40. Balance Sheet of Varun Ltd. as at 31st March, 2020 is as follows:
20,000
Particulars
Note No.
31st March, 31st March,
2020 5) 2019)
2,00,000
2,00,000
98,000
96,000
1
90,000
60,000
1. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital
(b) Reserves and Surplus:
Surplus, i.e., Balance in Statement of Profit and Loss
2. Non-Current Liabilities
Long-term Borrowings Fi
3. Current Liabilities
Trade Payables
Total
II. ASSETS
1. Non-Current Assets
Fixed Assets (Tangible)
2. Current Assets
(a) Inventories
(6) Trade Receivables
(c) Cash and Cash Equivalents
Total
82,000
4,70,000
72,000
4,28,000
2
3,42,000
3,00,000
44,000
76,800
7,200
50,000
70,000
8,000
4,28,000
4,70,000
prepare cash flow statement
Answers
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
Explanation:
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