Question 37: From the following information, calculate (a) Cash Flow from Investing Activities; and (b) Cash Flow from Financing Activities:
|
Particulars | |
31st March, 2022 (`) |
31st March, 2023 (`) |
|
Plant and
Machinery |
8,50,000 |
10,00,000 |
|
Non-Current
Investments |
40,000 |
1,00,000 |
|
Land (at Cost) |
2,00,000 |
1,00,000 |
|
Equity Share
Capital |
20,00,000 |
30,00,000 |
|
109% Preference
Share Capital |
2,00,000 |
1,00,000 |
|
Securities Premium
|
- |
1,00,000 |
|
10% Debentures |
10,00,000 |
10,00,000 |
Additional Information:
(i) Depreciation charged on Plant and Machinery was 50,000.
(ii) Plant and Machinery of book value 60,000 was sold fort 40,000.
(iii) Land was sold at a gain of 60,000.
(iv) Preference Shares were redeemed on 31st March, 2023 at a premium of 5%.
(v) Dividend on Equity Shares and Preference Shares for the year ended 31st March, 2022 was Nil and for the year ended 31st March, 2023. Proposed Dividend on Equity Shares was 10%.
(vi) Fresh issue of Equity Shares was on 1st April, 2022.
Answer:
|
|
Cash Flow Statement for the year ended March 31, 2023 |
|||
|
|
Particulars |
Amount (`) |
Amount (`) |
|
|
I. |
Cash Flow from Investing Activities |
|
|
|
|
|
Proceeds from sale of Plant and machinery |
|
40,000 |
|
|
|
Proceeds from
sale of Land |
|
1,60,000 |
|
|
|
Purchase of Plant and machinery |
|
(2,60,000) |
|
|
|
Purchase of Non-Current Investments |
|
(60,000) |
|
|
|
|
|
|
|
|
|
Cash Used in Investing Activities |
|
(1,20,000) |
|
|
|
||||
|
|
Particulars |
Amount (`) |
Amount (`) |
|
|
I. |
Cash Flow from Financing Activities |
|
|
|
|
Add: |
Issue of Equity Share Capital |
10,00,000 |
|
|
|
|
Securities
Premium Received |
1,00,000 |
11,00,000 |
|
|
Less: |
Preference Shares were redeemed |
(1,00,000) |
|
|
|
|
Premium
Paid on redemption |
(5,000) |
|
|
|
|
Interest
on debenture paid |
(1,00,000) |
(2,05,000) |
|
|
|
Cash Flow from Financing Activities |
|
8,95,000 |
|
Working Notes:
|
Plant
and Machinery |
|||
|
Particulars |
` |
Particulars |
` |
|
To balance b/d |
8,50,000 |
By P&L A/c(Loss) |
20,000 |
|
To bank A/c– Bal. figure |
2,60,000 |
By Bank A/c(Sale) Bal. |
40,000 |
|
(Purchase) |
|
By P&L A/c(Dep.) |
50,000 |
|
|
|
By balance C/d |
10,00,000 |
|
|
11,10,000 |
|
11,10,000 |
|
|
|
|
|
|
Land
ac |
|||
|
Particulars |
` |
Particulars |
` |
|
To balance b/d |
2,00,000 |
By Bank A/c(Sale) Bal. |
1,60,000 |
|
To P&L A/c(Gain) |
60,000 |
|
|
|
|
|
By balance C/d |
1,00,000 |
|
|
2,60,000 |
|
2,60,000 |
|
|
|
|
|
|
Non-Current
Investments ac |
|||
|
Particulars |
` |
Particulars |
` |
|
To balance b/d |
40,000 |
By balance C/d |
1,00,000 |
|
To Bank A/c(Purchase) Bal. |
60,000 |
|
|
|
|
2,60,000 |
|
2,60,000 |
Cash Flow Statement
Question 38:
From the following information,
prepare Cash Flow Statement:
|
Particulars |
(`) |
|
Opening Cash and Bank Balances |
1,50,000 |
|
Closing Cash and Bank Balances |
1,70,000 |
|
Decrease in Stock |
80,000 |
|
Increase in Bills Payable |
1,20,000 |
|
Sale of Fixed Assets |
3,00,000 |
