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Question

From the following Balance Sheet of Mohan Ltd., prepare cash flow Statement:
Balance Sheet of Mohan Ltd.,
as at 31st March 2016 and 31 March 2017
Particulars Note No. March 31, 2017
(Rs)
March 31, 2016
(Rs)
I) Equity and Liabilities
1. Shareholders’ Funds
a) Equity share capital
3,00,000 2,00,000
b) Reserves and surplus
2,00,000 1,60,000
2. Non-current liabilities
a) Long-term borrowings
1 80,000 1,00,000
3. Current liabilities
Trade payables
1,20,000 1,40,000
Short-term provisions
2 70,000 60,000
Total 7,70,000 6,60,000
II) Assets
1. Non-current assets
Fixed assets
3 5,00,000 3,20,000
2. Current assets
a) Inventories
1,50,000 1,30,000
b) Trade receivables
4 90,000 1,20,000
c) Cash and cash equivalents
5 30,000 90,000
Total 7,70,000 6,60,000

Notes to accounts:

2017 2016
1. Long-term borrowings
Bank Loan
80,000 1,00,000
2. Short-term provision
Proposed dividend
70,000 60,000
3. Fixed assets 6,00,000 4,00,000
Less: Accumulated Depreciation
1,00,000 80,000
(Net) Fixed Assets
5,00,000 3,20,000
4. Trade receivables
Debtors
60,000 1,00,000
Bills receivables
30,000 20,000
90,000 1,20,000
5. Cash and cash equivalents
Bank
30,000 90,000

Additional Information:

Machine Costing Rs. 80,000 on which accumulated depreciation was Rs. 50,000 was sold for Rs. 20,000.

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Solution

Cash Flow Statement of Mohan Ltd.
Particulars
Amount
Rs
Amount
Rs
A.
Cash Flow from Operating Activities
Profit as per the Balance Sheet (2,00,000 – 1,60,000)
40,000
Proposed Dividend
70,000
Net Profit before Taxation and Extraordinary items
1,10,000
Adjustments:
Depreciation
70,000
Loss on Sale of Machine
10,000
80,000
Operating Profit before Working Capital changes
1,90,000
Add:
Decrease in Current Assets
Debtors
40,000
40,000
2,30,000
Less:
Increase in Current Assets
Inventories
(20,000)
Bills Receivable
(10,000)
Less:
Decrease in Current Liabilities
Trade Payables
(20,000)
(50,000)
Net Cash from Operations
1,80,000
B.
Cash Flow from Investing Activities
Proceeds from Sale of Fixed Assets
20,000
Purchases of Fixed Assets
(2,80,000)
Net Cash outflow from Investing activity
(2,60,000)
C.
Cash Flow from Financing Activities
Issue of Shares
1,00,000
Bank Loan Paid
(20,000)
Dividend Paid
(60,000)
Net Cash from Financing Activities
20,000
D.
Net Decrease in Cash and Cash Equivalents (A+B+C)
(60,000)
Add:
Cash and Cash Equivalents in the beginning
90,000
E.
Cash and Cash equivalents at the end
30,000
Fixed Assets Account
Dr.
Cr.
Date
Particulars
J.F.
Amount
Rs
Date
Particulars
J.F.
Amount
Rs
Balance b/d
4,00,000
Bank
20,000
Bank (Purchases- Balancing fig.)
2,80,000
Profit and Loss
10,000
Accumulated Depreciation
50,000
Balance c/d
6,00,000
6,80,000
6,80,000
Accumulated Depreciation Account
Dr.
Cr.
Date
Particulars
J.F.
Amount
Rs
Date
Particulars
J.F.
Amount
Rs
Fixed Assets
50,000
Balance b/d
80,000
Balance c/d
1,00,000
Profit and Loss (Balance fig.)
70,000
1,50,000
1,50,000

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Q. From the following Balance Sheet of SRS Ltd. and the additional information as on 31st March, 2016, prepare a Cash Flow Statement:
SRS Ltd.
BALANCE SHEET as on 31st March, 2016

