Question

From the following Balance Sheets, Prepare a Cash Flow Statements as per AS- 3 (revised)

Liabilities	2008 Amount Rs	2009 Amount Rs	Assets	2008 Amount Rs	2009 Amount Rs
Share Capital	12,000	15,000	Furniture	5,000	8,000
P & L Account	5,000	6,000	Stock	6,000	4,000
Creditors	15,000	11,000	Debtors	10,000	8,000
			Cash	11,000	12,000
	32,000	32,000		32,000	32,000

A dividend of Rs 3,000 was paid during the year 2008-09

Answer 1

Particulars			Amount Rs	Amount Rs
(A)	Cash Flow From Operating Activities
	Net Profit as per P & L A/c (6,000 –5,000)		1,000
	Add: Dividend paid during the year		3,000
	Net Profit before tax		4,000
	Add: Decrease in Debtors	2,000
	Decrease in Stock	2,000	4,000
			8,000
	Less: Decrease in Creditors		(4,000)
	Operating profit before working capital changes		4,000
	Less: Tax paid		–	4,000
	Net Cash From Operating Activities			4,000
(B)	Cash Flow From Investing Activities
	Purchases of Furniture		(3,000)
	Net Cash Used in Investing Activities			(3,000)
(C)	Cash Flow from Financing Activities
	Proceeds from Issue of Share Capital		3,000
	Dividend Paid		(3,000)
	Net Cash from Financing Activities			NIL
	Net Increase in Cash and Cash Equivalent (A + B + C)			1,000
	Add: Opening balance of Cash and Cash equivalents			11,000
	Closing balance of Cash and Cash equivalents			12,000