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Question
Prepare Cash Flow Statement from the following:
STATEMENT OF PROFIT AND LOSS
for the year ended 31st March, 2019
|
Particulars |
Note No. |
(₹) |
|
I. Revenue from Operations |
36,00,000 | |
| II. Expenses | ||
|
Purchases of Stock-in-Trade |
28,16,000 | |
|
Change in Inventories of Stock-in-Trade |
(65,000) | |
|
Finance Costs |
15,000 | |
|
Depreciation and Amortisation Expenses |
80,000 | |
|
Other Expenses |
5,34,000 | |
|
Total |
33,80,000 | |
| III. Profit before Tax (I − II) | 2,20,000 | |
|
IV. Less: Provision for Tax |
40,000 | |
|
V. Profit after Tax (III − IV) |
1,80,000 |
as at 31st March, 2019
|
Particulars |
Note No. |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| I. EQUITY AND LIABILITIES | |||
|
1. Shareholders' Funds |
|||
|
(a) Share Capital |
6,00,000 | 5,00,000 | |
|
(b) Reserves and Surplus |
1 | 3,00,000 | 1,20,000 |
|
2. Non-Current Liabilities |
|||
|
Long-term Loan |
1,20,000 | 1,50,000 | |
|
3. Current Liabilities |
|||
|
(a) Short-term Borrowings: |
13,000 | ... | |
|
(b) Trade Payables (Creditors) |
2,85,000 | 2,38,000 | |
|
(c) Short-term Provision: |
44,000 | 30,000 | |
|
Total |
13,62,000 | 10,38,000 | |
| II. ASSETS | |||
|
1. Non-Current Assets |
|||
|
Fixed Assets |
6,20,000 | 4,00,000 | |
|
2. Current Assets |
|||
|
(a) Short-term Investments (Marketable Security) |
34,000 | 20,000 | |
|
(b) Inventories |
3,28,000 | 2,63,000 | |
|
(c) Trade Receivables |
3,48,000 | 3,10,000 | |
|
(d) Cash and Cash Equivalents |
2 | 32,000 | 45,000 |
|
Total |
13,62,000 | 10,38,000 |
|
Particulars |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| 1. Reserves and Surplus | ||
|
Surplus, i.e., Balance in Statement of Profit and Loss |
3,00,000 | 1,20,000 |
| 2. Cash and Cash Equivalents | ||
|
Cash in Hand |
32,000 | 17,000 |
|
Cash at Bank |
... | 28,000 |
| 32,000 | 45,000 |
Solution
|
Cash Flow Statement for the year ended March 31, 2019 |
|||
|
|
Particulars |
Amount (₹) |
Amount (₹) |
|
A |
Cash Flow from Operating Activities |
|
|
|
|
Profit as per Statement of Profit and Loss |
1,80,000 |
|
|
|
Provision for Taxation |
40,000 |
|
|
|
Profit Before Taxation |
2,20,000 |
|
|
|
Items to be Added: |
|
|
|
|
Finance Cost |
15,000 |
|
|
|
Depreciation and Amortisation Expenses |
80,000 |
|
|
|
Operating Profit before Working Capital Adjustments |
3,15,000 |
|
|
|
Less: Increase in Current Assets |
|
|
|
|
Inventories |
(65,000) |
|
|
|
Trade Receivables |
(38,000) |
|
|
|
Add: Increase in Current Liabilities |
|
|
|
|
Trade Payables |
47,000 |
|
|
|
Cash Generated from Operations |
2,59,000 |
|
|
|
Less: Tax Paid |
(26,000) |
|
|
|
Net Cash Flow from Operating Activities |
|
2,33,000 |
|
|
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
|
Purchase of Fixed Assets |
(3,00,000) |
|
|
|
Net Cash Used in Investing Activities |
|
(3,00,000) |
|
|
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
|
Proceeds from Issue of Share Capital |
1,00,000 |
|
| Bank Overdraft | 13,000 | ||
|
|
Redemption of Long-Term Loan |
(30,000) |
|
|
|
Interest (Finance Cost) |
(15,000) |
|
|
|
Net Cash Flow from Financing Activities |
|
68,000 |
|
|
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
1,000 |
|
|
Add: Cash and Cash Equivalent in the beginning of the period (17,000 + 28,000 + 20,000) |
|
65,000 |
|
|
Cash and Cash Equivalents at the end of the period (32,000 + 34,000) |
|
66,000 |
Working Notes:
WN1
|
Provision for Taxation Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Bank A/c (Tax Paid- Bal. Fig.) |
26,000 |
Balance b/d |
30,000 |
|
Balance c/d |
44,000 |
Profit and Loss A/c |
40,000 |
|
|
70,000 |
|
70,000 |
WN2
|
Fixed Assets Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance b/d |
4,00,000 |
Depreciation A/c |
80,000 |
|
Bank A/c (Purchases- Bal. Fig.) |
3,00,000 |
Balance c/d |
6,20,000 |
|
|
7,00,000 |
|
7,00,000 |
Note: Short-term Investments are considered as a part of Cash and Cash Equivalents
APPEARS IN
RELATED QUESTIONS
From the following Balance Sheet of Computer India Ltd., prepare cash flow statement.
