DeraseLerTse

iatis
Laase in Gperating
Decrezse
prepaiir
AGDecrezse in Adjustrnents CashSOLUTION
Net UsingCreditors
GoodwI
wrineaOfLoss
f
Overdraft
Bank
Sundry Inventory Information
Prepaid
rent
debtors
Sundry Additional :
Depreciaion Salary
Less:Proft ILLUSTRATION
GrossLess: Sales The 10.28
profFlows indirect
on Income
Net Loss
Provision
Advertisement
Depreciation
Written'off
Goodwill Rent income
in proft Cost
sale betore fron
in in tor on of
rT cTt cTatefore of method sale goods statement
non-casa
property, Operatingtaz for
rcrt income of 8:
(20,80,000 property, sold: (Cash
2eS woing AN prepare
3sts of
piznt and EXTRACT K.P
Agtivities ta flows
200
changesnon-operating
21dincreese
ard +7,20,0O0)
cash plant Lid.
cerzse fiows for from
equipnest and STATEMENT
FLOW
CASH
OF the
Operating
CASH
from equipment year
in ret in
liaLiiis
cTent iterns:
operating ended
FLOW Activities)
iaiiies 31st
STATEMENT activities March,

section 2016
Modified|
[B.Com.
Delhi, lane un 7,20,000
1,60,000 wus
1,95,000 2,50,000 890,000
1,30,000
of 38,00010,00052,00045,000
i5,005 75,000
as
cash
follows:
fiw
32,25,00C (24,20,00) (35,00,000)
(19,0)
(20,0 2809,jc6 siatemnt 20,20,000 45,00,09080,00,000
75,/00 2,30,10 20,05 30,0 72,04:55,00
5,00

E)
Chsnz
cnca Resere Lecr Panichs
iriigri
brern
ApTopriirs
Trznsjer
Generci Ne
Spennz
alance VI V. Incme
TotalIIL
IV ()rom
Szpins 0therII. ILLUSTRATION9
Income Net paidtax Cush
Income
Proft Staternent
Profu
Refunitazof Profit
Proisim Profu Amoriatisn:
Depreciatin
Expenses
Orher Expenses
and
Finance cash
Eztrarnary
setlemen:
diaster Prenian Proisicn
Pent
tnvestmenis
interest Particalars
on Profu
Dirideni Revenue the operatinn:
generated from
for LossDisonnt
Le fer from follwing used
thejear before before on
Beiarce n Cast: of
the for income sale from in
ale plot Profit
pericd etraordinary
tax cn for cn nteregtcn of
operatirng
n
iem:redenmptin dubtful of Lsue of
investmentsoperationz infarmation (Cazh
mathine ind om and
Statement
Insarce of shares Lostihoer flows activities
Desenturet
des ng-term
gros alulate tron
iüems f
oi prefererce operating STATEMENI FSW
CASH
Prott prres and proftj 31-3-2023
ended
year
yriren jerrooings cash
a£ taz Dep:cn
PPE
fws
im shares ft
activitles)
Lcs
from
sperating
hguie

utíriie:

