(a)

The following information has been extracted from the books of Ram Lal Ltd. : $\displaystyle 31.3.2024$ $\displaystyle 31.3.2023$ Particulars (T) (t) Surplus : Balance in $\displaystyle 17,00,000$ $\displaystyle 8,00,000$ Statement of Profit and Loss Patents $\displaystyle 50,000$ Sundry Debtors $\displaystyle 5,80,000$ $\displaystyle 4,20,000$ Sundry Creditors $\displaystyle 1,40,000$ $\displaystyle 60,000$ Cash and Cash Equivalents $\displaystyle 2,00,000$ $\displaystyle 90,000$ Additional Information : Interim dividend paid during the year was ₹ $\displaystyle 1,20$,000. Calculate Cash Flows from Operating Activities. (b) The following information has been extracted from the books of Lata Ltd. : $\displaystyle 31.3.2024$ $\displaystyle 31.3.2023$ Particulars () c) Machinery (Cost) $\displaystyle 70,00,000$ $\displaystyle 50,00,000$ Accumulated Depreciation $\displaystyle 10,00,000$ $\displaystyle 8,00,000$ Additional Information : (i) During the year a piece of machinery costing $\displaystyle 1,40,000$ on which accumulated depreciation was ₹ $\displaystyle 90,000$, was sold at a gain of ₹ $\displaystyle 10$,000. (ii) Depreciation charged during the year amounted to $\displaystyle 2,90$,000. Calculate Cash Flows from Investing Activities.

Alternative (i)- If patents are assumed to be amortised: Ram Lal Ltd. Cash flows from Operating Activities Particulars Amount ₹ Net Profit before Tax & Extraordinary items $\displaystyle 10,20,000$ Adjustment for non-cash and non-operating items: Add: Patents written off $\displaystyle 50,000$ Operating Profit before Working Capital changes $\displaystyle 10,70,000$ Add: Increase in Current Liabilities (Creditors) $\displaystyle 80,000$ Less: Increase in Current Assets ( Debtors) ($\displaystyle 1,60,000$) Net Cash Inflows from Operating Activities $\displaystyle 9,90,000$ Calculation of Net Profit before Tax and Extraordinary items: Net Profit for the year = $\displaystyle 9,00,000$ Add: Interim Dividend = $\displaystyle 1,20,000$ Net Profit before Tax & Extraordinary items = $\displaystyle 10,20,000$ Alternative (ii)- If patents are assumed to be sold: Ram Lal Ltd. Cash flows from Operating Activities Particulars Amount ₹ Net Profit before Tax & Extraordinary items $\displaystyle 10,20,000$ Operating Profit before Working Capital changes $\displaystyle 10,20,000$ Add: Increase in Current Liabilities (Creditors) $\displaystyle 80,000$ Less: Increase in Current Assets ( Debtors) ($\displaystyle 1,60,000$) Net Cash Inflows from Operating Activities $\displaystyle 9,40,000$ Calculation of Net Profit before Tax and Extraordinary items: Net Profit for the year = $\displaystyle 9,00,000$ Add: Interim Dividend = $\displaystyle 1,20,000$ Net Profit before Tax & Extraordinary items = $\displaystyle 10,20,000$ Q.(b) The following information………………………… Lata Ltd. Cash flows from Investing Activities Particulars Amount ₹ Purchase of Machinery (W.N. $\displaystyle 1$) ($\displaystyle 21,40,000$) Sale of Machinery $\displaystyle 60,000$ Net Cash used in Investing Activities ($\displaystyle 20,80,000$) Working Note No. $\displaystyle 1$: Dr. Machinery A/c Cr. Particulars ₹ Particulars ₹ To Balance b/d $\displaystyle 50,00,000$ By Accumulated Depreciation $\displaystyle 90,000$ To Statement of P&L $\displaystyle 10,000$ A/c To Bank A/c(Balancing Fig.) $\displaystyle 21,40,000$ By Bank A/c $\displaystyle 60,000$ By Balance c/d $\displaystyle 70,00,000$ $\displaystyle 71,50,000$ $\displaystyle 71,50,000$ Dr. Accumulated Depreciation A/c Cr. Particulars ₹ Particulars ₹ To Machinery A/c $\displaystyle 90,000$ By Balance b/d $\displaystyle 8,00,000$ To Balance c/d $\displaystyle 10,00,000$ By Depreciation A/c $\displaystyle 2,90,000$ $\displaystyle 10,90,000$ $\displaystyle 10,90,000$ Sale Price= $\displaystyle 1,40,000$- $\displaystyle 90,000$ +$\displaystyle 10,000$= ₹$\displaystyle 60,000$ PART-B OPTION-II (COMPUTERIZED ACCOUNTING)