From the following Balance Sheet of Young India Ltd., prepare Cash Flow Statement:

BALANCE SHEET OF YOUNG INDIA LTD.
as at 31st March, 2019

Particular

Note No.

31st March, 2019 (₹)

31st March, 2018 (₹)

I. EQUITY AND LIABILITIES

1. Shareholders' Funds

(a) Share Capital

2,50,000

2,00,000

(b) Reserves and Surplus: Surplus, i.e., Balance in Statement of Profit and Loss

1,83,000

82,000

2. Non-Current Liabilities

Long-term Borrowings:

15% Debentures

80,000

50,000

3. Current Liabilities

(a) Trade Payables

1,50,000

1,10,000

(b) Other Current Liabilities

12,000

20,000

Total

6,75,000

4,62,000

II. ASSETS

1. Non-Current Assets

(a) Fixed Assets (Tangible)

2,74,000

1,17,000

(b) Non-Current Investments

68,000

55,000

2. Current Assets

(a) Inventories

2,06,000

1,50,000

(b) Trade Receivables

32,000

70,000

(c) Cash and Cash Equivalents

95,000

70,000

Total

6,75,000

4,62,000

BALANCE SHEET OF YOUNG INDIA LTD.
as at 31st March, 2019
Particular	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital		2,50,000	2,00,000
(b) Reserves and Surplus: Surplus, i.e., Balance in Statement of Profit and Loss		1,83,000	82,000
2. Non-Current Liabilities
Long-term Borrowings:
15% Debentures		80,000	50,000
3. Current Liabilities
(a) Trade Payables		1,50,000	1,10,000
(b) Other Current Liabilities		12,000	20,000
Total		6,75,000	4,62,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets (Tangible)		2,74,000	1,17,000
(b) Non-Current Investments		68,000	55,000
2. Current Assets
(a) Inventories		2,06,000	1,50,000
(b) Trade Receivables		32,000	70,000
(c) Cash and Cash Equivalents		95,000	70,000
Total		6,75,000	4,62,000

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Solution

Cash Flow Statement

for the year ended March 31, 2019

Particulars

Amount

(₹)

Amount

(₹)

A

Cash Flow from Operating Activities

Profit as per Statement of Profit and Loss (1,83,000 – 82,000)

1,01,000

Profit Before Taxation

1,01,000

Items to be Added:

Interest on Debentures

7,500

Operating Profit before Working Capital Adjustments

1,08,500

Less: Increase in Current Assets

Inventories

(56,000)

Add: Increase in Current Liabilities

Trade Payables

40,000

Less: Decrease in Current Liabilities

Other Current Liabilities

(8,000)

Add: Decrease in Current Assets

Trade Receivables

38,000

Cash Generated from Operations

1,22,500

Less: Tax Paid

–

Net Cash Flows from Operating Activities

1,22,500

B

Cash Flow from Investing Activities

Purchase of Fixed Assets

(1,57,000)

Purchase of Investments

(13,000)

Net Cash Used in Investing Activities

(1,70,000)

C

Cash Flow from Financing Activities

Proceeds from Issue of Equity Share Capital

50,000

Proceeds from Issue of 15% Debentures

30,000

Interest on Debentures (50,000 × 15%)

(7,500)

Net Cash Flow from Financing Activities

72,500

D

Net Increase or Decrease in Cash and Cash Equivalents

25,000

Add: Cash and Cash Equivalent in the beginning of the period

70,000

Cash and Cash Equivalents at the end of the period

95,000

Note: It has been assumed that Debentures were issued at the end of the accounting period. Therefore, interest on Debentures is computed on the opening balance of the Debenture.

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Similar questions

From the following Balance Sheet of Computer India Ltd., prepare cash flow statement.

(Rs in '000)
Particulars	Note No.	31^st March 2017 (Rs)	31^st March 2016 (Rs)
I) Equity and Liabilities
1. Shareholders’ Funds
a) Share capital		50,000	40,000
b) Reserves and surplus-Surplus	1	3,700	3,000
2. Non-Current Liabilities
10% Debentures		6,500	6,000
3. Current Liabilities
a) Short-term borrowings	2	6,800	12,500
b) Trade payables		11,000	12,000
c) Short-term provisions	3	10,000	8,000
Total		88,000	81,500
II) Assets
1. Non-current assets
a) Fixed assets	4	25,000	30,000
2. Current assets
a) Inventories		35,000	30,000
b) Trade receivables		24,000	20,000
c) Cash and cash equivalents-cash		3,500	1,200
d) Other current assets-prepaid exp.		500	300
Total		88,000	81,500

Notes to Accounts

	Particulars	31^st March 2017 (Rs)	31^st March 2016 (Rs)
1.	Reserve and surplus
	(i) Balance in statement of profit and loss	1,200	1,000
	(ii) General reserve	2,500	2,000
		3,700	3,000
2.	Short-term borrowings
	Bank Overdraft	6,800	12,500

