Example of cash flow statement, Cost Accounting

1. Shares were certified at a premium of Rs. 1.50' per share.

2. Throughout the year Taxation liability regarding of 2002 was Rs, 20,000 and paid.

3. Throughout the year, Rs. 11,000 was provided for depreciation on Machinery and Plant.

4.  An item of the plant the written down value Rs. 20,000 was sold on Rs. 25,000.

5. Throughout the year, a dividend @ 7.5 percent was paid.

6. Part of the investment costing Rs. 30,000 was sold at Rs. 35,000 and the profit was considered in Profit and Loss account.

Depends on the above information, we initially set ourselves to ascertain the cash inflow and outflow regarding Investment, Machineries and Plant and Tax, that cannot be determined through a mere inspection of their balances in two balance sheets. The duty is accomplished through preparing the respective accounts and examining the effects of the additional information on each of such.  It is followed through preparation of an "Adjusted the Profit and Loss a/c" to determine the actual net profit earned throughout the period, in the light of the additional information now obtainable. In the last stage, the "Cash flow statement" is prepared as in Table 3.

Investment Account

To Opening balance

75,000

By Sale

 

35,000

To P & L a/c (profit on sale)

5,000

By Closing balance

 

1,30,000

To Bank (Purchases)

85,000

 

 

 

 

 

1,65, 000

 

 

 

1,65, 000

Plant & Machinery Account

To Opening balance                          1,10,000                  By Sale                                     25,000

 To P & L a/c (profit on sale)             5,000                      By P & L a/c- depreciation   11,000

To Bank                                                91,000                     By Closing balance             1,70,000

         2,06,000                                                                     2,06,000

Provision for taxation

To Bank

20,000

By Opening Balance

20,000

By Closing balance

35,000

By P & L a/c

35,000

        55,000                                                                             55,000

Adjusted Profit and Loss Account

To General Reserve                       15,000 By Opening balance

40,000

To Dividend                                  30,000 By Dividend Equalisn. Reserve

10,000

To Provision for tax                      35,000 By Plant and Machineries profit on sale

5,000

To Depreciation                             11,000 By Investment-profit on sale.

5,000

By profit for the year

 

(balancing figure)

1,01,000

To Goodwill                                  10,000

 

To Preliminary expenses                 5,000

 

To Closing balance                        55,000

 

1,61,000

1,61,000

Table 3

 

Statement of Cash flow

 

for the period 1.4 2002 to 31.3.2003

 

 

Rs.

Opening Cash balance as on 1.4.2002

Add/(deduct): Cash flow from

Operating Activities

Net profit (Ref: P&L Adjustment a/c)                                                       1,01,000

Add:

20,000

1571_Example of cash flow statement.png

Posted Date: 4/9/2013 1:58:03 AM | Location : United States







Related Discussions:- Example of cash flow statement, Assignment Help, Ask Question on Example of cash flow statement, Get Answer, Expert's Help, Example of cash flow statement Discussions

Write discussion on Example of cash flow statement
Your posts are moderated
Related Questions

Weighted Average Method - Work in Progress While this method is employed, all costs of production are considered in assigning costs to inventory. The method puts together open

WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PATTERNS

Find Out Overhead Application Rate The given is the budget of Superb Engineering Works for the 2002 year Factory overheads Kshs 62,000

Process Costing Procedure 1. The production factory is divided into a number of methods. 2. An account is maintained and opened for every process. 3. Every process accou

Q. Explain Break-even analysis? Cost-volume-profit (CVP) analysistracks that how profit changes when there are changes insales price, variable costs, fixed c

prepare cost accounting sheet

what do i need to know before the overhead preparation?

A process in the industry where a wholesaler needs an amount that is the difference among the manufacturer's price to the wholesaler and the contract price to the resale customer.

How many pounds of guava puree are required? a. In a month? b. How many in a year? In computing the Total Landed cost for mango concentrate, we are interested in the incre