Cash Flow Statement Page 19
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30MODULE - 6A
Cash Flow Statement
Analysis of Financial Statements
Illustration 6
In the comparative balance sheet of Wilson Pvt., the position of Building
Account is given as under.
2006
2007
2006
2007
Notes
Liabilities
Amount Amount Assets
Amount
Amount
Rs.
Rs.
Rs.
Rs.
Accumulated
700000
790000
Building 3840000
3910000
depreciation
(Building)
Additional Information
A part of the building of Rs.74,000 was sold for Rs.60,000. The accumulated
depreciation on building sold was Rs.20,000 Analyse the transaction.
Solution
The different transactions affecting the building account are to be identified
by preparing the following accounts :
Building Account
Dr
Cr.
Particulars
Amount
Particulars
Amount
Balance b/d
3840000
Cash (Inflow)
60000
Profit and loss Account
6000
Accumulated Depreciation A/c
20000
(gain on sale)
Bank A/c
Purchase (outflow)
144000
Balance c/d
3910000
3990000
3990000
Accumulated Depreciation Account
Dr
Cr.
Particulars
Amount
Particulars
Amount
Building A/c
20000
Balance b/d
700000
Balance c/d
790000
Profit and Loss A/c
110000
810000
810000
80
ACCOUNTANCY
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial