Q3. The following is the summarized balance sheet of Michael Ltd. LIABILITIES 2018 2019 Equity Share Capital 200000 240000 Debentures 50000 Securities Premium 10000 General Reserve Profit & Loss A/C Sundry Creditors Proposed Dividend Provision for Depreciation Plant & Machinery 30000 50000 48000 68000 130000 150000 20000 24000 140000 150000 Furniture 6000 4000 624000 696000 ASSETS Land & Building Plant & Machinery (Cost) Furniture (Cost) 105000 150000 290000 320000 9000 10000 Inventories 130000 105000 Sundry Debtors 75000 85000 Cash 15000 26000 624000 696000 ADDITIONAL INFORMATION: 1. Furniture which cost Rs. 5,000, written down value Rs. 1,000 was sold during the year 2019 for Rs. 2,000. 2. Plant and Machinery which cost Rs. 20,000 and in respect of which Rs. 13,000 had been written off as depreciation was sold during the year for Rs. 3,000. 3. The dividend of 2018 was paid during 2019. You are required to prepare Cash Flow Statement.

Q3. The following is the summarized balance sheet of Michael Ltd. LIABILITIES 2018 2019 Equity Share Capital 200000 240000 Debentures 50000 Securities Premium 10000 General Reserve Profit & Loss A/C Sundry Creditors Proposed Dividend Provision for Depreciation Plant & Machinery 30000 50000 48000 68000 130000 150000 20000 24000 140000 150000 Furniture 6000 4000 624000 696000 ASSETS Land & Building Plant & Machinery (Cost) Furniture (Cost) 105000 150000 290000 320000 9000 10000 Inventories 130000 105000 Sundry Debtors 75000 85000 Cash 15000 26000 624000 696000 ADDITIONAL INFORMATION: 1. Furniture which cost Rs. 5,000, written down value Rs. 1,000 was sold during the year 2019 for Rs. 2,000. 2. Plant and Machinery which cost Rs. 20,000 and in respect of which Rs. 13,000 had been written off as depreciation was sold during the year for Rs. 3,000. 3. The dividend of 2018 was paid during 2019. You are required to prepare Cash Flow Statement.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter8: Liabilities And Stockholders' Equity

Section: Chapter Questions

Problem 8.21E

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