fflustration 14 : [Treatment of Dividend, Provision for Doubtful Debts and

Accumulated Depreciation]
ABC Ltd. gives you the following information. You are require~ to prepare Cash Flow
Statement using Indirect Method as per Accounting Standard-3 (revtsed) for the year ended
31st March, 2021 :

A. Equity and Liabilities

1. Shareholders Funds
Share Capital :
Equity Share Capital 50,00,000 50,00,000
Reserve and Surplus :
Retained Earning 26,50,000 36,90,000
2. Non-Current Liabilities
Debentures
Bank Loan 9,00,000
3. Current Liabilities 1,50,000 3,00,000
Trade Payables :
Trade Creditors 8,80,000 8,20,000
Liability for Expenses 3,30,000 2,70,000
Other Current Liabilities
Dividend Pa able 1,50,000 3,00,000
Total 91,60,000 1,12,80,000
B. Assets
1. Non-current Assets:
Property, Plant and Equipment :
(i) Tangible Assets
Plant and Machinery 27,30,000 40,70,000
Less: Accumulated Depreciation (6,10,000) (7,90,000)
2. Current Assets
Current Investments : Marketable Securities 11,80,000 15,00,000
Inventories : Stock in Trade 20,10,000 19,20,000
Trade Receivable : Trade Debtors 23,90,000 28,30,000
Less : Provisions for Doubtful Debts (1,50,000) (1,90,000)
Cash and Cash Eqµivalent :.Cash in Hand 15,20,000 18,20,000
Other Current Assets : Pre aid Ex enses 90,000 1,20,000
Total 91,60,000 1,12,80,000

·
Additional Information :
(i)
t he year e nd ed 31st March, 2021 after charging depreciation~ 1,80,000 is
 Cash Flow Statements 14.45

(ii) Debtors of~ 2,30,000 were determined to be worthless and were written off against
provision for doubtful debts account during the year.
(iii) ABC Ltd. declared a dividend amounting~ 12,00,000 in the year 2020-21.
[CA (PE-II) May, 2004, Modified]