|
Repayment of Long-term Loan |
5,00,000 |
|
Net Profit for the Year |
20,000 |
Answer:
|
Cash Flow Statement |
||||
|
|
Particulars |
(`) |
(`) |
|
|
A |
Cash
Flow from Operating Activities |
|
|
|
|
|
Profit as
per Statement of Profit and Loss (Net Profit) |
20,000 |
|
|
|
|
Profit
Before Taxation |
20,000 |
|
|
|
|
Items
to be Added: |
– |
|
|
|
|
Operating Profit before Working Capital Adjustments |
20,000 |
|
|
|
|
Add:
Decrease in Current Assets |
|
|
|
|
|
Stock |
80,000 |
|
|
|
|
Add: Increase in
Current Liabilities |
|
|
|
|
|
Bills Payable |
1,20,000 |
|
|
|
|
Cash Generated from Operations |
2,20,000 |
|
|
|
|
Less:
Tax Paid |
– |
|
|
|
|
Net
Cash Flow from Operating Activities |
|
2,20,000 |
|
|
|
|
|
|
|
|
B |
Cash
Flow from Investing Activities |
|
|
|
|
|
|
Sale of
Fixed Assets |
3,00,000 |
|
|
|
Net
Cash Flows from Investing Activities |
|
3,00,000 |
|
|
|
|
|
|
|
|
C |
Cash
Flow from Financing Activities |
|
|
|
|
|
Repayment
of Long-Term Loan |
(5,00,000) |
|
|
|
|
Net
Cash Used in Financing Activities |
|
(5,00,000) |
|
|
|
|
|
|
|
|
D |
Net
Increase or Decrease in Cash and Cash Equivalents |
|
20,000 |
|
|
|
|
Add: Cash and Cash
Equivalent in the beginning of the period |
|
1,50,000 |
|
|
Cash
and Cash Equivalents at the end of the period |
|
1,70,000 |
|
|
|
|
|
|
|
Question 39:
From the following Balance Sheet of
Young India Ltd., prepare Cash Flow Statement:
|
BALANCE
SHEET OF YOUNG INDIA LTD. |
|||
|
Particular |
Note
No. |
31st
March, 2023 (`) |
31st
March, 2022 (`) |
|
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 |
|
|
|
|
|
Answer:
|
Cash Flow Statement for
the year ended March 31, 2023 |
|||
|
|
Particulars |
(`) |
(`) |
|
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.
Question 40:
Prepare a Cash Flow Statement on
the basis of the information given in the Balance Sheet of Libra Ltd. as at 31st
March, 2022 and 31st March 2023:
|
Particulars |
Note
No. |
31st
March, 2023 (`) |
31st
March, 2022 (`) |
|
I. EQUITY AND LIABILITIES |
|
|
|
|
1. Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
8,00,000 |
6,00,000 |
|
(b) Reserves and Surplus |
1 |
4,00,000 |
3,00,000 |
|
2. Non-Current Liabilities |
|
|
|
|
Long-term Borrowings |
|
1,00,000 |
1,50,000 |
|
3. Current Liabilities |
|
|
|
|
(a) Trade Payables |
|
40,000 |
48,000 |
|
Total |
|
13,40,000 |
10,98,000 |
|
II. ASSETS |
|
|
|
|
1, Non-Current Assets |
|
|
|
|
(a) Fixed Assets: |
|
|
|
|
Tangible Assets |
|
8,50,000 |
5,60,000 |
|
(b) Non-Current Investments |
|
2,32,000 |
1,60,000 |
|
2. Current Assets |
|
|
|
|
(a) Current Investments |
|
50,000 |
1,34,000 |
|
(b) Inventories |
|
76,000 |
82,000 |
|
(c) Trade Receivables |
|
38,000 |
92,000 |
|
(d) Cash and Cash Equivalents |
|
94,000 |
70,000 |
|
Total |
|
13,40,000 |
10,98,000 |
|
|
|
|
|
Notes to Accounts
|
Particulars |
31st
March, 2022 (`) |
31st
March, 2023 (`) |
|
I. Reserves and Surplus |
|
|
|
Surplus, i.e., Balance in Statement of Profit and Loss |
4,00,000 |
3,00,000 |
|
|
|
|
Answer:
|
|
Cash