20,/ 120 29,/0

163,O 2..0 (2,20,) 19,62000 12,36/55 72014,

2532/121 32.52,S/
2720 92, 13200
10.29
 (good) debtors Increase
in
,000 (11,80,000)
5,000 inventory closing less stock Increase
in
tradestock-in of (1,00,000)
,000
| stock-in-trade Inventory
of Opening liabilitics:
Increase
in, Less:
Stock-in-trade Inventory
of Change
fn crrent decreáse
in and assets current
6,300 payables and
bËlls creditors Increase
in
3,10,000
3,000 Income Interest (i) expenses prepaid Decrease
in
12,000
3,300 Machinery of
sale on Gain () liabilities:| in
current increase current
and assets Add:Decreasein
Income Other 18,36,000 changes capital working before Operating
profit
Rarticiilars (60,000)
income Rental
Accounts Not
toes (20,000) income Dividend
,500 (12,000) income Intercst
Tax after Profit VII
,500 (40,000) investments of
sale on. Profit
Tax
,000 Tax before Profit 20,000 SharesPreference Redemptionof Premiumon
,300 10,000 debtsdoubtful Provision
for
4,000 Expenses Other 2,000 written
off debentures isSue
of Discount
ón
3
8,300 Depreciation 56,000 borrowings long-term Interest
on
2,000 Expenses BenefitEmployec 60,000 machinery of sale on Loss
0,000 stock-in-Trade Inventory
of Changes
in 60,000 Written
off Patents
2,000 stock-in-trade
(net) Purchasesof 2,80,000 Depreciation
PPE ön
Expenses: non-operating
items non-cash
and Adjustments
for
,300 ([+I) Income Total 14,80,000 extraordinary
item and before
II tax Profit Net
6,300 Income Other
0,000 Operations from Revenue ACTIVITIES OPERATNG FROM FLOWS CASH
No: Note Particulars
SOLUTION:
2023 March, 31st ended year the Account
for Loss and Proit Statement
activities: operating of 8,000 10,000 Overdraft Bank
from flow cash calculateinformation, following theIrom 30,000|
activitles) Operating from Flows (Computatlon
40,000 Balance Cash
Cash of ILLUSTRATION 10 50,000 20,000 Securities Marketable
,10,000 activities operating 60,000 20,000 Receivable
Trading.Commission Accrued
from cash Net
2,00,000 20,000 28,000 ExpensesOutstanding
earthquake item-Insurance settlement
fromproceeds Extraordinary disaster 20,000. 32,000| Expenses Prepaid
6,10,000 extraordinary
item before flow Cash 3,00,000 2,36,000 TaxProvision
for
16,000 received 3,60,000 50,000 Payable Bil sCreitors & Trade
(2,36,000) tax Refund
of 1200,000 20,000 (Good) Debtors Trade
paid Income
tax 3,00,000 2,00,000
8,30,000 operations Stock
(40,000) iromgenerated Cash
commission accrued Increase
in 2023 SPIrticELat
(8,000) expensesoutstanding Decrease
in March 3Ist at As
Partimars Information Additional
10.31 STATEMENT FLOW CASIH
STATEMENT FLOW CASH
 8,80,000
Balance
c/d By
Equipment of
sale By:Loss
on figure)(Balancing activities: investing
Depreçiation
Af Provision
for 2,20,000|
By (Purchase) A/c Bank from: flows calculate
cash enterprise) non-finanicial (a
Ltd. information
ABof following the From
To activities) investing from flows ILLUSTRATION
(Cash 11
A/C Bank 6,60,000|
By b/dBalance To
Ra)icnlaTS Rarttctlarsi 4,51,500 Activities Operating from flow Cash Net
(1,99,500) paid Tax Less:
Dr. 6,51,000 operations fromGenerated Çash
Account Equipment
(30,600) 600 expènsesoutstanding Decrease
in
Notes Wörking
activitie_ investing 30,000 Receivables Trade Increase
in Less:.
in
used cash Net
65,6003 15,600:| payables Trade Increase
in
soldPatents
received Rent 50,000 Inventories Decrease
in Add
30,000) Rs. Investments
(10%of Received
on Interest liabilitiesand-current assets current change
in Adjustment
for
Received Dividends 6,16,000: changes capital working before proftOperating
goodwill Purchase
of (6,300) 3,000 Income Interest
Investment Purchase
of 3,300 machinery of
Sale on Gain Less:
Investment of
Sale
.equipment Purchase
of 1,52,300 4,000 Machinery
equipment of
Sale onLoss
1,48,300 DepreciationofSale Add:
023 ENDED YEAR THE ACTIVITIES
FOR NVESTNG,
Non-operating
Items Non-cash
and Adjustment
for
FROM FLOWS CASH
$OLUTION 4,70,000
received?27,000. Rent 5. antigua Tax before proft Net
15,000. ?
of
profit asold
at were patents some and 30,000 extent
of the of
towritten were Patents 4. ACTNATIES. OPERATING FROVi: FLOWS CASH
10,000. Ltd. PQ from received Dividend 3.
20,000. of? profit ata 50,000
SOLUTION:
5,600 5,000 expensesOutstanding
f?or sold investments
were some purchased
and investments
were 31-03-2023,
some On 2. 1,44,400 1,60,000
25,000.
Payables Trade
for sold was 30,000 depreciation
of accumulated having 70,000 costing equipment An 1,95,000 1,45,000 Inventories
Information: Additional 2,04,000 2,34,000 receivables Trade
,000 2,00,000 hients 03:-2022() 3T
3F03:2023 Particulars
,000 2,00,000 (purchased
par) at Ltd. PQ
Shares
in Equity Informalion Additional
0,000 4,00,000 ioodwill 44,000
0,000 80,000 nvestment term Long 4,000
6,20,000 O% Machinery
0,000 sale
of onLoss (ii)
0,000 10,000 èxpensesDistribution
1,90,000 Depreciation Provision
for andSelling (i)
ess: 30,000: expenses Office ()
0,000
2(3) 8,10,000 31-03 kquiprment
Particulars Expenses Other
3,
10.33 STATEMENT FLOW CASH PartioyIse S
MENT
 Dr. 10.34
Dr. Balance
c/dTo To
() (it) (i)knformation
Additional 31-03-2023
AccountPatticulars ended
yearFrom
shareILLUSTRATION Dr. Balance
To Tob/dTo
()Interest
Overdraft
Bank
Securities
Premium
Debentures
Equity
çapital Balance
Tob/dTo
Equipment
(balancing
figure) Bank Gain equipment
Bank Interestbefore' Gain
Dividends During the
on on A/c on
overdraft following Sale Particuta
paid issue the Bank Sale
PatlculaS (purchases) Pariculars sold) A/c
paid year of
ßn of overdraft 12 of (Prov.
patents Investments
is ? 2022-23,
debentures
10,000.
fresh information (Cash
used fordep.on
shares
by paid flows A/c
MN Provision
the for offrom A/C
20,000. Ltd. STATEMENT
FLOW
CASH
company cash. MN
issued Ltd. 3,15,000
financing' 3,00,000By Account 2,20,000
Investment
Patents 1,30,000 80,00020,00030,000
Account
1,90,000 30,000
for
15,000.
calculate Depreclation
as bonus
part By By
activities) Balancec/By
d By ByBy DepreciationBalance
of share Bank
Amortisation Balance Bank
cash
the.regular in A/c A/c Account
the lows Paticula
b/d
ParticttlS c/Particulats
d
31032023 69 from (sale) (sale
ratio A/c
of
borrowings. 10,00,000 (bal
Patents proceeds) (balancing
of 1,00,000 1,50,000
1:1 15,000 50,000 financing
fig.)
by A/c
capitalising fig)
activities
032022.6) 2,20,000 1,50,000
4,00,000
2,00,000 130,000 80,00050,000 70,000
reserve 12,000:80,00020,000 for 3,15,02,00,000
00 85,000130,000
Cr;
Cr Cr.

