The following are the Balance Sheets of Mohan Ltd. for two consecutive years ending March 31, 2010 and 2011. With the help of these Balance Sheets along with the additional information prepare Cash Flow Statements.
Mohan Ltd.
Balance Sheet
as on March 31, 2010 and 2011
Particulars
Note No.
2010
(Rs)
2011
(Rs)
I. Equity and Liabilities
1. Shareholders’ Fund
a. Share Capital
1
8,00,000
7,00,000
b. Reserves and Surplus
2
1,40,000
1,20,000
2. Non-Current Liabilities
a. Long-Term Borrowings
3
1,80,000
4,00,000
3. Current Liabilities
a. Trade Payables
4
30,000
52,000
b. Short Term Provisions
5
10,000
18,000
Total
11,60,000
12,90,000
II. Assets
1. Non-Current Assets
a. Fixed Assets
i. Tangible Assets
6
6,29,000
7,11,000
ii. Intangible Assets
7
2,50,000
2,75,000
b. Other Non-Current Assets
8
50,000
1,10,000
2. Current Assets
a. Trade Receivables
9
85,000
47,000
b. Inventories
10
84,000
1,02,000
c. Cash and Cash Equivalents
11
62,000
45,000
Total
11,60,000
12,90,000
NOTES TO ACCOUNTS
Note No.
Particulars
2010
(Rs)
2011
(Rs)
1
Share Capital
Equity Share Capital (Rs 10 each)
3,00,000
3,00,000
10% Preference Share Capital (Rs 100 each)
5,00,000
4,00,000
8,00,000
7,00,000
2
Reserves and Surplus
General Reserve
60,000
80,000
Profit and Loss
80,000
40,000
1,40,000
1,20,000
3
Long Term Borrowings
12% Debentures
1,80,000
4,00,000
4
Trade Payables
Creditors
30,000
52,000
5
Short Term Provisions
Proposed Dividend
10,000
18,000
6
Tangible Assets
Plant (at cost)
2,50,000
4,85,000
Less: Accumulated Depreciation
(82,000)
(1,25,000)
Plant (at WDV)
1,68,000
3,60,000
Land
4,61,000
3,51,000
6,29,000
7,11,000
7
Intangible Assets
Goodwill
2,50,000
2,00,000
Copyrights
-
75,000
2,50,000
2,75,000
8
Other Non-Current Investments
Investment in Reliance Ltd, Shares
50,000
50,000
Investment in ICICI Bonds
-
60,000
50,000
1,10,000
9
Trade Receivable
Debtors
85,000
47,000
10
Inventories
Stock
84,000
1,02,000
11
Cash and Cash Equivalents
Bank
62,000
45,000
Additional Information:
1. New Debentures were issued on October 01, 2010.
2. 15% Dividend was proposed on Equity Shares during the year.
3. Preference Shares were redeemed on March 31, 2011 at a premium of 20%. Preference Dividend was also paid on the same date.
4. Depreciation charged during the year on Machinery was Rs 46,000. Also, a part of Machinery of Book Value of Rs 30,000 was sold for Rs 20,000 during the year.
please give the proper answer of 4th adjustment with proper explaination
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