Numerical Questions Solutions

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Numerical Questions Solutions
1. Anand Ltd., arrived at a net income of ₹ 5,00,000 for the year ended March 31, 2017. Depreciation for the year was ₹ 2,00,000. There was a profit of ₹ 50,000 on assets sold which was transferred to Statement of Profit and Loss account. Trade Receivables increased during the year ₹ 40,000 and Trade Payables also increased by ₹ 60,000. Compute the cash flow from operating activities by the indirect approach.
Cash Flow Statement
Particulars
Amount
Net Profit at the end of the year
5,00,000
Adjustment for Non-Cash and Non-Operating items:
– Profit on Sale of Assets
(50,000)
Operating Profit before Working Capital changes
6,50,000
– Increase in Trade Receivables
(40,000)
+ Decrease in Trade Payables
60,000
20,000
Cash Flow from Operating Activities
6,70,000

2. From the information given below you are required to calculate the cash paid for the inventory:
Particulars
Inventory in the beginning
40,000
Credit Purchases
1,60,000
Inventory in the end
38,000
Trade payables in the beginning
14,000
Trade payables in the end
14,500
Date
Particulars
J.F.
Amount
Date
Particulars
J.F.
Amount
To Cash A/c
1,59,500
By Balance b/d
14,000
(Balancing Figure)
By Purchases A/c
1,60,000
To Balance c/d
14,500
1,74,000
1,74,000
The cash paid for the inventory is ₹ 1,59,000

3. For each of the following transactions, calculate the resulting cash flow and state the nature of cash flow, viz., operating, investing and financing.
(a)
Acquired machinery for ₹ 2,50,000 paying 20% by cheque and executing a bond for the balance payable.
(b)
Paid ₹ 2,50,000 to acquire shares in Informa Tech. and received a dividend of ₹ 50,000 after acquisition.
(c)
Sold machinery of original cost ₹ 2,00,000 with an accumulated depreciation of ₹ 1,60,000 for ₹ 60,000.
S.No.
Particulars
Calculation
Net Cash Flow
Nature of Cash Flow
a.
Cheque amount paid
{= ₹~2,50,000 × \dfrac{20}{100}}
(50,000)
Investing Activity
b.
Paid to acquire Shares
(2,50,000)
Investing Activity
Discount Received
50,000
(2,00,000)
Investing Activity
c.
Cash Received by selling machinery
60,000
Investing Activity

4. The following is the Profit and Loss Account of Yamuna Limited:
Particulars
Note
No.
Amount
I) Revenue from Operations
10,00,000
II) Expenses
Cost of Materials Consumed
1
50,000
Purchases of stock-in-trade
5,00,000
Other Expenses
2
3,00,000
Total Expenses
8,50,000
III) Profit before tax (I – II)
1,50,000
Additional Information:
(i)
Trade receivables decrease by ₹ 30,000 during the year.
(ii)
Prepaid expenses increase by ₹ 5,000 during the year.
(iii)
Trade payables increase by ₹ 15,000 during the year.
(iv)
Outstanding expenses payable increased by ₹ 3,000 during the year.
(v)
Other expenses included depreciation of ₹ 25,000
Compute net cash from operations for the year ended March 31, 2017 by the indirect method.
Cash Flow from Operating Activities of Yamuna Limited as on March 31, 2017
Particulars
Amount
Profit before tax
1,50,000
Adjustment for Non-cash and Non-operating items:
+ Depreciaion
25,000
Operating Profit before Working Capital changes
1,75,000
Adjustments for Working Capital changes
– Increase in Current Assets
Prepaid Expenses
(5,000)
+ Decrease in Current Assets
Trade Receivables
30,000
+ Increase in Current Liabilities
Trade Payables
15,000
Outstanding Expensese
3,000
43,000
Cash Flow from Operating activities
2,18,000

