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Page No 5.100:

Answer:

 

Cash Flow Statement

 

Particulars

Amount

(₹)

Amount

(₹)

 

Cash Flow from Financing Activities

 

 

 

Loan Repaid

(1,00,000)

 

 

New Loan Raised

1,50,000

50,000

 

Cash Flows from Financing Activity

 

50,000


Working Notes:

Long Term Loan Account

Dr.

Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

Bank A/c (Repayment of Loan)

1,00,000

Balance b/d

2,00,000

Balance c/d

2,50,000

Bank A/c (Loan Raised)

1,50,000

 

3,50,000

 

3,50,000

       

Page No 5.100:

Answer:

Cash Flow from Financing Activities

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Proceeds from Issue of Equity Shares

1,10,000

 

 

Redemption of 12% Debentures

(50,000)

 

 

Interest Paid

(18,000)

 

 

Net Cash Flows from Financing Activities

 

42,000

Page No 5.100:

Answer:

Cash Flow from Financing Activities

for the year ended March 31, 2018
 

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Issue of Shares

1,25,000

 

 

Transfer to Securities Premium Reserve

1,25,000

 

 

Issue of Debentures

1,00,000

 

 

Premium on redemption of Preference Shares (5% of 1,50,000)

(7,500)

 

 

Interim Dividend Paid(15% of 4,00,000)

(60,000)

 

 

Redemption of Preference Share Capital

(1,50,000)

 

 

Interest on Debentures (12% of 3,00,000)

(36,000)

 

 

Interest on Preference Share Capital

(55,000)

 

 

Net Cash Flow from Financing Activities

 

41,500

 

 

 

 

Page No 5.100:

Answer:

Cash Flow Statement

for the year ended March 31, 2018

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Cash Flow from Investing Activities

 

 

 

Purchase of Machinery

(20,000)

 

 

Sale of Machine

4,000

 

 

Net Cash from (used in) Investing Activities

 

(16,000)

 

 

 

 

 

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of Equity Shares

5,000

 

 

Repayment of Bank Loan

(10,000)

 

 

Net Cash from (used in) Financing Activities

 

(5,000)

 

 

 

 

Working Notes:

Machinery Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

40,000

Accumulated Depreciation A/c

4,000

Bank A/c (Purchase- Bal. Fig.)

20,000

Bank A/c (Sale)

4,000

 

 

Profit and Loss A/c (Loss on Sale)

2,000

 

 

Balance c/d

50,000

 

60,000

 

60,000

 

 

 

 

 

Accumulated Depreciation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

To Machinery A/c (Bal. Fig.)

4,000

Balance b/d

10,000

Balance c/d

12,000

By Profit and Loss A/c (Dep. charged during the year)

6,000

 

16,000

 

16,000

 

 

 

 



Page No 5.101:

Answer:

Cash Flow from Financing Activities

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Proceeds from Issue of 12% Debentures

1,00,000

 

 

Interest Paid

(19,000)

 

 

Dividend Paid

(50,000)

 

 

Net Cash Flows from Financing Activities

 

31,000

 

Note: Amount of Equity Share Capital has been increased due to the issue of Bonus Shares which does not involve any flow of cash. Therefore, it is not considered in the Financing Activities.

Page No 5.101:

Answer:

Cash Flow Statement

 

Particulars

Amount

(₹)

Amount

(₹)

 

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

 

7,25,000

 

Items to be Added:

 

 

 

Dividend on Equity Shares

90,000

 

 

Dividend on Preference Shares

37,500

 

 

Interest on Debentures

41,000

 

 

Interest on Bank Loan

9,000

 

 

Provision for Tax

1,12,500

 

 

Transfer to General Reserve

75,000

3,65,000

 

Operating Profit before Working Capital Adjustments

 

10,90,000

 

Less: Increase in Current Assets

 

 

 

  Trade Receivables& Inventories

(1,50,000)

 

 

Add:Increase in Current Liabilities

 

 

 

Trade Payables

2,50,000

1,00,000

 

Cash Generated from Operations

 

11,90,000

 

Less: Taxes Paid

 

62,500

 

Cash Flow from Operating Activities

 

11,27,500

 

Cash Flow Statement

 

Particulars

Amount

(₹)

Amount

(₹)

 

Cash Flow from Financing Activities

 

 

 

Dividend on Equity Shares

(90,000)

 

 

Dividend on Preference Shares

(37,500)

 

 

Interest on Debentures

(41,000)

 

 

Interest on Bank Loan

(9,000)

 

 

Increase in Securities Premium Reserve

25,000

 

 

Proceeds from Issue of Equity Shares

2,50,000

 

 

Proceeds from Issue of Debentures

2,75,000

 

 

Redemption of Preference Shares

(2,50,000)

 

 

Repayment of Bank Loan

(25,000)

 

 

Cash Flows from Financing Activity

 

97,500


Working Notes:
 

Provision for Tax Account

Dr.

Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

Bank A/c (Bal. fig.)

62,500

Balance b/d

50,000

Balance c/d

1,00,000

Profit & Loss A/c

1,12,500

 

1,62,500

 

1,62,500

       

Calculation of Interest on Debentures

3,75,000×8100=30,0002,75,000×8100×612=11,000Total Interest=41,000 30,000+11,000

Calculation of Interest on Bank Loan

1,25,000×8100×612=5,0001,00,000×8100×612=4,000Total Interest=9,000 5,000+4,000



Page No 5.102:

Answer:

Cash Flow Statement

 

Particulars

Amount

(Rs)

Amount

(Rs)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss (Net Profit)

2,000

 

 

Profit Before Taxation

2,000

 

 

Items to be Added:

 

 

Operating Profit before Working Capital Adjustments

2,000

 

 

Add: Decrease in Current Assets

 

 

 

Stock

8,000

 

 

Add: Increase in Current Liabilities

 

 

 

Bills Payable

12,000

 

 

Cash Generated from Operations

22,000

 

 

Less: Tax Paid

 

 

Net Cash Flow from Operating Activities

 

22,000

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Sale of Fixed Assets

30,000

 

 

Net Cash Flows from Investing Activities

 

30,000

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

Repayment of Long-Term Loan

(50,000)

 

 

Net Cash Used in Financing Activities

 

(50,000)

 

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

2,000

 

 

Add: Cash and Cash Equivalent in the beginning of the period

 

15,000

 

Cash and Cash Equivalents at the end of the period

 

17,000

 

 

 

 

 

Page No 5.102:

Answer:

Cash Flow Statement

for the year ended March 31, 2018

 

Particulars

Amount

(Rs)

Amount

(Rs)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss (1,83,000 – 82,000)

1,01,000

 

 

Profit Before Taxation

1,01,000

 

 

Items to be Added:

 

 

 

Interest on Debentures

7,500

 

 

Operating Profit before Working Capital Adjustments

1,08,500

 

 

Less: Increase in Current Assets

 

 

 

Inventories

(56,000)

 

 

Add: Increase in Current Liabilities

 

 

 

Trade Payables

40,000

 

 

Less: Decrease in Current Liabilities

 

 

 

Other Current Liabilities

(8,000)

 

 

Add: Decrease in Current Assets

 

 

 

Trade Receivables

38,000

 

 

Cash Generated from Operations

1,22,500

 

 

Less: Tax Paid

 

 

Net Cash Flows from Operating Activities

 

1,22,500

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

Purchase of Fixed Assets

(1,57,000)

 

 

Purchase of Investments

(13,000)

 

 

Net Cash Used in Investing Activities

 

(1,70,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of Equity Share Capital

50,000

 

 

Proceeds from Issue of 15% Debentures

30,000

 

 

Interest on Debentures (50,000 × 15%)

(7,500)

 

 

Net Cash Flow from Financing Activities

 

72,500

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

25,000

 

Add: Cash and Cash Equivalent in the beginning of the period

 

70,000

 

Cash and Cash Equivalents at the end of the period

 

95,000

 

 

 

 

 

Note: It has been assumed that Debentures were issued at the end of the accounting period. Therefore, interest on Debentures is computed on the opening balance of the Debenture.



Page No 5.103:

Answer:

Cash Flow Statement

for the year ended March 31, 2018

 

Particulars

Amount

(₹)

Amount

(₹)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

 

9,000

 

Items to be Added:

 

 

 

General Reserve

10,000

 

 

Goodwill

10,000

 

 

Provision for Taxation

32,000

 

 

Proposed Dividend

45,000

97,000

 

Operating Profit before Working Capital Adjustments

 

1,06,000

 

Less: Increase in Current Assets

 

 

 

  Trade Receivables

(33,000)

 

 

Less: Decrease in Current Liabilities

 

 

 

Other Current Liabilities

(2,000)

 

 

Add:Decrease in Current Assets

 

 

 

Inventories

18,000

 

 

Add:Increase in CurrentLiabilities

 

 

 

