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Question
Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheet of Libra Ltd. as at 31st March, 2013 and 31st March 2012:
|
Particulars |
Note No. |
31st March, 2013 (₹) |
31st March, 2012 (₹) |
| I. EQUITY AND LIABILITIES | |||
|
1. Shareholders' Funds |
|||
|
(a) Share Capital |
8,00,000 | 6,00,000 | |
|
(b) Reserves and Surplus |
1 | 4,00,000 | 3,00,000 |
|
2. Non-Current Liabilities |
|||
|
Long-term Borrowings |
1,00,000 | 1,50,000 | |
|
3. Current Liabilities |
|||
|
(a) Trade Payables |
40,000 | 48,000 | |
|
Total |
13,40,000 | 10,98,000 | |
| II. ASSETS | |||
|
1, Non-Current Assets |
|||
|
(a) Fixed Assets: |
|||
|
Tangible Assets |
8,50,000 | 5,60,000 | |
|
(b) Non-Current Investments |
2,32,000 | 1,60,000 | |
|
2. Current Assets |
|||
|
(a) Current Investments |
50,000 | 1,34,000 | |
|
(b) Inventories |
76,000 | 82,000 | |
|
(c) Trade Receivables |
38,000 | 92,000 | |
|
(d) Cash and Cash Equivalents |
94,000 | 70,000 | |
|
Total |
13,40,000 | 10,98,000 |
Notes to Accounts
|
Particulars |
31st March, 2013 (₹) |
31st March, 2012 (₹) |
| I. Reserves and Surplus | ||
|
Surplus, i.e., Balance in Statement of Profit and Loss |
4,00,000 | 3,00,000 |
Solution
|
Cash Flow Statement for the year ended March 31, 2013 |
|||
|
Particulars |
Details (Rs) |
Amount (Rs) |
|
| A |
Cash from Operating Activities |
|
|
|
Net Profit |
|
1,00,000 |
|
|
Operating Profit Before Working Capital Changes |
|
1,00,000 |
|
|
Add: Decrease in Current Assets |
|
|
|
|
Inventories |
6,000 |
|
|
|
Trade Receivables |
54,000 |
|
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
Trade Payables |
(8,000) |
52,000 |
|
|
|
|
|
|
|
Cash Generated from Operations |
|
1,52,000 |
|
|
Less: Tax Paid |
|
- |
|
|
Net Cash Flow from Operating Activities |
|
1,52,000 |
|
|
|
|
|
|
| B |
Cash From Investing Activities |
|
|
|
Purchase of Tangible Assets |
(2,90,000) |
|
|
|
Purchase on Non Current Investment |
(72,000) |
|
|
|
|
|
|
|
|
Net Cash Used in Investing Activities |
|
(3,62,000) |
|
|
|
|
|
|
| C |
Cash From Financing Activities |
|
|
|
Issue of Share Capital |
2,00,000 |
|
|
|
Long Term Borrowings |
(50,000) |
|
|
|
|
|
|
|
|
Net Cash Flow from Financing Activities |
|
1,50,000 |
|
|
|
|
|
|
| D |
Net Decrease in Cash and Cash Equivalents |
|
(60,000) |
|
Add: Cash and Cash Equivalents in the beginning of the period (70,000 + 1,34,000) |
|
2,04,000 |
|
|
Cash and Cash Equivalents at the end of the period (94,000 + 50,000) |
|
1,44,000 |
|
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
From the following information, calculate Net Profit before Tax and Extraordinary Items:
| Surplus, i.e., Balance in Statement of Profit and Loss (Opening) | 1,00,000 |
| Surplus, i.e., Balance in Statement of Profit and Loss (Closing) | 3,36,000 |
| Dividend paid in the current year | 72,000 |
| Interim Dividend Paid during the year | 90,000 |
| Transfer to Reserve | 1,00,000 |
| Provision for Tax for the current year | 1,50,000 |
| Refund of Tax | 3,000 |
| Loss due to Earthquake | 2,00,000 |
| Insurance Proceeds from Earthquake disaster settlement |
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 |
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 |
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.
XYZ. Ltd. provided the following information, calculate Net Cash Flow from Financing Activities:
|
Particular |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| Equity Share Capital | 12,00,000 | 10,00,000 |
| 12% Debentures |
2,00,000 |
1,00,000 |
Additional Information:
1.Interest paid on debentures ₹ 19,000.