| Particulars | Note No. | 31st March 2017 (Rs) |
31st March 2016 (Rs) |
| I) Equity and Liabilities | |||
|
1. Shareholders’ Funds
|
|||
|
a) Share capital
|
50,000 | 40,000 | |
|
b) Reserves and surplus-Surplus
|
1 | 3,700 | 3,000 |
|
2. Non-Current Liabilities
|
|||
|
10% Debentures
|
6,500 | 6,000 | |
|
3. Current Liabilities
|
|||
|
a) Short-term borrowings
|
2 | 6,800 | 12,500 |
|
b) Trade payables
|
11,000 | 12,000 | |
|
c) Short-term provisions
|
3 | 10,000 | 8,000 |
| Total | 88,000 | 81,500 | |
| II) Assets | |||
|
1. Non-current assets
|
|||
|
a) Fixed assets
|
4 | 25,000 | 30,000 |
|
2. Current assets
|
|||
|
a) Inventories
|
35,000 | 30,000 | |
|
b) Trade receivables
|
24,000 | 20,000 | |
|
c) Cash and cash equivalents-cash
|
3,500 | 1,200 | |
|
d) Other current assets-prepaid exp.
|
500 | 300 | |
| Total | 88,000 | 81,500 |
Notes to Accounts
|
Particulars |
31st March 2017 (Rs) |
31st 2016 (Rs) |
|
|
1. |
Reserve and surplus | ||
|
|
(i) Balance in statement of profit and loss |
1,200 |
1,000 |
|
|
(ii) General reserve |
2,500 |
2,000 |
|
|
3,700 |
3,000 |
|
|
2. |
Short-term borrowings | ||
|
|
Bank Overdraft |
6,800 |
12,500 |
|
3. |
Short-term provisions | ||
|
|
(i) Provision for taxation |
4,200 |
3,000 |
|
|
(ii) Proposed dividend |
5,800 |
5,000 |
|
|
10,000 |
8,000 |
|
|
4. |
Fixed Assets: | ||
|
|
Fixed Assets |
40,000 |
41,000 |
|
|
Less: Accumulated Depreciation |
(15,000) |
(11,000) |
|
|
|
25,000 |
30,000 |
Additional Information:
Interest paid on Debenture Rs. 600
Calculate Cash Flow from Operating Activities from the following details:
| Particulars | 31st March, 2019 (₹) | 31st March, 2018 (₹) |
| Surplus, i.e.,Balance in Statement of Profit and Loss | 80,000 | 60,000 |
| Trade Receivables | 25,000 | 31,000 |
| Provision for Depreciation | 40,000 | 30,000 |
| Inventories | 80,000 | 60,000 |
| Outstanding Rent | 12,000 | 21,000 |
| Goodwill | 30,000 | 38,000 |
| Prepaid Insurance | 1,000 | 2,000 |
| Trade Payables (Creditors) | 13,000 | 19,000 |
Calculate Cash Flow from Operating Activities from the following:
(i) Profit form the year is ₹ 7,00,000 after considering the following items:
|
Particulars |
(₹) |
| Depreciation on Fixed Assets | 40,000 |
| Goodwill Amortised | 20,000 |
| Gain on Sale of Land | 90,000 |
| Appropriation of Profit towards General Reserve | 60,000 |
(ii) Following is the position of Current Assets and Current Liabiliites
|
Particulars |
Closing Balance (₹) | Opening Balance (₹) |
| Trade Payables | 50,000 | 75,000 |
| Trade Receivables | 75,000 | 60,000 |
| Prepaid Expenses | 10,000 | 18,000 |
Compute Cash Flow from Operating Activities from the following:
(i) Profit for the year ended 31st March, 2019 is ₹ 10,000 after providing for depreciation of ₹ 2,000.
(ii) Current Assets and Current Liabilities of the business for the year ended 31st March, 2018 and 2019 are as follows:
|
Particular |
31st March (₹) |
31st March |
| Trade Receivables | 14,000 | 15,000 |
|
Provision for Doubtful Debts |
1,000 | 1,200 |
|
Trade Payables |
13,000 | 15,000 |
| Inventories | 5,000 | 8,000 |
| Other Current Assets | 10,000 | 12,000 |
| Expenses Payables | 1,000 | 1,500 |
| Prepaid Expenses | 2,000 | 1,000 |
| Accrued Income | 3,000 | 4,000 |
| Income Received in Advance |
2,000 |
1,000 |
Calculate Cash Flow from Operating Activities from the following information:
INCOME STATEMENT (STATEMENT OF PROFIT AND LOSS)for the year ended 31st March, 2019
|
Particulars |
Note No. |
(₹) |
| I. Revenue from Operations (Sales) |
5,98,000 |
|
| II. Other Income |
1 |
19,500 |
| III. Total Revnue (I + II) |
6,17,500 |
|
| IV. Expenses : | ||
|
Cost of Materials Consumed |
4,00,000 |
|
|
Change in Inventories of Finished Goods and Work-in-Progress |
2 |
15,000 |
|
Employee Benefit Expenses |
1,05,000 |
|
|
Depreciation and Amortisation Expenses |
|
15,000 |
|
Other Expenses |
3 |
20,000 |
|
Total Expenses |
5,55,000 |
|
| V. Profit before Tax (III − IV) |
62,500 |
|
| VI. Tax @ 30% |
18,750 |
|
| VII. Profit after Tax (V − VI) |
43,750 |
Notes to Accounts
|
Particulars |
₹ |
| 1. Other Income | |
|
Rent |
15,000 |
|
Gain (Profit) on Sale of Machinery |
2,500 |
|
Interest on Debentures held as Investments |
2,000 |
|
19,500 |
|
| Changes in Inventories of Finished Goods and Work-in-Progress | |
| (a) Finished Goods | |
|
Opening Inventories |
37,500 |
|
Less: Closing Inventories |
25,000 |
|
Sub-Total |
12,500 |
| (b) Work-in-Progress | |
|
Opening Inventories |
22,500 |
|
Less: Closing Inventories |
20,000 |
|
Sub-Total |
2,500 |
|
Total (a + b) |
15,000 |
| 2. Other Expenses | |
|
Office Expenses |
12,500 |
|
Selling Expenses |
6,000 |
|
Loss on Sale of Furniture |
1,500 |
|
20,000 |
| Current Assets and Current Liabilities |
As on 31st March, |
As on 1st April, |
| Trade Receivables |
25,000 |
20,000 |
| Trade Payables |
32,500 |
35,000 |
| Outstanding Expenses |
8,000 |
5,000 |
| Prepaid Expenses |
5,000 |
3,500 |
| Welprint Ltd. has given the following information: | ₹ |
| Machinery as on 1st April, 2018 | 50,000 |
| Machinery as on 31st March, 2019 | 60,000 |
| Accumulated Depreciation on 1st April, 2018 | 25,000 |
| Accumulated Depreciation on 31st march, 2019 | 15,000 |
During the year, a machine costing ₹ 25,000 (accumulated depreciation thereon ₹ 15,000) was sold for ₹ 13,000. Calculate Cash Flow from Investing Activities on the basis of the above information.
