equivalent
[Dec. 2017, 1 Mark]
Ans. (A) Cash Flow from Operating Activities Q. 5. Interest and dividend received form a part of financing cash flow. [Dec. 2017, 1 Mark] Ans. False
TAXMANN®
(A) Collection from customers
3.4
SECTION A : CORPORATE ACCOUNTING
Q. 6. Which of the following is not a component of Cash Flow Statement? (A) Cash payments to suppliers for goods and services (B) Charging of Depreciation (C) Cash advances and loans made to third parties (D) Cash repayments of amounts borrowed
[June 2018, 1 Mark]
Ans. (B) Charging of Depreciation Q. 7. In case of Cash Flow Statement prepared under indirect Method, decrease in current liabilities is: (A) Added to cash flow from operating activities (B) Deducted to cash flow from operating activities (C) Added to cash flow from investing activities (D) None of the above
[June 2019, 1 Mark]
TAXMANN®
Ans. (B) deducted to cash flow from operating activities Q. 8. Machinery purchased by issuing shares is shown under Cash Flow from Investments Activities in Cash Flow Statement. (True/False) [June 2019, 1 Mark] Ans. False Q. 9. How should the revaluation of Fixed Assets be treated in a Cash Flow Statement? (A) Under cash flow from financing activities (B) Do not appear in cash flow statement (C) Under cash flow from operating activities (D) Under cash flow from investing activities
[Dec. 2021, 1 Mark]
Ans. (B) Do not appear in cash flow statement Q. 10. Cash Flow arising from which of the following Operating, Investing or Financing Activities may be reported on a net basis? Name one item. [Dec. 2021, 1 Mark] Ans. Cash receipts and payments on behalf of customers when the cash flow reflect the activities of the customer rather than those of the entity OR cash receipts and payments for items in which turnover is quick, the amounts are large, and the maturities are short. Q. 11. Increase in Bank Overdraft is: (A) Increase in Cash and Cash equivalents (B) Decrease in Cash and Cash equivalents (C) Inflow from Financial activities (D) Outflow from Financial activities Ans. (B) decrease in Cash and Cash equivalents
[Dec. 2022, 1 Mark]
MOD. 3 : CASH FLOW STATEMENT
3.5
Q. 12. Interest Income in case of a financial company is treated as a part of Revenue from Operations. (True/ False) [Dec. 2022, 1 Mark] Ans. True Q. 13 Net profit for the year ended 31.12.2022 ` 15,000, interest received in advance on 1st January, 2022 ` 2,000 and 31st December, 2022 ` 3,000. Cash from operations will be _____. (A) 16,000 (B) 22,000 (C) 13,000 (D) 15,000
[July 2023, 1 Mark]
Ans. (A) 16,000 Working Note: Net Profit
15,000
Increase in current liability
1,000
Cashflow from Operations
16,000
Ans. False
DESCRIPTIVE QUESTIONS Q. 1. What is the meaning of the expression ‘cash equivalent’? [Dec. 2013, 2 Marks] Ans. Cash equivalent means bank balance and other risk-free short-term investments and advances which are readily encashable. Cash equivalents means short-term highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value. Q. 2. State the classification of cash flow activities as per AS-3. [Dec. 2014, 2 Marks] Ans. Cash Flow Statement explains cash movements under three different heads, namely: u Cash flow from operating activities; u Cash flow from investing activities; u Cash flow from financing activities.
Q. 3. Write a short note on objectives of preparing Cash Flow Statement. [June 2017, 4 Marks]
TAXMANN®
Q. 14. Payment of income tax is classified under cash flow from financing [July 2023, 1 Mark] activity. (True/ False)
3.6
SECTION A : CORPORATE ACCOUNTING
Ans. Objectives of preparing Cash Flow Statement: (i) To provide information about firm’s liquidity, flexibility and ability to generate future cash flow. (ii) To provide information about firm’s ability to meet future obligations. (iii) To enhance comparability among firms. (iv) To assess reliability of net profit and quality of earnings. (v) To enable the users to assess how assets and liabilities have increased or decreased. (vi) To project future cash flow streams. (vii) To provide information on different types of cash flow. Q. 4. Reasons for preparation of Cash Flows.