2. Dividend paid in the year ₹ 50,000.
3. During the year,XYZ Ltd. issued bonus shares in the ratio of 5 : 1 by captialising reserve.
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 was the Balance Sheet of M.M. Ltd. as at 31st March, 2015
| Particulars | Note No. |
(₹) |
(₹) |
| I. EQUITY AND LIABILITIES | |||
|
1. Shareholders' Funds |
|||
|
(a) Share Capital |
5,00,000 | 4,00,000 | |
|
(b) Reserves and Surplus |
1 | 2,00,000 | (50,000) |
|
2. Non-Current Liabilities |
|||
|
Long-term Borrowings |
2 | 4,50,000 | 5,00,000 |
|
3. Current Liabilities |
|||
|
(a) Short-term Borrowings |
3 | 1,50,000 | 50,000 |
|
(b) Short-term Provisions |
4 | 70,000 | 90,000 |
|
Total Total Expenses |
13,70,000 | 9,90,000 | |
| II. ASSETS | |||
|
1. Non-Current Assets |
|||
|
(a) Fixed Assets: |
|||
|
(i) Tangible Assets |
5 | 10,03,000 | 7,20,000 |
|
(ii) Intangible Assets |
6 | 20,000 | 30,000 |
|
(b) Non-Current Investments |
1,00,000 | 75,000 | |
|
2. Current Assets |
|||
|
(a) Current Investments |
50,000 | 60,000 | |
|
(b) Inventories |
7 | 1,07,000 | 45,000 |
|
(c) Cash and Cash Equivalents |
90,000 | 60,000 | |
|
Total |
13,70,000 | 9,90,000 |
Notes to Accounts :
|
Particular |
31st March 2015 (₹) |
31st March 2014 (₹) |
|
|
1. |
Reserves and Surplus | ||
|
|
Surplus, i.e., Balance in Statement of Profit and Loss |
2,00,000 |
(50,000) |
|
|
2,00,000 |
(50,000) |
|
|
2. |
Long-term Borrowings |
|
|
|
|
12% Debentures |
4,50,000 |
5,00,000 |
|
|
4,50,000 |
5,00,000 |
|
|
3. |
Short-term Borrowings |
|
|
|
|
Bank Overdraft |
1,50,000 |
50,000 |
|
|
1,50,000 |
50,000 |
|
|
4. |
Short-term Provisions |
|
|
|
|
Provision for Tax |
70,000 |
90,000 |
|
|
70,000 |
90,000 |
|
|
5. |
Tangible Assets |
|
|
|
|
Machinery |
12,03,000 |
8,21,000 |
|
|
Less: Accumulated Depreciation |
(2,00,000) |
(1,01,000) |
|
|
10,03,000 |
7,20,000 |
|
|
6. |
Intangible Assets |
|
|
|
|
Goodwill |
20,000 |
30,000 |
|
|
20,000 |
30,000 |
|
|
7. |
Inventories |
|
|
|
|
Stock-in-Trade |
1,07,000 |
45,000 |
|
|
1,07,000 |
45,000 |
|
Additional Information:
1. 12% Debentures were redeemed on 31st March, 2015.
2. Tax ₹ 70,000 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
From the following Balance Sheet, prepare Cash Flow Statement:
| Particulars | Note No. | 31st March, 2019 (₹) |
31st March, 2018 (₹) |
| I. EQUITY AND LIABILITIES | |||
| 1. Shareholders' Funds | |||
| (a) Share Capital | 2,50,000 | 2,00,000 | |
| (b) Reserves and Surplus, | 1 | 90,600 | 80,500 |
| 2. Current Liabilities | |||
| (a) Short-term Borrowings: Bank Loan | - | 70,000 | |
| (b) Trade Payables | 1,35,200 | 1,50,000 | |
| (c) Short-term Provisions: Provision for Tax | 35,000 | 30,000 | |
| Total Expenses | 5,10,800 | 5,30,500 | |
| II. ASSETS | |||
| 1. Non-Current Assets | |||
| Fixed Assets: | |||
| (i) Tangible Assets | 2 | 3,59,000 | 3,50,000 |
| (ii) Intangible Assets: Goodwill | 5,000 | - | |
| 2. Current Assets | |||
| (a) Inventories | 74,000 | 1,00,000 | |
| (b) Trade Receivables | 64,200 | 80,000 | |
| (c) Cash and Cash Equivalents | 8,600 | 500 | |
| Total | 5,10,800 | 5,30,500 |
Notes to Accounts
| Particulars | 31st March, 2019 (₹) |
31st March, 2018 (₹) |
| 1. Reserves and Surplus | ||
| General Reserve | 60,000 | 50,000 |
| Surplus, i.e., Balance in Statement of Profit and Loss | 30,600 | 30,500 |
| 90,600 | 80,500 | |
| 2. Tangible Assets | ||
| Land and Building | 1,90,000 | 2,00,000 |
| Plant and Machinery | 1,69,000 | 1,50,000 |
| 3,59,000 | 3,50,000 |
Additional Information:.
- Proposed Dividend for the year ended 31st March, 2019 was ₹ 25,000 and for the year ended 31st March, 2018 was ₹ 14,000.
- Interim Dividend paid during the year was ₹ 9,000.
- Income Tax paid during the year was ₹ 28,000.
- Machinery was purchased during the year ₹ 33,000.
- Depreciation to be charged on machinery ₹ 14,000 and building ₹ 10,000.
From the following Balance Sheet of SRS Ltd. and the additional information as on 31st March, 2016, prepare a Cash Flow Statement:
SRS Ltd.
BALANCE SHEET as on 31st March, 2016
|
Particulars |
Note No. |
31st March, 2016 (₹) |
31st March, 2015 (₹) |
| I. EQUITY AND LIABILITIES | |||
|
1. Shareholders' Funds |
|||
|
(a) Share Capital |
4,50,000 | 3,50,000 | |
|
(b) Reserves and Surplus |
1 | 1,25,000 | 50,000 |
| 2. Non-Current Liabilities | |||
|
Long-term Borrowings |
2 | 2,25,000 | 1,75,000 |
|
3. Current Liabilities |
|||
|
(a) Short-term Borrowingst |
3 | 75,000 | 37,500 |
|
(b) Shrot-term Provisions |
4 | 1,00,000 | 62,500 |
|
Total |
9,75,000 | 6,75,000 | |
| II. ASSETS | |||
|
1, Non-Current Assets |
|||
|
(a) Fixed Assets: |
|||
|
(i) Tangible |
5 | 7,32,500 | 4,52,500 |
|
(ii) Intangible |
6 | 50,000 | 75,000 |
|
(b) Non-current Investments |
75,000 | 50,000 | |
|
2. Current Assets |
|||
|
(a) Current Investments |
20,000 | 35,000 | |
|
(b) Inventories |
7 | 61,000 | 36,000 |
|
(c) Cash and Cash Equivalents |
36,500 | 26,500 | |
|
Total |
9,75,000 | 6,75,000 |
Notes to Accounts
|
Particular |
31st March 2016 (₹) |
31st March 2015 (₹) |
|
|
1. |
Reserves and Surplus | ||
|
|
Surplus, i.e., Balance in Statement of Profit and Loss |
1,25,000 |
50,000 |
|
2. |
Long-term Borrowings |
|
|
|
|
12% Debentures |
2,25,000 |
1,75,000 |
|
3. |
Short-term Borrowings |
|
|
|
|
Bank Overdraft |
75,000 |
37,500 |
|
4. |
Short-term Provisions |
|
|
|
|
Provision for Tax |
1,00,000 |
62,500 |
|
5. |
Tangible Assets |
|
|
|
|
Machinery |
8,37,500 |
5,22,500 |
|
|
Accumulated Depreciation |
(1,05,000) |
(70,000) |
|
|
7,32,500 |
4,52,500 |
|
|
6. |
Intangible Assets |
|
|
|
|
Goodwill |
50,000 |
75,000 |
|
7. |
Inventories |
|
|
|
|
Stock-in-Trade |
61,000 |
36,000 |
Additional Information:
(i) ₹50,000, 12% Debentures were issued on 31st March, 2016.
(ii) During the year, a piece of machinery costing ₹40,000, on which accumulated depreciation was ₹20,000, was sold at a loss of ₹5,000.
From the following Balance Sheet of Mishi Ltd. as at 31st March, 2019, prepare Cash Flow Statement:
|
Particulars |
Note No. |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
| I. EQUITY AND LIABILITIES | |||
|
1. Shareholders' Funds |
|||
|
(a) Share Capital |
16,00,000 | 12,00,000 | |
|
(b) Reserves and Surplus |
1 | 6,60,000 | 4,40,000 |
|
2. Non-Current Liabilities |
|||
|
Long-term Borrowings (10% Debentures) |
3,20,000 | 2,00,000 | |
|
3. Current Liabilities |
|||
|
(a) Short-term Borrowing (Bank Loan) |
80,000 | 1,10,000 | |
|
(b) Trade Payables |
1,50,000 | 1,80,000 | |
|
Total Total Expenses |
28,10,000 | 21,30,000 | |
| II. ASSETS | |||
|
1. Non-Current Assets |
|||
|
(a) Fixed Assets−Tangible |
2 | 19,00,000 | 12,10,000 |
|
(b) Non-Current Investments |
2,70,000 | 2,00,000 | |
|
2. Current Assets |
|||
|
(a) Current Investments |
1,60,000 | 80,000 | |
|
(b) Trade Receivables |
1,80,000 | 4,00,000 | |
|
(c) Cash and Cash Equivalents |
3 | 3,00,000 | 2,40,000 |
|
Total |
28,10,000 | 21,30,000 |
|
Notes to Accounts : |
||
|
Particulars |
31st March, 2019 (₹) |
31st March, 2018 (₹) |
|
1. Reserves and Surplus : |
||
|
Securities Premium Reserve |
20,000 |
... |
|
General Reserve |
3,00,000 |
2,40,000 |
|
Surplus i.e., Balance in the Statement of Profit and Loss |
3,40,000 |
2,00,000 |
|
6,60,000 |
4,40,000 |
|
|
2. Fixed Assets−Tangible |
||
|
Machinery (Cost) |
21,40,000 |
14,00,000 |
|
Less: Accumulated Depreciation |
2,40,000 |
1,90,000 |
|
19,00,000 |
12,10,000 |
|
|
3. Cash and Cash Equivalents |
||
|
Cash in Hand |
1,40,000 |
1,10,000 |
|
Bank Balance |
1,60,000 |
1,30,000 |
|
3,00,000 |
2,40,000 |
|
Additional Information :
(i) During the year, Machinery costing ₹ 1,40,000 (accumulated depreciation provided thereon ₹ 1,10,000) was sold for ₹ 20,000.
(ii) During the year, Non-current Investments costing ₹ 80,000 were sold at a profit of ₹ 16,000.
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.
From the following Balance Sheet of Samta Ltd., as at 31st March, 2019, prepare Cash Flow Statement:
| Particulars | Note No. | 31st March, 2019 (₹) |
31st March, 2018 (₹) |
| I. EQUITY AND LIABILITIES | |||
| 1. Shareholders' Funds: | |||
| (a) Share Capital | 1 | 7,50,000 | 7,50,000 |
| (b) Reserves and Surplus | 2 | 3,10,000 | (20,000) |
| 2. Non-Current Liabilities: | |||
| Long-term Borrowings (8% Debentures) | 2,60,000 | 1,50,000 | |
| 3. Current Liabilities: | |||
| (a) Short-term Borrowings (8% Bank Loan) | 40,000 | 50,000 | |
| (b) Trade Payables | 1,20,000 | 1,10,000 | |
| (c) Short-term Provisions | 3 | 50,000 | 40,000 |
| Total | 15,30,000 | 10,80,000 | |
| II. ASSETS | |||
| 1. Non-Current Assets: | |||
| (a) Fixed Assets: | |||
| (i) Tangible Assets (Net) | 8,60,000 | 6,20,000 | |
| (ii) Intangible Assets (Goodwill) | 15,000 | 40,000 | |
| (b) Non-Current Investments | 1,25,000 | 80,000 | |
| 2. Current Assets: | |||
| (a) Current Investments | 5,000 | 15,000 | |
| (b) Inventories | 1,95,000 | 1,00,000 | |
| (c) Trade Receivables | 2,00,000 | 2,00,000 | |
| (d) Cash and Cash Equivalents | 1,30,000 | 25,000 | |
| Total | 15,30,000 | 10,80,000 |
