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