Professional Documents
Culture Documents
Cash Flow Statement
Cash Flow Statement
2. Provision for tax charged in 2006 was Rs. 35,000: P&l a/c Dr. to Prov. For tax
3. The debenture was issued at a premium of 5% which is included in the retained: 2,00,000 x
5/100= 10,000
earnings.
4. Depreciation charged on machinery was Rs. 30,000….Dep. a/c Dr. To Machinery
Solution:
Provision for Tax a/c
Balance c/d 30,000
Bank (Tax paid) 25,000
(B/F)
Balance b/d 40,000 P&L a/c 35,000
65000 65000
Machinery a/c
Balance c/d 1,25,000 Depreciation a/c 30,000
Vendor 1,00,000
Balance c/d 4,75,000
Bank (B/F) (pur.) 2,80,000
5,05,000 5,05,000