The follwing data are taken from the annual report of vasanth ltd. sale of equipment of Rs. 3,000. A deduction of Rs. 4,000 has been made for theThe income statement shows a net income of Rs. 75,000. This includes a gain from(Ans : Funds out flow on acount of operations : Rs,5,000|Management Accountine4.7431-12-80Rs.31-12-81Ra.1,50,0001,25,000Plant & Equipment (at cost)10,00017,500Less: Accumulated depreciation1,15,0001,32,500amortisation of goodwill. Purchase of equipment amounted to Rs. 31.000 theyear and depreciation charged amounted to Rs. 12,000 for the yearCalculate funds from operations.asta2[Madras, B.Com., (ICE) May 1982|JAns : Funds from operations : Rs. 88,000|15. The Profit and Loss Account of a company for the years ending 31-3-1988 and31-3-1989 showed Balance of Rs. 20,000 and Rs. 30,000 respectively. For the vending 31-3-1989, provision for dividend was made to the extent of Rs. 50.000Transfer to reserve amounted to Rs. 40,000, depreciation written off was Rs. 25.000loss on sale of old machinery amounting to Rs. 5,000 was debited to Profit and LossAccount, sale of investment resulted in a profit of Rs. 3,000 which was taken toProfit and Loss Account; Sale of furniture resulted in a profit of Rs. 3,000 whichwas also taken to Profit and Loss account; a commission of Rs. 4,000 received on anon-trading activity was credited to Profit and Loss Account. You are required tocalculate funds from operations.[Bangalore, B.Com., April 1993|[Ans : Funds from operations: Rs. 1,20,000]|16. From the following particulars calculate funds from operations.ParticularsRs.Salaries40,000Depreciation20,000Interest on investments10,000Profit on sale of fixed assets5,000HineProvision for taxation30,000Interim dividend paid20,000Proposed dividendAdministrative and selling expenses30.00025,000Goodwill written off10.000

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The income statement shows a net income of Rs. 75,000. This includes a gain from amortisation of goodwill. Purchase of equipment amounted to Rs. 31,000 for the sale of equipment of Rs. 3,000. A deduction of Rs. 4,000 has been made for the 31-12-80 Rs. 31-12-81 Ra. 1,25,000 1,50,000 Plant& Equipment (at cost) 10,000 17,500 Less: Accumulated depreciation 1,15,000 1,32,500 amortisation of goodwill. Purchase of equipment amounted to Rs. 31.000 for e year and depreciation charged amounted to Rs. 12,000 for the year. Calculate funds from operations.

The income statement shows a net income of Rs. 75,000. This includes a gain from amortisation of goodwill. Purchase of equipment amounted to Rs. 31,000 for the sale of equipment of Rs. 3,000. A deduction of Rs. 4,000 has been made for the 31-12-80 Rs. 31-12-81 Ra. 1,25,000 1,50,000 Plant& Equipment (at cost) 10,000 17,500 Less: Accumulated depreciation 1,15,000 1,32,500 amortisation of goodwill. Purchase of equipment amounted to Rs. 31.000 for e year and depreciation charged amounted to Rs. 12,000 for the year. Calculate funds from operations.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

Section: Chapter Questions

Problem 10SPB

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