Question

From the following Balance Sheet of Yogita Ltd., calculate 'Cash flows from Investing Activities' and 'Cash flows from Financing Activities'. Show your working properly.

Yogita Ltd. Balance Sheet as at 31st March, 2023
Particulars	Note No.	31-3-2023 (₹)	31-3-2022 (₹)
I. Equity and Liabilities:
(1) Shareholders' Funds
(a) Share Capital		4,00,000	2,00,000
(b) Reserves and Surplus	1	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	3	1,00,000	−
(a) Trade payables		70,000	50,000
(b) Short-term provisions	4	50,000	30,000
Total		9,70,000	6,00,000
II. Assets:
(1) Non-Current Assets
(a) Fixed Assets (Property, Plant & Equipment and Intangible Assets)
(i) Tangible Assets (Property, Plant & Equipment)	5	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:

Note No.	Particulars	31-3-2023 (₹)	31-3-2022 (₹)
1.	Reserves and Surplus
	Balance in statement of Profit and Loss	1,50,000	80,000
	General Reserve	50,000	20,000
		2,00,000	1,00,000
2.	Long-term borrowings
	10% Bank Loan	1,50,000	2,20,000
		1,50,000	2,20,000
3.	Short-term borrowings
	Bank Overdraft	1,00,000	−
		1,00,000	−
4.	Short-term provisions
	Provision for tax	50,000	30,000
		50,000	30,000
5.	Tangible Assets (Property, plant and equipment)
	Plant and Machinery	7,90,000	4,70,000
	Less: Accumulated depreciation	(90,000)	(70,000)
		7,00,000	4,00,000

Additional Information:

1. ₹ 50,000 was charged as depreciation on Plant and Machinery. A machinery costing ₹ 60,000 (Book value ₹ 45,000) was sold for ₹ 42,000.
2. Bank loan was repaid on 1^st April, 2022. 

Answer 1

Cash Flow Statement of Yogita Ltd. For the year ending 31st March, 2023
Particulars	Amount (₹)	Amount (₹)
A. Cash Flow from Investing Activity
Purchase of machinery	(3,80,000)
Sale of machinery	42,000
Net Cash used in Investing activity		(3,38,000)
B. Cash Flow from Financing Activity
Proceeds from issue of Shares	2,00,000
Repayment of Loan taken from bank	(70,000)
Increase in Bank Overdraft	1,00,000
Interest on loan (1,50,000 × 10%)	(15,000)
Net Cash from Financing activity		2,15,000

Working Note:

Dr.	Plant and Machinery A/c		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Balance b/d	4,70,000	By Accumulated Depreciation A/c	15,000
To Bank A/c (Purchase)	3,80,000	By Bank A/c	42,000
		By Loss on sale	3,000
		By Balance c/d	7,90,000
Total	8,50,000		8,50,000