Question

31.3.2015
Rs.
05) Following are the Balance Sheet of Pawan Ltd. You are required to prepare Cash Flow Statement:-
Particulars
Note 31.3.2016
No. Rs.
EQUITY AND LIABILITIES:
1. Shareholder's funds:
(a) Share Capital
3,00,000
(b) Reserve and Surplus
2,07,000
2. Current Liabilities:
(a) Short-term Borrowings
20,000
(b) Trade Payables
31,000
(c) Short term Provisions
84.000
Total
6,42,000
2,50,000
1,75,000
15,000
54,000
81.000
6,42,000
ASSETS:
1. Non-Current Assets:
(a) Fixed Assets:
() Tangible Assets
(ii) Intangible Assets
(b) Non-Current Investments
2. Current Assets:
(a) Trade Receivables
(b) Cash & Cash Equivalents
2,70,000
50,000
45,000
2,70,000
30,000
50,000
2,67,000
10,000
6,42,000
2,19,000
6,000
5,75,000
Total
31.3.2015
1,75,000
Notes: (1) Reserve & Surplus
Securities Premium
31.3.2016
1,97,000
10,000
2,07,000
1,75,000
(2) Short-term Borrowings:
Bank overdraft
20,000
15,000
(3) Short term provisions:
​

Answer 1

Cash Flow Statement

Particulars

Amount (Rs.)

A. Cash Flow from Operating Activities

Surplus as on 31st March 2015

1,97,000

Less: Surplus as on 31st March 2016

(60,000)

1,37,000

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 2016

Cash and Bank balance

70,000

Current investments

63,000

1,33,000

D. Cash and Cash Equivalents as on 31st March 2016

Cash and Bank balance

1,55,000

Current investments

1,40,000

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