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प्रश्न
Read the following hypothetical text and answer the question given below on the basis of the same:
Aditi, initiated her start-up Fizz Ltd. in 2019, ‘Fizz Ltd. is an organic juice extracting unit. Its profits are increasing year-after-year because of the increasing awareness towards health.
Following information has been extracted from the Balance Sheet of ‘Fizz Ltd.” for the year ended 31" March, 2022:
| 31st March, 2022 | 31st March, 2021 | |
| Equity Share Capital | 90,00,000 | 60,00,000 |
| 11 % Debentures | 30,00,000 | 50,00,000 |
| Machinery (at cost) | 28,00,000 | 20,00,000 |
| Accumulated Depreciation on Machinery | 90,000 | 60,000 |
Additional Information:
- During the year, a machine costing ₹ 4,00,000 was sold at a gain of ₹ 30,000.
- Depreciation charged on machinery during the year was ₹ 50,000.
- Interest paid on 11% debentures amounted at ₹ 5,50,000.
- Dividend of ₹ 3,00,000 was paid on equity shares.
- Debentures were redeemed at a premium of 10% on 31st March,2022.
Calculate cash flows of 'Fizz Ltd.' from 'Investing Activities' and 'Financing Activities.
खातेवही
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उत्तर
| Cash Flow from Investing Activities | |
| Particulars | Amount (₹) |
| Proceeds from Sale of Machinery | 4,10,000 |
| Payment for Purchase of Machinery | (12,00,000) |
| Net cash used in Investing Activities | (7,90,000) |
| Cash Flow from Financing Activities | |
| Particulars | Amount (₹) |
| Proceeds from Issue of Equity shares | 30,00,000 |
| Dividend paid on Equity shares | (3,00,000) |
| Interest paid on 11 % Debentures | (5,50,000) |
| Redemption of 11 % Debentures (₹ 20,00,000 + ₹ 2,00,000) | (22,00,000) |
| Net cash used in Financing Activities | (50,000) |
Working Note:
(i)
| Dr. | Machinery Account | Cr. | |
| Particulars | Amount (₹) | Particulars | Amount (₹) |
| To Balance b/d | 20,00,000 | By Bank A/c (Sale) (WN iii) | 4,10,000 |
| To Statement of Profit and Loss (profit on sale) | 30,000 | By Accumulated Depreciation A/c | 20,000 |
| To Bank A/c (Bal. Fig.) (purchase) | 12,00,000 | By Balance c/d | 28,00,000 |
| 32,30,000 | 32,30,000 | ||
(ii)
| Dr. | Accumulated Depreciation Account | Cr. | |
| Particulars | Amount (₹) | Particulars | Amount (₹) |
| To Maclunery A/c (Bal. Fig.) | 20,000 | By Balance b/d | 60,000 |
| To Balance c/d | 90,000 | By Depreciation A/c | 50,000 |
| 1,10,000 | 1,10,000 | ||
(iii) Sale Price = Cost - Accumulated Depreciation + Profit on Sale
= ₹ 4,00,000 - ₹ 20,000 + ₹ 30,000
= ₹ 4,10,000
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