Question

From the following Balance Sheets of B.C.R. Ltd as on 31-3-2010 and 31-3-2011.

Prepare a Cash Flow Statements:  

Balance Sheets of B.C.R. Ltd. as on 31.3.2010 and 31.3.2011
Liabilities	31-3-2010 Rs	31-3-2011 Rs	Assets	31-3-2010 Rs	31-3-2011 Rs
Equity Shares Capital Profit and Loss Account Bank Loan Proposed Dividend Provision for tax Creditors	5,00,000   2,00,000   1,00,000 50,000 30,000 55,000	7,00,000   3,50,000   50,000 70,000 50,000 52,000	Patents Equipment Investment Debtors Stock Bank	1,00,000 5,00,000 – 80,000 55,000 2,00,000	95,000 5,00,000 1,00,000 1,47,000 1,30,000 3,00,000
	9,35,000	12,72,000		9,35,000	12,72,000

Additional Information:

During the year Equipment costing Rs 1,00,000 was purchases. Loss on sale of Equipment amounted to Rs 12,000. Rs 18,000 deprecation charged on Equipment.

Answer 1

Cash Flow Statement of B.C.R Ltd.                                 as on March 31, 2011
Particulars	Amount Rs	Amount Rs
Cash Flow Operating Activities
Profit as per Profit and Loss Account	1,50,000
Proposed Dividend	70,000
Provision for Taxation	50,000
Profit before Taxation	2,70,000
Items to be added:
Depreciation on Equipments	18,000
Patents written off	5,000
Loss on sale of equipments	12,000
Profit before working capital changes	3,05,000
Less: Increase in Debtors	(67,000)
Less: Increase in Stock	(75,000)
Less: Decrease in Creditors	(3,000)
Cash from operation before Tax paid	1,60,000
Less: Tax paid	(30,000)
Cash from Operating Activities		1,30,000
Cash Flow from Investing Activities
Proceeds from sale of Equipments	70,000
Purchases of Equipments	(1,00,000)
Purchases of Investments	(1,00,000)
Cash used in Investing Activities	1,30,000	(1,30,000)
Cash Flow from Financing Activities
Proceeds from issue of shares	2,00,000
Repayment of Bank Loan	(50,000)
Dividend paid	(50,000)
Cash From Financing Activities	1,00,000	1,00,000
Net Increase in Cash and Cash Equivalents		1,00,000
Add: Cash and Cash Equivalents at the beginning		2,00,000
Closing Balance of Cash and Cash Equivalents		3,00,000