the

LLUSTRATION
lows From To Working
Note nterest
Net Increase
Debentures
redeemed
Dividends Proceeds SOLUTION
Paid Interest
(ü) Information
Additional Interest CASH
(i) :Surplusie. Discount
Debentures
Overdraft
Bank 12%
Securities
Premium
Account 1Capital
0Equity
% Share Dr.
() Balancec/d cash
New Preference from the
miUnderwriting
um account.
Preference loss
from Paid in paid from FLOWVS
on on following Bank
equity Balance Bank financing on on
was Issue articulars financing Bank issue
paidshares Share 13 Overdraft debentures FROM
shares Overdraft of infornation, of
commission inDebentures activities: (Cash Overdraft equity
out the Capital
PazttHlars activities FLVANCVG
ofof? and lows
profits. Staterment shares
1,00,000 debentures Equity
? calculate from anicuiars
5,000 including STATEMENT0W
.s:
10,00,000 10,00,000By Share ACIVITIES
were of operating
was were P&L () Capital
redeemed paid. cash securitics
issued and By By
It flows Bank Bonus
Issue
A/c b/d Account
Balance FOR
was financing
on on premium
31-03-2023. A/c Particulars
from THE
1-04-2022 written
(balancing YEAR
3T-03-2022.(K)3£03-2023:REoperating
activitles)
off (R
30,000)
at by ENDED
a 4,00,000 8,00,000
3,00,000 5,00,000
transferring
premium 10,00075,000 3,000 activities fig)
31.03.2023