5. Compute cash from operations from the following figures:
(i)
Profit for the year 2016-17 is a sum of ₹ 10,000 after providing for depreciation of ₹ 2,000.
(ii)
The current assets and current liabilities of the business for the year ended March 31, 2016 and 2015 are as follows:
Particulars
March 31, 2016
March 16, 2017
Trade Receivables
14,000
15,000
Provision for
1,000
1,200
Doubtful Debts
Trade Payables
13,000
15,000
Inventories
5,000
8,000
Other Current Assets
10,000
12,000
Expenses payable
1,000
1,500
Prepaid Expenses
2,000
1,000
Accrued Income
3,000
4,000
Income received
2,000
1,000
in advance
Cash Flow Statement for the year ending March 31, 2017
Particulars
Amount
Cash Flow From Operating Activities:
Net Profit
10,000
Adjustment for Non-cash and Non-operating items:
+ Depreciation
2,000
Operating Profit before Working Capital changes
12,000
Adjustments for Working Capital Changes
– Increase in Current Assets
Trade Receivables
(1,000)
Inventories
(3,000)
Other Current Assets
(2,000)
Accrued Income
(1,000)
– Decrease in Current Liabilities
Income Received in Advance
(1,000)
+ Decrease in Current Assets
Prepaid Expenses
1,000
+ Increase in Current Liabilities
Provision for Doubtful Debts
200
Trade Payables
2,000
Expense Payables
500
(4,300)
Cash Flow from Operating Activities
7,700

6. From the following particulars of Bharat Gas Limited, calculate Cash Flows from Investing Activities. Also show the workings clearly preparing the ledger accounts:
Balance Sheet of Bharat Gas Ltd., as on 31 March, 2016 and 31 March 2017
Particulars
Note
No.
March 31, 2017
March 31 2016
II) Assets
1. Non-current Assets
a) Fixed assets
i) Tangible assets
1
12,40,000
10,20,000
ii) Ingangible assets
2
12,40,000
10,20,000
b) Non-current Investments
3
3,60,000
2,60,000
Notes: 1
Tangible assets = Machinery
2
Intangible assets = Patents
Note to accounts:
March 31 2017
March 31 2016
1. Tangible Assets
Machinery
12,40,000
10,20,000
2. Intangible Assets
Goodwill
3,00,000
1,00,000
Patents
1,60,000
2,80,000
4,60,000
3,80,000
3. Non-current Investments
10% long term investments
1,60,000
60,000
Investment in land
1,00,000
1,00,000
Shares of Amartex Ltd.
1,00,000
1,00,000
3,60,000
2,60,000
Additional Information:
(a)
Patents were written-off to the extent of ₹ 40,000 and some Patents were sold at a profit of ₹ 20,000.
(b)
A Machine costing ₹ 1,40,000 (Depreciation provided thereon ₹ 60,000) was sold for ₹ 50,000. Depreciation charged during the year was ₹ 1,40,000.
(c)
On March 31, 2016, 10% Investments were purchased for ₹ 1,80,000 and some Investments were sold at a profit of ₹ 20,000. Interest on Investment was received on March 31, 2017.
(d)
Amartax Ltd., paid Dividend @ 10% on its shares.
(e)
A plot of Land had been purchased for investment purposes and let out for commercial use and rent received ₹ 30,000.
Cash Flows from Investing Activities
Particulars
Amount
+ Sale of Fixed Assets
Sale of Machinery
50,000
Sale of Patents
1,00,000
1,50,000
+ Sale of 10% long-term investments
1,00,000
+ Interest on long-term investments
6,000
+ Dividend received on Amartex Ltd Shares
10,000
+ Rent received on Land
30,000
– Purchase of Fixed Assets
Purchase of Machinery
(4,40,000)
Purchase of Goodwill
(2,00,000)
(6,40,000)
– Purchase of Long-term investments
(1,80,000)
Cash Flow from Investing Activities
(5,24,000)
Date
Particulars
J.F.
Amount
Date
Particulars
J.F.
Amount
To Balance b/d
10,20,000
By Depreciation A/c
1,40,000
To Bank A/c
4,40,000
By Bank A/c
50,000
(New Machinery Purchased)
By Profit and Loss A/c
30,000
(Balancing Figure)
(Loss on Sale)
By Balance c/d
12,40,000
14,60,000
14,60,000
Date
Particulars
J.F.
Amount
Date
Particulars
J.F.
Amount
To Balance b/d
2,80,000
By Profit and Loss A/c
40,000
To Profit and Loss A/c
20,000
(Written-off)
(Profit on Sale)
By Bank A/c
1,00,000
(Patents Sold out)
(Balancing Figure)
By Balance c/d
1,60,000
3,00,000
3,00,000
Date
Particulars
J.F.
Amount
Date
Particulars
J.F.
Amount
To Balance b/d
60,000
By Bank A/c
1,00,000
By Bank A/c
1,80,000
(Balancing Figure)
To Profit and Loss A/c
20,000
By Balance c/d
1,60,000
(Profit on Sale)
2,60,000
2,60,000

