Question

From the following Balance Sheet of Bhavya Traders, prepare Cash Flow Statement.

Liabilities	31-03-2022 (₹)	31-03-2023 (₹)	Assets	31-03-2022 (₹)	31-03-2023 (₹)
Share Capital	1,00,000	1,25,000	Cash	15,000	23,500
Creditors	35,000	22,500	Debtors	60,000	57,500
Profit and Loss Ale	5,000	11,500	Stock	40,000	45,000
			Land	25,000	33,000
	1,40,000	1,59,000		1,40,000	1,59,000

Answer 1

Cash Flow Statement For the year ended on 31st March, 2022 and 31st March, 2023
Particulars	Amount (₹)	Amount (₹)
(A) Cash flow from Operating activities
Closing balance of Profit and Loss A/c	11,500
Less: Opening balance of Profit and Loss A/c	5,000
	6,500
Add: Decrease in Current Assets – Debtors	2,500
	9,000
Less: Increase in Current Assets – Stock	(5,000)
Less: Decrease in Current Liabilities – Creditors	(12,500)
Net Cash from Operating activities (A)		(8,500)
(B) Cash flow from Investing activities
Purchase of Land	8,000
Net Cash used in Investing activities (B)		8,000
(C) Cash flow from Financing activities
Amount of share capital received	25,000
Net Cash used in Financing activities (C)		25,000
Net increase in cash and cash equivalent (A + C – B)		8,500
Cash equivalent in the beginning of period.		15,000
Cash equivalent at the end of period.		23,500