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From the following Balance Sheets of Xerox Ltd., prepare cash flow statement. Additional information: 1. Dividend proposed and paid during the year Rs 1,50,000. 2. Income tax paid during the year includes Rs 15,000 on account of dividend tax. 3. Land and building book value Rs 1,50,000 was sold at a profit of 10%. 4. The rate of depreciation on plant and machinery is 10%. |
Answer» SOLUTION : Working Notes : (1) TOTAL tax paid during the year "" Rs 80,0000 (–) Dividend tax paid (given)"" Rs (15,000) Income tax paid for operating ACTIVITIES"" Rs 65,000. (2) Net profit earned during the year after tax and dividend = Rs 7,50,000 – 6,00,000 = Rs 1,50,000 (3) Net profit before tax = Net profit earned during the year after tax and dividend + Provision fortax made + Proposed Dividend = Rs 1,50,000 + Rs 95,000 (See provision for TAXATION ACCOUNT)+Rs 1,50,000 = Rs3,95,000  
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