Prepare Cash Flow Statement from the following:
STATEMENT OF PROFIT AND LOSS for the year ended 31st March, 2019 |
Particulars |
Note No. |
(₹) |
I. Revenue from Operations (Net Sales)
|
36,00,000 | |
II. Expenses; | ||
Purchases of Stock-in-Trade
|
28,16,000 | |
Change in Inventories of Stock-in-Trade
|
(65,000) | |
Finance Costs
|
15,000 | |
Depreciation and Amortisation Expenses
|
80,000 | |
Other Expenses
|
5,34,000 | |
Total
|
33,80,000 | |
III. Profit before Tax (I − II) | 2,20,000 | |
IV. Less: Provision for Tax
|
40,000 | |
V. Profit after Tax (III − IV)
|
1,80,000 | |
BALANCE SHEET as at 31st March, 2019 |
Particulars |
Note No. |
31st March, 2019
(₹)
|
31st March, 2018
(₹)
|
I. EQUITY AND LIABILITIES | |||
1. Shareholders' Funds
|
|||
(a) Share Capital
|
6,00,000 | 5,00,000 | |
(b) Reserves and Surplus
|
1 | 3,00,000 | 1,20,000 |
2. Non-Current Liabilities
|
|||
Long-term Loan
|
1,20,000 | 1,50,000 | |
3. Current Liabilities
|
|||
(a) Short-term Borrowings: Bank Overdraft
|
13,000 | ... | |
(b) Trade Payables (Creditors)
|
2,85,000 | 2,38,000 | |
(c) Short-term Provision: Provision form Tax
|
44,000 | 30,000 | |
Total
|
13,62,000 | 10,38,000 | |
II. ASSETS | |||
1. Non-Current Assets
|
|||
Fixed Assets
|
6,20,000 | 4,00,000 | |
2. Current Assets
|
|||
(a) Short-term Investments (Marketable Security)
|
34,000 | 20,000 | |
(b) Inventories
|
3,28,000 | 2,63,000 | |
(c) Trade Receivables
|
3,48,000 | 3,10,000 | |
(d) Cash and Cash Equivalents
|
2 | 32,000 | 45,000 |
Total
|
13,62,000 | 10,38,000 | |
Notes to Accounts
Particulars
|
31st March, 2019
(₹)
|
31st March, 2018
(₹)
|
1. Reserves and Surplus | ||
Surplus, i.e., Balance in Statement of Profit and Loss
|
3,00,000 | 1,20,000 |
2. Cash and Cash Equivalents | ||
Cash in Hand
|
32,000 | 17,000 |
Cash at Bank
|
... | 28,000 |
32,000 | 45,000 | |
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 |
1,80,000 |
|
|
Provision for Taxation |
40,000 |
|
|
Profit Before Taxation |
2,20,000 |
|
|
Items to be Added: |
|
|
|
Finance Cost |
15,000 |
|
|
Depreciation and Amortisation Expenses |
80,000 |
|
|
Operating Profit before Working Capital Adjustments |
3,15,000 |
|
|
Less: Increase in Current Assets |
|
|
|
Inventories |
(65,000) |
|
|
Trade Receivables |
(38,000) |
|
|
Add: Increase in Current Liabilities |
|
|
|
Trade Payables |
47,000 |
|
|
Cash Generated from Operations |
2,59,000 |
|
|
Less: Tax Paid |
(26,000) |
|
|
Net Cash Flow from Operating Activities |
|
2,33,000 |
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
Purchase of Fixed Assets |
(3,00,000) |
|
|
Net Cash Used in Investing Activities |
|
(3,00,000) |
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Share Capital |
1,00,000 |
|
Bank Overdraft | 13,000 | ||
|
Redemption of Long-Term Loan |
(30,000) |
|
|
Interest (Finance Cost) |
(15,000) |
|
|
Net Cash Flow from Financing Activities |
|
68,000 |
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
1,000 |
|
Add: Cash and Cash Equivalent in the beginning of the period (17,000 + 28,000 + 20,000) |
|
65,000 |
|
Cash and Cash Equivalents at the end of the period (32,000 + 34,000) |
|
66,000 |
|
|
|
|
Working Notes:
WN1
Provision for Taxation Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
Bank A/c (Tax Paid- Bal. Fig.) |
26,000 |
Balance b/d |
30,000 |
Balance c/d |
44,000 |
Profit and Loss A/c |
40,000 |
|
70,000 |
|
70,000 |
|
|
|
|
WN2
Fixed Assets Account |
|||
Dr. |
Cr. |
||
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
Balance b/d |
4,00,000 |
Depreciation A/c |
80,000 |
Bank A/c (Purchases- Bal. Fig.) |
3,00,000 |
Balance c/d |
6,20,000 |
|
7,00,000 |
|
7,00,000 |
|
|
|
|
Note: Short-term Investments are considered as a part of Cash and Cash Equivalents