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Question
From the following Balance Sheets of B.C.R. Ltd as on 31-3-2010 and 31-3-2011.
Prepare a Cash Flow Statements:
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Balance Sheets of B.C.R. Ltd. as on 31.3.2010 and 31.3.2011 |
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Liabilities |
31-3-2010 Rs |
31-3-2011 Rs |
Assets |
31-3-2010 Rs |
31-3-2011 Rs |
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Equity Shares Capital Profit and Loss Account Bank Loan Proposed Dividend Provision for tax Creditors |
5,00,000
2,00,000
1,00,000 50,000 30,000 55,000 |
7,00,000
3,50,000
50,000 70,000 50,000 52,000 |
Patents Equipment Investment Debtors Stock Bank |
1,00,000 5,00,000 – 80,000 55,000 2,00,000 |
95,000 5,00,000 1,00,000 1,30,000 3,00,000 |
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9,35,000 |
12,72,000 |
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9,35,000 |
12,72,000 |
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Additional Information:
During the year Equipment costing Rs 1,00,000 was purchases. Loss on sale of Equipment amounted to Rs 12,000. Rs 18,000 deprecation charged on Equipment.
Solution
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Cash Flow Statement of B.C.R Ltd. as on March 31, 2011 |
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Particulars |
Amount Rs |
Amount Rs |
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Cash Flow Operating Activities |
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Profit as per Profit and Loss Account |
1,50,000 |
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Proposed Dividend |
70,000 |
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Provision for Taxation |
50,000 |
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Profit before Taxation |
2,70,000 |
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Items to be added: |
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Depreciation on Equipments |
18,000 |
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Patents written off |
5,000 |
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Loss on sale of equipments |
12,000 |
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Profit before working capital changes |
3,05,000 |
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Less: Increase in Debtors |
(67,000) |
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Less: Increase in Stock |
(75,000) |
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Less: Decrease in Creditors |
(3,000) |
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Cash from operation before Tax paid |
1,60,000 |
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Less: Tax paid |
(30,000) |
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Cash from Operating Activities |
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1,30,000 |
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Cash Flow from Investing Activities |
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Proceeds from sale of Equipments |
70,000 |
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Purchases of Equipments |
(1,00,000) |
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Purchases of Investments |
(1,00,000) |
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Cash used in Investing Activities |
1,30,000 |
(1,30,000) |
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Cash Flow from Financing Activities |
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Proceeds from issue of shares |
2,00,000 |
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Repayment of Bank Loan |
(50,000) |
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Dividend paid |
(50,000) |
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Cash From Financing Activities |
1,00,000 |
1,00,000 |
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Net Increase in Cash and Cash Equivalents |
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1,00,000 |
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Add: Cash and Cash Equivalents at the beginning |
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2,00,000 |
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Closing Balance of Cash and Cash Equivalents |
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3,00,000 |
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Notes
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Equipments Account |
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Dr. |
Cr. |
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Particulars |
Amount Rs |
Particulars |
Amount Rs |
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Balance b/d |
5,00,000 |
Depreciation |
18,000 |
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Bank (Purchase) |
1,00,000 |
Profit and Loss (Loss) |
12,000 |
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Bank (Balancing Figure) |
70,000 |
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Balance c/d |
5,00,000 |
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6,00,000 |
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6,00,000 |
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Following is the Balance Sheets of Thermal Power Ltd. as at 31-3-2014
| Thermal Power Ltd Balance Sheet as at 31-3-2014 |
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| Particulars | Note No. |
2013-2014 Rs |
2012-2013 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
|
12,00,000 3,00,000
2,40,000
1,79,000 50,000 |
11,00,000 2,00,000
1,70,000
2,04,000 77,000 |
| Total | 19,69,000 | 17,51,000 | |
|
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 |
2 3
|
10,70,000 40,000
2,40,000 1,29,000 1,70,000 3,20,000 |
8,50,000 1,12,000
1,50,000 1,21,000 1,43,000 3,75,000 |
| Total | 19,69,000 | 17,51,000 | |
Notes to Accounts
| Note No | Particulars | 31-3-2015 | 31-3-2014 |
|
1
2
3
|
Reserve and Surplus (Surplus i.e. Balance in Statement of Profit and Loss) Tangible Assets Machinery Less: Accumulated Depreciation Intangible Assets Goodwill |
3,00,000
12,70,000 (2,00,000)
40,000 |
2,00,000
10,00,000 (1,50,000)
1,12,000 |
Additional Information:
During the year a piece of machinery, costing Rs 24,000 on which accumulated depreciation was Rs 16,000, was sold for Rs 6,000.
Prepare Cash Flow Statement
Amongst the following, 'Payment of bonus to the employees' by an insurance company is which type of activity?
