Following is the Balance Sheet of Grow More Ltd. as on 31st March, 2019
Note No. 31st March, 31st March,
2019
Particulars
2018 )
LEQUITY AND LIABILITIES
1. Shareholders' Funds
(o) Share Capital
40,00,000
30,00,000
(6) Reserves and Surplus
10,00,000
6,00,000
2. Non-Current Liabilities
Long-term Borrowings (10% Debentures)
6,00,000
4,00,000
Current Liabilities
4,00,000
3,00,000
(a) Trade Payables
1,40,000
(6) Short-term Provisions
1,20,000
2
60,40,00045,20,000
Total
.ASSETS
1. Non-Current Assets
Fixed Assets:
38,00,00
30,00,000
) Tangible Assets
Gi) Intangible Assets
2. Current Assets
9,40,000 5,40,000
4
5,00,000
(a) Inventories
3,20,000
(b) Trade Receivables
4,20,000
4,20,000
3,80,000
2,40,000
c) Cash and Cash Equivalents
60,40,000 45,20,000
Total
Answers
Answer:
EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital
1 16,00,000 10,40,000
(b) Reserves and Surplus,
2 5,50,000 2,60,000
2. Non-Current Liabilities
Long-term Borrowings:
9% Debentures
4,00,000 6,00,000
3. Current Liabilities
Trade Payables
4,50,000 1,00,000
Total
30,00,000 20,00,000
II. ASSETS
1. Non-Current Assets
Fixed Assets
20,00,000 15,00,000
2. Current Assets
(a) Inventories
3,00,000 2,00,000
(b) Trade Receivables
2,00,000 1,00,000
(c) Cash and Cash Equivalents
5,00,000 2,00,000
Total
30,00,000 20,00,000
Notes to Accounts
Particulars
31st March, 2019
(₹)
31st March, 2018
(₹)
1. Share Capital
Equity Share Capital
15,00,000 10,00,000
7% Preference Share Capital
1,00,000 40,000
16,00,000 10,40,000
2. Reserves and Surplus
General Reserve
4,00,000 60,000
Surplus, i.e., Balance in Statement of Profit and Loss
1,50,000 2,00,000
5,50,000 2,60,000
Additional Information:
1. During a year, a machinery costing ₹ 20,000 was sold for ₹ 6,000.
2. Dividend paid during the year ₹ 50,000.
SOLUTION
Cash Flow Statement
for the year ended March 31, 2019
Particulars
Amount
(₹)
Amount
(₹)
A
Cash Flow from Operating Activities
Profit as per Statement of Profit and Loss (1,50,000 – 2,00,000)
(50,000)
Transfer to General Reserve
3,40,000
Dividend Paid
50,000
Profit Before Taxation
3,40,000
Items to be Added:
Interest Paid
54,000
Loss on Sale of Machinery
14,000
Operating Profit before Working Capital Adjustments
4,08,000
Less: Increase in Current Assets
Inventories
(1,00,000)
Trade Receivables
(1,00,000)
Add: Increase in Current Liabilities
Trade Payables
3,50,000
Cash Generated from Operations
5,58,000
Less: Tax Paid
–
Net Cash Flow from Operating Activities
5,58,000
B
Cash Flow from Investing Activities
Sale of Machinery
6,000
Purchase of Fixed Assets
(5,20,000)
Net Cash Used in Investing Activities
(5,14,000)
C
Cash Flow from Financing Activities
Proceeds from Issue of Equity Share Capital
5,00,000
Proceeds from 7% Preference Share Capital
60,000
Dividend Paid
(50,000)
Redemption of 9% Debentures
(2,00,000)
Interest Paid (6,00,000 × 9%)
(54,000)
Net Cash Flow from Financing Activities
2,56,000
D
Net Increase in Cash and Cash Equivalents
3,00,000
Add: Cash and Cash Equivalent in the beginning of the period
2,00,000
Cash and Cash Equivalents at the end of the period
5,00,000
Working Notes:
Fixed Assets Account
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Balance b/d
15,00,000
Bank A/c (Sale)
6,000
Bank A/c (Purchase- Bal. Fig.)
5,20,000
Profit and Loss A/c (Loss on Sale)
14,000
Balance c/d
20,00,000
Answer:
cash and cash Equivalent 60,40,000,20,000