Page 9 - 27. COMPILER QB - IND AS 7

6 Bonus shares issued Non – cash item
7 Dividends paid Financing activity
8 Cash received from trade receivables Operating activity
9 Proceeds from sale of PPE Investing activity
10 Depreciation of PPE Non –cash item
11 Advance received from customers Operating activity
12 Purchased goodwill Investing activity
13 Payment of promissory notes Financing activity

Q7 (Nov 21 & Also Newly Added in ICAI May 22 Module)

From the following data of Galaxy Ltd., prepare statement of cash flows showing cash generated from
Operating Activities using direct method as per Ind AS 7:
31.3.20X2 31.3.20X1
(Rs.) (Rs.)
Current Assets:

Inventory 1,20,000 1,65,000
Trade receivables 2,05,000 1,88,000
Cash & cash equivalents 35,000 20,500
Current Liabilities:
Trade payable 1,95,000 2,15,000
Provision for tax 48,000 65,000

Summary of Statement of Profit and Loss Rs.

Sales 85,50,000
Less: Cost of sales (56,00,000) 29,50,000
Other Income
Interest income 20,000
Fire insurance claim received 1,10,000 1,30,000
30,80,000
Depreciation (24,000)
Administrative and selling expenses (15,40,000)
Interest expenses (36,000)
Foreign exchange loss (18,000) (16,18,000)
Net Profit before tax and extraordinary income 14,62,000
Income Tax (95,000)
Net Profit 13,67,000

Additional information:
(i) Trade receivables and Trade payables include amounts relating to credit sale and credit purchase
only.
(ii) Foreign exchange loss represents increment in liability of a long-term borrowing due to exchange rate
fluctuation between acquisition date and balance sheet date.

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