7. From the following Balance Sheet of Mohan Ltd., prepare cash flow Statement:
Balance Sheet of Mohan Ltd., as at 31st March 2016 and 31st March 2017
Particulars
Note
No.
March 31 2017
(₹)
March 31, 2016
(₹)
I) Equity and Liabilities
1. Shareholders’ Funds
a) Equity share capital
3,00,000
2,00,000
b) Reserves and Surplus
2,70,000
2,20,000
2. Non-current liabilities
a) Long-term borrowings
1
80,000
1,00,000
3. Current liabilities
Trade payables
1,20,000
1,40,000
Total
7,70,000
6,60,000
II) Assets
1. Non-current assets
Fixed assets
2
5,00,000
3,20,000
2. Current assets
a) Inventories
1,50,000
1,30,000
b) Trade receivables
3
90,000
1,20,000
c) Cash and cash equivalents
4
30,000
90,000
Total
7,70,000
6,60,000
Note to accounts:
2017
2016
1. Long-term borrowings
9% Bank Loan
80,000
1,00,000
2. Fixed assets
6,00,000
4,00,000
Less: Accumulated Depreciation
1,00,000
80,000
(Net) Fixed Assets
5,00,000
3,20,000
3. Trade receivables
Debtors
60,000
1,00,000
Bills receivables
30,000
20,000
90,000
1,20,000
4. Cash and cash equivalents
Bank
30,000
90,000
Additional Information:
Machine Costing ₹ 80,000 on which accumulated depreciation was ₹ 50,000 was sold for ₹ 20,000. 9% bank loan ₹ 20,000 was repaid on March 31, 2017. Proposed dividend for the year 2015-16 was ₹ 60,000.
Net Profit
=
Surplus in 2017 – Surplus in 2016
=
₹ 2,70,000 – ₹ 2,20,000
=
₹ 50,000
Cash Flow Statement of Mohan Ltd.
Particulars
Amount
I. Cash Flow from Operating Activities
Net Profit before Dividend
50,000
+ Proposed Dividend
60,000
Net Profit
1,10,000
Adjustment for Non-Cash and Non-Operating Items:
+ Depreciation
70,000
+ Interest Paid
9,000
+ Loss on Sale of Machine
10,000
89,000
Operating Profit before working capital changes
1,99,000
Adjustment for Working Capital Changes
+ Decrease in Current Assets
Debtors
40,000
– Increase in Current Assets
Inventories
(20,000)
Bills Receivable
(10,000)
– Decrease in Current Assets
Trade Payables
(20,000)
(10,000)
A. Cash Flow from Operating Activities
1,89,000
II. Cash Flow from Investing Activities:
+ Sale of Fixed Assets
20,000
– Purchase of Fixed Assets
(2,80,000)
(2,60,000)
B. Cash Flow from Investing Activities
(2,60,000)
III. Cash Flow from Financing Activities
+ Issue of Shares
1,00,000
– Repayment of Long-term Borrowings
(20,000)
– Interest Paid
(9,000)
– Dividend Paid
(60,000)
11,000
C. Cash Flow from Financing Activities
11,000
 
