Page 21 - 27. COMPILER QB - IND AS 7

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
Acquisition of Property, Plant and Equipment (19,880)

Net cash outflow from Investing activities (19,880)
Cash flows from financing activities 0
Net change in cash and cash equivalents (19,880)

Cash and cash equivalents at the beginning of the year i.e. 1st April 2019 4,90,000
Foreign Exchange difference 10,360
Cash and cash equivalents at the end of the year i.e. 31st March 2020 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

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