Flow Statement for
the year ended March 31, 2023 |
||
|
|
Particulars |
Details (`) |
(`) |
|
A |
Cash from Operating
Activities |
|
|
|
|
Net Profit |
|
1,00,000 |
|
|
Operating Profit Before Working
Capital Changes |
|
1,00,000 |
|
|
Add: Decrease in Current Assets |
|
|
|
|
Inventories |
6,000 |
|
|
|
Trade Receivables |
54,000 |
|
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
Trade Payables |
(8,000) |
52,000 |
|
|
|
|
|
|
|
Cash Generated from Operations |
|
1,52,000 |
|
|
Less: Tax Paid |
|
- |
|
|
Net Cash Flow from
Operating Activities |
|
1,52,000 |
|
|
|
|
|
|
B |
Cash From Investing
Activities |
|
|
|
|
Purchase of Tangible Assets |
(2,90,000) |
|
|
|
Purchase on Non
Current Investment |
(72,000) |
|
|
|
|
|
|
|
|
Net Cash Used in
Investing Activities |
|
(3,62,000) |
|
|
|
|
|
|
C |
Cash From Financing
Activities |
|
|
|
|
Issue of Share Capital |
2,00,000 |
|
|
|
Long Term Borrowings |
(50,000) |
|
|
|
|
|
|
|
|
Net Cash Flow from
Financing Activities |
|
1,50,000 |
|
|
|
|
|
|
D |
Net Decrease in Cash and Cash
Equivalents |
|
(60,000) |
|
|
Add: Cash and Cash Equivalents in the
beginning of the period (70,000 + 1,34,000) |
|
2,04,000 |
|
|
Cash and Cash
Equivalents at the end of the period (94,000 + 50,000) |
|
1,44,000 |
|
|
|
|
|
|
|
|
|
|
Question 37: From the following information, calculate (a) Cash Flow from Investing Activities; and (b) Cash Flow from Financing Activities:
|
Particulars | |
31st March, 2022 (`) |
31st March, 2023 (`) |
|
Plant and
Machinery |
8,50,000 |
10,00,000 |
|
Non-Current
Investments |
40,000 |
1,00,000 |
|
Land (at Cost) |
2,00,000 |
1,00,000 |
|
Equity Share
Capital |
20,00,000 |
30,00,000 |
|
109% Preference
Share Capital |
2,00,000 |
1,00,000 |
|
Securities Premium
|
- |
1,00,000 |
|
10% Debentures |
10,00,000 |
10,00,000 |
Additional Information:
(i) Depreciation charged on Plant and Machinery was 50,000.
(ii) Plant and Machinery of book value 60,000 was sold fort 40,000.
(iii) Land was sold at a gain of 60,000.
(iv) Preference Shares were redeemed on 31st March, 2023 at a premium of 5%.
(v) Dividend on Equity Shares and Preference Shares for the year ended 31st March, 2022 was Nil and for the year ended 31st March, 2023. Proposed Dividend on Equity Shares was 10%.
(vi) Fresh issue of Equity Shares was on 1st April, 2022.
Answer:
|
|
Cash Flow Statement for the year ended March 31, 2023 |
|||
|
|
Particulars |
Amount (`) |
Amount (`) |
|
|
I. |
Cash Flow from Investing Activities |
|
|
|
|
|
Proceeds from sale of Plant and machinery |
|
40,000 |
|
|
|
Proceeds from
sale of Land |
|
1,60,000 |
|
|
|
Purchase of Plant and machinery |
|
(2,60,000) |
|
|
|
Purchase of Non-Current Investments |
|
(60,000) |
|
|
|
|
|
|
|
|
|
Cash Used in Investing Activities |
|
(1,20,000) |
|
|
|
||||
|
|
Particulars |
Amount (`) |
Amount (`) |
|
|
I. |
Cash Flow from Financing Activities |
|
|
|
|
Add: |
Issue of Equity Share Capital |
10,00,000 |
|
|
|
|
Securities
Premium Received |
1,00,000 |
11,00,000 |
|
|
Less: |
