1 :- Identify the transactions as belonging to (i) Operating Activities, (ii) Investing Activities, (iii) Financing Activities and (iv) Cash and Cash Equivalents:
(a) Cash Sale of Goods
(b) Cash Received against Revenue from Services rendered
(c) Cash Purchase of Goods
(d) Cash Paid against Services Taken
(e) Patents Purchased
(f) Marketable Securities
(g) Bank Overdraft
(h) Proceeds from Issue of Debentures
(i) Purchase of Shares
(j) Repayment of Long-term Loan
(k) Commission Received
(L) Redemption of Debentures
(m) Interest on Debentures
(n) Interest on Investments
(o) Income Tax Paid
(p) Income Tax paid on Gain (Profit) on Sale of Asset
(q) Cash Received from Debtors
(r) Cash Paid to Creditors.
2 :- Classify the following transactions as Operating Activities for a finance company and a non-finance company:
(a) Purchase of Shares on a Stock Exchange.
(b) Dividend received on shares.
(c) Dividend paid on shares
(d) Loans, given.
(e) Loans taken
(f) Interest paid on borrowings.
3 :- State which of the following would result in inflow or outflow or no flow of Cash and Cash Equivalents:
(a) Sale of Fixed Assets, Book Value Rs 1,00,000 at a profit of Rs 10,000
(b) Sale of goods against cash.
(c) Purchase of machinery for cash.
(d) Purchase of Land and Building for Rs 10,00,000. Consideration paid by issue of debentures.
(e) Issued fully paid Bonus Shares.
(f) Cash withdrawn from Bank.
(g) Payment of Interim Dividend.
4 :- For each of the following transactions, Calculate the resulting cash flow and state the nature of cash flow, i.e., whether it is Operating, Investing or Financing Activity:
(a) Acquired machinery for Rs 2,50,000 paying 20% by cheque and executing a bond for the balance payable.
(b) Paid Rs 2,50,000 to acquire shares in Informa Tech Ltd. and received and dividend of Rs 50,000 after acquisition.
(c) Sold machinery of original cost of Rs 2,00,000 with an accumulated depreciation of Rs 1,60,000 for Rs 60,000.
5 :- Following is the extract from the Balance Sheet of Karishma Ltd. as at 31st March, 2023:
Additional Information: Proposed Dividend for the years ended 31st March, 2022 and 2023 are Rs 4,00,000 and Rs 5,00,000 respectively.
Prepare the Note to show Net Profit before Tax and Extraordinary Items.