Posind

received
gen)
Re-agDird
wo
Stovaluation
Fi

sample 20 :

One PPE Whose cost Rs .

500000 &
SOTD
in
For
Dep
prov Inter
. .

at 200000 to

Capital reserve
/

say : -
custo e

BYNT =
xxx

deduct 20000 Fram

& No need to
Gain of

NPBT Since it
was
directly
the ferred to
CA. JAI CHAWLA (FCA, M.COM, DISA, IFRS) (7887 7887 05) Page | 72
CR .
Class Example 2 -
-

Bes(extract
Closg - -
.
19
Inventory 475000 33250
Cost 195 ) .

icual into ?
-

I Entity used to measure theLost

Inventor
a
But now it has decide to measure

the
Inventory at cost .

Closs Invent
cost
is
correctly shown at

Sol) :
-
Forthe
purpose
of Cash How
Statement
Inventory cost shall
-

always be taken at
only .

Closs opng
-
Inventory
--

at cost >

100000 35000
value
CFOA
5% -
-

NPBT - xXX

(f) 17500
+
25000

CA. JAI CHAWLA (FCA, M.COM, DISA, IFRS) (7887 7887 05) Page | 73
 Treatment Dividend Income
or
received
--
Pre Acquisition post Acquisition
period Dividend period
Dividend
↓
always deducted From ↓
Investment Cost always tuuster
to
por .

* e ! -Dividend Income received in Cash

is
Investing Activity
-

an ·

(Pre as wer as
posit

Dividend deaived
-

Bank Dr .

fend Received

>
Dividend Res Di
To Investment
in shares -

CA. JAI CHAWLA (FCA, M.COM, DISA, IFRS) (7887 7887 05) Page | 74
 Mr Jai
-
.

RIL -> purchase on

11414
~

MV :

tr From Mr .
Ravi
⑧
26
Dividend
distribution 2
↓ -
MV Jai
.

June Invit Dr .
2650

To Bann 2650

ai
Bank Dr 50 .

To Dividend 50

Dividend Dr .
50
To Invent 50

ple22 :

Dividend Received [10000 / ,

out of which

I 3000 is
pue-Acquision .

us
Investment
e
opext

65800 80000
aya I

NPB T =

121000
CA. JAI CHAWLA (FCA, M.COM, DISA, IFRS) (7887 7887 05) Page | 75
 How above iteme in CFS
present
to .

sal) WN-
: -

Total Divd - 10000

/

>
- received-
-
post
Pre =000
3000
t
Ceduct Fram
parap
Invest .

ap)
-
WN-2
--
-
Investo al .

so
By PreDivd .
3000

To Bank 18000
ClosgBal
(B1) 65000

t
NPBT = 121000
(H) Ad; For non Cath

& non up .

#dend(post)
received =(Food
-

14000
-

CA. JAI CHAWLA (FCA, M.COM, DISA, IFRS) (7887 7887 05) Page | 76
 CFIA
--
-

purchar of Investment =

(18000)
+ Dividend Received =10000

-
Journal
entry
-> Bank 10000
- To Pal =000
To Invest 3000

CA. JAI CHAWLA (FCA, M.COM, DISA, IFRS) (7887 7887 05) Page | 77
⑱7

~
-

& meticu of Deth & PSC

Debt 120000 + 5%. Rem

=

16000
I
OutFOw

Lance
Premium =
6000
-
exp .

must be WHOFF
in pal
↓
non-operating
H
add Back in

oper .

Activity
same treatment & Ant
. For PSc also

~
2)arDecn => 400 0 000

- Firs
op
(-)
⑰

CA. JAI CHAWLA (FCA, M.COM, DISA, IFRS) (7887 7887 05) Page | 78
~
3) enter !
Opig Inventory
asper BIS
= 216000

(cost less
101)
100
Cost
original 24000
=
=

NPBT will be reduced

by
24
,
000-

stment
:
-op
Inventory =240000
.

300
Inventory
000
,
Co .
=

~
Less in oper .
Act .

↳ PPEak (net)

T
Bause 100000
op
.
Bal 2280000I ,
By 20000
Loss /P2)
By
To Bank 856000 O By 1
Pal(wor 16000
(BI) 360000
By Depreciation

Clos Bal 26400, 0

-
-
- -

CA. JAI CHAWLA (FCA, M.COM, DISA, IFRS) (7887 7887 05) Page | 79
 856000 -> Inventing
100000 -> Investing
20000(bob) -3 Ops .