Prepare a Cash Flow Statement from the information given in the balance sheet of Simco Ltd. As at 31-3- 2013and 31-3-2012:
| Particulars | Note No. |
31-3-2013 Rs |
31-3-2012 Rs |
|
I. Equity and Liabilities 1. Shareholders' Funds a. Equity Share Capital b. Reserves and Surplus 2. Non-current Liabilities a. Long term-borrowing 3. Current liabilities a. Trade Payables |
2,00,000 90,000
87,500
10,000 |
1,50,000 75,000
87,500
76,000 |
|
| Total | 3,87,500 | 3,87,500 | |
|
II. Assets 1. Non- Current assets a. Fixed assets i. Tangible assets b. Non –Current Investment 2. Current assets a. Current-Investment (marketable) b. Inventory c. Trade receivable d. Cash and Cash equivalents |
1,87,500 1,05,000
12,500 4,000 9,500 68,500 |
1,40,000 1,02,500
33,500 5,500 23,000 84,000 |
|
| Total | 3,87,500 | 3,88,500 |
Notes to Account:
Note -1
| Particulars |
2013 Rs |
2012 Rs |
| Reserve and Surplus | ||
| Surplus( balance in the statement of profit and loss) | 90,000 | 75,000 |
Why is specific disclosure of cash flow financing activities important while preparing Cash Flow Statement?
Following is the Balance Sheet of Wisben Ltd. As on 31st March 2012
| Balance Sheet of Tiger Super Steel Ltd. | |||
| Particulars | Note No. |
2012 Rs |
2011 Rs |
|
I. Equity and Liabilities 1. Shareholders' Funds a. Share Capital b. Reserves and Surplus (Profit & Loss Balance) 2. Non-Current Liabilities a. Long Term-Borrowing 3. Current Liabilities a. Trade Payables |
7,00,000 2,00,000
3,00,000
30,000 |
6,00,000 1,10,000
2,00,000
25,000 |
|
| Total | 12,30,000 | 9,35,000 | |
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II. Assets 1. Non- Current assets a. Fixed assets i. Tangible assets b. Non –Current Investment 2. Current assets a. Inventory b. Trade Receivable c. Cash and Cash Equivalents |
11,00,000
70,000 32,000 28,000 |
8,00,000
60,000 40,000 35,000 |
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| Total | 12,30,000 | 9,35,000 | |
Adjustments:
During the year a piece of machinery of the book value of Rs 80,000 was sold for Rs 65,000. Depreciation provided on tangible assets during the year amounted to Rs 2,00,000.
Prepare a Cash Flow Statement.
Answer the following question:
State any one objective of preparing Cash Flow Statement.
Short Answer Question
State clearly what would constitute the operating activities for each of the follow in the following of enterprises:
(i) Hotel
(ii) Film production house
(iii) Financial enterprise
(iv) Media enterprise
(v) Steel manufacturing unit
(vi) Software development business unit.
Which one is Cash Inflows from investing activities?
Which one is Cash Outflows from Financing activities?
Classify the following activity into operating activities, investing activities, financing activities or cash activities
"Purchase of machinery"
Which of the following shall be considered as an outflow of cash in the Cash Flow Statement?
Cash flow example from an Investing activity is:
Dividend received by other than financial enterprise is shown in cash flow statement under ______.
In case of financial enterprises, the cash flow resulting from interest and dividend received and interest paid should be classified as cash flow from ______.
Maturity period for a Short-term Investment from the date of its purchase to be considered as cash equivalents should be:
From the following Balance Sheets of Ronald Ltd., you are required to prepare a Cash Flow Statement (as per AS 3) for the year 2023-24.
| Balance Sheets of Ronald Ltd. As at 31st March, 2024 and 31st March, 2023 |
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| Particulars | Note No. | 31.03.2024 (₹) | 31.03.2023 (₹) |
| I. EQUITY AND LIABILITIES | |||
| 1. Shareholder's Funds | |||
| (a) Share Capital | 6,00,000 | 6,00,000 | |
| (b) Reserves and Surplus (Statement of P & L) | 80,000 | (60,000) | |
| 2. Non-Current Liabilities | |||
| Long Term Borrowings | 1,00,000 | 1,50,000 | |
| 3. Current Liabilities | |||
| (a) Short-term borrowings (Bank overdraft) | 1,75,000 | 22,000 | |
| (b) Short Term Provisions (Provision for Tax) | 15,000 | 28,000 | |
| Total | 9,70,000 | 7,40,000 | |
| II. ASSETS | |||
| 1. Non-Current Assets | |||
| (a) Property, Plant & Equipment & Intangible Assets | |||
| (i) Property, Plant & Equipment (Plant & Machinery) | 5,50,000 | 6,40,000 | |
| (b) Non- Current Investments (7% Debentures of Violet Ltd.) | 1,40,000 | 50,000 | |
| 2. Current Assets | |||
| Cash & Bank Balance (Bank) | 2,80,000 | 50,000 | |
| Total | 9,70,000 | 7,40,000 | |
Additional information:
- The Debentures of Violet Ltd. were purchased on 31st March, 2024.
- During the year 2023-24:
- Tax of ₹ 20,000 was paid.
- Interest on all borrowings due and paid was ₹ 25,000.
