P.5.9 The following are the summarised balance sheets of Hypothetical Ltd. as at March 31 for the two consecutive years 1 and 2. Prepare CFS as per AS-3. R in thousand) R Particulars Year 2 2 Year 1 Assets Cash on hand and balances with banks 200 25 Short-term investments 670 135 Sundry debtors 1,700 1,200 Interest receivable 100 Inventories 900 1.950 Long-term investments 2,500 2,500 Fixed assets at cost 2,180 1,910 Accumulated depreciation (1,450) (1.060) Fixed assets (net) ) 730 850 Total assets 6,800 6,660 Liabilities Sundry creditors 150 1,890 Interest payable 230 100 Income taxes payable 400 1,000 Long-term debt 1.110 1,040 Total liabilities 1,890 4,030 (Contd.) y11 Cash Flow Statement (Contd.) Shareholders' Funds Share capital Reserves Total shareholders' funds Total liabilities and shareholders' funds 1,500 3,410 4,910 6,800 1,250 1.380 2,630 6,660 Statement of Profit and Loss for the year 2 ended March 31 000) Sales 30,650 Cost of sales (26,000) Gross profit 4,650 Depreciation (450) Administrative and selling expenses (910) Interest expense (400) Interest income 300 Dividend income 200 Foreign exchange loss (40) Net profit before taxation and extraordinary item 3,350 Extraordinary item-Insurance proceeds from earthquake disaster settlement 180 Net profit after extraordinary item 3,530 Income-tax (300) Net profit 3,230 Additional information in thousand) (1) An amount of 250 was raised from the issue of share capital and a further 250 was raised from long-term borrowings. (ii) Interest expense was 400 of which 170 was paid during the period. 100 relating to interest expense of the prior period was also paid during the period. (iii) Dividends paid were 1,200. (iv) Tax deducted at source on dividends received (included in the tax expense of 300 for the year) amounted to 40. (v) During the period, the enterprise acquired fixed assets for 350. The payment was made in cash. (vi) Plant with original cost of 80 and accumulated depreciation of 60 was sold for 20. (vii) Foreign exchange loss of 40 represents the reduction in the carrying amount of a short-term in- vestment in foreign-currency designated bonds arising out of a change in exchange rate between the date of acquisition of the investment and the balance sheet date. (viii) Sundry debtors and sundry creditors include amounts relating to credit sales and credit purchases only. P.5.9 The following are the summarised balance sheets of Hypothetical Ltd. as at March 31 for the two consecutive years 1 and 2. Prepare CFS as per AS-3. R in thousand) R Particulars Year 2 2 Year 1 Assets Cash on hand and balances with banks 200 25 Short-term investments 670 135 Sundry debtors 1,700 1,200 Interest receivable 100 Inventories 900 1.950 Long-term investments 2,500 2,500 Fixed assets at cost 2,180 1,910 Accumulated depreciation (1,450) (1.060) Fixed assets (net) ) 730 850 Total assets 6,800 6,660 Liabilities Sundry creditors 150 1,890 Interest payable 230 100 Income taxes payable 400 1,000 Long-term debt 1.110 1,040 Total liabilities 1,890 4,030 (Contd.) y11 Cash Flow Statement (Contd.) Shareholders' Funds Share capital Reserves Total shareholders' funds Total liabilities and shareholders' funds 1,500 3,410 4,910 6,800 1,250 1.380 2,630 6,660 Statement of Profit and Loss for the year 2 ended March 31 000) Sales 30,650 Cost of sales (26,000) Gross profit 4,650 Depreciation (450) Administrative and selling expenses (910) Interest expense (400) Interest income 300 Dividend income 200 Foreign exchange loss (40) Net profit before taxation and extraordinary item 3,350 Extraordinary item-Insurance proceeds from earthquake disaster settlement 180 Net profit after extraordinary item 3,530 Income-tax (300) Net profit 3,230 Additional information in thousand) (1) An amount of 250 was raised from the issue of share capital and a further 250 was raised from long-term borrowings. (ii) Interest expense was 400 of which 170 was paid during the period. 100 relating to interest expense of the prior period was also paid during the period. (iii) Dividends paid were 1,200. (iv) Tax deducted at source on dividends received (included in the tax expense of 300 for the year) amounted to 40. (v) During the period, the enterprise acquired fixed assets for 350. The payment was made in cash. (vi) Plant with original cost of 80 and accumulated depreciation of 60 was sold for 20. (vii) Foreign exchange loss of 40 represents the reduction in the carrying amount of a short-term in- vestment in foreign-currency designated bonds arising out of a change in exchange rate between the date of acquisition of the investment and the balance sheet date. (viii) Sundry debtors and sundry creditors include amounts relating to credit sales and credit purchases only