D. Net Decrease in Cash and Cash Equivalents (A + B + C)
(60,000)
Cash and Cash Equivalents in the beggining of the year
90,000
E. Cash and Cash equivalents at the end of the year
30,000
Date
Particulars
J.F.
Amount
Date
Particulars
J.F.
Amount
Balance b/d
4,00,000
By Bank A/c
20,000
To Bank A/c
2,80,000
By Profit and Loss A/c
10,000
(Purchases)
(Loss on Sale)
(Balancing Figure)
By Accumulated Depreciation A/c
50,000
Balance c/d
6,00,000
6,80,000
6,80,000
Date
Particulars
J.F.
Amount
Date
Particulars
J.F.
Amount
To Fixed Assets A/c
50,000
By Balance b/d
80,000
To Balance c/d
1,00,000
To Profit and Loss A/c
70,000
(Balancing Figure)
1,50,000
1,50,000

8. From the following Balance Sheets of Tiger Super Steel Ltd., prepare Cash Flow Statement:
Balance Sheet of Tiger Super Steel Ltd. as at 31st March 2014 2016 and 31st March 2017
Particulars
Note
No.
March 31, 2017
March 31, 2016
I) Equity and Liabilities
1. Shareholders’ Funds
a) Share capital
1
1,40,000
1,20,000
b) Reserves and surplus
2
38,400
26,400
2. Current Liabilities
a) Trade payables
2
21,200
14,000
b) Other current liabilities
3
2,400
3,200
c) Short-term provisions
4
12,800
11,200
2,14,800
1,74,800
II) Assets
1. Non-Current Assets
a) Fixed assets
i) Tangible assets
6
96,400
76,000
ii) Intangible assets
18,800
24,000
b) Non-current investments
14,000
4,000
2. Current Assets
a) Inventories
31,200
34,000
b) Trade receivables
43,200
30,000
c) Cash and Cash Equivalents
11,200
6,800
2,14,800
1,74,800
Note to accounts:
1. Share Capital
Equity share capital
1,20,000
80,000
10% Preference share capital
20,000
40,000
1,40,000
1,20,000
2. Reserves and surplus
General reserve
12,000
8,000
Balance in statement of profit and loss
26,400
18,400
38,400
26,400
3. Trade payables
Bills payable
21,200
14,000
4. Other current liabilities
Outstanding expenses
2,400
3,200
5. Short-term provisions
Provision for taxation
12,800
11,200
6. Tangible assets
Land and building
20,000
40,000
Plant
76,400
36,000
96,400
76,000
Additional Information:
*Proposed dividend for 2016-17 is ₹ 15,600 and for 2015-16 is ₹ 11,200.
Depreciation Charged on Land & Building ₹ 20,000, and Plant ₹ 10,000 during the year. Proposed dividend for 2016-17 ₹ 15,600 and 2015-16 ₹ 11,200
Cash Flow Statement of Tiger Super Steel Ltd. as on 31st March 2017
Particulars
Amount
I. Cash Flow from Operating Activities
Net Profit
(From Statement of Profit and Loss A/c)
3,600
General Reserve
4,000
Proposed Dividend
15,600
Provision for Taxation
12,800
36,000
Profit Before Tax and Extraordinary Items
36,000
Adjustment for Non-cash and Non-operating items:
+ Depreciation on Land and Building
20,000
+ Depreciation on Plant
10,000
+ Goodwill
5,200
35,200
Operating Profit Before Working Capital Changes
71,200
– Increase in Current Assets
Trade receivables
(13,200)
– Decrease in Current Liabilities
Outstanding Expenses
(800)
+ Decreaes in Current Assets
Inventories
2,800
+ Increase in Current Liabilities
Bills Payable
7,200
(4,000)
Cash Generated from Operations
67,200
Income Tax Paid
(11,200)
A. Cash Flow before extraordinary items
56,000
II. Cash Flow from Investing Activities
– Purchase of Plant
(50,400)
– Purchase of Investments
(10,000)
(60,400)
B. Net Cash flow used in Investing Activities
(60,400)
III. Cash Flow from Financing Activities
+ Issue of Equity Shares
40,000
– Redemption of Preference Shares
(20,000)
– Dividend paid
(11,200)
8,800
C. Cash Flow from Financing Activities
8,800
 
