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प्रश्न
Extracts of the Balance Sheets of M/s Agrawal Ltd. as on 31st March, 2024 and 31st March 2025 along with additional information are given below. You are required to calculate:
- Operating profit before changes in working capital.
- Cash Flows from Financing Activities.
| Particulars | 31.03.2025 | 31.03.2024 |
| Equity Share Capital | 12,00,000 | 9,00,000 |
| 10% Preference Share Capital | 4,00,000 | 5,00,000 |
| Cash Credit | 2,50,000 | 1,00,000 |
| Profit and Loss (Cr.) | 8,00,000 | 6,00,000 |
| 12% Debentures | 4,00,000 | 3,00,000 |
| Bank overdraft | 1,00,000 | 75,000 |
| Outstanding Interest on Debentures | 3,000 | - |
Additional Information:
- New equity shares and debentures were issued on last day the current accounting year ended 31st March, 2025. Debentures were issued at a discount of 5% which was written off at the end of the year.
- Dividend on preference shares and interim dividend @ 15% were paid on equity shares on 31st March, 2025
- Preference Shares were redeemed on 1st April, 2025 at a premium of 5%. The premium was provided out of profits.
खातेवही
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उत्तर
| Cash Flow from Operating activities |
|
| Particulars | Amount |
| Net Profit before tax | 3,75,000 |
| Non-Operating and non-cash items | |
| Add: Premium on redemption on preference Shares (5% of 1,00,000) | 5,000 |
| Add: Interest on debentures | 36,000 |
| Add: Discount on issue of debentures written off | 5,000 |
| Operating profit before changes in working Capital | 4,21,000 |
Working notes:
| Calculation of net profit before tax | ||
| Profit & Loss account balance as at 31st March 2025 | 8,00,000 | 2,00,000 |
| Less: Profit and loss account balance as at 31st March 2024 | (6,00,000) | |
| Add: Dividend paid on preference shares (10% of 4,00,000) | 40,000 | 3,75,000 |
| Interim dividend on equity shares (15% of 9,00,000) | 1,35,000 | |
| Cash flow from Financing activities |
|
| Particulars | Amount (₹) |
| Proceeds from issue of equity shares | 3,00,000 |
| Redemption of preference shares (1,00,000 + 5,000) | (1,05,000) |
| Proceeds from issue of debentures (1,00,000 − 5,000) | 95,000 |
| Increase in Bank overdraft | 25,000 |
| Increase in cash Credit | 1,50,000 |
| Dividend paid on preference shares | (40,000) |
| Interim dividend on equity shares | (1,35,000) |
| Interest on debentures (36,000 − 3,000) | (33,000) |
| Net cash from Financing activities | 2,57,000 |
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