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Question

Following are the Balance Sheets of Krishtec Ltd. for the years ended 31st March 2012 and 2011:

Particulars ulars

Note No.
31st March, 2012
(₹)
31st March, 2011
(₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital
12,00,000 8,00,000
(b) Reserves and Surplus (Surplus, i.e., Balance in Statement of Profit and Loss)
3,50,000 4,00,000
2. Non-Current Liabilities
Long-term Borrowings
4,40,000 3,50,000
3. Current Liabilities
(a) Trade Payables
60,000 50,000
Total Total Expenses
20,50,000 16,00,000
II. ASSETS
1, Non-Current Assets
Fixed Assets:
Tangible Assets
12,00,000 9,00,000
2. Current Assets
(a) Inventories
2,00,000 1,00,000
(b) Trade Receivables
3,10,000 2,30,000
(c) Cash and Cash Equivalents
3,40,000 3,70,000
Total
20,50,000 16,00,000
Prepare a Cash Flow Statement after taking into account the following adjustments:
(a) The company paid Interest ₹36,000 on its long-term borrowings.
(b) Depreciation charged on tangible fixed assets was ₹1,20,000

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Solution

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


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Q.

From the following Balance Sheets of Zee Entertainment Ltd., prepare a Cash Flow Statement for the year ended 31st March, 2017.

BALANCE SHEET OF ZEE ENTERTAINMENT LTD.

as at 31st March, 2016 and 31st March, 2017

ParticularsNote3103201731032016No.(Rs)(Rs)I. EQUITY AND LIABILITIES(1) Shareholders Funds:(a) Share Capital (Equity)2,00,0002,00,000(b) Reserve and Surplus190,00050,000(2) Non-current Liabilities:Long-term Borrowings (Bank Loan)10,000(3) Current Liabilities:(a) Trade Payables (Creditors)20,00015,000(b) Other Current Liabilities25,0005,000(c) Short-term Provisions325,00020,000Total3,40,0003,00,000II. ASSETS(1) Non-current Assets:(a) Fixed Assets2,75,002,35,000(2) Current Assets :(a) Inventories15,00025,000(b) Trade Receivables (Debtors)20,00010,000(c) Cash and Cash Equivalents430,00030,000 Total3,40,0003,00,000

Notes to Accounts :

NoteParticulars3103201731032016No.(Rs)(Rs)1Reserves and Surplus:Statements of Profit and Loss:90,00050,0002Other Current Liabilities:Outstanding Expenses1,0005,000Unaccrued Income4,000¯¯¯¯¯¯¯¯¯¯¯¯¯5,000––––¯¯¯¯¯¯¯¯¯¯¯¯¯5,000––––3Short-term Provisions:Provision for Tax25,00020,0004Cash and Cash Equivalents:Cash10,0008,000Bank20,00022,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯30,000––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯30,000––––––

Note : During the year the company declared equity dividend @ 10% and paid Rs 15,000 as income tax.

Depreciation charged during the year Rs 20,000.

Q.

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

31st March 2019

(₹)

31st 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:

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