32. Balance Sheet of New Light Ltd. for the year ended 31st March, 2019 is as follows:
BALANCE SHEET OF NEW UGHT LTD.
as at 31st March, 2019
Note 31st March, 31st March
Particulars
Na 2019) 2018)
22.50,000
18,90,000
22,50,000
17,80,000
13,50,000
6,70,000
50,000
62,10,000
8,40,000
3,75,000
52,45,000
1. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital
b) Reserves and Surplus
2. Non-Current Liabilities
Long-term Borrowings
3. Current Liabilities
(a) Trade Payables
(b) Short-term Provisions
Total
IL ASSETS
1. Non-Current Assets
(a) Fixed Assets (Tangible)
(b) Non-current Investments
2. Current Assets
(a) Current Investments
(6) Inventories
( Trade Receivables
(oh Cash and Cash Equivalents
16,00,000
3,00,000
20,00,000
250,000
85,000
10,50,000
22.75,000
9,00,000
62,10,000
95,000
12,00,000
10,50,000
6,50,000
52,45,000
Total
Notes to Accounts
31st March, 31st March,
2019R) 2018 (5)
Particulars
1. Reserves and Surplus
General Reserye
Surplus, le Balance in Statement of Profit and Loss
15,50,000
3,40,000
18.90,000
15,00,000
2,80,000
17,80,000
13,50,000
50,000
3,75,000
2 Long-term Borrowings
1,350, 10% Debentures of 1,000 each
3. Short-term Provisions
Provision for Tax
4. Fixed Assets (Tangible)
Land and Building
Plant and Machinery
8,00,000
8,00,000
16,00,000
10,00,000
10,00,000
20,00,000
Additional Information:
() Provision for tax made during the year was 45,000.
(ID Land and Building of Book Value * 4,00,000 was sold at a profit of 10%.
(ii) The Rate of Depreciation on Plant and Machinery is 10%, Part of Machinery was
sold at book value.
(iv) 10% Debentures have been issued on 31st March, 2019.
Prepare Cash Flow Statement.
Answers
Answer:
Explanation:
CASH FLOW STATEMENT
Particulars Rs Rs
1. cash flow from operating activities
Net profit
Closing balance of surplus 340000
Less : opening balance of surplus 280000
Profit during the year 60000
add ; Provision for Tax 45000
transfer to general reserve 50000
Proposed dividend 270000
Net before tax and extra ordinary item 425000
Add: depreciation on plant & machinery 100000
525000
Less: Non operating income 40000
operating profit before working capital 485000
Add : Decrease in Assets 150000
635000
Less : trade resevable 1225000
Trade payable 170000 ( 1395000)
(760000)
Less : income tax paid (370000)
cash used in operating activities ( 1130000)
2. cash flow from investing activities
purchase of investment (50000)
Proceeds from sale building 440000
Proceed from sale of machinery 100000
Purchase of building ( 200000)
cash flow from investing activities 290000
3.Cash from financial activities
Proceeds from issue of 10% debentures 1350000
Dividend paid (225000)
Cash flow from financial activities 1125000
4 Net increase in cash and cash equivalent (1+2+3) 285000
Add : opening cash and cash equivalent (875000+ 95000) 970000
5. Closing cash and cash equivalent (1170000+ 85000) 1255000