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Question -

From the following Balance Sheet of Yogeta Ltd., prepare cash flow statement:

Particulars

Note No.

31st March
2017
(₹)

31st March
2016
(₹)

I) Equity and Liabilities

1. Shareholders’ Funds

a) Share capital

1

4,00,000

2,00,000

b) Reserves and surplus-Surplus

2,00,000

1,00,000

2. Non-current Liabilities

a) Long-term borrowings

2

1,50,000

2,20,000

3. Current Liabilities

a) Short-term borrowings

1,00,000

(Bank overdraft)

b) Trade payables

70,000

50,000

c) Short-term provision

50,000

30,000

(Provision for taxation)

Total

9,70,000

6,00,000

II) Assets

1. Non-current assets

a) Fixed assets

i) Tangible

7,00,000

4,00,000

2. Current assets

a) Inventories

1,70,000

1,00,000

b) Trade Receivables

1,00,000

50,000

c) Cash and cash equivalents

50,000

Total

 9,70,000

6,00,000

Notes to Accounts

Particulars

31st March
2017
(₹)

31st March
2016
(₹)

1. Share capital

a) Equity share capital

3,00,000

2,00,000

b) Preference share capital

1,00,000

4,00,000

2,00,000

2. Long term borrowings

Long-term loan

2,00,000

Long-term Rahul

1,50,000

20,000

1,50,000

2,20,000

Additional Information:
Net Profit for the year after charging ₹. 50,000 as Depreciation was ₹. 1, 50,000. Dividend paid on Share was ₹. 50,000, Tax Provision created during the year amounted to ₹. 60,000.



Answer -

Cash Flow Statement of Yogeta Ltd.

Particulars

Amount

Amount

A.

Cash Flow from Operating Activities

Profit as per Balance Sheet (2,00,000 –1,00,000)

1,00,000

Proposed Dividend

50,000

Provision for Taxation

60,000

Net Profit before Taxation and Extraordinary items

2,10,000

Items to be added:

Depreciation

50,000

50,000

Operating Profit before Working Capital changes

2,60,000

Add: Increase in Current liabilities

Trade Payable

20,000

20,000

2,80,000

Less: Increase in Current Assets

Inventories

(70,000)

Trade Receivable

(50,000)

(1,20,000)

Cash Generated from Operating Activities

1,60,000

Less: Income Tax paid

(40,000)

Net Cash from Operations

1,20,000

B.

Cash Flow from Investing Activities

Purchases of Fixed Assets

(3,50,000)

Net Cash used in Investing Activities

(3,50,000)

C.

Cash Flow from Financing Activities

Issue of Equity Shares

1,00,000

Issue of Preference Shares

1,00,000

Loan from Rahul

1,30,000

Less: Repayment of Loan

(2,00,000)

Dividend Paid

(50,000)

Net Cash from Financing Activities

80,000

D.

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

(1,50,000)

Add: Cash and Cash Equivalents in the beginning

50,000

E.

Cash and Cash Equivalents at the end (Bank Overdraft)

(1,00,000)

WorkingNotes:

1.

Provision for Taxation Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

Bank (Balancing figure)

40,000

Balance b/d

30,000

Balance c/d

50,000

Profit and Loss

60,000

90,000

90,000

2.

Fixed Assets Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

Balance b/d

4,00,000

Depreciation

50,000

Bank

3,50,000

Balance c/d

7,00,000

7,50,000

7,50,000

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