D. Net Increase in Cash and Cash Equivalents (A + B + C)
4,400
+ Cash and Cash Equivalents at the beginning
6,800
E. Cash and Cash Equivalents at the end
11,200
Date
Particulars
J.F.
Amount
Date
Particulars
J.F.
Amount
To balance b/d
36,000
By Depreciation A/c
10,000
To Bank A/c
50,400
By Balance c/d
76,400
(Purchases)
(Balancing Figure)
86,400
86,400
Working Notes:
Profit before Provision for Dividend
=
₹ 26,400 – ₹ 18,400
=
₹ 8,000
Additional Provision for Dividend
=
₹ 15,600 – ₹ 11,200
=
₹ 4,400
Net Profit
=
₹ 8,000 – ₹ 4,400
=
₹ 3,600

9. From the following information, prepare cash flow statement:
Particulars
Note
No.
31st March 2015
31st March 2016
I. Equity and Liabilities
1. Shareholders’ Funds
a) Share capital
7,00,000
5,00,000
b) Reserve and surplus
4,70,000
2,50,000
2. Non-current Liabilities
(8% Debentures)
4,00,000
6,00,000
3. Current Liabilities
Trade payables
9,00,000
6,00,000
Total
24,70,000
19,50,000
II. Assets
1. Non-current assets
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 Charged on Plant amounted to ₹ 80,000.
Cash Flow Statement for the year ending March 31, 2015
Particulars
Amount
I. Cash from Operating Activities
Net Profit
2,20,000
Adjustment for Non-cash and Non-operating items
+ Interest on Debentures
48,000
+ Depreciation on Plant
80,000
+ Goodwill Written-off
80,000
2,08,000
Operating Profit before Working Capital Changes:
4,28,000
– Increase in Current Assets
Inventories
(1,00,000)
Trade Receivables
(2,00,000)
+ Increase in Current Liabilities
Trade Payables
3,00,000
0
Cash Generated from Operations
4,28,000
– Income Tax Paid
0
A. Cash Flow Generated from Operating Activities
4,28,000
II. Cash Flow From Investing Activities
+ Purchase of Fixed Assets
(2,80,000)
B. Cash Flow from Investing Activities
(2,80,000)
III. Cash from Financing Activities
+ Issue of Shares
2,00,000
– Redemption of Debentures
(2,00,000)
– Interest Paid on Debentures
(48,000)
(48,000)
C. Cash Flow from Financing Activities
(48,000)
 
D. Net Increase in Cash and Cash Equivalents (A + B + C)
1,00,000
+ Cash and Cash Equivalents in the beginning
3,00,000
E. Cash and Cash Equivalents in the end
4,00,000
Date
Particulars
J.F.
Amount
Date
Particulars
J.F.
Amount
To Balance b/d
5,00,000
By Depreciation A/c
80,000
To Bank A/c
2,80,000
By Balance c/d
7,00,000
(Purchases)
(Balancing Figure)
7,80,000
7,80,000

