Question

Following is the Balance Sheets of Wind Power Ltd as at 31.3.2014:

Wind Power Ltd Balance Sheet as at 31.3.2014
Particulars	Note No	2013-14 Rs	2012-13 Rs
I. Equity and Liabilities    1. Shareholder’s Funds       a. Share Capital        b. Reserve and Surplus   2. Non - Current Liabilities      a. Long-term borrowings   3. Current Liabilities     a. Trade Payables     b. Short-Term Provisions	1	48,00,000 12,00,000   9,60,000   7,16,000 2,00,000	44,00,000 8,00,000   6,80,000   8,16,000 3,08,000
Total		78,76,000	70,04,000
II. Assets 1. Non – Current Assets   a) Fixed Assets     (i) Tangible assets     (ii) Intangible   b) Non – Current Investments 2. Current Assets    a) Current Investments    b) Inventories    c) Trade Receivables    d)Cash and Cash Equivalents	2 3	42,80,000 1,60,000     9,60,000 5,16,000 6,80,000 12,80,000	34,00,000 4,80,000     4,48,000 4,84,000 5,72,000 16,20,000
Total		78,76,000	70,04,000

Notes to Accounts

Note No	Particulars	As On 31-3-2014	As On 31-3-2013
1	Reserve and Surplus (Surplus i.e. Balance in Statement of Profit and Loss)	12,00,000	8,00,000
2	Tangible Assets Machinery      Less: Accumulated Depreciation	50,80,000 (8,00,000)	40,00,000 (6,00,000)
3	Intangible Assets Goodwill	1,60,000	4,80,000

Additional information

During the year a piece of machinery, costing Rs 96,000 on which accumulated depreciation was Rs 64,000 was sold for Rs 24,000.

Prepare Cash Flow Statement

Answer 1

Cash Flow Statement for the year ended March 31, 2014
	Particulars	Rs	Rs
A	Cash Flow from Operating Activities Profit as per Statement of Profit and Loss             Profit Before Taxation Items to be added Amortisation of Goodwill Depreciation Loss on Sale of Fixed Assets           Operating Profit before Working Capital Adjustments Less: Increase in Current Assets   Inventories   Trade Receivables Less: Decrease in Current Liabilities    Trade Payables    Short – Term Provisions        Net Cash Generated from Operating Activities	4,00,000     3,20,000 2,64,000 8,000   (32,000) (1,08,000)     (1,00,000) (1,08,000)	4,00,000       5,92,000 9,92,000             6,44,000
B	Cash Flow from Investing Activities     Sale of Machinery     Purchase of Machinery        Net Cash Used in Investing Activities	24,000 (11,76,000)	(11,52,000)
C	Cash Flow from Financing Activities   Proceeds from Issue of Share Capital   Proceeds from Long-Term Borrowings      Net Cash Flow from Financing Activities	4,00,000 2,80,000	6,80,000
D	Net Increase or Decrease in Cash and Cash Equivalents    Add: Cash and Cash Equivalents in the beginning of the period Cash and Cash Equivalents at the end of the period		1,72,000 20,68,000 22,40,000

 

Machinery Account
Dr			Cr.
Particulars	Rs	Particulars	Rs
To Balance b/d	40,00,000	By Bank A/c (Sale)	24,000
To Bank A/c	11,76,000	By Depreciation on Part of Machinery A/c	64,000
		By Profit and Loss A/c (Loss on Sale)	8,000
		By Balance c/d	50,80,000
	51,76,000		51,76,000

 

Accumulated Depreciation Account
Dr.			Cr.
Particulars	Rs	Particulars	Rs
To Machinery A/c	64,000	By Balance b/d	6,00,000
To Balance c/d	8,00,000	By Profit and Loss A/c (Dep. Charged during the year – Bal. Fig)	2,64,000
	8,64,000		8,64,000