[June 2019, 4 Marks]
Ans. u Cash Flow statement is considered to be a summarized statement showing
sources of Cash Inflows and application of cash outflows of an enterprise during a particular period of time. TAXMANN®
u It is prepared on the basis of the published data as disclosed by the Financial
Statement of two different financial periods. u It is an essential tool for managerial decision-making. u Cash Flow Statement reports the management net Cash Flow (i.e. cash inflow
less cash outflow or vice versa) from each activity of the enterprise as well as of the overall business of the enterprise. u The management of the enterprise gets a picture of movement of cash resources
from the Cash Flow Statement and can assess the stronger and weaker area of movement of cash for different activities of the business for drawing up the future planning.
PRACTICAL PROBLEMS Q. 1. The following relevant items from the Balance Sheet of LM Limited are provided: Particulars Goodwill Profit & loss General Reserve Inventories Debtors Prepaid Expenses Creditors Provision for tax Provision for doubtful debts
31-03-2012 (`) 90,000 4,15,000 3,25,000 4,15,000 3,45,000 18,000 2,35,000 1,05,000 17,250
31-03-2013 (`) 75,000 6,25,000 3,75,000 5,10,000 3,22,000 15,000 2,70,000 1,55,000 15,000
3.7
MOD. 3 : CASH FLOW STATEMENT
Depreciation amounting to ` 1,42,000 and Profit on sale of Machinery amounting to ` 21,000 appeared in the Profit and Loss A/c for the year ending 31-3-2013. During the year 2012-13 ` 1,00,000 was paid as Income Tax. You are required to calculate Net Cash Flow from operating activity for the year ending 31st March, 2013. [Dec. 2013, 4 Marks] Ans. Statement showing cash flow from operating activities for the year ended 31st March 2013: Particulars
`
`
(A) Cashflow from Operating Activities: Increase in balance of Profit & loss (6,25,000 – 4,15,000)
2,10,000
Profit on sale of machinery
(21,000)
Provision for tax
1,50,000
Depreciation
1,42,000
Goodwill written off
15,000
Transfer to general reserve
50,000
Operating profit before working capital changes
3,36,000 5,46,000 TAXMANN®
Changes in working Capital: Decrease in prepaid expenses
3,000
Decrease in provision for doubtful debts
(2,250)
Increase in Inventories
(95,000)
Increase in creditors
35,000
Decrease in Debtors
23,000
(36,250)
Tax paid
(1,00,000)
Net Cash flow from Operating activities
4,09,750
Working Notes: (1) Provision for tax: Opening balance
1,05,000
Tax paid
(1,00,000)
Closing
(1,55,000)
Tax Provision
1,50,000
Q. 2. Shyama Limited has given the following information for the preparation of cash flow statement for the year 2013-14: Particulars
` in ’000
Net profit after tax
50,000
Dividend (including dividend tax) paid
17,070
Provision for income tax
10,000
3.8
SECTION A : CORPORATE ACCOUNTING
Income tax paid during the year
8,496
Loss on sale of assets (net)
80
Book value of the assets sold
370
Depreciation charged during the year
40,000
Amortisation of capital grant
12
TAXMANN®
Profit on sale of investments
200
Cost of investment sold
55,530
Interest received on investments
5,012
Interest expenses
20,000
Interest paid during the year
21,040
Increase in Current Assets (excluding Cash & Bank balance)
77,500
Decrease in Current Liabilities
34,650
Purchase of Fixed Assets
29,120
Purchase of investment
7,700
Expenditure on construction work in progress
69,480
Receipt of grant for capital projects
28
Proceeds from issue of share capital
51,960
Proceeds from issue of Debentures
41,150
Opening Cash and Bank balance
10,006
Closing Cash and Bank balance
13,976
You are required to prepare the Cash Flow Statement for the year 2013-14 in accordance with AS-3. [June 2014, 10 Marks] Ans. Cash Flow Statement for the year ended 31st March 2014 Particulars
` in ’000
` in ’000
(A) Cashflow from Operating Activities: Net profit before Taxation Depreciation Loss on sale of assets Amortization of capital grant
60,000 40,000 80 (12)
Profit on sale of investments
(200)
Interest received in investments
(5012)
Interest expenses
20,000
Operating profit before working capital changes
54,856 1,14,856
Changes in working Capital: Decrease in current liabilities
(34,650)
