Following are the Balance Sheets of Solar Power Ltd. as at 31st March, 2014 and 2013:

Solar Power Ltd.

BALANCE SHEET

Particulars ulars

Note No.

31st March, 2014

(₹)

31st March, 2013

(₹)

I. EQUITY AND LIABILITIES

1. Shareholders' Funds

(a) Share Capital

24,00,000 22,00,000

(b) Reserves and Surplus
1 6,00,000 4,00,000

2. Non-Current Liabilities

Long-term Borrowings
4,80,000 3,40,000

3. Current Liabilities

(a) Trade Payables
3,58,000 4,08,000

(b) Short-term Provisions

1,00,000 1,54,000

Total Total Expenses
39,38,000 35,02,000

II. ASSETS

1. Non-Current Assets

Fixed Assets:

(i) Tangible Assets
2 21,40,000 17,00,000

(ii) Intangible Assets
3 80,000 2,24,000

2. Current Assets

(a) Current Investments
4,80,000 3,00,000

(b) Inventories
2,58,000 2,42,000

(c) Trade Receivables
3,40,000 2,86,000

(d) Cash and Cash Equivalents

6,40,000 7,50,000

Total
39,38,000 35,02,000

Notes to Accounts

Particulars ulars

31st March, 2014

(₹)

31st March, 2013

(₹)

1. Revenue and Surplus
Surplus, i.e., Balance in Statement of Profit and Loss
6,00,000 4,00,000

2. Tangible Assets

Machinery
25,40,000 20,00,000

Less: Accumulated Deprciation
(4,00,000) (3,00,000)

Total Expenses 21,40,000 17,00,000

3. Intangible Assets

Goodwill
80,000 2,24,000

Additional Iformation:
Druing the year, a piece of machinery costing ₹48,000 on which accumulated deprciation was ₹ 32,000. was sold for ₹ 12,000.
Prepare Cash Flow Statement.

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Solution

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

Suggest Corrections

Similar questions

Q. From the following Balance Sheet of Akash Ltd. as at 31st March 2014:


Particulars	Note No.	31st March, 2014 (₹)	31 March, 2013 (₹)
I. EQUITY AND LIABILITES 1. Shareholders' Funds
(a) Share Capital		15,00,000	14,00,000
(b) Reserves and Surplus	1	2,50,000	1,10,000
2. Non-Current Liabilities
Long-term Borrowings		2,00,000	1,25,000
3. Current Liabilities
(a) Short-term Borrowings	2	12,000	10,000
(b) Trade Payables		15,000	83,000
(c) Short-term Provisions	3	18,000	11,000
Total		19,95,000	17,39,000
II. ASSETS
1. Non-Current Assets
Fixed Assets:
(i) Tangible Assets	4	18,60,000	16,10,000
(ii) Intangible Assets	5	50,000	30,000
2. Current Assets
(a) Current Investments		8,000	5,000
(b) Inventories		37,000	59,000
(c) Trade Receivables		26,000	23,000
(d) Cash and Cash Equivalents		14,000	12,000
Total		19,95,000	17,39,000

Notes to Accounts :
Particulars	31st March, 2014 (₹)	31st March, 2013 (₹)
1. Reserves and Surplus
Surplus, i.e., Balance in Statement of Profit and Loss	2,50,000	1,10,000
2. Short-term Borrowings :
Bank Overdraft	12,000	10,000
3. Short-term Provisions
Provision for Tax	18,000	11,000
4. Tangible Assets :
Machinery	20,00,000	17,00,000
Less: Accumulated Depreciation	(1,40,000)	(90,000)
	18,60,000	16,10,000
5. Intangible Assets
Patents	50,000	30,000

Additional Information :

(i) Tax paid during the year amounted to ₹ 16,000.
(ii) machine with a net book value of ₹ 10,000 (Accumulated Depreciation ₹ 40,000) was sold for ₹ 2,000.

Prepare Cash Flow Statement.

Following are the balance sheets of Alpha Ltd. as at March 31^st, 2016 and 2017:

Particulars	2016 Rs.	2017 Rs.
I. Equity and Liabilities
Equity share capital	2,00,000	4,00,000
Reserves and surplus	1,00,000	1,50,000
Long-term borrowings	2,00,000	3,00,000
Short-term borrowings	50,000	70,000
Trade payables	30,000	60,000
Short-term provisions	20,000	10,000
Other current liabilities	20,000	30,000
Total	6,20,000	10,20,000
II. Assets
Fixed assets	2,00,000	5,00,000
Non-current investments	1,00,000	1,25,000
Current investments	60,000	80,000
Inventories	1,35,000	1,55,000
Trade receivables	60,000	90,000
Short term loans and advances	40,000	60,000
Cash at bank	25,000	10,000
Total	6,20,000	10,20,000

From the following Balance Sheets of Tiger Super Steel Ltd., prepare Cash Flow Statement:

Balance Sheet of Tiger Super Steel Ltd.
as at 31st March 2014 and 31st March 2017
Particulars	Note No.	March 31, 2017 (Rs)	March 31, 2016 (Rs)
I) Equity and Liabilities
1. Shareholders’ Funds
a) Share capital	1	1,40,000	1,20,000
b) Reserves and surplus	2	22,800	15,200
2. Current Liabilities
a) Trade payables	3	21,200	14,000
b) Other current liabilities	4	2,400	3,200
c) Short-term provisions	5	28,400	22,400
Total		2,14,800	1,74,800
II) Assets
1. Non-Current Assets
a) Fixed assets
i) Tangible assets	6	96,400	76,000
ii) Intangible assets		18,800	24,000
b) Non-current investments		14,000	4,000
2. Current Assets
a) Inventories		31,200	34,000
b) Trade receivables		43,200	30,000
c) Cash and Cash Equivalents		11,200	6,800
Total		2,14,800	1,74,800

Notes to accounts:

	2017	2016
1. Share Capital
Equity share capital	1,20,000	80,000
10% Preference share capital	20,000	40,000
	1,40,000	1,20,000
2. Reserves and surplus
General reserve	12,000	8,000
Balance in statement of profit and loss	10,800	7,200
	22,800	15,200
3. Trade payables
Bills payable	21,200	14,000

4. Other current liabilities
Outstanding expenses	2,400	3,200

5. Short-term provisions
Provision for taxation	12,800	11,200
Proposed dividend	15,600	11,200
	28,400	22,400
6. Tangible assets
Land and building	20,000	40,000
Plant	76,400	36,000
	96,400	76,000

Additional Information:
Depreciation Charge on Land & Building Rs 20,000, and Plant Rs 10,000 during the year.

Following are the balance sheets of Beta Ltd. at March 31^st, 2016 and 2017:

Particulars	2017 Rs.	2016 Rs.
I. Equity and Liabilities
Equity share capital	4,00,000	3,00,000
Reserves and surplus	1,50,000	1,00,000
Loan from IDBI	3,00,000	1,00,000
Short-term borrowings	70,000	50,000
Trade payables	60,000	30,000
Short-term provisions	10,000	20,000
Other current liabilities	1,10,000	1,00,000
Total	11,00,000	7,00,000
II. Assets
Fixed assets	4,00,000	2,20,000
Non-current investments	2,25,000	1,00,000
Current investments	80,000	60,000
Stock	1,05,000	90,000
Trade receivables	90,000	60,000
Short term loans and advances	1,00,000	85,000
Cash and cash equivalents	1,00,000	85,000
Total	11,00,000	7,00,000

Q. From the following Balance Sheet of SRS Ltd. and the additional information as on 31st March, 2016, prepare a Cash Flow Statement:

SRS Ltd.

BALANCE SHEET as on 31st March, 2016

Particulars ulars	Note No.	31st March, 2016 (₹)	31st March, 2015 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital		4,50,000	3,50,000
(b) Reserves and Surplus	1	1,25,000	50,000
2. Non-Current Liabilities
Long-term Borrowings	2	2,25,000	1,75,000
3. Current Liabilities
(a) Short-term Borrowingst	3	75,000	37,500
(b) Shrot-term Provisions	4	1,00,000	62,500
Total Total Expenses		9,75,000	6,75,000
II. ASSETS
1, Non-Current Assets
(a) Fixed Assets:
(i) Tangible	5	7,32,500	4,52,500
(ii) Intangible	6	50,000	75,000
(b) Non-current Investments		75,000	50,000
2. Current Assets
(a) Current Investments		20,000	35,000
(b) Inventories	7	61,000	36,000
(c) Cash and Cash Equivalents		36,500	26,500
Total		9,75,000	6,75,000

Notes to Accounts

Particular		31^st March 2016 (₹)	31^st March 2015 (₹)
1.	Reserves and Surplus
	Surplus, i.e., Balance in Statement of Profit and Loss	1,25,000	50,000
2.	Long-term Borrowings
	12% Debentures	2,25,000	1,75,000
3.	Short-term Borrowings
	Bank Overdraft	75,000	37,500
4.	Short-term Provisions
	Provision for Tax	1,00,000	62,500
5.	Tangible Assets
	Machinery	8,37,500	5,22,500
	Accumulated Depreciation	(1,05,000)	(70,000)
		7,32,500	4,52,500
6.	Intangible Assets
	Goodwill	50,000	75,000
7.	Inventories
	Stock-in-Trade	61,000	36,000

Additional Information:
(i) ₹50,000, 12% Debentures were issued on 31st March, 2016.
(ii) During the year, a piece of machinery costing ₹40,000, on which accumulated depreciation was ₹20,000, was sold at a loss of ₹5,000.

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Particulars ulars	31st March, 2014 (₹)	31st March, 2013 (₹)
1. Revenue and Surplus Surplus, i.e., Balance in Statement of Profit and Loss	6,00,000	4,00,000
2. Tangible Assets
Machinery	25,40,000	20,00,000
Less: Accumulated Deprciation	(4,00,000)	(3,00,000)
Total Expenses	21,40,000	17,00,000
3. Intangible Assets
Goodwill	80,000	2,24,000

	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

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