      Trade Payables

18,000

1,000

 

Cash Generated from Operations

 

1,07,000

 

Less: Tax Paid

 

(28,000)

 

Net Cash Flows from Operating Activities

 

79,000

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

Purchase of Non-Current Investments

 

(25,000)

 

Purchase of Plant & Machinery

 

(1,01,000)

 

Sale of Land & Building

 

53,000

 

Net Cash Used in Investing Activities

 

(73,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

Dividend Paid

 

(39,000)

 

Proceeds from Issue of Share Capital

 

50,000

 

Net Cash Flow from Financing Activities

 

11,000

D

Net Increase or Decrease in Cash and Cash Equivalents

 

11,000

 

Add: Cash and Cash Equivalent in the beginning of the period

 

17,000

 

Cash and Cash Equivalents at the end of the period

 

28,000

 

 

 

 



Page No 5.104:

Answer:

 

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

 

 

 

 

 

 

 

 

 



Page No 5.105:

Answer:

 

Cash Flow Statement 

for the year ended March 31, 2014

 

Particulars

Amount

(Rs)

Amount

(Rs)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

2,00,000

 

 

Profit Before Taxation

 

2,00,000

 

Items to be Added:

 

 

 

Amortisation of Goodwill

1,44,000

 

 

Depreciation

1,32,000

 

 

Loss on Sale of Fixed Assets

4,000

2,80,000

 

Operating Profit before Working Capital Adjustments

 

4,80,000

 

Less: Increase in Current Assets

 

 

 

 

Inventories      

16,000

 

 

 

Trade Receivables

54,000

 

 

Less: Decrease in Current Liabilities

 

 

 

     Trade Payables

50,000

 

 

Short-Term Provisions

54,000

1,74,000

 

Net Cash Generated from Operating Activities

 

3,06,000

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Sale of Machinery

12,000

 

    Purchase of Machinery (5,88,000)  

 

Net Cash Used in Investing Activities

 

(5,76,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of Share Capital

2,00,000

 

 

Proceeds from Long Term Borrowings

1,40,000

 

 

Net Cash Flow from Financing Activities

 

3,40,000

 

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

70,000

 

 

Add: Cash and Cash Equivalent in the beginning of the 

period

 

10,50,000

 

Cash and Cash Equivalents at the end of the period

 

11,20,000

 

 

 

 

 

Working Notes:

 

Machinery Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

20,00,000

Bank A/c (Sale)

12,000

Bank A/c (Purchase- Bal. Fig.)

5,88,000

Depreciation on Part of Machinery

32,000

 

 

Profit and Loss A/c (Loss on Sale)

4,000

 

 

Balance c/d

25,40,000

 

25,88,000

 

25,88,000

 

 

 

 

 

Accumulated Depreciation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Machinery A/c

32,000

Balance b/d

3,00,000

Balance c/d

4,00,000

Profit and Loss A/c (Dep. charged during the year- Bal. Fig.)

1,32,000

 

4,32,000

 

4,32,000

 

 

 

 

 



Page No 5.106:

Answer:

Cash Flow Statement

for the year ended March 31, 2018

 

Particulars

Amount

(Rs)

Amount

(Rs)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss (1,50,000 – 2,00,000)

(50,000)

 

 

Transfer to General Reserve

3,40,000

 

 

Dividend Paid

50,000

 

 

Profit Before Taxation

3,40,000

 

 

Items to be Added:

 

 

 

Interest Paid

54,000

 

 

Loss on Sale of Machinery

14,000

 

 

Operating Profit before Working Capital Adjustments

4,08,000

 

 

Less: Increase in Current Assets

 

 

 

Inventories

(1,00,000)

 

 

Trade Receivables

(1,00,000)

 

 

Add: Increase in Current Liabilities

 

 

 

Trade Payables

3,50,000

 

 

Cash Generated from Operations

5,58,000

 

 

Less: Tax Paid

 

 

Net Cash Flow from Operating Activities

 

5,58,000

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

Sale of Machinery

6,000

 

 

Purchase of Fixed Assets

(5,20,000)

 

 

Net Cash Used in Investing Activities

 

(5,14,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of Equity Share Capital

5,00,000

 

 

Proceeds from 7% Preference Share Capital

60,000

 

 

Dividend Paid

(50,000)

 

 

Redemption of 9% Debentures

(2,00,000)

 

 

Interest Paid (6,00,000 × 9%)

(54,000)

 

 

Net Cash Flow from Financing Activities

 

2,56,000

 

 

 

 

D

Net Increase in Cash and Cash Equivalents

 

3,00,000

 

Add: Cash and Cash Equivalent in the beginning of the period

 

2,00,000

 

Cash and Cash Equivalents at the end of the period

 

5,00,000

 

 

 

 

Working Notes:

Fixed Assets Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

15,00,000

Bank A/c (Sale)

6,000

Bank A/c (Purchase- Bal. Fig.)

