Q3. The following is the summarized balance sheet of Michael Ltd. LIABILITIES20182019Equity Share CapitalDebenturesSecurities PremiumGeneral ReserveProfit & Loss A/CSundry CreditorsProposed DividendProvision for Depreciation Plant & Machinery Furniture20000050000-3000048000130000200001400006000240000-100005000068000150000240001500004000 624000696000ASSETS Land & Building Plant & Machinery (Cost)Furniture (Cost)InventoriesSundry DebtorsCash10500029000090001300007500015000150000320000100001050008500026000 624000696000ADDITIONAL INFORMATION:Furniture which cost Rs. 5,000, written down value Rs. 1,000 was sold during the year 2019 for Rs. 2,000.2. Plant and Machinery which cost Rs. 20,000 and in respect of which Rs. 13,000 had been written off as depreciation was sold during the year for Rs. 3,000.3. The dividend of 2018 was paid during 2019.You are required to prepare Cash Flow Statement.

Name: Q3. The following is the summarized balance sheet of Michael Ltd.
Uploaded: 2024-03-04T10:43:15.000Z
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Description: Q3. The following is the summarized balance sheet of Michael Ltd. LIABILITIES20182019Equity Share CapitalDebenturesSecurities PremiumGeneral ReserveProfit & Loss A/CSundry CreditorsProposed DividendProvision for Depreciation Plant & Machi

Cash flow statement is prepared to know how adjustment in income and balance sheet effects the cash…

Answered: The following is the summarized balance…

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Q3. The following is the summarized balance sheet of Michael Ltd.

LIABILITIES	2018	2019
Equity Share Capital Debentures Securities Premium General Reserve Profit & Loss A/C Sundry Creditors Proposed Dividend Provision for Depreciation Plant & Machinery Furniture	200000 50000 - 30000 48000 130000 20000 140000 6000	240000 - 10000 50000 68000 150000 24000 150000 4000
	624000	696000
ASSETS
Land & Building Plant & Machinery (Cost) Furniture (Cost) Inventories Sundry Debtors Cash	105000 290000 9000 130000 75000 15000	150000 320000 10000 105000 85000 26000
	624000	696000

ADDITIONAL INFORMATION:

Furniture which cost Rs. 5,000, written down value Rs. 1,000 was sold during the year 2019 for Rs. 2,000.
2. Plant and Machinery which cost Rs. 20,000 and in respect of which Rs. 13,000 had been written off as depreciation was sold during the year for Rs. 3,000.
3. The dividend of 2018 was paid during 2019.
You are required to prepare Cash Flow Statement.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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