Page 7 - 27. COMPILER QB - IND AS 7

Cash paid to acquire subsidiary (74,000 – 2,000) (72,000)
Net cash outflow from investing activities (72,000)
Cash flows from financing activities
Interest paid (4,000)

Net cash outflow from financing activities (4,000)
Increase in cash and cash equivalents during the year 3,000
Cash and cash equivalents at the beginning of the year 5,000
Cash and cash equivalents at the end of the year 8,000

Working Notes:
1. Calculation of change in inventory during the year Rs
Total inventories of the Group at the end of the year 30,000

Inventories acquired during the year from subsidiary (4,000)
26,000
Opening inventories 35,000
Decrease in inventories 9,000
2. Calculation of change in Trade Receivables during the year Rs
Total trade receivables of the Group at the end of the year 54,000
Trade receivables acquired during the year from subsidiary (8,000)

46,000
Opening trade receivables 50,000
Decrease in trade receivables 4,000
3. Calculation of change in Trade Payables during the year Rs
Trade payables at the end of the year 68,000
Trade payables of the subsidiary assumed during the year (32,000)
36,000
Opening trade payables 60,000
Decrease in trade payables 24,000

Q5 (November 20 & Also Newly Added in ICAI May 22 Module)

During the financial year 2019-2020, Akola Limited have paid various taxes & reproduced the below mentioned
records for your perusal:
- Capital gain tax of Rs. 20 crore on sale of office premises at a sale consideration of Rs. 100 crore.
- Income Tax of Rs. 3 crore on Business profits amounting Rs. 30 crore (assume entire business profit as cash
profit).
- Dividend Distribution Tax of Rs. 2 crore on payment of dividend amounting Rs. 20 crore to its shareholders.

- Income tax Refund of Rs. 1.5 crore (Refund on taxes paid in earlier periods for business profits).
You need to determine the net cash flow from operating activities, investing activities and financing activities
of Akola Limited as per relevant Ind AS.

27. 6