5,20,000

Profit and Loss A/c (Loss on Sale)

14,000

 

 

Balance c/d

20,00,000

 

20,20,000

 

20,20,000

 

 

 

 



Page No 5.107:

Answer:

 

Cash Flow Statement 

for the year ended 31st March, 2015

 

Particulars

Amount

(Rs)

Amount

(Rs)

I

Cash Flow from Operating Activities

 

 

 

A. Net Profit before Tax and Extraordinary items*

 

2,50,000

 

Adjustments for Non-cash and Non-operating items

 

 

 

B. Add: Items to be Added

 

 

 

Depreciation

99,000

 

 

Intangible Assets Written off

10,000

 

 

Interest on Debentures (12% of 5,00,000)

60,000

 

 

Provision for Tax

50,000

2,19,000

 

C. Less: Items to be Deducted

 

 

 

 

 

 

 

D.Operating Profit before Working Capital Adjustments (A + B – C)

 

4,69,000

 

E. Add: Decrease in Current Assets and Increase in Current Liabilities

 

 

 

F. Less: Increase in Current Assets and Decrease in Current Liabilities

 

 

 

Inventories

62,000

(62,000)

 

Cash Generated from Operations (D + E – F)

 

4,07,000

 

Less: Income Tax Paid (Net of Refund)

70,000

(70,000)

 

Net Cash Flows from (or used in) Operating Activities

 

3,37,000

 

 

 

 

 

II

Cash Flow from Investing Activities

 

 

 

Purchase of Fixed Assets (12,03,000 – 8,21,000)

(3,82,000)

 

 

Purchase of Non-Current Investments

(25,000)

 

 

Net Cash Flows from (or used in) Investing Activities

 

(4,07,000)

 

 

 

 

III

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of Share Capital

1,00,000

 

 

Redemption of Debentures

(50,000)

 

 

Interest Paid on Debentures

(60,000)

 

 

Increase in Bank Overdraft

1,00,000

 

 

Net Cash Flow from Financing Activities

 

90,000

 

 

 

 

 

IV

Net Increase or Decrease in Cash and Cash Equivalents (I + II + III)

 

20,000

 

 

Add: Cash and Cash Equivalent in the beginning of the period

 

1,20,000

 

 

(Includes Current Investments of Rs 60,000)

 

 

 

Cash and Cash Equivalents at the end of the period

 

1,40,000

 

(Includes Current Investments of Rs 50,000)

 

 

           

 

Provision for Tax Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Bank A/c

70,000

Balance b/d

90,000

Balance c/d

70,000

Statement of Profit and Loss

50,000

 

1,40,000

 

1,40,000

 

 

 

 

 

 



Page No 5.108:

Answer:

Cash Flow Statement

for the year ended March 31, 2017

 

Particulars

Amount

(Rs)

Amount

(Rs)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss (4,80,000 – 3,75,000)

1,05,000

 

 

Interim Dividend

75,000

 

 

Profit Before Taxation

1,80,000

 

 

Items to be Added:

 

 

 

Interest Paid on Debentures

27,000

 

 

Depreciation

60,000

 

 

Operating Profit before Working Capital Adjustments

2,67,000

 

 

Less: Increase in Current Assets

 

 

 

Trade Receivables

(75,000)

 

 

Add: Increase in Current Liabilities

 

 

 

Trade Payables

30,000

 

 

Add: Decrease in Current Assets

 

 

 

Inventories

60,000

 

 

Cash Generated from operations

2,82,000

 

 

Less: Tax Paid

 

 

Net Cash Flow from Operating Activities

 

2,82,000

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

Sale of Land

60,000

 

 

Purchase of Machinery

(1,50,000)

 

 

Net Cash Used in Investing Activities

 

(90,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of Share Capital

1,20,000

 

 

Redemption of 10% Debentures

(1,80,000)

 

 

Interim Dividend Paid

(75,000)

 

 

Interest Paid on Debentures

(27,000)

 

 

Net Cash Used in Financing Activities

 

(1,62,000)

 

 

 

 

