Here is a compilation of top three problems on cash flow statement with its relevant solution.
Problem 1:
Given below are Balance Sheets of Calcutta Jute Ltd. as at 31 -3-02 and 31-3-01. You are required to prepare Cash Flow Statement for the year 2001-02.
Other Information:
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(1) Fixed assets costing Rs.1, 20,000, accumulated depreciation Rs.60, 000 were sold for Rs.70, 000.
(2) Actual tax liability for 2000-01 was Rs.7, 00,000.
(3) Loans represent long term loans given to group companies.
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(4) Interest on loan funds for 2001-02 was Rs.5, 94,500 and interest and dividend income were Rs.4, 42,000.
(5) Investments costing Rs.6, 00,000 were sold for Rs.7, 00,000.
Solution:
Problem 2:
Deepak Chemicals presents the following Balance Sheets as at 31-3-02 and 31-3-01. You are required to prepare cash flow statement.
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(1) Fixed assets costing Rs. 4, 00,000, accumulated depreciation Rs. 3, 00,000 were sold for Rs. 1, 50,000.
(2) Actual tax liability for 2000-01 was Rs. 5, 00,000.
(3) Loans represent long term loans given to group companies.
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(4) Interest on loan funds for 2001-02 was Rs. 14, 21,000 and interest and dividend income were Rs. 4, 02,000.
(5) Investments costing Rs.20, 00,000 were sold for Rs. 25, 00,000.
Solution:
Problem 3:
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Given below are summarised Balance Sheets of Harsh Chemicals Ltd. as at 31-3-01 and 31-3-02. The company issued 1 bonus share for every 4 shares held. The company also acquired machinery amounting to Rs. 30, 00,000 from Levenz of France on deferred credit basis.
Other Information:
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(1) Fixed assets costing Rs. 4,00,000, accumulated depreciation Rs. 3,00,000 were sold for Rs. 1,50,000.
(2) Actual tax liability for 2000-01 was Rs. 14,00,000.
(3) Loans represent long term loans given to group companies.
(4) Interest on loan funds for 2001-02 was Rs. 8,41,000 and interest and dividend income were Rs. 4,02,000.
(5) Investments costing Rs. 20,00,000 were sold for Rs. 25,00,000.
Solution:
