prepare a cash flow statement
| PARTICULARS | NO | AMOUNT | AMOUNT |
| Equities and liabilities | | | |
| Share holders fund | | | |
| Share capital | | 400000 | 700000 |
| Reserves and surplus | 1 | (50000) | (320000) |
| Noncurrent liability | | | |
| Long term borrowings | 2 | 200000 | 400000 |
| Current liability | | | |
| Trade payables | | 110000 | 150000 |
| Outstanding expense | | 10000 | 20000 |
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| Assets | | | |
| Noncurrent asset | | 300000 | 500000 |
| Non current investment | | 200000 | 140000 |
| Current asset | | | |
| inventory | | 50000 | 100000 |
| Trade receivables | | 100000 | 170000 |
| Cash and cash equivalent | | 20000 | 40000 |
Note 1 reserves and surplus
P&L balance (50000) (320000)
Note 2 long term borrowings
9Þb 200000 400000
Additional info
Included in fixed asset was a piece of machinery costing rs 70000 on which depreciation 40000 and it was sold for 30000 during the year 140000 dep charged on fixed asset
Cash Flow Statement |
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Particulars | Amount (Rs) | Amount (Rs) |
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(A) Cash Flow from Operating Activities |
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Loss for the year (3,20,000 – 70,000) | (2,70,000) |
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Profit before Taxation | (2,70,000) |
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Add: Items to be Added: |
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Depreciation on Fixed Assets | 1,40,000 |
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Interest on Debentures (4,00,000 × 9%)* | 36,000 |
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Less: Items to be Deducted: |
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Operating Profit before Working Capital Changes | (94,000) |
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Add: Decrease in Current Assets and Increase in Current Liabilities: Increase in Trade Payables Increase in Outstanding Expenses |
40,000 10,000 |
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Less: Increase in Current Assets and Decrease in Current Liabilities: |
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Increase in Trade Receivables | (70,000) |
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Increase in Inventory | (50,000) |
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Cash Generated from Operations | (1,64,000) |
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Less:Income Tax Paid |
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Cash used in Operating Activities | (1,64,000) | (1,64,000) |
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(B) Cash Flow from Investing Activities |
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Purchase of Fixed Assets | (3,70,000) |
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Proceed from Sale of Investments | 60,000 |
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Proceeds from Sale of Machinery | 30,000 |
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Cash of Flow Investing Activities | (2,80,000) | (2,80,000) |
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(C) Cash Flow from Financing Activities |
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Proceeds from Issue of Shares | 3,00,000 |
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Proceeds from Issue of 9% Debentures | 2,00,000 |
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Interest on Debentures Paid | (36,000) |
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Cash Flow from Financing Activities | 4,64,000 | 4,64,000 |
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Net Increase in Cash and Cash Equivalents (A+B+C) |
| 20,000 |
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Add: Opening Cash and Cash Equivalents |
| 20,000 |
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Closing Cash and Cash Equivalents |
| 40,000 |
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* As there is no information provided in question about when 9% debentures were issue, so it has been assumed that these debentures were issued on first day of Current Year. Working Note: (1) Fixed Assets | ||||||
Dr. |
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Particulars | Amount (Rs) | Particulars | Amount (Rs) | |||
Balance b/d | 3,00,000 | Bank A/c (Sale) | 30,000 | |||
Bank A/c (Purchase) Balancing Figure | 3,70,000 | Depreciation A/c | 1,40,000 | |||
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| Balance c/d | 5,00,000 | |||
| 6,70,000 |
| 6,70,000 | |||
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As piece of machinery having net value of Rs 30,000(70,000 – 40,000) is sold for Rs 30,000, so there is no profit or loss on sale of Machinery.