CA Advanced Accounts | Test 1
MARKS - 30
WORKING NOTES SHOULD FROM PART OF THE RESPECTIVE ANSWERS
1. RTP May 24
From the following particulars calculate cash flows from Operating activities:
Particulars `
Retained earning 17,000
Depreciation 4,000
Loss on Sale of Machinery 3,000
Provision for tax 7,000
Interim Dividend paid during the year 10,000
Dividend paid during the year 8,000
Premium payable on redeemable Preference Shares 2,000
Profit on sale of investment 10,000
Refund of tax 1,000
Additional Information:
31. 3. 22 ` 31. 3. 23 `
Trade Receivable 10,000 12,000
Trade Payable 7,000 15,000
Provision for Tax 4,000 7,000
Prepare Expenses 2,000 1,000
Outstanding Expenses 1,400 1,000
2. QP May 23
The summarised Balance Sheet of Flora Limited for the year ended 31st March, 2022 and 31
March, 2023 are as below:
Assets 31/03/2023 (₹) 31/03/2022 (₹)
01-04-2021 Down payment 1,40,000
Good will 15,000 28,000
Land 5,75,000 6,00,000
Furniture and Fixtures 48,000 44,000
Vehicles 22,000 28,000
Office – Equipment 21,000 -
Long – Term Investment 60,000 1,10,000
www.Swapnilpatni.com CA Anandh R Bhanggariya
CA Advanced Accounts | Test 2
Stock-in-hand 96,000 88,000
Bill Receivables 18,150 14,500
Trade Receivables 46,000 52,000
Cash and Bank Balance 1,29,850 34,500
Liabilities 31/03/2023 (₹) 31/03/2022 (₹)
Equity Share Capital 6,80,000 5,00,000
General Reserves 90,000 60,000
Profit and Loss Account 93,000 52,000
Capital Reserve 75,000 -
8% Debenture of ₹100each - 3,00,000
Loan form Mr. Andrew - 15,000
Bill Payable 11,000 13,000
Trade Payables 49,000 45,000
Creditors for Equipment 10,500 -
Outstanding Expenses 4,500 3,000
Provisions for Taxations 18,000 11,000
Total 10,31,000 9,99,000
Additional Information
(i) On 1st April, 2022, one of the vehicles was sold for ₹ 3,000. On new purchases were made
during the year.
(ii) A part of the total land was sold for ₹ 1,25,000 (cost ₹ 1,00,000) and the balance land was
revalued. Capital reserve consists of profit on revaluations of balance land. No new purchases
were made during the year.
(iii) Depreciation provided during the year –
• Furniture and Fixtures ₹ 5,000
• Vehicles ₹ 2,200
(iv) Interim dividend of ₹ 5,000 was paid during the year.
(v) Provision for taxation for the year 2022-2023 was ₹ 16,000.
(iv) Interim dividend of ₹ 5,000 was paid during the year.
(v) Provision for taxation for the year 2022-2023 was ₹ 16,000.
(vi) 8% Debenture were redeemed at par after half year interest payment on 30 th September,
2022.
(vii) Part of the long-term investment were sold at profit of ₹ 8,000.
(viii) Interest income received during the year on long- term investment was ₹6,500.
You are required to prepare cash flow statement from operating Activities for the year ended 31 st
March, 2023 using indirect method. (All workings should form part of the answer)
www.Swapnilpatni.com CA Anandh R Bhanggariya
CA Advanced Accounts | Test 3
3. RTP Nov 23
On the basis of the following information prepare a Cash Flow Statement for the year ended 31st March, 2023
(Using direct method):
(i) Total sales for the year were ` 796 crores out of which cash sales amounted to ` 524 crores.
(ii) Receipts from credit customers during the year, totalled ` 268 crores.
(iii) Purchases for the year amounted to ` 440 crores out of which credit purchase was 80%.
Balance in creditors as on 1.4.2022 ` 168 crores
31.3.2023 ` 184 crores
(iv) Suppliers of other consumables and services were paid ` 38 crores in cash.
(v) Employees of the enterprises were paid 40 crores in cash.
(vi) Fully paid 9% Preference shares of the face value of ` 64 crores were redeemed. Equity shares of the face
value of ` 40 crores were allotted as fully paid up at premium of 20%.
(vii) 10% Debentures of ` 40 crores at a premium of 10% were redeemed. Debenture holders were issued equity
shares in lieu of their debentures.
(viii) ` 52 crores were paid by way of income tax.
(ix) A new machinery costing ` 50 crores was purchased in part exchange of an old machinery. The book value
of the old machinery was ` 26 crores. Through the negotiations, the vendor agreed to take over the old
machinery at a higher value of ` 30 crores. The balance was paid in cash to the vendor.
(x) Investment costing ` 36 cores were sold at a loss of ` 4 crores.
(xi) Dividends totalling ` 30 crores was also paid.
(xii) Debenture interest amounting ` 4 crore was paid.
(xiii) Non-cash expenditure incurred during the current year was 1.2 crores.
(xiv) Dividends declared during the current year was 15% on equity share capital (ESC =‘120 crores).
(xv) On 31st March 2022, Balance with Bank and Cash on hand totalled ` 4 crores.
www.Swapnilpatni.com CA Anandh R Bhanggariya
