MEPL CLASSES
CS EXECUTIVE
CORPORATE AND MANAGEMENT ACCOUNTING
Mail -Id – d2hclasses@mohitsir.com
Website – www.meplclasses.com
Address – 59, JATINDRA MOHAN AVENUE, SOVABAZAR, KOLKATA – 700005
(TIME ALLOTED – 60 MINUTES) (MARKS ALLOTED – 30 MARKS)
Question 1 : (10 Marks)
Prepare cash flow statement of M/s MNT Ltd. for the year ended 31st March, 20X1 with the
help of the following information:
[1] Company sold goods for cash only
[2] Gross Profit Ratio was 30% for the year, gross profit amounts to Rs.3,82,500.
[3] Opening inventory was lesser than closing inventory by Rs.35,000.
[4] Wages paid during the year Rs.4,92,500.
[5] Office and selling expenses paid during the year Rs.75,000.
[6] Dividend paid during the year Rs.30,000.
[7] Bank loan repaid during the year Rs.2,15,000 (included interest Rs.15,000).
[8] Trade payables on 31st March, 20X0 exceed the balance on 31st March, 20X1 by
Rs.25,000.
[9] Amount paid to trade payables during the year Rs.4,60,000.
[10] Tax paid during the year amounts to Rs.65,000 (Provision for taxation as on
31.03.20X1 Rs.45,000).
[11] Investments of Rs.7,00,000 sold during the year at a profit of Rs.20,000.
[12] Depreciation on fixed assets amounts to Rs.85,000.
[13] Plant and machinery purchased on 15th November, 20X0 for Rs.2,50,000.
[14] Cash and Cash Equivalents on 31st March, 20X0 Rs.2,00,000.
[15] Cash and Cash Equivalents on 31st March, 20X1 Rs.6,07,500.
Question 2 : (10 Marks)
The balance sheets of Sun Ltd. as at 31st March 20X1 and 20X0 were as:
Particulars Notes 20X1 20X0
(Rs.) (Rs.)
Equity and Liabilities
1 Shareholder's funds
(a) Share capital 1 60,000 50,000
(b) Reserve & surplus 2 5,000 4,000
2 Current liabilities
(a) Trade Payables 4,000 2,500
(b) Other current liabilities 3 - 1,000
(c) Short term provision (provision for tax) 1,500 1,000
Total 70,500 58,500
Assets
1 Non-current assets
(a) Property, Plant & Equipment 4 39,500 29,000
2 Current assets
(a) Current investments 2,000 1,000
(b) Inventories 17,000 14,000
(c) Trade receivables 8,000 6,000
(d) Cash & cash equivalents 5 4,000 8,500
Total 70,500 58,500
Notes to accounts
Sr. No. Particulars 20X1 20X0
(Rs.) (Rs.)
1 Share Capital
Equity Shores of Rs.10 each) 60,000 50,000
2 Reserve & surplus
Profit and Loss Account 5,000 4,000
3 Other current liabilities
Dividend Payable - 1,000
4 Property, plant and equipment (at WDV)
Building 10,000 10,000
Fixtures 17,000 11,000
Vehicles 12,500 8,000
Total 39,500 29,000
5 Cash and cash equivalents
Cash and Bank 4,000 8,500
The profit and loss statement for the year ended 31st March, 20X1 disclosed:
Particulars Rs.
Profit before tax 4,500
Tax expense: Current tax (1,500)
Profit for the year 3,000
Declared dividend (2,000)
Retained Profit 1,000
Further information is available:
Particulars Fixtures (Rs.) Vehicles (Rs.)
Depreciation for the year 1,000 2,500
Disposals:
Proceeds on disposal of vehicles — 1,700
Written down value — (1,000)
Profit on disposal 700
Question 3 : (10 Marks)
Ms. Jyoti of Star Oils Limited has collected the following information for the preparation of
cash flow statement for the year ended 31st March, 20X1:
Particulars Rs. in lakhs
Net Profit 25,000
Dividend paid 8,535
Provision for Income tax 5,000
Income tax paid during the year 4,248
Loss on sale of assets (net) 40
Book value of the assets sold 185
Depreciation charged to the Statement of Profit and Loss 20,000
Profit on sale of Investments 100
Carrying amount of Investment sold 27,765
Interest income received on investments 2,506
Interest expenses of the year 10,000
Interest paid during the year 10,520
Increase in Working Capital (excluding Cash & Bank Balance) 56,081
Purchase of Fixed assets 14,560
Investment in joint venture 3,850
Expenditure on construction work in progress 34,740
Proceeds from calls in arrear 2
Receipt of grant for capital projects 12
Proceeds from long-term borrowings 25,980
Proceeds from short-term borrowings 20,575
Opening cash and bank balance 5,003
Closing cash and bank balance 6,988
Prepare the Cash Flow Statement for the year ended 31 March 20X1 in accordance with AS
3. (Make necessary assumptions)