Particulars ulars

Note No.
31st March, 2016
(₹)
31st March, 2015
(₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital
4,50,000 3,50,000
(b) Reserves and Surplus
1 1,25,000 50,000
2. Non-Current Liabilities
Long-term Borrowings
2 2,25,000 1,75,000
3. Current Liabilities
(a) Short-term Borrowingst
3 75,000 37,500
(b) Shrot-term Provisions
4 1,00,000 62,500
Total Total Expenses
9,75,000 6,75,000
II. ASSETS
1, Non-Current Assets
(a) Fixed Assets:
(i) Tangible
5 7,32,500 4,52,500
(ii) Intangible
6 50,000 75,000
(b) Non-current Investments
75,000 50,000
2. Current Assets
(a) Current Investments
20,000 35,000
(b) Inventories
7 61,000 36,000
(c) Cash and Cash Equivalents
36,500 26,500
Total
9,75,000 6,75,000
Notes to Accounts

Particular

31st March 2016

(₹)

31st March 2015

(₹)

1.

Reserves and Surplus

Surplus, i.e., Balance in Statement of Profit and Loss

1,25,000

50,000

2.

Long-term Borrowings

12% Debentures

2,25,000

1,75,000

3.

Short-term Borrowings

Bank Overdraft

75,000

37,500

4.

Short-term Provisions

Provision for Tax

1,00,000

62,500

5.

Tangible Assets

Machinery

8,37,500

5,22,500

Accumulated Depreciation

(1,05,000)

(70,000)

7,32,500

4,52,500

6.

Intangible Assets

Goodwill

50,000

75,000

7.

Inventories

Stock-in-Trade

61,000

36,000

Additional Information:
(i) ₹50,000, 12% Debentures were issued on 31st March, 2016.
(ii) During the year, a piece of machinery costing ₹40,000, on which accumulated depreciation was ₹20,000, was sold at a loss of ₹5,000.
Q.

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
(a) Share Capital
16,00,000 12,00,000
(b) Reserves and Surplus
1 6,60,000 4,40,000
2. Non-Current Liabilities
Long-term Borrowings (10% Debentures)
3,20,000 2,00,000
3. Current Liabilities
(a) Short-term Borrowing (Bank Loan)
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
(a) Fixed Assets−Tangible
2 19,00,000 12,10,000
(b) Non-Current Investments
2,70,000 2,00,000
2. Current Assets
(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 :
Particulars
31st March,
2019
(₹)
31st March,
2018
(₹)
1. Reserves and Surplus :
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
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.

Q.

From the following Balance Sheets of Zee Entertainment Ltd., prepare a Cash Flow Statement for the year ended 31st March, 2017.

BALANCE SHEET OF ZEE ENTERTAINMENT LTD.

as at 31st March, 2016 and 31st March, 2017

ParticularsNote3103201731032016No.(Rs)(Rs)I. EQUITY AND LIABILITIES(1) Shareholders Funds:(a) Share Capital (Equity)2,00,0002,00,000(b) Reserve and Surplus190,00050,000(2) Non-current Liabilities:Long-term Borrowings (Bank Loan)10,000(3) Current Liabilities:(a) Trade Payables (Creditors)20,00015,000(b) Other Current Liabilities25,0005,000(c) Short-term Provisions325,00020,000Total3,40,0003,00,000II. ASSETS(1) Non-current Assets:(a) Fixed Assets2,75,002,35,000(2) Current Assets :(a) Inventories15,00025,000(b) Trade Receivables (Debtors)20,00010,000(c) Cash and Cash Equivalents430,00030,000 Total3,40,0003,00,000

Notes to Accounts :

NoteParticulars3103201731032016No.(Rs)(Rs)1Reserves and Surplus:Statements of Profit and Loss:90,00050,0002Other Current Liabilities:Outstanding Expenses1,0005,000Unaccrued Income4,000¯¯¯¯¯¯¯¯¯¯¯¯¯5,000––––¯¯¯¯¯¯¯¯¯¯¯¯¯5,000––––3Short-term Provisions:Provision for Tax25,00020,0004Cash and Cash Equivalents:Cash10,0008,000Bank20,00022,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯30,000––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯30,000––––––

Note : During the year the company declared equity dividend @ 10% and paid Rs 15,000 as income tax.

Depreciation charged during the year Rs 20,000.

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