Skip to main content

🎓 New resources added daily! Join over 50,000 students using Padandas

The balance sheet of a company for two years are given below: Liabilities Year 1 Year 2 Equity Share capital…

The balance sheet of a company for two years are given below:

Liabilities Year 1 Year 2
Equity Share capital 900,000 1,000,000
Share premium 90,000 100,000
10% Debentures 100,000 50,000
Provision for tax 20,000 30,000
Provision for dividend 10,000 20,000
Accounts payable 60,000 110,000
Profit and loss a/c 30,000 160,000
Total 1,210,000 1,470,000
Assets
Fixed assets 800,000 1,000,000
Inventory 100,000 150,000
Accounts receivable 190,000 150,000
Prepaid expenses 20,000 30,000
Cash 100,000 140,000
Total 1,210,000 1,470,000

Income Statement for the Year 2

Particulars Rs.
Sales revenue 11,00,000
Less: Cost of goods sold 710,000
Gross Profit 390,000
Less: Operating expenses:
Administrative expenses 157,000
Depreciation 50,000
Provision for tax 30,000
Provision for dividend 20,000
Interest paid 10,000
Premium on redemption of debentures 5,000
Total operating expenses 272,000
Net income 118,000
Add: Gain on sale of fixed assets 12,000
Retained earning 130,000

Required: Cash flow statement

Solution

Solution not added yet.

Explore more questions

  1. 1.

    (a) What is double entry book-keeping system? Also write down the advantages and disadvantages of double entry book-keeping system.

    (b) What is accounting? Also, explain in details about the accounting cycle.

    Practice
  2. 2.

    The following are the transactions of a company:

    a. Started business with cash Rs. 400,000 and bank balance Rs. 50,000.

    b. Deposited into bank Rs.100,000

    c. Machinery costing Rs.100,000 was purchased payment made by a cheque.

    d. Purchased merchandise goods for Rs.60,000 on account.

    e. Sold merchandise goods on account for Rs.200,000.

    f. Received a cheque from debtor, Rs.190,000 after deduction of 5% discount. The cheque was banked immediately.

    g. Paid Rs.54,000 to creditor by issuing a cheque after deduction 10% discount.

    h. Rs.12,000 was paid for insurance premium.

    i. Paid wages and salary Rs.40,000 by issuing cheques.

    j. Paid Rs.30,000 for rent.

    Required:

    a. Journal entries

    b. T accounts (ledger) for sales, purchase, account receivable and account payable

    c. Triple column cash book

    d. Trial Balance

    Long question Practice
  3. 3.

    Write about the disclosures required for financial statement under Nepal Financial Reporting Standard (NFRS).

    Practice
  4. 4.

    (a) What is financial statement? Also, mention the objectives of financial statement.

    (b) Differentiate between account receivable and note receivable

    Practice
  5. 5.

    (a) The bank statement of a company showed a balance of Rs. 52,000 on 30th Poush 2079. However the company balance showed a different balance of Rs. 48,000. On the investigation, the following differences were noticed:

    i. Company issued check of Rs.12,000 but during Poush only Rs.8,000 was presented to bank for payment

    ii. Deposit in transit Rs.6,000

    iii. EFT payment Rs.1,500

    iv. Customer’s cheque of Rs.3,000 was return with the bank statement marked NSF.

    v. Collection of notes and interest receivable was for Rs.8,000 and Rs.4,000 respectively

    vi. Bank charge Rs.500 for the service provided by the bank

    vii. A cheque of Rs.10,000 was deposited by the bank. However, the amount recorded by the company was Rs.11,000 in its statement.

    Required: Bank reconciliation statement

    (b) Differentiate between bond and debenture

    Long question Practice
  6. 6.

    (a) A Company purchased machinery on Poush 30, 2077 for Rs. 80,000 and spent Rs. 20,000 on its installation. The company charged depreciation at 15% using SLM every year. At the end of Ashwin 2079, the company sold the machinery for Rs. 90,000 and purchased new machinery for Rs. 140,000. The books are closed on 31st Chaitra every year.

    Required: Machinery account for 2077 to 2079

    (b) Differentiate between tangible and intangible assets.

    Long question Practice