During 2006, the business of a sole trader was purchased by issuing shares for Rs. 2, 00,000. The assets acquired from him were: Goodwill Rs. 20,000, Machinery Rs. 1, 00,000, Stock Rs. 50,000 and Debtors Rs. 30,000. (b) Provision for tax charged in 2006 was Rs. 35,000. (c) The debentures were issued at a premium of 5% which is included in the retained earnings. (d) Depreciation charged on machinery was Rs. 30,000. Problem 3: From the following Balance Sheets of Exe Ltd. make-out Cash Flow Statement: Additional Information: (a) Depreciation of Rs. 10,000 and Rs. 20,000 have been charged on Plant and Land and Buildings in 2004. (b) An interim dividend of Rs. 20,000 has been paid in 2004. (c) Rs. 35,000 Income tax was paid during 2004.