Preference Shares were redeemed |
(1,00,000) |
|
|
|
|
Premium
Paid on redemption |
(5,000) |
|
|
|
|
Interest
on debenture paid |
(1,00,000) |
(2,05,000) |
|
|
|
Cash Flow from Financing Activities |
|
8,95,000 |
|
Working Notes:
|
Plant
and Machinery |
|||
|
Particulars |
` |
Particulars |
` |
|
To balance b/d |
8,50,000 |
By P&L A/c(Loss) |
20,000 |
|
To bank A/c– Bal. figure |
2,60,000 |
By Bank A/c(Sale) Bal. |
40,000 |
|
(Purchase) |
|
By P&L A/c(Dep.) |
50,000 |
|
|
|
By balance C/d |
10,00,000 |
|
|
11,10,000 |
|
11,10,000 |
|
|
|
|
|
|
Land
ac |
|||
|
Particulars |
` |
Particulars |
` |
|
To balance b/d |
2,00,000 |
By Bank A/c(Sale) Bal. |
1,60,000 |
|
To P&L A/c(Gain) |
60,000 |
|
|
|
|
|
By balance C/d |
1,00,000 |
|
|
2,60,000 |
|
2,60,000 |
|
|
|
|
|
|
Non-Current
Investments ac |
|||
|
Particulars |
` |
Particulars |
` |
|
To balance b/d |
40,000 |
By balance C/d |
1,00,000 |
|
To Bank A/c(Purchase) Bal. |
60,000 |
|
|
|
|
2,60,000 |
|
2,60,000 |
Cash Flow Statement
Question 38:
From the following information,
prepare Cash Flow Statement:
|
Particulars |
(`) |
|
Opening Cash and Bank Balances |
1,50,000 |
|
Closing Cash and Bank Balances |
1,70,000 |
|
Decrease in Stock |
80,000 |
|
Increase in Bills Payable |
1,20,000 |
|
Sale of Fixed Assets |
3,00,000 |
|
Repayment of Long-term Loan |
5,00,000 |
|
Net Profit for the Year |
20,000 |
Answer:
|
Cash Flow Statement |
||||
|
|
Particulars |
(`) |
(`) |
|
|
A |
Cash
Flow from Operating Activities |
|
|
|
|
|
Profit as
per Statement of Profit and Loss (Net Profit) |
20,000 |
|
|
|
|
Profit
Before Taxation |
20,000 |
|
|
|
|
Items
to be Added: |
– |
|
|
|
|
Operating Profit before Working Capital Adjustments |
20,000 |
|
|
|
|
Add:
Decrease in Current Assets |
|
|
|
|
|
Stock |
80,000 |
|
|
|
|
Add: Increase in
Current Liabilities |
|
|
|
|
|
Bills Payable |
1,20,000 |
|
|
|
|
Cash Generated from Operations |
2,20,000 |
|
|
|
|
Less:
Tax Paid |
– |
|
|
|
|
Net
Cash Flow from Operating Activities |
|
2,20,000 |
|
|
|
|
|
|
|
|
B |
Cash
Flow from Investing Activities |
|
|
|
|
|
|
Sale of
Fixed Assets |
3,00,000 |
|
|
|
Net
Cash Flows from Investing Activities |
|
3,00,000 |
|
|
|
|
|
|
|
|
C |
Cash
Flow from Financing Activities |
|
|
|
|
|
Repayment
of Long-Term Loan |
(5,00,000) |
|
|
|
|
Net
Cash Used in Financing Activities |
|
(5,00,000) |
|
|
|
|
|
|
|
|
D |
Net
Increase or Decrease in Cash and Cash Equivalents |
|
20,000 |
|
|
|
|
Add: Cash and Cash
Equivalent in the beginning of the period |
|
1,50,000 |
|
|
Cash
and Cash Equivalents at the end of the period |
|
1,70,000 |
|
|
|
|
|
|
|
Question 39:
From the following Balance Sheet of
Young India Ltd., prepare Cash Flow Statement:
|
BALANCE
SHEET OF YOUNG INDIA LTD. |
|||
|
Particular |
Note
No. |
31st
March, 2023 (`) |
31st
March, 2022 (`) |
|
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 |
|
|
|
|
|
Answer:
|
Cash Flow Statement for
the year ended March 31, 2023 |
|||
|
|
Particulars |
(`) |
(`) |
|
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.
