Question

From the following Balance Sheet of Vijay Ltd. as on 31-3-2009 and 31-3-2010 prepare a Cash Flow Statement. 

Liabilities	31-3-2009 Rs	31-3-2010 Rs	Assets	31-3-2009 Rs	31-3-2010 Rs
Share Capital	45,000	65,000	Fixed Assets	46,700	83,000
General Reserve	15,000	27,500	Stock	11,000	13,000
Profit and Loss Account	10,000	15,000	Debtors	18,000	19,500
Trade Creditors	8,700	11,000	Cash	2,000	2,500
			Preliminary Expenses	1,000	500
	78,700	1,18,500		78,700	1,18,500

Additional Information: 

(i) Depreciation on Fixed assets for the year 2009-2010 was Rs 14,700

(ii) An interim dividend Rs 7,000 has been paid to the shareholders during the year.

Answer 1

Cash Flow Statement                     for the year ended 31st March, 2010
Particulars			Amount Rs	Amount Rs
(A)	Cash Flow From Operating Activities
	Net Profit before tax (Note 1)		24,500
	Add: Depreciation on Fixed Assets (WN 2)		14,700
	Preliminary Expenses written off		500
	Operating Profit Before Working Capital Changes		39,700
	Less: Increase in Current Assets
	Stock	2,000
	Debtors	1,500	(3,500)
			36,200
	Add: Increase in Current Liabilities
	Trade Creditors		2,300
	Cash Flow from Operating Activities			38,500
(B)	Cash Flow From Investing Activities
	Purchase of Fixed Assets (WN 2)		(51,000)
	Net Cash Used in Investing Activities			(51,000)
(C)	Cash Flow From Financing Activities
	Issue of Shares		20,000
	Payment of Interim Dividend		(7,000)
	Cash Flow from Financing Activities			13,000
	Net Increase in Cash and Cash Equivalent (A + B + C)			500
	Add: Opening Balance of Cash and Cash Equivalent			2,00
	Closing Balance of Cash and Cash Equivalent			2,500