D

Net Increase in Cash and Cash Equivalents

 

30,000

 

Add: Cash and Cash Equivalent in the beginning of the period

 

1,50,000

 

Cash and Cash Equivalents at the end of the period

 

1,80,000

 

 

 

 

 



Page No 5.109:

Answer:

Cash Flow Statement

for the year ended March 31, 2012

 

Particulars

Amount

(₹)

Amount

(₹)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

 

(50,000)

 

Items to be Added:

 

 

 

Depreciation

1,20,000

 

 

Interest

36,000

1,56,000

 

Operating Profit before Working Capital Adjustments

 

1,06,000

 

Less: Increase in Current Assets

 

 

 

Inventories

(1,00,000)

 

 

Trade Receivables

(80,000)

 

 

Add:Increase in CurrentLiabilities

 

 

 

Trade Payables

10,000

(1,70,000)

 

Cash Generated from Operations

 

(64,000)

 

Less: Tax Paid

 

NIL

 

Net Cash Flows from Operating Activities

 

(64,000)

 

   

 

 

B

Cash Flow from Investing Activities

 

 

 

  Purchase of Tangible Fixed Assets

 

(4,20,000)

 

Net Cash Used in Investing Activities

 

(4,20,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

Interest Paid

 

(36,000)

 

Proceeds from Issue of Share Capital

 

4,00,000

 

Proceeds from Long Term Borrowings

 

90,000

 

Net Cash Flow from Financing Activities

 

4,54,000

D

Net Increase or Decrease in Cash and Cash Equivalents

 

(30,000)

 

Add: Cash and Cash Equivalent in the beginning of the period

 

3,70,000

 

Cash and Cash Equivalents at the end of the period

 

3,40,000

 

 

 

 

 

Tangible Fixed Assets Account

Dr.

Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

Balance b/d

9,00,000

Depreciation A/c

1,20,000

Bank A/c (Bal. Fig.)

4,20,000

Balance c/d

12,00,000

 

13,20,000

 

13,20,000

       

Page No 5.109:

Answer:

 

Cash Flow Statement 

for the year ended March 31, 2018

 

Particulars

Amount

(Rs)

Amount

(Rs)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

 

10,000

 

Transfer to Reserve

 

5,000

 

Provision for Tax

 

20,000

 

Interim Dividend

 

12,000

 

Profit Before Taxation

 

47,000

 

Items to be Added:

 

 

 

Depreciation

 

5,000

 

Operating Profit before Working Capital Adjustments

 

52,000

 

Less: Increase in Current Assets

 

 

 

        Inventories

(33,000)

 

 

Less: Decrease in Current Liabilities

 

 

 

      Creditors

(5,000)

 

 

Add: Decrease in Current Assets

 

 

 

      Trade Receivables

8,000

 

 

Add: Increase in Current Liabilities

 

 

 

      Bills Payable

10,000

(20,000)

 

Cash Generated from Operations

 

32,000

 

Less: Tax Paid

 

(10,000)

 

Net Cash Flows from Operating Activities

 

22,000

 

 

 

 

 

B

Cash Flow from Investing Activities                            

 

 

 

 

Sale of Investments

5,000

 

 

 

Purchase of Fixed Assets

(15,000)

 

 

Net Cash Used in Investing Activities

 

(10,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

 Proceeds from Issue of Share Capital

        25,000

 

 

Proceeds of Bank Loan

20,000

 

 

Bank Overdraft Raised

5,000

 

 

Dividend Paid

(12,000)

 

 

Net Cash Flow from Financing Activities

 

38,000

D

Net Increase in Cash and Cash Equivalents

 

50,000

 

Add: Cash and Cash Equivalent at the beginning of the period

 

50,000

 

Cash and Cash Equivalents at the end of the period

 

1,00,000

 

 

 

 

           

 

Working Notes:

WN1:

Fixed Assets Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

20,000

Depreciation

5,000

Bank A/c (Purchase- Bal. Fig.)

15,000

Balance c/d

30,000

 

35,000

 

35,000

 

 

 

 

 

WN2:

Provision for Taxation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Bank A/c (Tax Paid) (Bal. Fig.)

