Compute Cash Flow from Operating Activities from the following:
(i) Profit for the year ended 31st March, 2019 is ₹ 10,000 after providing for depreciation of ₹ 2,000.
(ii) Current Assets and Current Liabilities of the business for the year ended 31st March, 2018 and 2019 are as follows:

Particular

31^st March
2018

(₹)

31^st March
2019
(₹)

Trade Receivables 14,000 15,000

Provision for Doubtful Debts
1,000 1,200

Trade Payables
13,000 15,000

Inventories 5,000 8,000

Other Current Assets 10,000 12,000

Expenses Payables 1,000 1,500

Prepaid Expenses 2,000 1,000

Accrued Income 3,000 4,000

Income Received in Advance
2,000
1,000

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Solution

Cash Flow Statement

Particulars

Amount

(₹)

Amount

(₹)

Cash Flow from Operating Activities

Profit as per Statement of Profit and Loss

10,000

Items to be Added:

Depreciation
2,000

2,000

Operating Profit before Working Capital Adjustments

12,000

Less: Increase in Current Assets

Accrued Income
(1,000)

Inventories
(3,000)

Other Current Assets
(2,000)

Trade Receivables
(1,000)

Less: Decrease in Current Liabilities

Income Received in Advance
(1,000)

Add: Increase in Current Liabilities

Expenses Payable
500

Provision for Doubtful Debts
200

Trade Payables
2,000

Add: Decrease in Current Assets

Prepaid Expenses
1,000

(4,300)

Cash Generated from Operations

7,700

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Q. Compute cash from operations from the following figures
(i) Profit for the year 2010-11 is a sum of Rs. 10,000 after providing for depreciation of Rs. 2,000.
(ii) The current assets of the business for the year ended March 31, 2010 and 2011 are as follows:

\begin{matrix} Particulars & March 31, 2010 & March 31, 2010 (Rs.) & (Rs.) Debtors & 10, 000 & 12, 000 Provision for Doubtful Debts & 1, 000 & 1, 200 Bills Receivable & 4, 000 & 3, 000 Bills Payable & 5, 000 & 6, 000 Creditors & 8, 000 & 9, 000 Inventories & 5, 000 & 8, 000 Short Term Investments & 10, 000 & 12, 000 Outstanding Expenses & 1, 000 & 1, 500 Prepaid Expenses & 2, 000 & 1, 000 Accrued Income & 3, 000 & 4, 000 Income Received in Advance & 2, 000 & 1, 000 \end{matrix}

Prepare of cash flow statement from summary cash account.

Compute cash from operations from the following figures:

(i) Profit for the year 2016-17 is a sum of Rs. 10,000 after providing for depreciation of Rs. 2,000.

(ii) The current assets and current liabilities of the business for the year ended March 31, 2016 and 2015 are as follows:

Particular	March 31, 2016 (Rs)	March 31, 2017 (Rs)
Trade Receivables	14,000	15,000
Provision for Doubtful Debts	1,000	1,200
Trade Payables	13,000	15,000
Inventories	5,000	8,000
Other Current Assets	10,000	12,000
Expenses payable	1,000	1,500
Prepaid Expenses	2,000	1,000
Accrued Income	3,000	4,000
Income received in advance	2,000	1,000

From the following Balance Sheet as at 31st March, 2019 and Statement of Profit and Loss for the year ended 31st March, 2019 of RSB Ltd. and additional information, prepare Cash Flow Statement:

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	1	9,50,000	3,00,000
2. Non-Current Liabilities
Long-term Borrowings (5% Debentures)		7,00,000	4,00,000
3. Current Liabilities
(a) Trade Payables		1,10,000	90,000
(b) Other Current Liabilities	2	39,000	25,000
(c) Short-term Provisions (Provision for Tax)		2,60,000	2,25,000
Total		28,09,000	15,40,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets – Tangible	3	6,85,000	7,45,000
(b) Non-current Investments		7,50,000	2,50,000
2. Current Assets
(a) Current Investments		6,74,000	95,000
(b) Inventories		1,00,000	2,00,000
(c) Trade Receivables		4,00,000	1,50,000
(d) Cash and Cash Equivalents		2,00,000	1,00,000
Total		28,09,000	15,40,000