Increase in current assets
(77,500)
Tax paid
(1,12,150) (8,496)
3.9
MOD. 3 : CASH FLOW STATEMENT
Particulars
` in ’000
Net Cashflow from Operating activities
` in ’000 (5,790)
(B) Cashflow from Investing Activities: Sale of Assets
290
Sale of Investments
55,730
Interest received on investments
5,012
Purchase of Fixed Assets
(29,120)
Purchase of Investments
(7,700)
Expenditure on Capital Work-in-progress
(69,480)
Net Cashflow from Investing activities
(45,268)
(C) Cash flow from Financing Activities: Receipt of Grant for capital projects
28
Proceeds from issue of share capital
51,960
Proceeds from issue of debenture
41,150 (21,040)
Dividend (including Dividend distribution tax) paid
(17,070)
Net Cash flow from Financing activities
55,028
Net increase in cash and cash equivalents
3,970
Cash and cash equivalents at the beginning
10,006
Cash and cash equivalents at the end
13,976
Q. 3. Relevant balance sheet accounts of Arti Limited, as on 31st March, 2013 and 2014 are as follows: (` in Lakhs) Particulars
31-03-2013
31-03-2014
Profit & loss
41
47
General Reserve
46
49.50
Creditors
25
23.50
Bills payable
3
4
Income tax payable
10
17
Proposed dividend
15
18
Stock
30
27
Debtors
22
26
Bills receivable
4
2.50
Prepaid expenses
1
2.40
TAXMANN®
Interest paid
3.10
SECTION A : CORPORATE ACCOUNTING
Other Information: (1) During the year 2013-14, one old machine costing ` 6,45,000 (W.D.V. ` 3,92,000) was sold for ` 3,68,000 and some investments are sold at a profit of ` 15,000. (2) During the year 2013-14, depreciation charged ` 4,50,000, goodwill written off ` 25,000 and Income tax paid ` 8,75,000. You are required to calculate the net cash flow from operating activities. [Dec. 2014, 8 Marks] Ans. Statement showing cashflow from operating activities for the year ended 31st March 2014 Particulars
` in Lakhs
` in Lakhs
(A) Cashflow from Operating Activities:
TAXMANN®
Increase in balance of Profit & loss (47 – 41)
6.00
Loss on sale of machinery
0.24
Tax Provision
15.75
Proposed Dividend
18
Profit on sale of investment
(0.15)
Depreciation
4.50
Goodwill written off
0.25
Transfer to general reserve
3.50
Operating profit before working capital changes
42.09 48.09
Changes in working Capital: Increase in prepaid expenses
(1.40)
Increase in bills payable
1
Decrease in Stock
3
Decrease in Bills Receivable
1.50
Decrease in creditors
(1.50)
Increase in Debtors
(4)
(1.40)
Tax paid
(8.75)
Net Cashflow from Operating activities
37.94
Working Notes: (1) Provision for tax: Opening balance Tax paid Closing Tax Provision
10 (8.75) (17) 15.75
Corporate Accounting & Auditing (CAA) | CRACKER AUTHOR PUBLISHER DATE OF PUBLICATION EDITION ISBN NO NO. OF PAGES BINDING TYPE
: : : : : : :
LEENA LALIT PARAKH, TARUN AGARWAL TAXMANN JANUARY 2024 2ND EDITION 9789357788861 484 PAPERBACK
Rs. 425
Description This book is prepared exclusively for the Intermediate Level of Cost and Management Accountancy Examination requirement. It covers the questions & detailed answers as per the new syllabus of ICMAI. The Present Publication is the 2nd Edition for the CMA Intermediate | New Syllabus | June 2024 Exam. This book is authored by CA Tarun Agarwal and CA Leena Lalit Parakh, with the following noteworthy features:
Strictly as per the new syllabus of ICMAI
Coverage of the book concludes:
[Past Exam Questions] till CMA-Intermediate Dec. 2023 Exam (Suggested Answers)
Part I – Objective Questions [MCQs, Blanks, True/False, Match and Short Sums]
Part II – Descriptive Question
Part III – Numerical Problems
[Introduction] to each Chapter covering
Important Definitions
Concepts
Formulas
[Sample Questions] for Topics newly introduced in the syllabus
[Questions & Case Studies] with detailed answers
[Point-wise Answers] for easy & quick learning
[Tabular Summary] at the beginning of each chapter
[Most Updated & Amended] Section B [Auditing] of this Book is updated & amended as per the latest Companies Act Amendments.
[Marks Distribution] is given Module-wise from June 2017 onwards
[Previous Exam Trend Analysis] is provided in this book from Dec. 2023 ICMAI Study-Material Comparison] is also given module-wise
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