Following is the Balance Sheet of Oswal Publications as at 31-03-2018.
ParticulrsNote31-03-201731-03-2016No. Rs RsI. EQUITY AND LIABILITIES (1) Shareholders' Funds: (a) Share Capital7,00,0006,00,000 (b) Reserve and Surplus2,00,0001,10,000 (2) Non-current Liabilities: (a) Long-term Borrowings3,00,0002,00,000 (3) Current Liabilities: (a) Trade Payables 30,000 25,000 Total12,30,0009,35,000II. ASSETS (1) Non-current Assets: (a) Fixed Assets11,00,0008,00,000 (2) Current Assets: (a) Inventories 70,000 60,000 (b) Trade receivables 32,000 40,000 (c) Cash and Cash Equivalents 28,000 35,000 Total12,30,0009,35,000
Additional Information :
During the year, a piece of machinery of the book value of Rs. 80,000 was sold for Rs. 65,000. Depreciation provided on machinery during the year amounted to Rs. 2,00,000.
CASH FLOW STATEMENT
for the year ending 31-3-2018
ParticularsAmountAmount(Rs)(Rs)A. Cash Flow from Operating ActivitiesProfit before Tax(2,00,000-1,10,000)90,000Adjustment of non-cash and non-operating items+ Depreciation2,00,000+ Loss on sale of machinery15,000Operating Profit before Working Capital Changes3,05,000+ Increase in Trade Payables5,000+ Decrease in Trade Receivables8,000(-) Increase in Inventories(10,000)Cash generated from Operating Activities (A)3,08,000(-) Tax Paid−Net Cash from Operating activities3,08,000B. Cash Flow from Investing ActivitiesPurchase of Machinery(5,80,000)Sale of Machinery65,000Net Cash used in Investing Activities (B)(5,15,000)C. Cash Flow from Financing ActivitiesPreoceeds from issue of shares1,00,000 Proceeds from long-term borrowings1,00,000Net Cash fromFinancing Activities (C)2,00,000Net decrease in Cash and Cash equivalents (A+B+B)(7,000)+ Cash and Cash equivalents at the beginning35,000Cash and cAsh equivalents at the end28,000
Working Notes :
MACHINERY ACCOUNT
ParticularsAmount ParticularsAmount(Rs)(Rs)To Balance b/d8,00.000By Depreciation A/c2,00,000To Bank A/c (Purchase ) Balanceing Fig.5,80,000By Banking A/c (Sale)65,000By Profits and Loss A/c15,000By Balance c/d11,00,000 Total13,80,000 Total13,80,000