10,000

Balance b/d

15,000

Balance c/d

25,000

Profit and Loss A/c

20,000

 

35,000

 

35,000

 

 

 

 



Page No 5.110:

Answer:

 

Cash Flow Statement

for the year ended March 31, 2013

 

Particulars

Details

(Rs)

Amount

(Rs)

A

Cash from Operating Activities

 

 

 

Net Profit

 

2,00,000

 

Add: Non Operating Expenses

 

 

 

            Depreciation on Plant and Machinery

30,000

 

 

Less: Non Operating Incomes

 

 

 

            Profit on Sale of Machinery

(10,000)

20,000

 

Operating Profit Before Working Capital Changes

 

2,20,000

 

Add: Increase in Current Liabilities

 

 

 

            Trade Payables

1,00,000

 

 

Add: Decrease in Current Assets

 

 

 

            Inventories

50,000

 

 

Less: Increase in Current Assets

 

 

 

            Trade Receivables

(2,00,000)

(50,000)

 

Cash Generated from Operations

 

1,70,000

 

Less: Tax Paid

 

-

 

Net Cash Flow from Operating  Activities

 

1,70,000

 

 

 

 

B

Cash From Investing  Activities

 

 

 

Sale of Plant and Machinery

60,000

 

 

Purchase of Plant and Machinery

(2,80,000)

 

 

Net Cash Used in Investing Activities

 

(2,20,000)

 

 

 

 

C

Cash From Financing Activities

 

 

 

Issue of Share Capital

1,00,000

 

 

Net Cash Flow from Financing Activities

 

1,00,000

 

 

 

 

D

Net Increase in Cash and Cash Equivalents

 

50,000

 

Add: Cash and Cash Equivalents in beginning of the period

 

30,000

 

Cash and Cash Equivalents at the end of the period

 

80,000

 

 

 

 

 

 

 

 

Working Notes:

Plant and Machinery Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

 

Balance b/d

 

3,00,000

 

Depreciation

 

30,000

 

P & L ( Profit)

 

10,000

 

Bank ( Sale)

 

60,000

 

Purchases (bf)

 

2,80,000

 

Balance c/d

 

5,00,000

 

 

 

 

 

 

 

 

 

 

 

5,90,000

 

 

 

5,90,000

 

 

 

 

 

 

 

 

 



Page No 5.111:

Answer:

Cash Flow Statement

for the year ended March 31, 2018

 

Particulars

Amount

(Rs)

Amount

(Rs)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss (2,04,000 – 1,68,000)

36,000

 

 

Transfer to General Reserve

30,000

 

 

Interim Dividend

1,20,000

 

 

Provision for Taxation

27,000

 

 

Profit Before Taxation

2,13,000

 

 

Items to be Added:

 

 

 

Depreciation

2,10,000

 

 

Profit on Sale of Investments

(1,500)

 

 

Profit on Sale of Fixed Assets

(6,000)

 

 

Operating Profit before Working Capital Adjustments

4,15,500

 

 

Less: Increase in Current Assets

 

 

 

Trade Receivables

(7,35,000)

 

 

Less: Decrease in Current Liabilities

 

 

 

Trade Payables

(1,02,000)

 

 

Add: Decrease in Current Assets

 

 

 

Inventories

90,000

 

 

Cash Generated from Operations

(3,31,500)

 

 

Less: Tax Paid

(2,22,000)

 

 

Net Cash from (used in) Operating Activities

 

(5,53,500)

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

Sale of Investments

25,500

 

 

Sale of Fixed Assets

36,000

 

 

Purchase of Investments

(54,000)

 

 

Net Cash Flow from Investing Activities

 

7,500

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of 10% Mortgage Loan

8,10,000

 

 

Interim Dividend Paid

(1,20,000)

 

 

Net Cash Flow from Financing Activities

 

6,90,000

 

 

 

 

D

Net Increase in Cash and Cash Equivalents

 

1,44,000

 

Add: Cash and Cash Equivalent in the beginning of the period

 

4,47,000

 

Cash and Cash Equivalents at the end of the period

 

5,91,000

 

 

 

 

Working Notes:

WN1

Fixed Assets Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

12,00,000

Bank A/c  (Sale)

36,000

Profit and Loss A/c (Profit on Sale)

6,000

Depreciation (Bal. Fig.)

2,10,000

 

 

Balance c/d

9,60,000

 

12,06,000

 

12,06,000

 

 

 

 

WN2

Investments Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Balance b/d

1,50,000

Bank A/c (Sale)

25,500

Profit and Loss A/c (Profit on Sale)

1,500

Balance c/d

1,80,000

Bank A/c (Purchases- Bal. Fig.)

54,000

 

 

 

2,05,500

 

2,05,500

 

 

 

 

WN 3

Provision for Taxation Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Bank A/c (Tax Paid- Bal. Fig.)

2,22,000