Question 40:
Prepare a Cash Flow Statement on
the basis of the information given in the Balance Sheet of Libra Ltd. as at 31st
March, 2022 and 31st March 2023:
|
Particulars |
Note
No. |
31st
March, 2023 (`) |
31st
March, 2022 (`) |
|
I. EQUITY AND LIABILITIES |
|
|
|
|
1. Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
8,00,000 |
6,00,000 |
|
(b) Reserves and Surplus |
1 |
4,00,000 |
3,00,000 |
|
2. Non-Current Liabilities |
|
|
|
|
Long-term Borrowings |
|
1,00,000 |
1,50,000 |
|
3. Current Liabilities |
|
|
|
|
(a) Trade Payables |
|
40,000 |
48,000 |
|
Total |
|
13,40,000 |
10,98,000 |
|
II. ASSETS |
|
|
|
|
1, Non-Current Assets |
|
|
|
|
(a) Fixed Assets: |
|
|
|
|
Tangible Assets |
|
8,50,000 |
5,60,000 |
|
(b) Non-Current Investments |
|
2,32,000 |
1,60,000 |
|
2. Current Assets |
|
|
|
|
(a) Current Investments |
|
50,000 |
1,34,000 |
|
(b) Inventories |
|
76,000 |
82,000 |
|
(c) Trade Receivables |
|
38,000 |
92,000 |
|
(d) Cash and Cash Equivalents |
|
94,000 |
70,000 |
|
Total |
|
13,40,000 |
10,98,000 |
|
|
|
|
|
Notes to Accounts
|
Particulars |
31st
March, 2022 (`) |
31st
March, 2023 (`) |
|
I. Reserves and Surplus |
|
|
|
Surplus, i.e., Balance in Statement of Profit and Loss |
4,00,000 |
3,00,000 |
|
|
|
|
Answer:
|
|
Cash
Flow Statement for
the year ended March 31, 2023 |
||
|
|
Particulars |
Details (`) |
(`) |
|
A |
Cash from Operating
Activities |
|
|
|
|
Net Profit |
|
1,00,000 |
|
|
Operating Profit Before Working
Capital Changes |
|
1,00,000 |
|
|
Add: Decrease in Current Assets |
|
|
|
|
Inventories |
6,000 |
|
|
|
Trade Receivables |
54,000 |
|
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
Trade Payables |
(8,000) |
52,000 |
|
|
|
|
|
|
|
Cash Generated from Operations |
|
1,52,000 |
|
|
Less: Tax Paid |
|
- |
|
|
Net Cash Flow from
Operating Activities |
|
1,52,000 |
|
|
|
|
|
|
B |
Cash From Investing
Activities |
|
|
|
|
Purchase of Tangible Assets |
(2,90,000) |
|
|
|
Purchase on Non
Current Investment |
(72,000) |
|
|
|
|
|
|
|
|
Net Cash Used in
Investing Activities |
|
(3,62,000) |
|
|
|
|
|
|
C |
Cash From Financing
Activities |
|
|
|
|
Issue of Share Capital |
2,00,000 |
|
|
|
Long Term Borrowings |
(50,000) |
|
|
|
|
|
|
|
|
Net Cash Flow from
Financing Activities |
|
1,50,000 |
|
|
|
|
|
|
D |
Net Decrease in Cash and Cash
Equivalents |
|
(60,000) |
|
|
Add: Cash and Cash Equivalents in the
beginning of the period (70,000 + 1,34,000) |
|
2,04,000 |
|
|
Cash and Cash
Equivalents at the end of the period (94,000 + 50,000) |
|
1,44,000 |
|
|
|
|
|
|
|
|
|
|
Question 37: From the following information, calculate (a) Cash Flow from Investing Activities; and (b) Cash Flow from Financing Activities:
|
Particulars | |
31st March, 2022 (`) |
31st March, 2023 (`) |
|
Plant and
Machinery |
8,50,000 |
10,00,000 |
|
Non-Current
Investments |
40,000 |
1,00,000 |
|
Land (at Cost) |
2,00,000 |
1,00,000 |
|
Equity Share
Capital |
20,00,000 |
30,00,000 |
|
109% Preference
Share Capital |
2,00,000 |
1,00,000 |
|
Securities Premium
|
- |
1,00,000 |
|
10% Debentures |
10,00,000 |
10,00,000 |
Additional Information:
(i) Depreciation charged on Plant and Machinery was 50,000.
(ii) Plant and Machinery of book value 60,000 was sold fort 40,000.
(iii) Land was sold at a gain of 60,000.
(iv) Preference Shares were redeemed on 31st March, 2023 at a premium of 5%.
(v) Dividend on Equity Shares and Preference Shares for the year ended 31st March, 2022 was Nil and for the year ended 31st March, 2023. Proposed Dividend on Equity Shares was 10%.
(vi) Fresh issue of Equity Shares was on 1st April, 2022.