From the following Balance Sheet of Combiplast Ltd. for the year ended 31st March, 2019 and additional information, calculate Cash Flow from Investing Activities:
|
Particulars |
Note No. |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
|
I. EQUITY AND LIABILITIES |
|||
|
1. Shareholders' Funds |
|
||
|
(a) Share Capital |
7,50,000 | 5,00,000 | |
|
(b) Reserves and Surplus |
10,00,000 | 8,50,000 | |
|
2. Current Liabilities |
|
4,50,000 | 3,50,000 |
|
Total |
22,00,000 | 17,00,000 | |
| II. ASSETS | |||
|
1. Non-Current Assets |
|||
|
(a) Fixed Assets−Tangible Assets |
1 | 12,00,000 | 12,00,000 |
|
(b) Non-Current Investments |
5,00,000 | 3,00,000 | |
|
2. Current Assets |
|||
|
(a) Trade Receivables |
3,00,000 | 1,10,000 | |
|
(b) Cash and Cash Equivalents |
2,00,000 | 90,000 | |
|
Total |
22,00,000 | 17,00,000 |
Notes to Accounts
|
Particulars |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| I. Tangible Assets | ||
|
Land |
3,00,000 | 3,00,000 |
|
Building |
4,00,000 | 4,00,000 |
|
Plant and Machinery |
5,00,000 | 5,00,000 |
|
|
12,00,000 | 12,00,000 |
Additional Information:During the year the company sold machinery at Book Value of ₹ 1,50,000.
From the following information, calculation Cash Flow from Operating Activities and Investing Activities:
|
Particular |
31st, March, 2018, (₹) |
31st, March, 2019, (₹) |
| Surplus, i.e., Balance in Statement of Profit and Loss |
2,50,000 |
10,00,000 |
| Provision for Tax |
75,000 |
75,000 |
| Trade Payables |
1,00,000 |
3,75,000 |
| Current Assets (Trade Receivables and Inventories) |
11,50,000 |
13,00,000 |
| Fixed Assets (Tangible) |
21,25,000 |
23,30,000 |
| Accumulated Depreciation |
10,62,500 |
11,00,000 |
Additional Information:
1. A machine having book value of ₹ 1,00,000 (Depreciation provided thereon ₹ 1,62,500) was sold at a loss of ₹ 20,000.
2. Tax paid during the year ₹ 75,000.
From the following information, calculate Net Cash Flow from Operating Activities and Financing Activities:
| Particulars |
31st March 2019 (Rs.) |
31st March 2019 (Rs.) |
| Equity Share Capital |
13,75,000 |
11,25,000 |
| 5% Preference Share Capital | 5,00,000 | 7,50,000 |
| General Reserve | 3,75,000 | 3,00,000 |
| Surplus i.e., Balance in Statement of Profit and Loss | 3,75,000 | (3,50,000) |
| Securities Premium Reserve | 25,000 | ... |
| Provision for Tax | 1,00,000 | 50,000 |
| Non-current Liabilities (8% Debentures) | 6,50,000 | 3,75,000 |
| Short-term Borrowings (8% Bank Loan) | 1,00,000 | 1,25,000 |
| Trade Payables | 5,00,000 | 2,50,000 |
| Trade Receivables and Inventories |
13,00,000 |
11,50,000 |
Additional Information:
- During the year additional debentures were issued at par on 1st October and Bank Loan was repaid on the same date.
- Dividend on Equity Shares @ 8% was paid on Opening Balance.
- Income tax ₹ 1,12,500 has been provided during the year.
- Preference shares were redeemed at par at the end of the year.
