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प्रश्न
Property, Plant and Equipment (Net): Closing ₹ 31,75,000, Opening ₹ 25,50,000. During the year, a machine costing ₹ 3,50,000 (Depreciation provided thereon ₹ 1,50,000) was sold for ₹ 1,25,000. Depreciation charged for the year was ₹ 3,50,000.A machine costing ₹ 75,000 was purchased by issue of equity shares of 10 each at a premium of 20%. Net profit Before Tax and Extra-ordinary Items ₹ 2,50,000.
How will these items be shown while preparing Cash Flow Statement?
खातेवही
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उत्तर
| Cash Flow Statement | ||
|---|---|---|
| Particulars | Amount (₹) | Amount (₹) |
| I. Cash Flow from Operating Activities | ||
| Net Profit before Tax and Extraordinary Items | 2,50,000 | |
| Add: Non-Cash and Non-Operating Expenses | ||
| 1. Depreciation charged for the year | 3,50,000 | |
| 2. Loss on Sale of Machine | 75,000 | 4,25,000 |
| Operating Profit before Working Capital Changes | 6,75,000 | |
| II. Cash Flow from Investing Activities | ||
| 1. Proceeds from Sale of Machine (Inflow) | 1,25,000 | |
| 2. Payment for Purchase of PPE (Cash Outflow) | (11,00,000) | |
| Net Cash Used in Investing Activities | (9,75,000) | |
Working Notes:
1. Calculation of Loss on Sale of Machine
Cost of machine sold = ₹ 3,50,000
Less: Depreciation provided thereon = (₹ 1,50,000)
Book Value (Net) of machine sold = ₹ 2,00,000
Less: Sale Proceeds = (₹ 1,25,000)
Loss on Sale (Non-operating expense) = ₹ 75,000
2. Cash Purchases
Property, Plant and Equipment (Net) Account
| Debit (Particulars) | Amount (₹) | Credit (Particulars) | Amount (₹) |
|---|---|---|---|
| To Balance b/d (Opening) | 25,50,000 | By Bank A/c (Sale Proceeds) | 1,25,000 |
| To Share Capital A/c (Non-cash purchase) | 75,000 | By Statement of P&L (Loss on Sale) | 75,000 |
| To Bank A/c (Cash Purchase - Bal. Fig.) | 11,00,000 | By Depreciation A/c (Charged for year) | 3,50,000 |
| By Balance c/d (Closing) | 31,75,000 | ||
| Total | 37,25,000 | Total | 37,25,000 |
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