Q5 From the following balance sheet of (revised). Balance Particulars I. EQUITY AND LIABILITIES Share holders fund Share capital Reserve and Surplus Non current liabilities 10% debentures Current liabilities. Trade payables Short-term borrowings(bank overdraft) Short-term provisions(provision for tax) Total ASSETS Non current assets Fixed assets 10% long term investments Current assets Trade receivables Cash and cash equivalents Short-term investment Total Particulars 1. Share capital Equity share capital 12% preference share capital 2. Reserve and surplus General reserve 3. Fixed assets Fixed assets Accumulated depreciation Additional information 1. Ravi Ltd. prepare cash flow statement as per AS-3 Sheet as on .... Note 31^ st ] March 2016 1 1 2 2,04,000 31 March 2017 2. 3. 2,50,000 1,66,000 22,000 22,000 14,64,000 12,20,000 60,000 1,60,000 12,000 12.000 14,46,000 315 March 2016 2,04,000 14,20,000 (2.00,000) 4,00.000 30,000 24,000 36,000 19,90,000 17,20,000 1,22,000 20,000 28,000 19,90,000 31^ st March 2017 (3,00,000) 1. Preference shares were redeemed on 31 ^ (sl) March, 2017 at a premium of 10%. 2. Dividend at 12% was paid to equity shareholders for the year 2015-16. 3. Fresh debentures were issued on 1 ^ (st) April, 2016 (6) II. 1. 2. 3 Notes
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Answer:
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