Prepare Cash Flow Statement from the following Balance Sheet:

Particulars ulars
Note No.
31st March, 2013

(₹)

31st March, 2012

(₹)

I. EQUITY AND LIABILITIES

1. Shareholders' Funds

(a) Share Capital
6,00,000 5,00,000

(b) Reserves and Surplus
1 4,00,000 2,00,000

2. Current Liabilities

(a) Trade Payables
2,80,000 1,80,000

Total Total Expenses
12,80,000 8,80,000

II. ASSETS

1, Non-Current Assets

(a) Fixed Assets:

Plant and Machinery
5,00,000 3,00,000

2. Current Assets

(a) Inventories
1,00,000 1,50,000

(b) Trade Receivables
6,00,000 4,00,000

(c) Cash and Cash Equivalents
80,000 30,000

Total
12,80,000 8,80,000

Notes to Accounts

Particulars

31st March, 2013

(₹)

31st March, 2012

(₹)

I. Reserves and Surplus

Surplus, i.e., Balance in Statement of Profit and Loss
4,00,000 2,00,000

Additional Information:
(i) An old machinery having book value of ₹50,000 was sold for ₹60,000.
(ii) Depreciation provided on Machinery during the year was ₹30,000.

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Solution

Cash Flow Statement

for the year ended March 31, 2013

Particulars

Details

(Rs)

Amount

(Rs)

A
Cash from Operating Activities

Net Profit

2,00,000

Add: Non Operating Expenses

Depreciation on Plant and Machinery

30,000

Less: Non Operating Incomes

Profit on Sale of Machinery

(10,000)

20,000

Operating Profit Before Working Capital Changes

2,20,000

Add: Increase in Current Liabilities

Trade Payables

1,00,000

Add: Decrease in Current Assets

Inventories

50,000

Less: Increase in Current Assets

Trade Receivables

(2,00,000)

(50,000)

Cash Generated from Operations

1,70,000

Less: Tax Paid

-

Net Cash Flow from Operating Activities

1,70,000

B
Cash From Investing Activities

Sale of Plant and Machinery

60,000

Purchase of Plant and Machinery

(2,80,000)

Net Cash Used in Investing Activities

(2,20,000)

C
Cash From Financing Activities

Issue of Share Capital

1,00,000

Net Cash Flow from Financing Activities

1,00,000

D
Net Increase in Cash and Cash Equivalents

50,000

Add: Cash and Cash Equivalents in beginning of the period

30,000

Cash and Cash Equivalents at the end of the period

80,000

Working Notes:

Plant and Machinery Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

Balance b/d

3,00,000

Depreciation

30,000

P & L ( Profit)

10,000

Bank ( Sale)

60,000

Purchases (bf)

2,80,000

Balance c/d

5,00,000

5,90,000

5,90,000

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Q. 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

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.

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.

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Plant and Machinery Account
Dr.							Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Balance b/d		3,00,000		Depreciation		30,000
	P & L ( Profit)		10,000		Bank ( Sale)		60,000
	Purchases (bf)		2,80,000		Balance c/d		5,00,000

			5,90,000				5,90,000

Particulars ulars	Note No.	31st March, 2013 (₹)	31st March, 2012 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital		6,00,000	5,00,000
(b) Reserves and Surplus	1	4,00,000	2,00,000
2. Current Liabilities
(a) Trade Payables		2,80,000	1,80,000
Total Total Expenses		12,80,000	8,80,000
II. ASSETS
1, Non-Current Assets
(a) Fixed Assets:
Plant and Machinery		5,00,000	3,00,000
2. Current Assets
(a) Inventories		1,00,000	1,50,000
(b) Trade Receivables		6,00,000	4,00,000
(c) Cash and Cash Equivalents		80,000	30,000
Total		12,80,000	8,80,000

	Cash Flow Statement for the year ended March 31, 2013
	Particulars	Details (Rs)	Amount (Rs)
A	Cash from Operating Activities
	Net Profit		2,00,000
	Add: Non Operating Expenses
	Depreciation on Plant and Machinery	30,000
	Less: Non Operating Incomes
	Profit on Sale of Machinery	(10,000)	20,000
	Operating Profit Before Working Capital Changes		2,20,000
	Add: Increase in Current Liabilities
	Trade Payables	1,00,000
	Add: Decrease in Current Assets
	Inventories	50,000
	Less: Increase in Current Assets
	Trade Receivables	(2,00,000)	(50,000)
	Cash Generated from Operations		1,70,000
	Less: Tax Paid		-
	Net Cash Flow from Operating Activities		1,70,000

B	Cash From Investing Activities
	Sale of Plant and Machinery	60,000
	Purchase of Plant and Machinery	(2,80,000)
	Net Cash Used in Investing Activities		(2,20,000)

C	Cash From Financing Activities
	Issue of Share Capital	1,00,000
	Net Cash Flow from Financing Activities		1,00,000

D	Net Increase in Cash and Cash Equivalents		50,000
	Add: Cash and Cash Equivalents in beginning of the period		30,000
	Cash and Cash Equivalents at the end of the period		80,000