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Question -

From the following information, prepare cash flow statement:

Particulars

Note No.

31st March
2015
(₹)

31st March
2014
(₹)

I) Equity and Liabilities

1. Shareholders’ Funds

a) Share capital

7,00,000

5,00,000

b) Reserves and surplus

4,70,000

2,50,000

2. Non-current Liabilities

(8% Debentures)

4,00,000

6,00,000

3. Current Liabilities

a) Trade payables

9,00,000

6,00,000

Total

24,70,000

19,50,000

II) Assets

1. Non-current assets

a) Fixed assets

i) Tangible

7,00,000

5,00,000

ii) Intangible-Goodwill

1,70,000

2,50,000

2. Current assets

a) Inventories

6,00,000

5,00,000

b) Trade Receivables

6,00,000

4,00,000

c) Cash and cash equivalents

4,00,000

3,00,000

Total

 24,70,000

19,50,000

Additional Information:
Depreciation Charge on Plant amount to ₹. 80,000.



Answer -


Cash Flow Statement

for the year ending March 31, 2015

Particulars

Details

(₹)

Amount

(₹)

A.

Cash from Operating Activities

Net Profit

2,20,000

Items to be Added:

Interest on Debentures

48,000

Depreciation on Fixed Assets

80,000

Goodwill Written-off

80,000

2,08,000

Operating Profit before Working Capital Adjustments

4,28,000

Add: Increase in Current Liabilities

Creditors

3,00,000

Less: Increase in Current Assets

Inventories

(1,00,000)

Trade Receivables

(2,00,000)

Cash Generated from Operations

4,28,000

Less: Tax Paid

Net Cash From Operating  Activities 

4,28,000

B.

Cash From Investing Activities

Purchase of Fixed Assets (WN)

(2,80,000)

Net Cash From Investing Activities

(2,80,000)

C.

Cash From Financing Activities

Issue of Share Capital

2,00,000

Redemption of Debentures

(2,00,000)

Interest Paid on Debentures

(48,000)

(48,000)

Net Cash From Financing Activities (C)

(48,000)

Net Increase in Cash (A + B + C)

1,00,000

Add: Opening Cash and Cash Equivalents

3,00,000

Closing Cash and Cash Equivalents

4,00,000

WorkingNote:

Fixed Assets Account

Dr.

Cr.

Particulars

J.F.

Amount

(₹)

Particulars

J.F.

Amount

(₹)

Balance b/d

5,00,000

Depreciation

80,000

Purchases (Balancing Figure)

2,80,000

Balance c/d

7,00,000

7,80,000

7,80,000

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