3.	Short-term provisions
	(i) Provision for taxation	4,200	3,000
	(ii) Proposed dividend	5,800	5,000
		10,000	8,000
4.	Fixed Assets:
	Fixed Assets	40,000	41,000
	Less: Accumulated Depreciation	(15,000)	(11,000)
		25,000	30,000

Additional Information:

Interest paid on Debenture Rs. 600

Q. From the following Balance Sheet of Kumar 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	1	16,00,000	10,40,000
(b) Reserves and Surplus,	2	5,50,000	2,60,000
2. Non-Current Liabilities
Long-term Borrowings:
9% Debentures		4,00,000	6,00,000
3. Current Liabilities
Trade Payables		4,50,000	1,00,000
Total Total Expenses		30,00,000	20,00,000
II. ASSETS
1. Non-Current Assets
Fixed Assets		20,00,000	15,00,000
2. Current Assets
(a) Inventories		3,00,000	2,00,000
(b) Trade Receivables		2,00,000	1,00,000
(c) Cash and Cash Equivalents		5,00,000	2,00,000
Total		30,00,000	20,00,000

Notes to Accounts

Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
1. Share Capital
Equity Share Capital	15,00,000	10,00,000
7% Preference Share Capital	1,00,000	40,000
	16,00,000	10,40,000
2. Reserves and Surplus
General Reserve	4,00,000	60,000
Surplus, i.e., Balance in Statement of Profit and Loss	1,50,000	2,00,000
	5,50,000	2,60,000

Additional Information:
1. During a year, a machinery costing ₹ 20,000 was sold for ₹ 6,000.
2. Dividend paid during the year ₹ 50,000.

From the following Balance Sheet of Samta 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	1	7,50,000	7,50,000
(b) Reserves and Surplus	2	3,10,000	(20,000)
2. Non-Current Liabilities
Long-term Borrowings (8% Debentures)		2,60,000	1,50,000
3. Current Liabilities
(a) Short-term Borrowings (8% Bank Loan)		40,000	50,000
(b) Trade Payables		1,20,000	1,10,000
(c) Short-term Provisions	3	50,000	40,000
Total Total Expenses		15,30,000	10,80,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets:
(i) Tangible Assets (Net)		8,60,000	6,20,000
(ii) Intangible Assets (Goodwill)		15,000	40,000
(b) Non-Current Investments		1,25,000	80,000
2. Current Assets
(a) Current Investments		5,000	15,000
(b) Inventories		1,95,000	1,00,000
(c) Trade Receivables		2,00,000	2,00,000
(d) Cash and Cash Equivalents		1,30,000	25,000
Total		15,30,000	10,80,000

Notes to Accounts

Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
1. Share Capital
Equity Share Capital	5,50,000	4,50,000
12% Preference Share Capital	2,00,000	3,00,000
	7,50,000	7,50,000
2. Reserves and Surplus
Securities Premium Reserve	10,000	...
General Reserve	1,50,000	1,20,000
Surplus, i.e., Balance in Statement of Profit and Loss	1,50,000	(1,40,000)
	3,10,000	(20,000)
4. Short-term Provisions
Provision for Tax	50,000	40,000

Additional Information :
(i) During the year a piece of machinery costing ₹ 60,000 on which depreciation charged was ₹ 20,000 was sold at 50% of its book value. Depreciation provided on tangible Assets ₹ 60,000;
(ii) Income tax ₹ 45,000 was provided;
(iii) Additional Debentures were issued at par on 1st October, 2018 and Bank Loan was repaid on the same date;
(iv) At the end of the year Preference Shares were redeemed at a premium of 5%.

From the following Balance Sheet and information of Volvo Ltd., prepare Cash Flow Statement:

Particulars ulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital	1	2,25,000	2,50,000
(b) Reserves and Surplus	2	1,27,500	50,000
2. Non-Current Liabilities
Long-term Borrowings: 10% Debentures		1,00,000	50,000
3. Current Liabilities
(a) Trade Payables		72,500	35,000
(b) Other Current Liabilities−Premium on Redemption of Preference Shares		2,500	5,000
Total Total Expenses		5,27,500	3,90,000
II. ASSETS
1, Non-Current Assets
(a) Fixed Assets−Tangible		3,10,000	2,55,000
(b) Non-Current Investments (10% Investments)		40,000	15,000
2. Current Assets
(a) Current Investments		5,000	4,000
(b) Inventories		45,000	50,000
(c) Trade Receivables	3	92,500	45,000
(d) Cash and Cash Equivalents	4	35,000	21,000
Total		5,27,500	3,90,000

