Question

The following are the summarised Balance Sheets of X Ltd. as at 31^st March, 2024 and 2023:

Particulars	Note No.	31.3.2024 (₹)	31.3.2023 (₹)
I. EQUITY AND LIABILITIES:
(1) Shareholders’ Funds:
(a) Share Capital		2,50,000	2,00,000
(b) Reserves and Surplus		52,000	50,000
(2) Non-Current Liabilities:
Long-term Borrowings	1	30,000	25,000
(3) Current Liabilities:
(a) Short-term Borrowings	2	7,000	18,000
(b) Trade Payables		1,02,000	1,05,000
(c) Unclaimed Dividend		2,000	-
(d) Short-term Provisions (Provision for Tax)		24,000	15,000
Total		4,67,000	4,13,000
II. ASSETS:
(1) Non-Current Assets:
(a) Property, Plant and Equipment and Intangible Assets
(i) Property, Plant and Equipment	3	1,93,000	2,03,000
(2) Current Assets:
(a) Inventories		1,10,000	90,000
(b) Trade Receivables		1,56,000	1,18,000
(c) Cash & Bank Balances		8,000	2,000
Total		4,67,000	4,13,000

Notes:

Particulars	31.3.2024 (₹)	31.3.2023 (₹)
(1) Long-term Borrowings:
8% Debentures	30,000	25,000
(2) Short-term Borrowings:
Cash Credit	7,000	18,000
(3) Property, Plant and Equipment (Machinery):	2,50,000	2,40,000
Less: Accumulated Depreciation	57,000	37,000
	1,93,000	2,03,000

Additional Information:

1. 
   

   Particulars	31.3.2024 (₹)	31.3.2023 (₹)
   Contingent Liability:
   Proposed Dividend	30,000	25,000

2. Provision for tax made ₹ 30,000.
3. Additional debentures amounting to ₹ 5,000 were issued on 1^st October, 2023. Interest on debentures has been paid up to date. 

You are required to prepare a statement of cash flow.

Note: Repayment of Cash Credit will be treated as ‘Financing Activity’.

Answer 1

Cash Flow Statement of A LTD. For the year ended 31st March, 2024.
Particulars	Amount (₹)	Amount (₹)
A. Cash Flows from Operating Activities:
Net Profit before Tax		62,800
Add: Depreciation on Property, Plant and Equipment		20,000
Operating profit before working capital changes		82,800
Adjustments for Working Capital Changes:
Less:
Inventories	(20,000)
Trade Receivables	(38,000)
Trade Payables	(3,000)
Add: Other Current Liabilities	2,000	(59,000)
Cash Generated from Operations before Tax		23,800
Less: Income Tax paid		(21,000)
Net cash from Operating Activities (A)		2,800
B. Cash flows from Investing Activities:
Purchase of Property, Plant and Equipment		(10,000)
Net Cash used in Investing Activities (B)		(10,000)
C. Cash flows from Financing Activities:
Add:
Proceeds from the Issue of Share Capital	50,000
Proceeds from Long-term Borrowings	5,000
Proceeds from the Issue of Debentures	5,000	60,000
Less:
Repayment of Short-term Borrowings	(11,000)
Dividend Paid	(30,200)	(41,200)
Net Cash from Financing Activities (C)		18,800
Net Increase in Cash and Cash Equivalents (A + B + C)		11,600
Add: Opening Balance of Cash and Cash Equivalents		2,000
Closing Balance of Cash and Cash Equivalents		13,600