From the following information, prepare Cash Flow Statement:
|
Particulars |
(₹) |
| Opening Cash and Bank Balances |
1,50,000 |
| Closing Cash and Bank Balances | 1,70,000 |
| Decrease in Stock | 80,000 |
| Increase in Bills Payable | 1,20,000 |
| Sale of Fixed Assets | 3,00,000 |
| Repayment of Long-term Loan | 5,00,000 |
| Net Profit for the Year |
20,000 |
Following is the Balance Sheet of Mevanca Limited as at 31st March, 2017:
Mevanca Limited BALANCE SHEET as at 31st March, 2017:
|
Particulars |
Note No. |
31st March, 2017 (₹) |
31st March, 2016 (₹) |
|
I. EQUITY AND LIABILITIES |
|||
|
1. Shareholders' Funds |
|||
|
(a) Share Capital |
3,00,000 |
1,00,000 |
|
|
(b) Reserves and Surplus |
1 |
25,000 |
1,20,000 |
|
2. Non-Current Liabilities |
|||
|
Long-term Borrowings |
2 |
80,000 |
60,000 |
|
3. Current Liabilities |
|||
|
(a) Trade Payables |
6,000 |
20,000 |
|
|
(b) Short-term Provisions |
3 |
68,000 |
70,000 |
|
Total |
4,79,000 |
3,70,000 |
|
|
II. ASSETS |
|||
|
1. Non-Current Assets |
|||
|
Fixed Assets |
4 |
3,36,000 |
1,92,000 |
|
2. Current Assets |
|||
|
(a) Inventories |
67,000 |
60,000 |
|
|
(b) Trade Receivables |
51,000 |
65,000 |
|
|
(c) Cash and Cash Equivalents |
25,000 |
49,000 |
|
|
(d) Other Current Assets |
… |
4,000 |
|
|
Total |
4,79,000 |
3,70,000 |
Notes to Accounts
|
Particulars |
31st March, 2017 (₹) |
31st March, 2016 (₹) |
|
1. Reserves and Surplus |
||
|
Surplus, i.e.,Balance in Statement of Profit and Loss |
25,000 |
1,20,000 |
|
25,000 |
1,20,000 |
|
|
2. Long-term Borrowings |
||
|
10% Long-term Loan |
80,000 |
60,000 |
|
80,000 |
60,000 |
|
|
3. Short-term Provisions |
||
|
Provision for Tax |
68,000 |
70,000 |
|
|
68,000 |
70,000 |
|
4. Fixed Assets |
||
|
Machinery |
3,84,000 |
2,15,000 |
|
Accumulated Depreciation |
(48,000) |
(23,000) |
|
3,36,000 |
1,92,000 |
Additional Information :
(i) Additional loan was taken on 1st July, 2016.
(ii) Tax of ₹ 53,000 was paid during the year.
Prepare Cash Flow Statement.
Following are the Balance Sheets of Krishtec Ltd. for the years ended 31st March 2012 and 2011:
|
Particulars |
Note No. |
31st March, 2012 (₹) |
31st March, 2011 (₹) |
| I. EQUITY AND LIABILITIES | |||
|
1. Shareholders' Funds |
|||
|
(a) Share Capital |
12,00,000 | 8,00,000 | |
|
(b) Reserves and Surplus (Surplus, i.e., Balance in Statement of Profit and Loss) |
3,50,000 | 4,00,000 | |
|
2. Non-Current Liabilities |
|||
|
Long-term Borrowings |
4,40,000 | 3,50,000 | |
|
3. Current Liabilities |
|||
|
(a) Trade Payables |
60,000 | 50,000 | |
|
Total |
20,50,000 | 16,00,000 | |
| II. ASSETS | |||
|
1, Non-Current Assets |
|||
|
Fixed Assets: |
|||
|
Tangible Assets |
12,00,000 | 9,00,000 | |
|
2. Current Assets |
|||
|
(a) Inventories |
2,00,000 | 1,00,000 | |
|
(b) Trade Receivables |
3,10,000 | 2,30,000 | |
|
(c) Cash and Cash Equivalents |
3,40,000 | 3,70,000 | |
|
Total |
20,50,000 | 16,00,000 |
Prepare a Cash Flow Statement after taking into account the following adjustments:
(a) The company paid Interest ₹36,000 on its long-term borrowings.
(b) Depreciation charged on tangible fixed assets was ₹1,20,000
Following is the summarised Balance Sheet of Philips India Ltd. as at 31st March 2018:
|
Particulars |
Note No. |
31st March, 2018 (₹) |
31st March, 2017 (₹) |
| I. EQUITY AND LIABILITIES | |||
|
1. Shareholders' Funds |
|||
|
(a) Share Capital |
13,50,000 | 13,50,000 | |
|
(b) Reserves and Surplus |
1 | 11,34,000 | 10,68,000 |
|
2. Non-Current Liabilities |
|||
|
Long-term Borrowings: |
8,10,000 | ... | |
|
3. Current Liabilities |
|||
|
(a) Trade Payables (Creditors) |
4,20,000 | 5,04,000 | |
|
(b) Short-term Provisions: |
|||
|
Provision for Tax |
30,000 | 2,25,000 | |
|
Total |
37,26,000 | 31,47,000 | |
| II. ASSETS | |||
|
1, Non-Current Assets |
|||
|
(a) Fixed Assets (Tangible) |
9,60,000 | 12,00,000 | |
|
(b) Non-Current Investments |
1,80,000 | 1,50,000 | |
|
2. Current Assets |
|||
|
(a) Current Investments |
21,000 | 17,000 | |
|
(b) Inventories |
63,30,000 | 7,82,000 | |
|
(c) Trade Receivables |
13,65,000 | 6,30,000 | |
|
(c) Cash and Cash Equivalents |
5,70,00 | 4,30,000 | |
|
Total |
37,26,000 | 31,47,000 | |
Notes to Accounts
|
Particulars |
31st March, 2018 (₹) |
31st March, 2017 (₹) |
| I. Reserves and Surplus | ||
|
General Reserve |
9,30,000 | 9,00,000 |
|
Surplus, i.e., Balance in Statement of Profit and Loss |
2,04,000 | 1,68,000 |
|
|
11,34,000 | 10,68,000 |
Additional Information:
1. Investments costing ₹ 24,000 were sold during the year for ₹ 25,5000.
2. Provistion for Tax made during the year was ₹ 27,000.
3. During the year, a part of the Fixed Assets costing ₹ 30,000 was sold for ₹ 36,000. The rofits were included in the Statement of Profit and Loss.
4. The Interim Dividend paid during the year amounted to ₹ 1,20,000.
You are required to prepare Cash Flow Statement.
From the following Balance Sheet and information of Sun Ltd., prepare Cash Flow Statement:
| Particulars | Note No. | 31st March, 2019 (₹) |
31st March, 2018 (₹) |
| I. EQUITY AND LIABILITIES | |||
| 1. Shareholders' Funds | |||
| (a) Share Capital | 1 | 7,00,000 | 6,00,000 |
| (b) Reserves and Surplus | 2 | 4,10,000 | 2,00,000 |
| 2. Non-Current Liabilities | |||
| Long-term Borrowings: 10% Debentures |
3,00,000 | 2,00,000 | |
| 3. Current Liabilities | |||
| (a) Trade Payables | 1,40,000 | 60,000 | |
| Total | 15,50,000 | 10,60,000 | |
| II. ASSETS | |||
| 1. Non-Current Assets | |||
| (a) Fixed Assets−Tangible | 7,00,000 | 6,00,000 | |
| (b) 10% Investments | 2,00,000 | 1,00,000 | |
| 2. Current Assets | |||
| (a) Current Investments | 90,000 | 50,000 | |
| (b) Inventories | 2,00,000 | 1,00,000 | |
| (c) Trade Receivables | 3 | 2,80,000 | 1,90,000 |
| (d) Cash and Cash Equivalents | 80,000 | 20,000 | |
| Total | 15,50,000 | 10,60,000 |
Notes to Accounts :
| Particulars | 31st March, 2019 (₹) |
31st March, 2018 (₹) |
| 1. Share Capital | ||
| Equity Share Capital | 5,00,000 | 3,00,000 |
| 10% Preference Share Capital | 2,00,000 | 3,00,000 |
| 7,00,000 | 6,00,000 | |
| 2. Reserves and Surplus | ||
| Securities Premium Reserve | 10,000 | - |
| Surplus i.e., Balance in Statement of Profit and Loss | 4,00,000 | 2,00,000 |
| 4,10,000 | 2,00,000 | |
| 3. Trade Receivables | ||
| Sundry Debtors | 3,00,000 | 2,00,000 |
| Less: Provision for Doubtful Debts | 20,000 | 10,000 |
| 2,80,000 | 1,90,000 |
You are informed that during the year:
| (i) | Proposed Dividend: | 31st March, 2019 | 31st March, 2018 |
| Equity Share Capital | Nil | Nil | |
| Preference Share Capital | 10% | 10% |
(ii) A machine with a book value of ₹ 90,000 was sold for ₹ 50,000;
(iii) Depreciation charged during the year ₹ 60,000;
(iv) Debentures were issued on 1st April 2018;
(v) Investments were purchased on 31st March 2019;
(vi) Preference shares were redeemed on 31st December 2018;
(vii) An interim dividend @ 15% was paid on equity shares on 31st December 2018.
(viii) Fresh equity shares were issued at a premium of 5% on 31st March 2019.
Cash flow example from a financing activity is:
Shareholders get:
