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Question

From the following Balance Sheet of JY Ltd. as at 31st March 2017, prepare a Cash Flow Statement:                           Balance Sheet of JY Ltd. as at 31.03.2017
ParticularsNote No.31.3.2017
Rs.
31.3.2016
Rs.
I-Equity and Liabilities:-
1.Share holder's Funds:
(a) Share Capital5,00,0005,00,000
(b) Reserve and Surplus11,00,000(25,000)
2.Non-Current Liabilities:
Long-term Borrowings22,50,0001,50,000
3.Current Liabilities:
(a) Short-term Borrowings31,50,0001,00,000
(b) Short-term Provisions42,00,0001,25,000
Total$$\overline{\underline{12,00,000}}$$$$\overline{\underline{2,15,000}}$$
II-Assets:-
1.Non-Current Assets:
(a) Fixed Assets:
   (i) Tangible56,00,0004,50,000
2.Current Assets:
(a) Trade Receivables2,75,0002,25,000
(b) Cash and Cash Equivalents1,25,00075,000
(c) Short-term Loans and Advances2,00,0001,00,000
Total$$\underline{\overline{12,00,000}}$$$$\underline{\overline{8,50,000}}$$

Notes to Accounts:

Notes
No.
 Particulars 31.3.2017 31.3.2017
 1.Reserves and Surplus:
(Surplus, i.e., Balance in the Statement of Profit and Loss) 

 1,00,000
$$\underline{\overline{1,00,000}}$$

(25,000) 
$$\underline{\overline{(25,000)}}$$
 2.Long-term Borrowings:
$$10\%$$ Debentures

 2,50,000
$$\underline{\overline{2,50,000}}$$

 1,50,000
$$\underline{\overline{1,50,000}}$$
 3.Short-term Brrowings:
Bank Overdraft

 1,50,000
$$\underline{\overline{1,50,000}}$$

 1,00,000
$$\underline{\overline{1,00,000}}$$
 4. Short-term Provoisions:
(i) Proposed Dividend
(ii) Provision for Tax
 
     75,000
1,25,000
$$\underline{\overline{2,00,000}}$$
 
     50,000
    75,000
$$\underline{\overline{1,25,000}}$$
 5.Tangible assets:
Machinery 
Accumulated Depreciation

  7,37,500
(1,37,500)
  $$\underline{\overline{6,00,000}}$$

  5,25,000
  (75,000)
 $$\underline{\overline{4,50,000}}$$
Additional Information: $$Rs. 1,00,000$$ worth,  $$10\%$$ debentures were issued on $$31.3.2017$$


Solution

                                                           JY Ltd.

                       Cash Flow Statement for the year ended 31.3.2017

Particulars

 

Details

Amount

Net profit during year

 

1,25,000

 

Add: Provision for tax

1,25,000

 

 

Proposed dividend

   75,000

2,00,000

 

Net profit before tax and extra-ordinary items

 

3,25,000

 

Adjustment of non-operating and non-cash items:

 

 

 

Add: Accumulated depreciation

62,500

 

 

Interest on debenture (WN-1)

15,000

77,500

 

Operating profit before working capital changes

 

4,02,500

 

Add: Increase in current liabilities and decrease in current assets

 

 

 

Less: Decrease in CL and increase in CA

 

 

 

Trade receivables

 

-50,000

 

Short term loans and advances

 

-1,00,000

 

Cash generated from operation

 

2,52,500

 

Less: Income tax

 

-75,000

 

A: Cash flow from operating activities

 

 

1,77,500

Machinery purchased

 

-2,12,500

 

B: Cash used in investing activities

 

 

-2,12,500

Proceeds from issue of debenture

 

1,00,000

 

Proposed dividend

 

-,50,000

 

Interest on debenture

 

-15,000

 

Issue of bank loan

 

50,000

 

C: Cash flow from financing activities

 

 

85,000

Net increase in cash and cash equivalents (A+B+C)

 

 

50,000

Add: Opening cash and cash equivalents

 

 

75,000

Closing cash and cash equivalents

 

 

1,25,000

 

Working note:

(a)  Interest on debenture = 1,50,000 X 10 = Rs. 15,000

                                                        100

 


Accountancy

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