of and (20,000)
(50,000)
(10,000) 2,30,000
5%. to 10,00,000 10,00,000 4,00,000
4,00,000
2,00,000 (15,000)20,000
1,55,000 10.35
profit 5,00,000 1,00,000 4,00,000
4,00,0001,50,000 (i)
The 15,000 Cr.
4,000 cash
pre and
10.36
CASH FLOW STATEMENT
(i) Proposed equity dividends for the
respectively. year 2021-22 and for CASH FLOW STATEMENT
(V) Dividend on 2022-23 were 1,00,000 and 1,20,000 10.37
2022-23. prcference shares for the year 2021-22 was paid in the
Particulars
Interest on bank overdraft
(v) Dividend on beginning of the year
were paid onpreference shares for 2022-23 and interim dividend Dividend paid on preference shares for 2021-22 (15,000)
(vi) Interest on 31-03-2023. 70,000 on equity shares Dividend paid on equity shares for 2021-22 (50,000)
debentures
(vi) Discount on issuc of outstanding as at 31-03-2023 3000. Dividend paid on preference shares for 2022-23. (1,00,000)
(40,000)
account. debentures 1.000 was written off by transferring to proht and loSS Interim dividend paid
(70,000)
(i) Bank Interest on debentures paid R 36,000-* 3,000)
overdraft is used by the company as a part of regular Net cash from financing activities (33,00)
SOLUTION borrowings. 55,000
() Working Note 2
CASH FLOWS FROM OPERATING
FParticulas ACTVITIES Dr Discount on Issue of Debentures Account Cr.
Net Profit before Tax (WN 1) RPaicHlayS Rarriculars
Add: Premium on rcdemption of 3,60,000 To Balance b/d 3,000 By Profit and Loss Account 1,000
preference shares of
Interest on debntures (12% on Rs, 3,00,000) (5% Rs.1,00,000) 5,000 To 12% Debentures A/c (bal fig) 2000 By Balance c/d 4,000
36,000 (Discount on issue of new deb.)
Underwriting commission written off 5,000. 5,000
Discount on issue of debentures written off 5,000
1,000 ILLUSTRATION 14 (Cash lows from operating and investing activities)
Interest on bank overdraft
Net cash from operating activities 15,000 Zenith Ltd had the following balances as on 1April 2017:
. 4,22,000
Working Note 1 210Wnt{Rs.
Machines
Calcalas6n8: 11,40,000
NeL-profit:before lax Less: Depreciation
(3,99,000)
Closing balance of surplus in the statement of profit and loss 5,00,000 7,41,000
Less: Opening balance of surplus in the statement of profit and loss 4,00,000 Inventory and Trade Receivables 4,75,000
1,00,000 Cash and Bank Balance
66,500
Add: Fimal dividend ie. dividend declared and payable on equity shares for the year 1,00,000 Trade Payables
2021-22 1,14,000
Bills Payable
76,000
Final dividend on preference shares for the year 2021-22 50,000 Equity Share Capital (Shares of Rs.100 each) 5,70,000
Interim dividend paid on equity shares 70,000 The Company made the following transactions for the financial year 2017-18:
Final dividend on preference shares for the year 2022-23 40,000 () The company paid an income tax of 25,000 during theyear.
Net Proft before tax 3,60,000 (i) An interim dividend was paid at the rate of 10% (Lgnore CDT),
(i)CASH FLOWS FROM FINANCING ACTIVITIES (i) The company acquired machines costingY 190,000 after selling one machine for 38,000
costing 95,000 and on which depreciation provided amounted to 66.500.
Pattoulars (iv) Inventory and Trade Receivables, Trade Payables and Bills Payables at the end of financial
Proceeds from issue of equity shares (including premium Rs.1,50,000) 3,50,000
year were 5,60,500, 1,48,200 and 98,800 respectively.
Underwriting commission paid (5,000) (v) Profit before tax is 1,04,500 but after depreciation of 1,14,000.
Redemptionof preference shäres at a premium of 5% (1,05,000) Ascertain the cash flows from operating and investing activities for the year 2017-18.
Proceeds from issiue of debentures (ü00,000 - 2000) (WN 2) 98,000 [B. Com Delhi, 2019, Modifiedj
Increase in bank overdraft 25,000
 L/abillt<cs
Current 3. 2.
(Share March,
2023: The
1. ILLUSTRATION
b) (a) EQUITY
(Credltors)
Payables
Non-current
LiabllittesSharecholdérs'
TradeBorrowings
Long-termReserves
Capital funds I
BNSAVEU
following
Paicntais
Netmachines
machine
Cash
Saleof of
Purchase

cash
Net Less:
paidTax Less: Add:Depreciation
Operating Less: Add: before
Adjustmnent Proft
tax SOLUTION l0.38

