Page 20 - 27. COMPILER QB - IND AS 7

Note No 2 - Payment to Trade Payables for Purchases
Particulars Rs.
Cost of goods sold 14,00,000

Closing inventories 48,000
Less: Opening inventories (52,000)
Purchases 13,96,000
Add: Opening Trade Payables 32,000
Less: Closing Trade Payables (48,000)
Payment to creditors 13,80,000
Particulars Rs.
Overheads 2,20,000
Add: Opening payables 28,000
Less: Closing payables (40,000)
Payment for Overheads 2,08,000

Cash flow from Operations by Indirect Method

Indirect Method Rs.
Profit After Tax 2,12,000
Add/(Less): Depreciation 28,000
Loss on Asset 8,000
Interest paid 12,000
Decrease in Inventory 4,000
Increase in Trade Receivables (12,000)
Increase in Trade Payables 16,000
Increase in Payables for expenses 12,000
Total 2,80,000

Q14 (Jan 21 – 5 Marks)
Z Ltd. (India) has an overseas branch in USA. It has a bank account having balance of USD 7,000 as on 1st
April 2019. During the financial year 2019-2020, Z Ltd. Acquired computers for its USA office for USD 280

which was paid on same date. There is no other transaction reported in USA or India.
Exchange rates between INR and USD during the financial year 2019-2020 were:

Date USD 1 to INR
1st April 2019 70.00

30th November 2019 71.00 (Date of purchase of computer)

31st March 2020 71.50

Average for 2019-2020 70.50

Please prepare the extract of Cash Flow Statement for the year ended 31st March 2020, as per the relevant

Ind AS and also show the foreign exchange profitability from these transactions for the financial year 2019-
2020?

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