STATEMENT OF PROFIT AND LOSS
for the year ended 31st March, 2019
Particulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. Revenue from Operations	4	40,00,000	35,00,000
II. Other Income	5	35,000	30,000
III. Total Revenue (I + II)		40,35,000	35,30,000
IV. Expenses:
Purchases of Stock-in-Trade		27,00,000	24,70,000
Change in Inventories of Stock-in-Trade	6	1,00,000	50,000
Finance Cost		27,500	20,000
Depreciation		40,000	45,000
Other Expenses		22,500	20,000
Total Expenses		28,90,000	26,05,000
V. Profit before Tax (III – IV)		11,45,000	9,25,000
VI. Less: Tax		3,45,000	2,25,000
VII. Profit after Tax (V – VI)		8,00,000	7,00,000

Notes to Accounts

Particular		31^st March 2019 (₹)	31^st March 2018 (₹)
1.	Reserves and Surplus
	Debenture Redemption Reserve	1,00,000	1,00,000
	Surplus, i.e., Balance in Statement of Profit and Loss	8,50,000	2,00,000
		9,50,000	3,00,000
2.	Other Current Liabilities
	Interest on Debentures	35,000	20,000
	Outstanding Expenses	4,000	5,000
		39,000	25,000
3.	Fixed Assets–Tangible
	Cost	8,90,000	9,90,000
	Less: Accumulated Depreciation	2,05,000	2,45,000
		6,85,000	7,45,000
4.	Revenue from Operations
	Sales	42,00,000	35,75,000
	Less: Sales Return	2,00,000	75,000
		40,00,000	35,00,000
5.	Other Income
	Interest on Deposits	15,000	12,500
	Dividend on Investments	10,000	17,500
	Gain (Profit) on Sale of Fixed Assets	10,000	…
		35,000	30,000
6.	Change in Inventories of Stock-in-Trade
	Opening Stock	2,00,000	2,50,000
	Less: Closing Stock	1,00,000	2,00,000
		1,00,000	50,000

Additional Information:

Q. (a) Mohan started a business on 1st April, 2018 with a capital of ₹ 10,000 and borrowed ₹ 3,000 from a friend. He earned a profit of ₹ 5,000 during the year ended 31st March, 2019 and withdrew cash ₹ 4,000 for personal use. What is his capital on 31st March, 2019?

(b) Mahesh started a business with a capital of ₹ 15,000 on 1st April, 2018. During the year, he made a profit of ₹ 3,000. He owes ₹ 2,500 to suppliers of goods. What is the total of assets in his business on 31st March, 2019?

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.

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Particular	31^st March 2018 (₹)	31^st March 2019 (₹)
Trade Receivables	14,000	15,000
Provision for Doubtful Debts	1,000	1,200
Trade Payables	13,000	15,000
Inventories	5,000	8,000
Other Current Assets	10,000	12,000
Expenses Payables	1,000	1,500
Prepaid Expenses	2,000	1,000
Accrued Income	3,000	4,000
Income Received in Advance	2,000	1,000

Cash Flow Statement
	Particulars	Amount (₹)	Amount (₹)
	Cash Flow from Operating Activities
	Profit as per Statement of Profit and Loss		10,000
	Items to be Added:
	Depreciation	2,000	2,000
	Operating Profit before Working Capital Adjustments		12,000
	Less: Increase in Current Assets
	Accrued Income	(1,000)
	Inventories	(3,000)
	Other Current Assets	(2,000)
	Trade Receivables	(1,000)
	Less: Decrease in Current Liabilities
	Income Received in Advance	(1,000)
	Add: Increase in Current Liabilities
	Expenses Payable	500
	Provision for Doubtful Debts	200
	Trade Payables	2,000
	Add: Decrease in Current Assets
	Prepaid Expenses	1,000	(4,300)
	Cash Generated from Operations		7,700