10. 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) Reserve and surplus (Surplus)
2,00,000
1,00,000
2. Non-current Liabilities
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
Fixed assets
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
8% Long-term loan
—–
2,00,000
9% Loan from 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. 8% loan was repaid on March 31, 2017 and an additional 9% loan of ₹ 1,30,000 was obtained from Rahul on April 01, 2016.
Cash Flow Statement of Yogeta Ltd. as on March 31, 2017
Particulars
Amount
I. Cash Flow from Operating Activities
Profit as per Balance Sheet
1,00,000
Dividend Paid
50,000
Provision for Tax
60,000
2,10,000
Net Profit before Tax and Extraordinary Items
2,10,000
+ Depreciation
50,000
+ Interest Paid
29,500
79,500
Operating Profit before Working Capital Changes
2,89,500
Adjustment for Working Capital Changes:
– Increase in Current Assets
Inventories
(70,000)
Trade Receivables
(50,000)
+ Increase in Current Laibilities
Trade Payables
20,000
(1,00,000)
Cash Generated from Operations
1,89,500
– Income Tax Paid
(40,000)
A. Cash flow from Operating Activities
1,49,500
II. Cash Flow from Investing Activities:
– Purchase of Fixed Assests
(3,50,000)
B. Cash Flow from Investing Activities
(3,50,000)
III. Cash Flow from Financing Activities:
+ Issue of Equity Shares
1,00,000
+ Issue of Preference Shares
1,00,000
+ 9% Loan from Rahul
1,30,000
– 8% Loan Paid Out
(2,00,000)
– Dividend Paid
(50,000)
– Interest Paid
(29,500)
50,500
C. Cash Flow from Financing Activities
50,500
D. Net Decrease in Cash and Cash Equivalents (A + B + C)
(1,50,000)
Cash and Cash Equivalents in the beginning
50,000
E. Cash and Cash Equivalents in the end
(1,00,000)
(Bank Overdraft)
Date
Particulars
J.F.
Amount
Date
Particulars
J.F.
Amount
To Bank A/c
40,000
By Balance b/d
30,000
(Balancing Figure)
By Profit and Loss A/c
60,000
To Balance c/d
50,000
90,000
90,000
Date
Particulars
J.F.
Amount
Date
Particulars
J.F.
Amount
To Balance b/d
4,00,000
By Depreciation A/c
50,000
To Bank A/c
3,50,000
By Balance c/d
7,00,000
7,50,000
7,50,000

