Q# 2. Following are account balances of ABC Concern, Owner of the business received the detail of accounts showing the following comparative statement: Year 2010 3,10,000 Year 2011 1,60,000 5,00,000 Cash Debtors 4,20,000 Stock 10,00,000 40,00,000 (15,00,000) 3,00,000 8,75,000 Fixed Assets (Accumulated Depreciation) 46,00,000 (16,50.000) Investment 3,00,000 Total 45,30,000 47,85,000 8,00,000 75,000 10,00,000 20,00,000 Creditors 9,00,000 1,30,000 9,00,000 Tax Provision Mortgage Loans Equity Share Capital Retained Earnings 20,00,000 6,55,000 8,55,000 Total 45,30,000 47,85,000 After looking into the comparative balance sheet data. Owner commented that there is something strange going on here. These balance sheets clearly indicate that cash decreased by Rs. 1,50,000 during the year. The Company paid only Rs. 50,000 in dividends, so rather than decreasing by Rs. 1,50,000 it seems to me that it would have increased by Rs. 2,00,000. The company retired no fixed assets during the year. Prepare a Cash Flow Statement of the company for 2011.

Q# 2. Following are account balances of ABC Concern, Owner of the business received the detail of accounts showing the following comparative statement: Year 2010 3,10,000 Year 2011 1,60,000 5,00,000 Cash Debtors 4,20,000 Stock 10,00,000 40,00,000 (15,00,000) 3,00,000 8,75,000 Fixed Assets (Accumulated Depreciation) 46,00,000 (16,50.000) Investment 3,00,000 Total 45,30,000 47,85,000 8,00,000 75,000 10,00,000 20,00,000 Creditors 9,00,000 1,30,000 9,00,000 Tax Provision Mortgage Loans Equity Share Capital Retained Earnings 20,00,000 6,55,000 8,55,000 Total 45,30,000 47,85,000 After looking into the comparative balance sheet data. Owner commented that there is something strange going on here. These balance sheets clearly indicate that cash decreased by Rs. 1,50,000 during the year. The Company paid only Rs. 50,000 in dividends, so rather than decreasing by Rs. 1,50,000 it seems to me that it would have increased by Rs. 2,00,000. The company retired no fixed assets during the year. Prepare a Cash Flow Statement of the company for 2011.

Name: Q# 2. Following are account balances of ABC Concern, Owner of the bus
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Description: Q# 2. Following are account balances of ABC Concern, Owner of the business received the detail ofaccounts showing the following comparative statement:Year 20103,10,000Year 20111,60,0005,00,000CashDebtors4,20,000Stock10,00,00040,00,000(15,00,000)3,00

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter3: Basic Accounting Systems: Accrual Basis

Section: Chapter Questions

Problem 3.23E: Adjustment for depreciation The estimated amount of depredation on equipment for the current year is...

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