Answer:
|
|
Cash Flow Statement for the year ended March 31, 2023 |
|||
|
|
Particulars |
Amount (`) |
Amount (`) |
|
|
I. |
Cash Flow from Investing Activities |
|
|
|
|
|
Proceeds from sale of Plant and machinery |
|
40,000 |
|
|
|
Proceeds from
sale of Land |
|
1,60,000 |
|
|
|
Purchase of Plant and machinery |
|
(2,60,000) |
|
|
|
Purchase of Non-Current Investments |
|
(60,000) |
|
|
|
|
|
|
|
|
|
Cash Used in Investing Activities |
|
(1,20,000) |
|
|
|
||||
|
|
Particulars |
Amount (`) |
Amount (`) |
|
|
I. |
Cash Flow from Financing Activities |
|
|
|
|
Add: |
Issue of Equity Share Capital |
10,00,000 |
|
|
|
|
Securities
Premium Received |
1,00,000 |
11,00,000 |
|
|
Less: |
Preference Shares were redeemed |
(1,00,000) |
|
|
|
|
Premium
Paid on redemption |
(5,000) |
|
|
|
|
Interest
on debenture paid |
(1,00,000) |
(2,05,000) |
|
|
|
Cash Flow from Financing Activities |
|
8,95,000 |
|
Working Notes:
|
Plant
and Machinery |
|||
|
Particulars |
` |
Particulars |
` |
|
To balance b/d |
8,50,000 |
By P&L A/c(Loss) |
20,000 |
|
To bank A/c– Bal. figure |
2,60,000 |
By Bank A/c(Sale) Bal. |
40,000 |
|
(Purchase) |
|
By P&L A/c(Dep.) |
50,000 |
|
|
|
By balance C/d |
10,00,000 |
|
|
11,10,000 |
|
11,10,000 |
|
|
|
|
|
|
Land
ac |
|||
|
Particulars |
` |
Particulars |
` |
|
To balance b/d |
2,00,000 |
By Bank A/c(Sale) Bal. |
1,60,000 |
|
To P&L A/c(Gain) |
60,000 |
|
|
|
|
|
By balance C/d |
1,00,000 |
|
|
2,60,000 |
|
2,60,000 |
|
|
|
|
|
|
Non-Current
Investments ac |
|||
|
Particulars |
` |
Particulars |
` |
|
To balance b/d |
40,000 |
By balance C/d |
1,00,000 |
|
To Bank A/c(Purchase) Bal. |
60,000 |
|
|
|
|
2,60,000 |
|
2,60,000 |
Cash Flow Statement
Question 38:
From the following information,
prepare Cash Flow Statement:
|
Particulars |
(`) |
|
Opening Cash and Bank Balances |
1,50,000 |
|
Closing Cash and Bank Balances |
1,70,000 |
|
Decrease in Stock |
80,000 |
|
Increase in Bills Payable |
1,20,000 |
|
Sale of Fixed Assets |
3,00,000 |
|
Repayment of Long-term Loan |
5,00,000 |
|
Net Profit for the Year |
20,000 |
Answer:
|
Cash Flow Statement |
||||
|
|
Particulars |
(`) |
(`) |
|
|
A |
Cash
Flow from Operating Activities |
|
|
|
|
|
Profit as
per Statement of Profit and Loss (Net Profit) |
20,000 |
|
|
|
|
Profit
Before Taxation |
20,000 |
|
|
|
|
Items
to be Added: |
– |
|
|
|
|
Operating Profit before Working Capital Adjustments |
20,000 |
|
|
|
|
Add:
Decrease in Current Assets |
|
|
|
|
|
Stock |
80,000 |
|
|
|
|
Add: Increase in
Current Liabilities |
|
|
|
|
|
Bills Payable |
1,20,000 |
|
|
|
|
Cash Generated from Operations |
2,20,000 |
|
|
|
|
Less:
Tax Paid |
– |
|
|
|
|
Net
Cash Flow from Operating Activities |
|
2,20,000 |
|
|
|
|
|
|
|
|
B |
Cash
Flow from Investing Activities |
|
|
|
|
|
|
Sale of
Fixed Assets |
3,00,000 |
|
|
|
Net
Cash Flows from Investing Activities |
|
3,00,000 |
|
|
|
|
|
|
|
|
C |
Cash
Flow from Financing Activities |
|
|
|
|
|
Repayment
of Long-Term Loan |
(5,00,000) |
|
|
|
|
Net
Cash Used in Financing Activities |
|
(5,00,000) |
|
|
|
|
|
|
|
|
D |
Net
Increase or Decrease in Cash and Cash Equivalents |
|
20,000 |
|
|
|
|
Add: Cash and Cash
Equivalent in the beginning of the period |
|
1,50,000 |
|
|
Cash
and Cash Equivalents at the end of the period |
|
1,70,000 |
|
|
|
|
|
|
|
Question 39:
From the following Balance Sheet of
Young India Ltd., prepare Cash Flow Statement:
|
BALANCE
SHEET OF YOUNG INDIA LTD. |
|||
|
Particular |
Note
No. |
31st
March, 2023 (`) |
31st
March, 2022 (`) |
|
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 |
|
|
|
|
|
Answer:
|
Cash Flow Statement for
the year ended March 31, 2023 |
|||
|
|
Particulars |
(`) |
(`) |
|
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.
