Reference no: EM13928137 , Length: word count:1500

Question 1:

Following is the Trial Balance of Mrs. Rashi as at 31st March, 2014. You are required to prepare the Profit & Loss Account and Balance Sheet as at that date.

Particulars	Debit(Rs)	Credit(Rs)
Capital Account		8,000
Plant & Machinery	10,000
Office Furniture & Fittings	520
Opening Stock	9,600
Motor Vans	2,400
Sundry Debtors	9,600
Cash in hand	80
Cash at Bank	1,300
Wages : Factory	30,000
Wages : Office	2,800
Purchases	42,700
Sales		96,000
Bills Receivable	1.44
Bills Payable		1,120
Sundry Creditors		10,400
Returns Inwards	1,860
Provision for Doubtful Debts		500
Drawings	1,400
Return Outwards		1,100
Rent	1,200
Factory Lighting & Heating	160
Telephone	70
Insurance	60
Advertising	1,130
General Expenses	200
Bad Debts	500
Discount Allowed	840
Discount Received		-40
TOTAL(Rs)	117,860	117,860

The following adjustments are to be made:

1. Closing Stock Rs. 10,400

2. Rent due but not paid upto 31st March 2014 Rs. 400

3. Three months factory lightings & heatings are due but not paid Rs.60

4. Insurance paid in advance Rs. 20

5. Depreciate plant & machinery by 10%, furniture by 5% and motor vans by 25%.

6. Write off further bad debts Rs.140 and increase the provision for doubtful debts by Rs. 600.Discounts @ 2 1/2% on debtors & creditors are to be anticipated.

Question 2:

a) What are the main aspects of Accounting Standard 1 (AS 1)

b) Calculate the net cash flow from financing activities based on the below data:

1. Cash from issue of new equity shares - Rs.50,00,000

2. Cash from issue of 12% debentures - Rs.30,00,000

3. Interim dividend paid - Rs.10,00,000

4. Buy-back of existing shares - Rs.15,00,000

5. Repayment of long term loan - Rs.10,00,000

c) Discuss in brief the treatment of following items in Cash Flow Statement as per AS-3.

1. Taxes on Income

2. Foreign Currency cash flow