Retained profit for 2007-08 is Rs.4.3L(16.8-12.5)

2007 2008

General Reserves

12.5L 16.8L

↑ in Stock 1.6L

Out flow is 1.6L

↑ in W.C. 1.6L

2007 2008

Stock 4.8L 6.4L

؞

↓ in Receivables Rs.1L

inflow is Rs.1L

↓ in W.C.Rs.1L

2007 2008

Receivables 7.2L 6.2L

؞

↑ in creditors Rs.3L

inflow is Rs.3L

↓ in W.C

2007 2008

Creditors 5L 8L

؞

↓ Outstanding expenses Rs.1L

Out flow Rs.1L

↑ W.C.Rs.1L

2007 2008

Outstanding Expenses

3L 2L

؞

Following items are non cash items:-

• Depriciation

• Goodwill writtenoff

• Preliminary expenses writtenoff

Investing Activities:

• Purchase of Fixed Assets

• Sale of Fixed Assets

• Purchase of Investment

• Sale of Investment

Profit or loss of Fixed assets

or investment will be taken in

Operating Activity.

Financing Activity consists of

• Share Capital

• Loan fund

• Dividend Paid

Which is operating Activity as per Cash Flow Statement?

A] Interim Dividend

B] Telephone Expenses

C] Purchase of Car

D] None of the above

Calculate fund from investment activity:-

• Purchase of investment Rs.4L

• Sale of fixed Asset Rs.3L

1]Rs.7L

2]Rs.4L

3]Rs.1L

4]Rs.3L

Calculate fund from financing activity:-

• Issued Shares Rs.4L

• Debentures paid Rs.2L

1] Rs 4L

2]Rs 2L

3]Rs 6L

4]None of the above

Cash Flow can be prepared by ________Methods.

1] 1 Method

2] 2 Methods

3] 3 Methods

4] 4 Methods

Cash flow is comparison between ______Periods.

1] 3 periods

2] 4 periods

3] 1&2

4] None of the above

Value of stock Rs.5LMarket price Rs.3L

• Closing stock should valued at

1]Rs. 5L

2]Rs. 3L

3]Rs. 8L

4]Rs. 2L

Opening stock Rs.10LPurchase Rs.20L

Consumption Rs.24L

• Closing stock is

1]Rs.30L

2]Rs.10L

3]Rs.6L

4]none of the above

Which method matches Expenses and Revenues?

1]FIFO

2]LIFO

3]1&2

4]None of the above

Should method of valuation of stock given in balance sheet?

1] True

2] False

Purchases Rs.7,80,000Purchase returns Rs.30,000

• Net Purchase_____________

1] Rs.8,10,000

2] Rs.7,50,000

3] Rs.7,60,000

4] Rs. None of the above