Page 292 - Microsoft Word - 00 IWB ACCA F7.docx

Chapter 22

Example 2 cont.

Solution

$
Cash flows from investing activities

Purchase of property, plant and equipment
Sale proceeds from sale of plant

Cash flows from financing activities

Proceeds of share issue
Lease liability repaid

(W1) Property, plant and equipment

Property, plant & equipment
Balance b/f 33,800 Depreciation 7,200

Revaluation (1,850 – 500) 1,350 Disposal 900
Right-of-use asset 10,000
Purchase of assets 6,150 Balance c/f 43,200

——— ———

51,300 51,300
——— ———

(W2) Share capital and premium

Share capital and premium
Share capital b/f 9,000

Share capital c/f 10,500 Share premium b/f 1,700
Share premium c/f 2,300 Share proceeds (bal) 2,100

——— ———
12,800 12,800

——— ———

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