16000/wot) -> open .

360000 (Dep) - Open .

A
rentmento
Reduction
↓
e

Sale=} Cost = 80000

->
op .
-
40000
profit
=

CA. JAI CHAWLA (FCA, M.COM, DISA, IFRS) (7887 7887 05) Page | 80
 New
Light Ltd .

Statement of Cash Flows

Fr year ending 3103/X1

Particulars Art -

- -

(5)
Closing PGay Bal 340000 ~ S

() Opug . Pal ap Bal .

240 000 ,

- -

Retained earning 100000

I I

(H) Dividend declared 0

CH) Turnter to GR 160000

·

I) prov . For Tax 340000

I
I

Net Provit BeFare Tax -000

It
Inventory
240000 Cost
adjust (24000)
-

-
216000 >
90 % oFcost
-

Correct NPBT I 576 , 000

,

(H) Adjustment For ↳on Cast

& non-oper : -

376000
H Depreciatio & Worf
(4) Loss on Sale OF PREE 20000

CA. JAI CHAWLA (FCA, M.COM, DISA, IFRS) (7887 7887 05) Page | 81

(v) Gain on Sale or Invest

(40000)
 (H) Interest an Deson 36000

(H) Premium on Redem .

12000
OF Deck & PEC

Cash Flow before we Change 1000

(Anges: -

It Increase in 14 -> 40000 /

-1 Increase is
Inventory (wis) =(60000)
It) Decrease in Other CA -> 44000
--

Cash Flow before Taxen -> 10

paid ,
04 000
,

() Tax paid

a) Net Cath
generated
in
op Nat
.
a -

()
I
Sale
Purchase Of
OF
↑ PE
PPE
-

-
I8560006
100000
-Sale or Investment - 120000
--

b) Net Cash used -> 00

CA. JAI CHAWLA (FCA, M.COM, DISA, IFRS) (7887 7887 05) Page | 82
⑭ )
# -
A

HRedemption of PSC =

(126000)
1) Redemption of Debu =

126000
(-) Enterest Paid -
-

(36000)
(H) Essve OF Ese -
400000
& /

op
7) Dividend paid -

4) Net Cash used -

Net Cash Flow
during the
=> 0
y ear

(a +
b +

c)

CA. JAI CHAWLA (FCA, M.COM, DISA, IFRS) (7887 7887 05) Page | 83
-6

X
o

No effect
a

mas, 188
in op .
Act .
wing clos
a no
Bas . 1580
e

R --
plant Ac

I
op Bal. 500000
By Bank/sale) 90000
.

⑤
To Gair(pal) 40000
↓ By
<op) Depreciation
(B/F)
0

350000
↓
To Bank
op .
⑧
To Debu 100000
&
/ Clos . Bal 765000
(non cash) --
-
- -

3) Investmental
-

/
To Bal . 80000 By Bank 1000
I

op (7 To Ga /y 20000 PreAg 5000

By
.
.

Divd
③ 500

Bank
To
.

(BIF)
CA. JAI CHAWLA (FCA, M.COM, DISA, IFRS) (7887 7887 05)
By Bal . 5000 Page | 84
- -
-
-
 ↳y Jesset) Voluntary Sep Pay al
. .

I
Op .
Bal 65000 By GR 50000

-> Closs
To Bank 110000

ar
.
Bal . 195000
-
--
-- -

5)

Y ai
-
-
so a

* There is no Trunter From Pas to GR

6)
-
ToBank
-ap"Bal Soooo
op (BE)
,
.

(-) By P2 80 ope .

0
t
Close -
95800
-

-
-

CA. JAI CHAWLA (FCA, M.COM, DISA, IFRS) (7887 7887 05) Page | 85
 CFOA
-
Clos Pas 70000
(-) Op ·
Pal 5000
-

RE 20000
[H Divd .
90000
(4) Tr to GR .
0

[H) Pov ·
For Tax 135000
-

245000
NPBT

CA. JAI CHAWLA (FCA, M.COM, DISA, IFRS) (7887 7887 05) Page | 86