From the following Balance Sheet
of Mohan Ltd. Prepare cash flow Statement:
Balance
Sheet of Rajeshwar Limited as on ............................
Liabilities
2005
Rs
2006
Rs
Assets
2005
Rs
2006
Rs
Equity Share Capital
2,00,000
3,00,000
Fixed Assets
4,00,000
6,00,000
Profit and Loss
1,60,000
2,00,000
Stock
1,30,000
1,50,000
Bank Loan
1,00,000
80,000
Debtor’s
1,00,000
60,000
Accumulated Dep.
80,000
1,00,000
Bills Receivable
20,000
30,000
Creditor
1,40,000
1,20,000
Bank
90,000
30,000
Proposed Dividend
60,000
70,000
7,40,000
8,70,000
7,40,000
8,70,000
Additional
Information:
Machine
Costing Rs 80,000 on which accumulated depreciation was
Rs,
50,000 was sold for Rs 20,000.
From the following Balance Sheet of Mohan Ltd. Prepare cash flow Statement:
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Balance Sheet of Rajeshwar Limited as on ............................ |
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Liabilities |
2005 Rs |
2006 Rs |
Assets |
2005 Rs |
2006 Rs |
|
Equity Share Capital |
2,00,000 |
3,00,000 |
Fixed Assets |
4,00,000 |
6,00,000 |
|
Profit and Loss |
1,60,000 |
2,00,000 |
Stock |
1,30,000 |
1,50,000 |
|
Bank Loan |
1,00,000 |
80,000 |
Debtor’s |
1,00,000 |
60,000 |
|
Accumulated Dep. |
80,000 |
1,00,000 |
Bills Receivable |
20,000 |
30,000 |
|
Creditor |
1,40,000 |
1,20,000 |
Bank |
90,000 |
30,000 |
|
Proposed Dividend |
60,000 |
70,000 |
|
|
|
|
|
7,40,000 |
8,70,000 |
|
7,40,000 |
8,70,000 |
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Additional Information:
Machine Costing Rs 80,000 on which accumulated depreciation was
Rs, 50,000 was sold for Rs 20,000.
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Cash Flow Statement of Mohan Ltd.
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Particulars |
Amount Rs |
Amount Rs |
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A. |
Cash Flow from Operating Activities |
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Profit as per the Balance Sheet (2,00,000 – 1,60,000) |
40,000 |
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Proposed Dividend |
70,000 |
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Net Profit before Taxation and Extraordinary items |
|
1,10,000 |
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Adjustments: |
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Depreciation |
70,000 |
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Loss on Sale of Machine |
10,000 |
80,000 |
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Operating Profit before Working Capital changes |
|
1,90,000 |
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Add: |
Decrease in Current Assets |
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Debtors |
40,000 |
40,000 |
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|
2,30,000 |
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Less: |
Increase in Current Assets |
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Stock |
(20,000) |
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Bills Receivable |
(10,000) |
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Less: |
Decrease in Current Liabilities |
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Creditors |
(20,000) |
(50,000) |
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Net Cash from Operations |
|
1,80,000 |
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B. |
Cash Flow from Investing Activities |
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Proceeds from Sale of Fixed Assets |
|
20,000 |
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Purchases of Fixed Assets |
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(2,80,000) |
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Net Cash outflow from Investing activity |
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(2,60,000) |
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C. |
Cash Flow from Financing Activities |
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Issue of Shares |
|
1,00,000 |
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Bank Loan Paid |
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(20,000) |
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Dividend Paid |
|
(60,000) |
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Net Cash from Financing Activities |
|
20,000 |
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D. |
Net Decrease in Cash and Cash Equivalents (A+B+C) |
|
(60,000) |
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Add: |
Cash and Cash Equivalents in the beginning |
|
90,000 |
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E. |
Cash and Cash equivalents at the end |
|
30,000 |
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Fixed Assets Account |
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Dr. |
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Cr. |
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Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
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Balance b/d |
|
4,00,000 |
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Bank |
|
20,000 |
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Bank (Purchases- Balancing fig.) |
|
2,80,000 |
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Profit and Loss |
|
10,000 |
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Accumulated Depreciation |
|
50,000 |
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|
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|
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Balance c/d |
|
6,00,000 |
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|
|
|
6,80,000 |
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|
6,80,000 |
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Accumulated Depreciation Account |
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Dr. |
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Cr. |
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Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
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|
Fixed Assets |
|
50,000 |
|
Balance b/d |
|
1,00,000 |
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Balance c/d |
|
80,000 |
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Profit and Loss (Balance fig.) |
|
30,000 |
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|
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|
1,30,000 |
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|
1,30,000 |
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