From the following Balance Sheet of Mishi Ltd. as at 31st March, 2019, prepare Cash Flow Statement:
Particulars ulars
|
Note No. |
31st March, 2019
(₹)
|
31st March, 2018
(₹)
|
I. EQUITY AND LIABILITIES | |||
1. Shareholders' Funds
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(a) Share Capital
|
16,00,000 | 12,00,000 | |
(b) Reserves and Surplus
|
1 | 6,60,000 | 4,40,000 |
2. Non-Current Liabilities
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Long-term Borrowings (10% Debentures)
|
3,20,000 | 2,00,000 | |
3. Current Liabilities
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(a) Short-term Borrowing (Bank Loan)
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80,000 | 1,10,000 | |
(b) Trade Payables
|
1,50,000 | 1,80,000 | |
Total Total Expenses
|
28,10,000 | 21,30,000 | |
II. ASSETS | |||
1. Non-Current Assets
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(a) Fixed Assets−Tangible
|
2 | 19,00,000 | 12,10,000 |
(b) Non-Current Investments
|
2,70,000 | 2,00,000 | |
2. Current Assets
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(a) Current Investments
|
1,60,000 | 80,000 | |
(b) Trade Receivables
|
1,80,000 | 4,00,000 | |
(c) Cash and Cash Equivalents
|
3 | 3,00,000 | 2,40,000 |
Total
|
28,10,000 | 21,30,000 | |
Notes to Accounts :
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Particulars
|
31st March,
2019
(₹)
|
31st March,
2018
(₹)
|
1. Reserves and Surplus :
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||
Securities Premium Reserve
|
20,000
|
...
|
General Reserve
|
3,00,000
|
2,40,000
|
Surplus i.e., Balance in the Statement of Profit and Loss
|
3,40,000
|
2,00,000
|
6,60,000
|
4,40,000
|
|
2. Fixed Assets−Tangible
|
||
Machinery (Cost)
|
21,40,000
|
14,00,000
|
Less: Accumulated Depreciation
|
2,40,000
|
1,90,000
|
19,00,000
|
12,10,000
|
|
3. Cash and Cash Equivalents
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||
Cash in Hand
|
1,40,000
|
1,10,000
|
Bank Balance
|
1,60,000
|
1,30,000
|
3,00,000
|
2,40,000
|
|
Additional Information :
(i) During the year, Machinery costing ₹ 1,40,000 (accumulated depreciation provided thereon ₹ 1,10,000) was sold for ₹ 20,000.
(ii) During the year, Non-current Investments costing ₹ 80,000 were sold at a profit of ₹ 16,000.
|
Cash Flow Statement for the year ended March 31, 2019 |
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Particulars |
Amount (₹) |
Amount (₹) |
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A |
Cash Flow from Operating Activities |
|
|
||
|
Profit as per Statement of Profit and Loss |
1,40,000 |
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|
General Reserve |
60,000 |
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|
Profit Before Taxation |
|
2,00,000 |
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Items to be Added: |
|
|
||
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Depreciation |
1,60,000 |
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Debentures Interest |
20,000 |
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Loss on Sale of Fixed Assets |
10,000 |
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Items to be Deducted: |
|
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Profit on sale of Investment |
(16,000) |
1,74,000 |
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Operating Profit before Working Capital Adjustments |
|
3,74,000 |
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|
Less: Decrease in Current Liabilities |
|
|
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Trade Payables |
(30,000) |
|
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Add: Decrease in Current Assets |
|
|
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Trade Receivables |
2,20,000 |
1,90,000 |
||
|
Cash Generated from Operations |
|
5,64,000 |
||
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Less: Tax Paid |
|
- | ||
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Net Cash Flows from Operating Activities |
|
5,64,000 |
||
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|
|
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B |
Cash Flow from Investing Activities |
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Sale of Fixed Assets |
20,000 |
|
|
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Sale of Non-Current Investment |
96,000 |
|
|
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Purchase of Non-Current Investment |
(1,50,000) |
|
|
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Purchase of Fixed Assets |
(8,80,000) |
|
|
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Net Cash Used in Investing Activities |
|
(9,14,000) |
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C |
Cash Flow from Financing Activities |
|
|
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Proceeds from Issue of Share Capital |
4,00,000 |
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Proceeds from Issue of issue of Debentures |
1,20,000 |
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|
Security Premium Reserve |
20,000 |
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Repayment of Bank Loan |
(30,000) |
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Interest Paid |
(20,000) |
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Net Cash Flow from Financing Activities |
|
4,90,000 |
||
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|
|
|
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D |
Net Increase Decrease in Cash and Cash Equivalents |
|
1,40,000 |
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Add: Cash and Cash Equivalent in the beginning of the period (1,10,000+1,30,000+80,000) |
|
3,20,000 |
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Cash and Cash Equivalents at the end of the period (1,40,000+1,60,000+1,60,000) |
|
4,60,000 |
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Working Notes:
WN1:
Fixed Assets Account |
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Dr. |
Cr. |
||
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
Balance b/d |
14,00,000 |
Bank A/c (Sale) |
20,000 |
Bank A/c (Purchase- Bal. Fig.) |
8,80,000 |
Accumulated Depreciation |
1,10,000 |
|
|
Profit and Loss A/c (Loss on Sale) |
10,000 |
|
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Balance c/d |
21,40,000 |
|
22,80,000 |
|
22,80,000 |
|
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WN2:
Accumulated Depreciation Account |
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Dr. |
Cr. |
||
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
Fixed Assets A/c |
1,10,000 |
Balance b/d |
1,90,000 |
Balance c/d |
2,40,000 |
Profit and Loss A/c (Dep. charged during the year- Bal. Fig.) |
1,60,000 |
|
3,50,000 |
|
3,50,000 |
|
|
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WN3:
Non-Current Investment Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
Balance b/d |
2,00,000 |
Bank A/c (Sale) (80,000+16,000) |
96,000 |
Profit and Loss A/c (Profit on Sale) |
16,000 |
Balance c/d |
2,70,000 |
Bank A/c (Purchase- Bal. Fig.) |
1,50,000 |
|
|
|
|
|
|
|
3,66,000 |
|
3,66,000 |
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