A Ltd purchased debentures worth 10 lacs of B Ltd., which are redeemable within three months. How will you show this item in the statement while preparing cash flow statement for the year ended on 31st March, 2018?

White Ltd commenced business on 1 July 2017. An extract of the statement of financial position of White Ltd for the year ending 30 June 2019 and 2020 are shown below: Assets Cash Accounts receivable Allowance for doubtful debt 2019 $ 3,800 15,000 (600) 2020 $ 5,000 18,000 (880) Dividend receivable 800 380 Inventory Prepaid insurance Interest receivable Machinery Accumulated depreciation-machinery 13,000 3,800 700 14,000 2,000 500 40,000 (12,000) 35,000 500,000 (150,000) 40,000 (4,000) 25,000 500,000 (125,000) Land Building Accumulated depreciation- building Deferred tax asset 600 Liabilities Accounts payable Current tax liability Provision for Warranty Interest payable Debentures Dividend payable Deferred tax liability 2,000 350 600 3,000 400 700 900 1,200 15,000 5,000 200 17,000 5,000 Additional information: 1. Depreciation for accounting and tax purposes are 20% and 25% straight-line method, respectively. 2. Depreciation for building is non-deductible for tax purpose. 3. Bad debt…

On April 12, 2018 corporation made cash distribution of $16,000 and it has current e&p $18,000 and accumulated e&p ($2,000). What is the return of capital after the distribution?

Fool’s Paradise Ltd had cash and cash equivalents at 1 January 2019 of $400,000. The transactions of Fool’s Paradise Ltd for the year to 31 December 2019 are as follows:  Borrowed $850,000 with a 9-month loan payable Received $6,340,000 cash for customer accounts Sold for $360,000 cash a plant asset with a carrying amount of $180,000 Issued ordinary shares for $480,000 cash Purchased a plant asset for $650,000; $237,500 in cash and $412,500 in loan Exchanged 60,000 shares for land with a fair value of $1,000,000 Received a $350,000 dividend in cash Received $25,000 interest from a term deposit Invested $500,000 cash on the short-term money market Paid fixed-term loan principal of $900,000 and interest of $90,000 Cash payments for supplier’s accounts $6,300,000 Dividend paid during the period $200,000 Wages expense shown in the income statement is $75,000. At the end of the year, the balance sheet shows prepaid Wages expense of $65,000. There was a prepaid Wage expense of…