Question

From the following Balance Sheet of Yogeta Ltd., prepare cash flow statement:

Particulars	Note No.	31st March 2017 (Rs)	31st March 2016 (Rs)
I) Equity and Liabilities
1. Shareholders’ Funds
a) Share capital	1	4,00,000	2,00,000
b) Reserves and surplus-Surplus		2,00,000	1,00,000
2. Non-current Liabilities
a) Long-term borrowings	2	1,50,000	2,20,000
3. Current Liabilities
a) Short-term borrowings		1,00,000	-
(Bank overdraft)
b) Trade payables		70,000	50,000
c) Short-term provision		50,000	30,000
(Provision for taxation)
Total		9,70,000	6,00,000
II) Assets
1. Non-current assets
a) Fixed assets
i) Tangible		7,00,000	4,00,000
2. Current assets
a) Inventories		1,70,000	1,00,000
b) Trade Receivables		1,00,000	50,000
c) Cash and cash equivalents		-	50,000
Total		9,70,000	6,00,000

Notes to Accounts -

Particulars	31st March 2017 (Rs)	31st March 2016 (Rs)
1. Share capital
a) Equity share capital	3,00,000	2,00,000
b) Preference share capital	1,00,000	-
	4,00,000	2,00,000
2. Long term borrowings
Long-term loan	-	2,00,000
Long-term Rahul	1,50,000	20,000
	1,50,000	2,20,000

Additional Information:

Net Profit for the year after charging Rs. 50,000 as Depreciation was Rs. 1,50,000. Dividend paid on Share was Rs. 50,000, Tax Provision created during the year amounted to Rs. 60,000. 8% loan was repaid on March 31, 2017 and an additional 9% loan of Rs. 1,30,000 was obtained from Rahul on April 01, 2016.

Answer 1

Cash Flow Statement of Yogeta Ltd.

	Particulars	Amount (Rs.)	Amount (Rs.)
A.	Cash Flow from Operating Activities
	Net Profit before Taxation and Extraordinary Items (2,00,000 - 1,00,000)		1,00,000
	Adjustments for -
	Add: Depreciation	50,000	1,89,500
	Add: Dividend paid	60,000
	Add: Interest paid	29,500
	Add: Tax Provision	50,000
	Operating Profit before working capital changes		2,89,500
	Less: Increase in Inventories	(70,000)	(1,00,000)
	Less: Increase in Trade Receivables	(50,000)
	Add: Trade payables	20,000
	Cash generated from operating activities		1,89,500
	Less: Income Tax paid		(40,000)
	Cash from Operating Activities		1,49,500
B.	Cash Flow from Investing Activities
	Purchases of Fixed Assets		(3,50,000)
	Net Cash used in Investing Activities		(3,50,000)
C.	Cash Flow from Financing Activities
	Issue of Equity Shares	1,00,000	50,500
	Issue of Preference Shares	1,00,000
	Loan from Rahul	1,30,000
	Less: Repayment of Loan	(2,00,000)
	Dividend Paid	(50,000)
	Less: Interest on Loan	(29,500)
	Net Cash from Financing Activities		50,500
D.	Net decrease in Cash and Cash Equivalent (A + B + C)		(1,50,000)
	Add: Cash and Cash Equivalents at the beginning		50,000
E.	Cash and Cash Equivalents at the end (Bank Overdraft)		(1,00,000)
	8% Long term loan	2,00,000	16,000
	Less: Interest 8%	16,000
	9% Long term loan (op)	20,000	13,500
	Add: 9% loan from Rahul on April 01, 2016	1,30,000
	Less: Interest 9%	13,500
	Total Interest		29,500

Working Notes:

Dr.	Provision for Taxation Account						Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
	Bank (Balancing figure)		40,000		Balance b/d		30,000
	Balance c/d		50,000		Profit and Loss		60,000
			90,000				90,000

 

Dr.	Fixed Assets Account						Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
	Balance b/d		4,00,000		Depreciation		50,000
	Bank		3,50,000		Balance c/d		7,00,000
			7,50,000				7,50,000