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Question -

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

(₹ in ‘000)

Particulars

Note No.

31st March
2017
(₹)

31st
March
2016
(₹)

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

31st March

2017

(₹)

31st
March2016

(₹)

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 ₹. 600



Answer -

Cash Flow Statement of Computer India Ltd. 

(‘00,000)

Particulars

Amount

Amount

A.

Cash Flow from Operating Activities

Profit as per Balance Sheet (1,200 – 1,000)

200

Proposed Dividend

5,800

General Reserve

500

Provision for Taxation

4,200

Net Profit before Tax and Extraordinary items

10,700

Items to be added

Provision for Depreciation

4,000

Interest paid on Debentures

600

4,600

Operating Profit before Working Capital changes

15,300

Adjustments

Less:

Increase in Current Assets

Trade Receivables

(4,000)

Inventories

(5,000)

Prepaid Expenses

(200)

(9,200)

6,100

Less:

Decrease in Current Liabilities

Trade Creditors

(1,000)

(1,000)

Cash generated from Operating Activities

5,100

Less:

Income Tax Paid

(3,000)

Net Cash from Operation

2,100

B.

Cash Flow from Investing Activities

Sale of Fixed Assets

1,000

Net Cash from Investing Activities

1,000

C.

Cash Flow from Financing Activities

Issue of Equity Shares

10,000

Issue of 10% Debentures

500

Less:

Dividend paid

(5,000)

Less:

Interest paid

(600)

Net Cash from Financing Activities

4,900

D.

Net Increase in Cash and Cash Equivalent (A+B+C)

8,000

Add:

Cash and Cash Equivalent in the beginning

Cash

1,200

Bank overdraft

(12,500)

(11,300)

E.

Cash and Cash Equivalents at the end

Cash

3,500

Bank overdraft

(6,800)

(3,300)

 

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