Page 13 - 15. COMPILER QB - INDAS 21
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SOLUTION
In the books of Z Ltd.
Statement of Cash Flows for the year ended 31st March 2020
Rs. Rs.
Cash flows from operating activities
Net Profit (Refer Working Note) 10,360
Adjustments for non-cash items:
Foreign Exchange Gain (10,360)
Net cash outflow from operating activities 0
Cash flows from investing activities (19,880) (19,880)
Acquisition of Property, Plant and Equipment
Net cash outflow from Investing activities
Cash flows from financing activities 0
Net change in cash and cash equivalents (19880)
Cash and cash equivalents at the beginning of the year i.e. 1st April 2019 4,90,000
Foreign Exchange difference
Cash and cash equivalents at the end of the year i.e. 31st March 2020 10,360
4,80,480
Working Note:
Computation of Foreign Exchange Gain
Bank Account USD Date USD Exchange Rs.
Rate
Opening balance 1.4.2019 7,000 70.00 4,90,000
Less: Purchase of Computer 30.11.2019 280 71.00 19,880
Closing balance calculated 6,720 4,70,120
Closing balance (at year end spot rate) 31.3.2020 6,720 71.50 4,80,480
Foreign Exchange Gain credited to Profit and Loss
account 10,360
Q13 (December 21 – 5 Marks – IND AS 21)
st
Hari Ltd. purchased an equipment for 10,200 CAD from Canada supplier on credit basis on 31 January, 2020.
Hari Ltd.’s functional currency is INR. The fair value of the equipment determined on 31st March, 2020 is
12,100 CAD. The payment to overseas supplier done on 31st March 2021. The fair value of the machinery
remained unchanged for the year ended on 31st March 2021.
The exchange rates are as follows:
On date of transactions 1 CAD = 57.68 INR
st
On 31 March, 2020 – 1 CAD = 62.12 INR
st
On 31 March, 2021 – 1 CAD = 69.24 INR
Prepare the Journal entries for the year ended on 31st March 2020 and year 2021 according to Ind AS 21. Tax
rate is 25%. A Ltd. follows revaluation method in respect of Plant and Machinery.
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