Notes to Accounts

Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
1. Share Capital
Equity Share Capital	1,75,000	1,50,000
12% Preference Share Capital	50,000	1,00,000
	2,25,000	2,50,000
2. Reserves and Surplus
General Reserve	10,000	15,000
Surplus, i.e., Balance in Statement of Profit and Loss	1,17,500	35,000
	1,27,500	50,000
3. Trade Receivables
Sundry Debtors	1,00,000	50,000
Less: Provision for Doubtful Debts	7,500	5,000
	92,500	45,000
4. Cash and Cash Equivalents
Cash in Hand	12,500	6,000
Cash in Bank	22,500	15,000
	35,000	21,000

Additional Information :
(i) You are informed during the year:

Proposed Dividend	31st March, 2019 (₹)	31st March, 2018 (₹)
Equity Share Capital	NIL	NIL
Preference Share Capital	12%	12%

(ii) A machine with a book value of ₹20,000 was sold for ₹12,500;
(iii) Depreciation charged during the year was ₹35,000;
(iv) Preference shares were redeemed on 31st March, 2018 at a premium of 5%;
(v) An Interim dividend of ₹5,000 was paid on equity shares on 31st March, 2019 out of General Reserve;
(vi) Fresh equity shares were Issued on 31st March, 2019; and
(vii) Additional Investments were purchased on 31st March, 2019.

From the following Balance Sheet and information of Sun Ltd., prepare Cash Flow Statement:

Particulars ulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital	1	7,00,000	6,00,000
(b) Reserves and Surplus	2	4,10,000	2,00,000
2. Non-Current Liabilities
Long-term Borrowings: 10% Debentures		3,00,000	2,00,000
3. Current Liabilities
(a) Trade Payables		1,40,000	60,000
Total Total Expenses		15,50,000	10,60,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets−Tangible		7,00,000	6,00,000
(b) 10% Investments		2,00,000	1,00,000
2. Current Assets
(a) Current Investments		90,000	50,000
(b) Inventories		2,00,000	1,00,000
(c) Trade Receivables	3	2,80,000	1,90,000
(d) Cash and Cash Equivalents		80,000	20,000
Total		15,50,000	10,60,000

Notes to Accounts :
Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
1. Share Capital
Equity Share Capital	5,00,000	3,00,000
10% Preference Share Capital	2,00,000	3,00,000
	7,00,000	6,00,000
2. Reserves and Surplus
Securities Premium Reserve	10,000	...
Surplus i.e., Balance in Statement of Profit and Loss	4,00,000	2,00,000
	4,10,000	2,00,000
3. Trade Receivables
Sundry Debtors	3,00,000	2,00,000
Less: Provision for Doubtful Debts	20,000	10,000
	2,80,000	1,90,000

You are informed that during the year:

(i)	Proposed Dividend:	31st March, 2019	31st March, 2018
	Equity Share Capital	Nil	Nil
	Preference Share Capital	10%	10%

(ii) A machine with a book value of ₹ 90,000 was sold for ₹ 50,000;
(iii) Depreciation charged during the year ₹ 60,000;
(iv) Debentures were issued on 1st April, 2018;
(v) Investments were purchased on 31st March, 2019;
(vi) Preference shares were redeemed on 31st December,2018;
(vii) An interim dividend @ 15% was paid on equity shares on 31st December, 2018;
(viii) Fresh equity shares were issued at a premium of 5% on 31st March, 2019.

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Cash Flow Statement for the year ended March 31, 2019
	Particulars	Amount (₹)	Amount (₹)
A	Cash Flow from Operating Activities
	Profit as per Statement of Profit and Loss (1,83,000 – 82,000)	1,01,000
	Profit Before Taxation	1,01,000
	Items to be Added:
	Interest on Debentures	7,500
	Operating Profit before Working Capital Adjustments	1,08,500
	Less: Increase in Current Assets
	Inventories	(56,000)
	Add: Increase in Current Liabilities
	Trade Payables	40,000
	Less: Decrease in Current Liabilities
	Other Current Liabilities	(8,000)
	Add: Decrease in Current Assets
	Trade Receivables	38,000
	Cash Generated from Operations	1,22,500
	Less: Tax Paid	–
	Net Cash Flows from Operating Activities		1,22,500

B	Cash Flow from Investing Activities
	Purchase of Fixed Assets	(1,57,000)
	Purchase of Investments	(13,000)
	Net Cash Used in Investing Activities		(1,70,000)

C	Cash Flow from Financing Activities
	Proceeds from Issue of Equity Share Capital	50,000
	Proceeds from Issue of 15% Debentures	30,000
	Interest on Debentures (50,000 × 15%)	(7,500)
	Net Cash Flow from Financing Activities		72,500

D	Net Increase or Decrease in Cash and Cash Equivalents		25,000
	Add: Cash and Cash Equivalent in the beginning of the period		70,000
	Cash and Cash Equivalents at the end of the period		95,000