Question

From the following Balance Sheet of JY Ltd. as at 31st March 2017, prepare a Cash Flow Statement :

Balance Sheet of JY Ltd. as at 31.3.2017
Particular	Note No.	31-3-2017 Rs	31-3-2016 Rs
I. Equity and Liabilities   1. Shareholders' Funds:      (a) Share capital      (b) Reserves and surplus   2. Non-current Liabilities:     Long term-borrowing   3. Current Liabilities:     (a) Short-term borrowings     (b) Short-term provisions	1   2   3 4	5,00,000 1,00,000   2,50,000   1,50,000 2,00,000	5,00,000 (25,000)   1,50,000   1,00,000 1,25,000
Total		12,00,000	8,50,000
II. Assets    1. Non- Current Assets:      (a) Fixed Assets:          (i) Tangible    2. Current Assets:     (a) Trade Receivable     (b) Cash and Cash Equivalents     (c) Short-term Loans and Advances	5	6,00,000   2,75,000 1,25,000 2,00,000	4,50,000   2,25,000 75,000 1,00,000
Total		12,00,000	8,50,000

 

Notes to Accounts

Note No	Particulars	31-3-2017 Rs	31-3-2016 Rs
1     2     3       4       5	Reserve and Surplus (Surplus i.e. Balance in Statement of Profit and Loss)	1,00,000	(25,000)
		1,00,000	(25,000)
	Long-term borrowings : 10 % Debentures	2,50,000	1,50,000
		2,50,000	1,50,000
	Short-term borrowings : Bank Overdraft	1,50,000	1,00,000
		1,50,000	1,00,000
	Short-term provisions: (i) Proposed Dividend (ii) Provision for Tax	75,000 1,25,000	50,000 75,000
		2,00,000	1,25,000
	Tangible Assets: Machinery Accumulated Depreciation	7,37,500 (1,37,500)	5,25,000 (75,000)
		6,00,000	4,50,000

Additional Information:

Rs 1,00,000, 10% Debentures were issued on 31-3-2017.

Answer 1

	Particulars	Rs	Rs
A                                 B     C           D	Cash Flow from Operating Activities Profit as per statement of Profit and Loss on 31st March 2017 Less: Profit as per statement of Profit and Loss on 31st March 2016 (Loss)   Add: Proposed Dividend      Provision for Tax Net Profit Before Taxation and Extra-ordinary items Items to be Added: Depreciation Expenses (1,37,500 – 75,000) Interest on Debentures (1,50,000 x 10%) Operating Profit Before Working Capital Changes Less: Decreases in Current Liabilities and Increases in Current Assets     Increases in Trade Receivables (2,75,000 – 2,25,000)     Increases in Short-term Loans & Advance (2,00,000 – 1,00,000) Cash Generated from Operations Less: Tax Paid during the year Net Cash Flows from Operating Activities Cash Flow from Investing Activities Purchase of Machinery (7,37,500 – 5,25,000) Cash Used in Investing Activities Cash Flow from Financing Activities Proceeds from Issue of 10% Debentures (2,50,000 – 1,50,000) Increase in Bank Overdraft (1,50,000 – 1,00,000) Dividend Paid i.e. Opening Proposed Dividend Interest on Debentures (1,50,000 x 10%)      Net Cash Flow from Financing Activities Net Increase or Decrease in Cash and Cash Equivalents (A+B +C) Add: Cash and Cash Equivalents in the beginning of the period Cash and Cash Equivalents at the end of the period	1,00,000 (25,000) 1,25,000 75,000 1,25,000      62,500  15,000      50,000  1,00,000          (2,12,500)      1,00,000  50,000  (50,000)  (15,000)	3,25,000        77,500  4,02,500      1,50,000  2,52,500  75,000  1,77,500    2,12,500  (2,12,500)            85,000  50,000  75,000  1,25,000