Cash Increase
Inventory Increase
Increase
Increase Gain
AND used from
and áre generated proft on
LIABILITIES in sale for
Suiplus the 15 operating in in in in
investing and
current currentbefore
billstrade non-cash
(Interim
Paticnlats Balance
of
CASH from trade påyables
payables
machine CASH
actlvities working
liabilities:
dividend,
activities
FLOWVS
receivablesassets:
operations and
Shects FLOWS
non-operating
Rarticntars
capital
of FROM
STATEMENT
FLOW
CASH
accumulated
Bimla FROM
changes
INVESTING itensOPERATING
Industries
Toal depreciation)
Ltd.
ACTIVITIES
ACTIVITIES
as
R2022(3)
ENEa023 at
31st

1,50,000.2,00,000 2,14,000
1,99,000 March, (1,90,000)
5,97,000L
545,000 34,000 38,000 (25,000)28,500
(85,500) 2,09,000 1,14,000 1,04,500
22,80034,200 (9,500)
2022
1,64,000
134,000 and 1,52,000: 1,55,500:
47,000
31st

SOLUTIONPrepare hnformation:
Additlonal Accounts
Notesto
(ii) (i) 4.
Borrowings
Long-term 3. 2. CapitalShare 1. Current
Assets 2. AsgersAssets M
() () (b) (aProperty,
Non-curcerat 1.
Inventories )
Not CaBh Equipment
Interest Dividend
Tax).
Interim Property,
Debentures10% Surplus 21,000
Reserves Issued,
Adjustient a
Equipment(b) Land(a) CashTrade
Depreciation
(WN2) Profit statement Depreciation
Accumulated
Less: Plant
Flows equity
ie, Subscribed and
ondividends and receivabies
Plant
before Balance Cash and
10%
costing? Surplusshares
for: from of and EquipzISRE
on-Cash/Non-Operatingtaxatlon Debentures
cash Equivalernts
Opernting of Equipment in of
and (debtors)
flows 50,000 the Rs.10 fully
60,000 Statement Particutars
forFLOW using paid
(accumulated each paid (Cash
Acttvltlcs:STATEMENT
the
CASH
were up:
year indirectduring of
at
declared Bank)
Profit
ending the
items method
depreciation
year and
and
31-3-2023 amounting Loss
as paid
per
during
AS-3 30,000) Total No2023.(K)
4
2022(S)Note
to
(Revised). the
20,000. was
year 5,97,000 1,80,000 2,69,000
sold 2,69,000(66,000)2,60,00075,000 1,50,000
1,99,000 2,10,000
63,00085,000
1,25,000
54,000 for (ignore
16,000. 2,00,000 134,000 1,64,000 5,97,000 1,89,000 2,58,000 10.39
Corporate 2,58,000 2,00,000
(42,000) 1,00,000 22,00076,000
 Add: Closing ofWorking
Less:
balance Notes:
1. VI. V.IV. IL
Calçulation II.
dividend
Interim
Opening Closing Net Net of
Opening Redemption
debentures Issue
Interest
paid
Dividends
Interim
paid CashPurchase
Net
Equipment SaleofLand
SaleofCash Net Taxes
Less:
PaidCreditors
Increase
Debtors in SwckOperating
Cash
Decrease in Decrease
Less:ncreasc inAcdd:
increase cash cash Debentures,
InterestonLoss
of Flows Flows Cashgenerated Decrease
balance of balance
balance used share used of Erom
on
net from fromn Profu Sale
surplus in Equipment
proft of cash incapital in
Operating from in in
of financing
of investing
Financing Investing current currentbefore of
surplus before cash cash and Machinery
in operations
the and and cash (WN Workiny
Activities assets asset
activities
statementin tax cash cash activities Activities Activities
the equivalents 1) and (WNSTATEMENT
PLOW
CASH
and Capital
statement equivalents
equivalents incrcase 1)
decrease
of
P&L Changes
of incurrent
in
P&L current

liabilities
liabilities:

(1,10,000) (13,000) 2,03,000

(20,000)
(50,000)50,000 (60,000) 1,90,000 (9,000) 20,000 4,000
16,00025,000 9,000
Nl

1,25,000 1,99,000
1,34,000 (80,000) (69,000) 1,90,000
60,00065,000 63,00022,00041,000