es to Accounts:
| Particulars | 31st March, 2019 (₹) | 31st March, 2018 (₹) |
| 1. Share Capital: | ||
| Equity Share Capital | 5,50,000 | 4,50,000 |
| 12% Preference Share Capital | 2,00,000 | 3,00,000 |
| 7,50,000 | 7,50,000 | |
| 2. Reserves and Surplus: | ||
| Securities Premium Reserve | 10,000 | - |
| General Reserve | 1,50,000 | 1,20,000 |
| Surplus, i.e., Balance in Statement of Profit and Loss | 1,50,000 | (1,40,000) |
| 3,10,000 | (20,000) | |
| 4. Short-term Provisions: | ||
| Provision for Tax | 50,000 | 40,000 |
Additional Information:
(i) During the year a piece of machinery costing ₹ 60,000 on which depreciation charged was ₹ 20,000 was sold at 50% of its book value. Depreciation provided on tangible Assets ₹ 60,000;
(ii) Income tax ₹ 45,000 was provided;
(iii) Additional Debentures were issued at par on 1st October, 2018 and Bank Loan was repaid on the same date;
(iv) At the end of the year Preference Shares were redeemed at a premium of 5%.
From the following Balance Sheet of Kiero Ltd. and the additional information as on 31-3-2018, prepare a Cash Flow Statement:
Kiero Ltd.
Balance Sheet as at 31-03-2018
| Particulars | Note No. |
31-03-18 (₹) |
31-03-17 (₹) |
| I. Equity and Liabilities | |||
| 1. Shareholders Funds |
|||
| (a) Share Capital |
1 | 7,90,000 | 5,80,000 |
| (b) Reserves and Surplus | 4,60,000 | 1,20,000 | |
| 2. Non-Current Liabilities | |||
| Long term Borrowings | 2 | 5,00,000 | 3,00,000 |
| 3.Current Liabilities | |||
| (a) Short term borrowings | 3 | 1,15,000 | 42,000 |
| (b) Short term Provisions | 4 | 1,18,000 | 46,000 |
| Total | 19,83,000 | 10,88,000 | |
| II. Assets |
|||
| 1. Non-Current Assets |
|||
| Fixed Assets |
|||
| (i) Tangible Assets | 5 | 9,80,000 | 6,35,000 |
| (ii) Intangible Assets | 6 | 2,68,000 | 1,70,000 |
| 2. Current Assets | |||
| (a) Current Investments |
1,40,000 | 70,000 | |
| (b) Trade Receivables | 4,40,000 | 1,50,000 | |
| (c) Cash and Cash Equivalents | 1,55,000 | 63,000 | |
|
Total |
19,83,000 | 10,88,000 |
Notes to Accounts
| Note No. | Particulars | 31-03-18 (₹) | 31-03-17 (₹) |
| 1. | Reserves and Surplus | ||
| Surplus (Balance in Statement of Profit and Loss) | 3,20,000 | 60,000 | |
| General Reserve | 1,40,000 | 60,000 | |
| 4,60,000 | 1,20,000 | ||
| 2. | Long-term Borrowings | ||
| 12% Debentures | 5,00,000 | 3,00,000 | |
| 5,00,000 | 3,00,000 | ||
| 3. | Short-term Borrowings | ||
| Bank Overdraft | 1,15,000 | 42,000 | |
| 1,15,000 | 42,000 | ||
| 4. | Short-term Provisions | ||
| Provision for Tax | 1,18,000 | 46,000 | |
| 1,18,000 | 46,000 | ||
| 5. | Tangible Assets | ||
| Plant and Machinery | 11,00,000 | 7,50,000 | |
| Less:Accumulated Depreciation | (1,20,000) | (1,15,000) | |
| 9,80,000 | 6,35,000 | ||
| 6. | Intangible Assets | ||
| Goodwill | 2,68,000 | 1,70,000 | |
| 2,68,000 | 1,70,000 |
Additional Information: 12% debentures were issued on 1st September, 2017.
Which of the following transactions will result in 'Flow of Cash'?
Assertion (A): Depreciation is added to the net profit before tax.
Reason (R): Depreciation is a non-cash item that is an expense.
