Question

1. From the following information, Prepare
Comparative Balance Sheets of X Ltd:
Particulars
31. 3.2020 31.3.2019
Reserve and surplus 12,00,000 6,00,000
Share Capital 10,00,000 10,00,000
Trade Payables 12,70,000 9,00,000
Land and Buildings 16,00,000 15,00,000
Plant and Machinery 6,30,000 5,00,000
Goodwill
1,00,000
Investments
1,20,000 1,00,000
Current Assets 15,20,000 8,00,000
Long term Borrowings 4,00,000 5,00,000
J

Answer 1

Answer:

Cash Flow Statement

Particulars

Amount (Rs.)

Amount (Rs.)

A. Cash Flow from Operating Activities

Surplus as on 31st March 2018

3,20,000

Less: Surplus as on 31st March 2017

(60,000)

2,60,000

Add: Transfer to General Reserve

80,000

Provision for tax created during the year

1,18,000

Profit before tax and extraordinary items

4,58,000

Add: Interest on 12% debentures

50,000

Depreciation for the year

5,000

55,000

Operating Profit Before Working Capital Changes

5,13,000

Less: Increase in the value of trade receivables

(2,90,000)

Cash generated from operations

2,23,000

Less: Tax paid

46,000

Cash Flow from Operating Activities

1,77,000

A. Cash Flow from Investing Activities

Purchase of plant and machinery

(3,50,000)

Purchase of goodwill

(98,000)

Cash used in Investing Activities

(4,88,000)

B. Cash Flow from Financing

Activities

Increase in Bank Overdraft

73,000

Proceeds from issue of 12% Debentures

2,00,000

Proceeds from issue of shares

2,10,000

Interest on 12% debentures

(50,000)

Cash Flow from Financing Activities

4,33,000

C. Net Increase/Decrease in Cash & Cash Equivalents

1,62,000

Add: Cash and Cash Equivalents as on 31st March 2017

Cash and Bank balance

70,000

Current investments

63,000

1,33,000

D. Cash and Cash Equivalents as on 31st March 2018

Cash and Bank balance

1,55,000

Current investments

1,40,000

2,95,000