The
ILLUSTRATION Dr. Balance
Tob/d"To
Dr.
ASSETS II Equipment
c/dToA/c To
Balance
Current
Assets 2. Assets 1. Total Liabilities
Non-current Current 3. LIABILITIES
Shareholders'
2. AND following
EQUITY
Funds 1. Bank
Total (Share
b) (a)
() (b) (a)
Stock-in-trade
Inventories:
(d (b) (a) Liabilities Capital
(6) Borrowings
(a) Non-Current
Long-term
Property, ProvisionsTrade
Short-term Reserves A/c
Other Cash Trade OtherAssets(i)
Intangible () are Pai (purchase)
and. Non-curent
Receivables: Property, Payable the 16
Current
Plantand and
Cash Balance(Issue
creditors Surplus
Assets:
Equivalents: Plant Panttar of
Debtors ändIntangible
Assets Equipment Sheetsshares Accumulated 3
and
Share SIATEMENT
ELSW
CASH
Equipment
Account 2
Equipment
(Share of to 3,10,000 2,00,000
MNthe 96,00066,00030,000 1,10,000
Issue Bank
suppier
Ltd. Depreciation
Issue
Expenses
Balance Balarcec/£By By ByBy
as By By
Expenses) onDepreciation
oÉ Balance LossAccun Bank
machinery)
31st
Assets: on A/c
March, b/d Account saleulated
Paticulars (sale
A/c of
Depreciation,
2 2022 Equiprnert proceeds)
6 5
(balncing
and
34,70,000
32,60,000 40,70,000
37,80,000 1,00,000 25,00,000
20,00,000 31st
40,70,000 1,30,000
37,80,000 1,65,00090,000 . 80,000 8,00,0008,00,000|
3,00,000 10,50,000 A/c A/c
60,000 25,000 fe)
March,
3,10,000
2,60,0 30,00016,000 1041
130,000 2023: 96,00054,00042,000 4,000
2,15,000
1,40,000 90,000 Cr.
1,70,000 50,000 Cr.
25,000
 SOLUTION. Note: Accounts
Notesto10.42
Required Informátion:
AdditionalIntangible
Assets 6. 3. Barrowings
Long-term
Short-term
Provisions 4. 3. 2.Capital
Share 1.
Interest
paidon(3) (2) (4)
Adjustments Net Cash Machinery
Goodwin Plant andProvision
and Land
Property,
Building Long-term
loans Reserve
Gereral
Surpus Issued.
Reserves
InterestShare Ignore 1was2022 The tO
The
Depreiation
Depreciatton Profit receive
flows Prepare n0
companpaid
company
Issue Further,
on before
corporate sale
Piant Taxfor ieSubscribed
and
Long-term for from of
the Balance
Expenss on on Cash dividend Surplus
non-cash
operating
Tax.(WN màchines issued
machines and
Land Plant dividendlong-term
80,000.
Flow
loan
interim Equipment in and
10,000 the
Loanwritten and and and for Statement during on fully
3)
activities costing? dividend Particlas
theFLOW tax. new Statement
Buildíngs
Machinery
non-operating
STATEMENT CASH eguiy paid
off year shares STATEMMENT
FLOW
CASH
the
for 4,00,000 equity
ended year. shares @
the issued 10% of
(WN Proft shares
year
iterms:
1)
31stMarch, were of? to
during
10eguity
[Bended
. and
of
purchased each Loss Rs.10
Comn. shareholders.
the
31st to
2023 supplier year. each
Delhi,March,
against
2011 2023. Sharekolders
of
80,00060,000 1,80,000 5,90,000
1,10,000 pyment
machinery 32,60,000
and |23,50,000
9,10,000 8,00,000 3,00,000 20,00,000
25,00,000
S0,000 10,50,000 5,00,000 (3)20205)
8,00,000| 2019
2015,
in
Modified] cash. on were 26,70,000
34,70,000
1st 50,000 8,00,000 90,000 3,00,000
4,50,000
6,00,000
entitled
ThereApril;

ToBalance
Tob/dTo Working
Dr.Notes:
II
VI V IV II
BankEquity
Cash Cash Net Net Cash . Cash CashNet Cash Less: Add:
Operating
Repayment
of Loanof
Payment NetPurchase
Issue Purchase
Goodwill of paid
Tax
A/c increase Payment
Interest
Cash Increase
Increase
lows generated stockIncrease
initiesIncreaseDecrease
ities:
Share and and lows Cash
(Purchase) used of operating
from
cash cash proit
Capital in ofEquity from used from
of in in in in
equivalents cash inInterirm
equivalents Plant fromsundry currentsundry cuTentbefore
inancing financing
Share in investing
A/c and investing
and operations
Dividend debtors creditors asSETS workw
cash Capital Machinery activities asseiS
(1) at in
activities activities activities
Plant the the
equivalents activities
(WN and SIci
28,50,000
23,50,000By beginning
end (10%
4,00,000
1,00,000By
Balancec/d and
2)
decrease VCrease
i2ages 3i
of
Machinery 25,00,000)
8 in in
current CuIrent
Depreciation
Account
liabil liabil
Particulajs:
A/c
(bal (4,00,000) 10,20,000
(S,00,000)
(2,50,000) (50,000) 9,65,000
(80,000) (35,000)
(50,000)
fig)
(80,000) 4,00,000 30,000

