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प्रश्न
From the following extracts of a company’s Balance Sheets, and the additional information, you are required to calculate Cash from Operating Activities for the year ending 31st March, 2021.
Anjan Ltd. reported a profit of ₹ 80,000 for the year ended 31st March, 2021, after considering the following:
| Particulars | (₹) |
| (i) Tax provided during the year | 4,000 |
| (ii) Amortization of Patents | 10,000 |
| (iii) Profit on sale of Vehicle | 3,000 |
| (iv) Writing off Preliminary expenses | 2,000 |
| During the year, machinery costing ₹ 40,000 (accumulated depreciation thereon being ₹ 18,000) was sold for ₹ 6,000. |
|
| 31.03.2021 (₹) | 31.03.2020 (₹) | |
| Trade Receivable | 20,000 | 16,000 |
| Inventory | 12,000 | 15,000 |
| Cash at Bank | 8,000 | 10,000 |
| Trade Payable | 9,000 | 11,000 |
| Marketable Securities | 5,000 | 2,000 |
| Plant & Machinery | 88,000 | 1,30,000 |
खाता बही
उत्तर
| Cash Flow from Operating Activities | ₹ | |
| Net Profit (After Tax) | 80,000 | |
| Add: Provision for Tax | 4,000 | |
| Net Profit Before Tax | 84,000 | |
| Add: Non-cash items and non-operating expenses | ₹ | |
| Preliminary expenses written off: | 2,000 | 46,000 |
| Amortisation of patents: | 10,000 | |
| Depreciation: | 18,000 | |
| Loss on sale of Machinery: | 16,000 | |
| 1,30,000 | ||
| Less: Non-operating incomes | (3000) | |
| Profit on sale of vehicle | ||
| Operating profit before changes in working capital | 1,27,000 | |
| Less: Increase in Trade Receivable | (4,000) | |
| Add: Decrease in Inventory | 3,000 | |
| Less: Decrease in Trade Payable | (2,000) | |
| Net Cash Flow from Operating Activities | 1,24,000 |
Working Notes:
(1) Tax provided during the year will be added to Net Profit (After Tax) to derive Net Profit Before Tax.
(2) Change in the balance of plant and machinery will be considered in Cash Flow from Investing Activities.
(3)
| Machinery cost: | ₹ 40,000 |
| (-) Accumulated depreciation | (18,000) |
| Book value | 22,000 |
| (-) Sale value | (6,000) |
| Loss on sale | 16,000 |
shaalaa.com
Calculation of Net Cash Flows from Operating Activities Based on Indirect Method
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संबंधित प्रश्न
From the following Balance Sheets of Halogen Ltd., you are required to prepare a Cash Flow Statement (as per AS 3) for the year 2022-23.
| Balance Sheets of Halogen Ltd. As at 31st March, 2023 and 31st March, 2022 |
|||
| Particulars | Note No. | 31-3-2023 (₹) | 31-3-2022 (₹) |
| I EQUITY AND LIABILITIES | |||
| 1. Shareholder's Funds | 4,50,000 | 4,00,000 | |
| (a) Share Capital (Equity shares @ ₹ 10 each) | |||
| (b) Reserves and Surplus (Statement of P/L) | 1,06,000 | (20,000) | |
| 2. Non-Current Liabilities | 6,00,000 | 4,00,000 | |
| Long-term Borrowings (15% Debentures) | |||
| 3. Current Liabilities | 50,000 | 70,000 | |
| Short-term Provisions (Provision for Tax) | |||
| Total | 12,06,000 | 8,50,000 | |
| II ASSETS | |||
| 1. Non-current Assets | 4,80,000 | 7,00,000 | |
| Property, Plant & Equipment & Intangible Assets | |||
| (i) Property, Plant & Equipment | 1. | ||
| 2. Current Assets | 2,56,000 | 10,000 | |
| a) Current Investments | |||
| b) Cash & Bank Balances (Cash at Bank) | 4,70,000 | 1,40,000 | |
| Total | 12,06,000 | 8,50,000 | |
Notes to Accounts:
| Particulars | 31-3-2023 (₹) | 31-3-2022 (₹) |
| I. Property, Plant & Equipment | 7,42,000 | 9,00,000 |
| Plant & Machinery | ||
| Less: Accumulated Depreciation | (2,62,000) | (2,00,000) |
Additional Information:
During the year 2022-23, the company:
- Issued additional debentures on 1st October, 2022.
- Sold Plant & Machinery, the book value of which was ₹ 1,20,000 (accumulated depreciation ₹ 38,000), for ₹ 50,000.
