Following is the Balance Sheet of Wisben Led , as on 31st March, 2012.
ParticularsNotes to Current YearPrevious Year(Rs)(Rs)1. Equity and Liabilities :(1) Shareholders' Funds(a) Share Capital7,00,0006,00,000(b) Reserve and Surplus (Profit and Loss Balance)2,00,0001,10,000(2) Non-current LiabilitiesLong-term Borrowings3,00,0002,00,000(3) Current LiabilitiesTrade Payables30,00025,000 Total12,30,0009,35,000II. Assets :(1)Non-current Assets11,00,0008,00,000(a) Fixed Asset : Tangible Assets(2) Current Assets(a)Inventories70,00060,000(b) Trade Receivables32,00040,000CAsh and Cash Equivalents28,00035,000 Total12,30,0009,35,000
Adjustments : During the year a piece of machinery of the book value of Rs 80,000 was sold for Rs 65,000.Depreciation provided on tangible assets during the year amounted to Rs 2,00,000. Prepare a Cash Flow Statement.
CASH FLOW STATEMENT OF WISBEN LTD.
for the year ended 31st March, 2012
ParticularsAmountAmount(Rs)(Rs)A. Cash Flow from Operating ActivitiesNet Profit before Tax (2,00,000-1,10,000)90,000Add : Non-cash and Non-operating items : Depreciation2,00,000 Loss on Sale of Machinery15,000––––––––2,15,000––––––––––Operatinog Profit before Working Capital Charges3,05,000Change in Current Assets and Current Liabilities :Increase in Inventories(10,000)Decrease in Trade Receivables8,000Increase in Trade Payables5,000––––––3,000Net Cash from Operating Activities (A)3,08,000B. Cash Flow from Investing ActivitiesPurchase of Fixed Asset(5,80,000)Sale of Machinery65,000Net Cash used in Investing Activities (B)(5,15,000)C. Cash Flow from Financing ActivitiesIssue of Equity Shares1,00,000Long term Borrowings1,00,000Net Cash from Financing Activities (C)2,00,000D.Net Increase in CAsh and Cash Equivalents (A+B+C)¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯(7,000)E. Add : Opening Balance of Cash and CAsh Equivalents 35,000F. Closing Balance of Cash and Cash Equivalents¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯28,000
FIXED ASSETS (TANGIBLE) ACCOUNT
ParticularsAmountParticularsAmount (Rs) (Rs)To Balance b/d8,00,000By Bank (Sale)65,000To Bank A/c (Purchase)By Statement of Profit and Loss(Balancing Figure)5,80,000(Loss on Sale)15,000By Depreciation A/c2,00,000By Balance c/d11,00,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯13,80,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯13,80,000