(4,30,000) (4,50,000) 8,85,000

28,50,00026,70,000 10.43
1,65,000
1,70,000
1,80,000 5,000
Cr.
10.44 CASH FLOW STATEMENT 10.45
CASH FLOW STATEMENT
Dr.
(2) Bquiiy Share Capital Account Cr.
Adjustment of working capital
To Balance c/d (43,000)
Increase in inventory
25,00,000| By Balance b/d 20,00,000
Increase in trade creditors 23,000
By Plant & Machinery A/c 1,00,000 9,000
Incrcase in outstanding expenses
By Bank A/c 4,00,000 16,84,000
Cash generated from operations
25,00,000 25,00,000
(7,00,000)
Less: Tax Paid
3. Calculation of Net profit Net Cash from Operating Activities 9,84,000
before Tax
Closing balance of surplus in the statement of P&L 4,50,000 Cash Flow from Investing Activities:
Less: Opening balance in the statement of P&L Purchase of Fixed Assets (10,27,500)
3,00 000
Net cash used in Investing Activities (10,27,500)
1,50,000
Add: Transfer to general reserve III Cash Flows from Financing Activities:
1,00,000
Dividend declared Proceeds from the Issue of Share Capital (including premium) 6,50,000
2,50,000
Dividends paid (4,07,000)
Net Proit 5,00,000 2,43,000
Net Cash from Financing Activities
Add Tax provided 90,000 1.99,500
IV Net Increase in Cash and Cash Equivalents
Net Profit before Tax 5,90,000 2,13,800
Cash and Cash Equivalents, as on 31.3.2022
4,13.300
ILLUSTRATION 17 VI Cash and Cash Equlvalents as on 31.3.2023
ILLUSTRATION 18 (Accumulated depreciation)
A VLtd gives you the following information for the year ended 31lst March, 2023: 2022'are as follows:
(1) Sales for the year totalled 96,00,000. The company sells goods for cash onty. Balance Sheets of Gita Ltd, as at 31st March, 2023 and 31st March,
NoteNO2023|2022
(2) Cast of goods sold was 60% of sales. Closing inventory was higher than the opening inventory ParticlTiS
bye 43,000. Trade creditors on 31st March, 2023 exceeded those on 31 st March, 2022.by 23,000: EQUITY AND LIABILITIES
(3) Net profit before tax was 13,80,000. Tax paid amounted to 7,00,000. Depreciation on fixed: 1. Shareholders' Funds
assets for the year was 3,15,000 whereas other expenses totalled 21,45,000. Outstanding
27,00,000 25,00,000
expenses on 31st March, 2022 and31st March, 2023 totalledi 82,000 andI 91,000 respectively. (a) Share capital
2 62,50,000 57,65,000
(4) New machinery and furniture costingt 10,27,500 in all were purchased. (6) Reserves and surplus
(5) A right issue was made of 2000 equity shares of 250 each at a premium of 75 per share. 2. Non-current Liabilities
The entire money was received along with applications. Long-term borrowings 3 5;00,000 10,00,000
(6) Dividends and corporate dividend tax totalling 4,07,000 were paid. 3. Current Liabilities
(7) Cash in hand and at bank as 31st March, 2022 totalled 2,13,800. (a) Trade payables 4 13,50,000 12,50,000
2023.
Prepare a Cash Flow statement of AY L1d. for the year ended 31st March, (b) Other current liabilities 5 1,05,000 1,30,000
SOLUTION () Short-term provision 6 7,50,000 5,15,000
CASH FLOW STATEMENT Total 1,16,55,000 1,11,60,000
for theyear ended31.3.2023
Cash Flows fromn Operating Activities:
13,80,000
Net Profit before Tax
3,15,000
Add: Depreciation
16,95,000
Operating profit before working capital change
..t.: * .