Question

Following is the Balance Sheets of Thermal Power Ltd. as at 31-3-2014

Thermal Power Ltd Balance Sheet as at 31-3-2014
Particulars	Note No.	2013-2014 Rs	2012-2013 Rs
I. Equity and Liabilities    1. Shareholder’s Funds       a. Share Capital       b. Reserve and Surplus    2. Non - Current Liabilities       a. Long-term borrowings    3. Current Liabilities       a. Trade Payables       b. Short-Term Provisions	1	12,00,000 3,00,000   2,40,000   1,79,000 50,000	11,00,000 2,00,000   1,70,000   2,04,000 77,000
Total		19,69,000	17,51,000
II. Assets    1. Non – Current Assets       a) Fixed Assets          (i) Tangible assets          (ii) Intangible        b) Non – Current Investments    2. Current Assets       a) Current Investments       b) Inventories       c) Trade Receivables       d)Cash and Cash	2 3	10,70,000 40,000     2,40,000 1,29,000 1,70,000 3,20,000	8,50,000 1,12,000     1,50,000 1,21,000 1,43,000 3,75,000
Total		19,69,000	17,51,000

Notes to Accounts

Note No	Particulars	31-3-2015	31-3-2014
1   2     3	Reserve and Surplus (Surplus i.e. Balance in Statement of Profit and Loss) Tangible Assets Machinery     Less: Accumulated Depreciation Intangible Assets Goodwill	3,00,000   12,70,000 (2,00,000)   40,000	2,00,000   10,00,000 (1,50,000)   1,12,000

Additional Information:

During the year a piece of machinery, costing Rs 24,000 on which accumulated depreciation was Rs 16,000, was sold for Rs 6,000.

Prepare Cash Flow Statement

Answer 1

Cash Flow Statement for the year ended March 31, 2014
	Particulars	Rs	Rs
A	Cash Flow from Operating Activities Profit as per Statement of Profit and Loss Profit Before Taxation Items to be added Amortisation of Goodwill Depreciation Loss on Sale of Fixed Assets Operating Profit before Working Capital Adjustments Less: Increase in Current Assets        Inventories        Trade Receivables Less : Decrease in Current Liabilities      Trade Payables      Short-Term Provision Net Cash Generated from Operating Activities	1,00,000     72,000 66,000 2,000     (8,000) (27,000)   (25,000) (27,000)	1,00,000       1,40,000 2,40,000           (87,000) 1,53,000
B	Cash Flow from Investing Activities         Sale of Machinery         Purchase of Machinery Net Cash Used in Investing Activities	6,000 (2,94,000)	(2,88,000)
C	Cash Flow from Financing Activities    Proceeds from Issue of Share Capital    Proceeds from Long-Term Borrowings Net Cash Flow from Financing Activities	1,00,000 70,000	1,70,000
D	Net Increase or Decrease in Cash and Cash Equivalents   Add: Cash and Cash Equivalents in the beginning of the period Cash and Cash Equivalents at the end of the period		35,000 5,25,000 5,60,000

 

Machinery Account
Dr.			Cr.
Particulars	Rs	Particulars	Rs
To Balance b/d To Bank A/c (Purchase – Bal. Fig.)	10,00,000 2,94,000	By Bank A/c (Sale) By Depreciation on Part of Machinery By Profit and Loss A/c (Loss on Sale) By Balance c/d	6,000 16,000 2,000 12,70,000
	12,94,000		12,94,000

 

Accumulated Depreciation Account
Dr.			Cr.
Particulars	Rs	Particulars	Rs
To Machinery A/c To Balance c/d	16,000 2,00,000	By Balance b/d By Profit and Loss A/c (Dep. Charged during the year – Bal. Fig.)	1,50,000 66,000
	2,16,000		2,16,000