Question 40:
Prepare a Cash Flow Statement on
the basis of the information given in the Balance Sheet of Libra Ltd. as at 31st
March, 2022 and 31st March 2023:
|
Particulars |
Note
No. |
31st
March, 2023 (`) |
31st
March, 2022 (`) |
|
I. EQUITY AND LIABILITIES |
|
|
|
|
1. Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
8,00,000 |
6,00,000 |
|
(b) Reserves and Surplus |
1 |
4,00,000 |
3,00,000 |
|
2. Non-Current Liabilities |
|
|
|
|
Long-term Borrowings |
|
1,00,000 |
1,50,000 |
|
3. Current Liabilities |
|
|
|
|
(a) Trade Payables |
|
40,000 |
48,000 |
|
Total |
|
13,40,000 |
10,98,000 |
|
II. ASSETS |
|
|
|
|
1, Non-Current Assets |
|
|
|
|
(a) Fixed Assets: |
|
|
|
|
Tangible Assets |
|
8,50,000 |
5,60,000 |
|
(b) Non-Current Investments |
|
2,32,000 |
1,60,000 |
|
2. Current Assets |
|
|
|
|
(a) Current Investments |
|
50,000 |
1,34,000 |
|
(b) Inventories |
|
76,000 |
82,000 |
|
(c) Trade Receivables |
|
38,000 |
92,000 |
|
(d) Cash and Cash Equivalents |
|
94,000 |
70,000 |
|
Total |
|
13,40,000 |
10,98,000 |
|
|
|
|
|
Notes to Accounts
|
Particulars |
31st
March, 2022 (`) |
31st
March, 2023 (`) |
|
I. Reserves and Surplus |
|
|
|
Surplus, i.e., Balance in Statement of Profit and Loss |
4,00,000 |
3,00,000 |
|
|
|
|
Answer:
|
|
Cash
Flow Statement for
the year ended March 31, 2023 |
||
|
|
Particulars |
Details (`) |
(`) |
|
A |
Cash from Operating
Activities |
|
|
|
|
Net Profit |
|
1,00,000 |
|
|
Operating Profit Before Working
Capital Changes |
|
1,00,000 |
|
|
Add: Decrease in Current Assets |
|
|
|
|
Inventories |
6,000 |
|
|
|
Trade Receivables |
54,000 |
|
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
Trade Payables |
(8,000) |
52,000 |
|
|
|
|
|
|
|
Cash Generated from Operations |
|
1,52,000 |
|
|
Less: Tax Paid |
|
- |
|
|
Net Cash Flow from
Operating Activities |
|
1,52,000 |
|
|
|
|
|
|
B |
Cash From Investing
Activities |
|
|
|
|
Purchase of Tangible Assets |
(2,90,000) |
|
|
|
Purchase on Non
Current Investment |
(72,000) |
|
|
|
|
|
|
|
|
Net Cash Used in
Investing Activities |
|
(3,62,000) |
|
|
|
|
|
|
C |
Cash From Financing
Activities |
|
|
|
|
Issue of Share Capital |
2,00,000 |
|
|
|
Long Term Borrowings |
(50,000) |
|
|
|
|
|
|
|
|
Net Cash Flow from
Financing Activities |
|
1,50,000 |
|
|
|
|
|
|
D |
Net Decrease in Cash and Cash
Equivalents |
|
(60,000) |
|
|
Add: Cash and Cash Equivalents in the
beginning of the period (70,000 + 1,34,000) |
|
2,04,000 |
|
|
Cash and Cash
Equivalents at the end of the period (94,000 + 50,000) |
|
1,44,000 |
|
|
|
|
|
|
|
|
|
|