Cash Flow Statement of Mohan Ltd.
ParticularsAmt. (Rs.)Amt. (Rs.)A.Cash Flow from Operating Activities:Profit as per the Balance Sheet (2,00,000 - 1,60,000)40,000Proposed Dividend70,000––––––––Net Profit before Taxation and Extraordinary Items1,10,000Adjustments for non-cash items: Depreciation70,000 Loss on Sale of Machine10,000––––––––80,000––––––––Operating Profit before Working Capital changes1,90,000Changes in Working Capital: (+) Decrease in Debtors40,000 (-) Increase in Stock(20,000) (-) Increase in Bills Receivable(10,000) (-) Decrease in Creditors(20,000)––––––––––(10,000)––––––––––Net Cash from Operating Activities1,80,000––––––––––B.Cash Flow from Investing Activities Proceeds from Sale of Fixed Assets20,000 Purchase of Fixed Assets(2,80,000)––––––––––––Net Cash Outflow from Investing Activity(2,60,000)––––––––––––C.Cash Flow From Financing Activities Issue of Shares1,00,000 Bank Loan paid(20,000) Dividend paid(60,000)––––––––––Net Cash from Financing Activities20,000––––––––D.Net Decrease in Cash and Cash Equivalentes (A+B+C)(60,000) (+) Cash and Cash Equivalents in the Beginning90,000––––––––E.Cash and Cash Equivalents at the End30,000––––––––
Dr. Fixed Assets Account Cr.
DateParticularsJ.F.Amt. (Rs.)DateParticularsJ.F.Amt. (Rs.)Balance b/d4,00,000Bank20,000Bank (Purchase)Profit and Loss10,000 (Balancing Figure)2,80,000(Loss on Sale)Accumulated50,000Depreciation A/cBalance c/d6,00,000––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯6,80,000––––––––––6,80,000––––––––––
Dr. Accumulated Depreciation Account Cr.
DateParticularsJ.F.Amt. (Rs.)DateParticularsJ.F.Amt. (Rs.)Fixed Assets50,000Balance b/d80,000Balance c/d1,00,000Profit and Loss A/c (Balancing Figure)70,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯1,50,000––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯1,50,000––––––––––