11. Following is the Balance sheet of Garima 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
4,40,000
2,80,000
b) Reserve and surplus (Surplus)
2
40,000
28,000
2. Current Liabilities
a) Trade payables
1,56,000
56,000
b) Short-term provisions
12,000
4,000
(Provision for taxation)
Total
6,48,000
3,68,000
II. Assets
1. Non-current assets
Fixed assets
Tangible
3,64,000
2,00,000
2. Current assets
a) Inventories
1,60,000
60,000
b) Trade receivables
80,000
20,000
c) Cash and cash equivalents
28,000
80,000
d) Other current assets (prepaid expenses)
16,000
8,000
Total
6,48,000
3.68,000
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
1,40,000
80,000
4,40,000
2,80,000
2. Reserve and surplus
Surplus in statement of profit and loss at the beginning of the year
28,000
Add: Profit of the year
16,000
Less: Interim Dividend
4,000
Profit at the end of the year
40,000
Additional Information:
1.
Depreciation charged during the year ₹ 32,000
Cash Flow Statement of Garima Ltd. as on March 31, 2017
Particulars
Amount
I. Cash Flow from Operating Activities
Profit as per Balance Sheet
12,000
+ Proposed Dividend
4,000
+ Provision for Taxation
12,000
28,000
Net Profit before Tax and Extraordinary items
28,000
Adjustment for Non-cash and Non-operating items:
+ Depreciation
32,000
Operating Profit before working capital changes
60,000
Adjustment for Working Capital Changes:
– Increase in Current Assets
Inventories
(1,00,000)
Trade Receivables
(60,000)
Other Current Assets
(8,000)
+ Increase in Current Liabilities
Trade Payables
1,00,000
(68,000)
Cash Generated from Operations
(8,000)
– Income Tax paid
(4,000)
A. Cash Flow from Operating Activities
(12,000)
II. Cash Flow from Investing Activities
– Purchase of Fixed Assets
(1,96,000)
B. Cash Flow from Investing Activities
(1,96,000)
III. Cash Flow from Financing Activities:
+ Issue of Equity Shares
1,00,000
+ Issue of Preference Shares
60,000
– Dividend Paid
(4,000)
1,56,000
C. Cash Flow from Financing Activities
1,56,000
D. Net decrease in Cash and Cash Equivalents (A + B + C)
(52,000)
+ Cash and Cash Equivalents in the beginning
80,000
E. Cash and Cash Equivalents at the end
28,000
Date
Particulars
J.F.
Amount
Date
Particulars
J.F.
Amount
To Balance b/d
2,00,000
By Depreciation A/c
32,000
To Bank A/c
1,96,000
By Balance c/d
3,64,000
(Purchases)
(Balancing Figure)
3,96,000
3,96,000
12. 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
52,000
40,000
b) Reserve and surplus–Surplus
1
9,500
8,000
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
4,200
3,000
Total
90,000
81,500
II. Assets
1. Non-current assets
a) Fixed assets
4
27,000
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
90,000
81,500
Notes to Accounts:
Particulars
31st March 2017
31st March 2016
1. Reserve and surplus
i) Balance in statement of profit and loss
7,000
6,000
ii) General reserve
2,500
2,000
9,500
8,000
2. Short-term borrowings
Bank overdraft
6,800
12,500
3. Short-term provisions
i) Provision for taxation
4,200
3,000
4. Fixed Assets:
Fixed Assets
42,000
41,000
Less Accumulated Depreciation
(15,000)
(11,000)
27,000
30,000
Additional Information:
Proposed dividend for the year 2015-16 is ₹ 2,50,00,000 ₹ 5,000 and for 2016-17 is ₹ 5,800
Note: The proposed dividend is not given in the problem for 2016-17. So, it is assumed as ₹ 5,800 so that it matches with the answer. Also, there is a type with the dividend value given for 2015-16. So, it is corrected and considered as ₹ 5,000
Cash Flow Statement of Computer India Ltd. as on March 31, 2017
Particulars
Amount
I. Cash Flow from Operating Activities:
Profit as per Balance Sheet
200
Proposed Dividend
5,800
General Reserve
500
Provision for Taxation
4,200
10,700
Net Profit before Tax and Extraordinary items
10,700
Adjustment for Non-cash and Non-operating items:
+ Depreciation
4,000
+ Interest paid on Debentures
600
4,600
Operating Profit before Working Capital Changes
15,300
Adjustment for Working Capital Changes:
– Increase in Current Assets
Inventories
(5,000)
Trade Receivables
(4,000)
Prepaid Expenses
(200)
– Decrease in Current Liabilities
Trade Payables
(1,000)
(10,200)
Cash Generated from Operations
5,100
– Income Tax Paid
(3,000)
A. Cash Flow from Operating Activities
2,100
II. Cash Flow from Investing Activities
– Purchase of Fixed Assets
(1,000)
B. Cash Flow from Investing Activities
(1,000)
III. Cash Flow from Financing Activities
+ Issue of Shares
12,000
+ Issue of 10% Debtentures
500
– Dividend Paid
(5,000)
– Interest Paid
(600)
6,900
C. Cash Flow from Financing Activities
6,900
 
D. Net Increase in Cash and Cash Equivalents (A + B + C)
8,000
Cash and Cash Equivalents in the beginning
Cash
1,200
Short-term borrowings
(12,500)
(11,300)
E. Cash and Cash Equivalents at the end
Cash
3,500
Short-term borrowings
(6,800)
(3,300)