From the following Balance Sheet of Akshya Ltd. as on 31-3-2012 and 31-3-2013, prepare a Cash Flow Statement.
ParticularsNote31−3−201331−3−2012No. (Rs) (Rs) I.Equity and Liabilities(1) Shareholders' Funds (a) Share Capital65,00045,000 (b) Reserve and Surplus142,50024,000(2) Current Liabilities Trade Payables (Creditors)11,0008,700 Total1,18,50077,700II.Assets(1) Non-current Assets (a) Fixed Assets83,00046,700(2) Current Assets (a) Inventories (Stock)13,00011,000 (b) Trade Receivables (Debtors)19,50018,000 (c) Cash and Cash Equivalents (Cash)3,0002,000 Total1,18,50077,700
Notes to Accounts :
Note Particulars31st March, 201331st March, 2012No. (Rs) (Rs) 1Reserves and SurplusGeneral Reserves27,50015,000Balance in Statement of Profit and Loss15,00010,000Preliminary Expenses –– (1,000) Total42,50024,000
Additional Information :
(i) Depreciation on Fixed Assets for the year 2012-13 was Rs 14,700.
(ii) An interim dividend Rs 7,000 has been paid to the shareholders during the year.
CASH FLOW STATEMENT
for the year ending 31st March, 2013
ParticularsAmountAmount (Rs) (Rs) A.Cash Flows from Operating ActivitiesNet Profit before tax (WN.1)24,500Add: Depreciation on Fixed Assets14,700 Write off Preliminary Expenses1,000–––––– Operating Profit before Working Capital changes40,200Less : Increase in Current Assets : Stock2,000 Debtors1,500––––––(3,500)––––––––36,700Add : Increase in Current Liabilities : Trade Creditors2,300 Cash Flow from Operating Activities¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯39,000––––––––B.Cash Flow from Investing ActivitiesPurchase of Fixed Assets (WN.2)(51,000)––––––––––Net Cash used in Investing Activities¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯(51,000)––––––––––C.Cash Flow from Financing ActivitiesIssue of Shares20,000Payment of Interim Dividend(7,000)––––––––13,000––––––––Net Cash Flow from Financing Activities13,000D.Net increase in Cash and Cash Equivalents (A + B + C)1,000E.Add : Opening Balance of Cash and Cash Equivalents2,000F.Closing Balance of Cash and Cash Equivalents¯¯¯¯¯¯¯¯¯¯¯¯¯3,000
Working Notes :
1. Calculation of Net Profit before Tax : Net Profit as per Statement of Profit and Loss (Rs. 15,000 - Rs. 10,000) 5,000 Add: Transfer to General Reserve (Rs. 27,500 - Rs. 15,000) 12,500 Interim Dividend paid during the year 7,000–––––– Net Profit before Tax 24,500––––––––
Dr. FIXED ASSETS ACCOUNT Cr.
ParticularsAmount ParticularsAmount(Rs)(Rs)To Balance b/d46,700By Depreciation A/c14,700To Bank A/c (Purchase) (Balancing figure)51,000––––––––By Balance c/d83,000––––––––97,70097,700