Question
ABC Ltd., a manufacturing company, undertook a series of
transactions during the financial year 2024–25. It purchased a new plant worth ₹1,000 lakh and paid 60% in cash, while the remaining 40% was financed through a long-term loan from a financial institution. Additionally, it sold an old piece of equipment for ₹150 lakh, which had a book value of ₹120 lakh, resulting in a profit that was correctly recognized in the profit and loss account. The company also invested ₹200 lakh in acquiring 10% stake in a start-up and earned ₹30 lakh as dividend on its existing investment in an associate company. The dividend was credited to the profit and loss account. Further, ₹100 lakh was received as interest income from bonds held as long-term investments. Depreciation of ₹250 lakh was charged on fixed assets during the year. Based on the above information, which of the following statements is most accurate in the context of preparing the Cash Flow Statement (as per Ind AS 7)?Solution
• Only cash-paid portion (₹600 lakh) of plant is shown • Profit on asset sale (₹30 lakh) is non-cash → not shown in investing; only sale proceeds ₹150 lakh are shown • Investment (₹200 lakh), dividend (₹30 lakh), and interest (₹100 lakh) → all investing inflows under Ind AS 7 • Depreciation (₹250 lakh) → non-cash, part of operating activity adjustments
- In a hostel, the number of senior and junior students are in the ratio 4:3. If the number of seniors was reduced by 32 and the juniors increased by 16, the...
- A total of 840 toffees are shared among four siblings in the ratio (1/7):(1/8):6:8. How many more toffees did the second highest recipient get than the low...
The ratio of two numbers is 9: 5. If 8 is added to the larger number and 4 is subtracted from the smaller number, the greater number becomes twice the ...
The total number of phones to the total number of laptops in Stores A and B is in the ratio 120:13. Additionally, the number of laptops in Store A to t...Coins are distributed among Anoop, Bishnu, Chinky, and Danny such that the difference between Chinky’s share and Danny’s share is equal to the diffe...
A company has 600 male employees and 400 female employees. When (x + 50) males and 2x females are recruited, the ratio becomes 7:5. Find the value of �...
A girl spent 20% of her monthly income on clothing. Of the remaining, she spent on travel and food in the ratio of 3:2. If the difference of the income ...
Mr Rohila left his entire property to his wife, daughter and son and the cook. His son and daughter got half the estate, sharing in the ratio of 3:2. Hi...
- Determine the fourth proportion for 20, 25, and 40.
Difference between the ages of A and B is same as the difference between the ages of B and C. The difference between the ages of A and C is 8 years. If ...
