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प्रश्न
You are required to prepare Cash-Flow Statement from the following information:
| ₹ | ||
| (i) | Interim Dividend paid during the year | 7,000 |
| (ii) | Plant Purchased | 20,000 |
| (iii) | Intangible Assets written off during the year | 10,000 |
| (iv) | Debentures redeemed on 1st Feb. 2022 | 12,000 |
| (v) | Interest on debentures has been paid up-to-date. | |
| BALANCE SHEET | |||
| as at 31st March 2022 and 2021 | |||
| Particulars | Note No. |
31.3.2022 (₹) |
31.3.2021 (₹) |
| I. EQUITY AND LIABILITIES: | |||
| (1) Shareholders’ Funds: | |||
| (a) Share Capital | 1,48,000 | 1,40,000 | |
| (b) Reserves and Surplus | 21,120 | 20,080 | |
| (2) Non-Current Liabilities: | |||
| Long-term Borrowings | 1 | 12,000 | 24,000 |
| (3) Current Liabilities: | |||
| (a) Trade Payables | 23,680 | 20,720 | |
| (b) Short-term Provision | 2 | 1,600 | 1,400 |
| Total | 2,06,400 | 2,06,200 | |
| II. ASSETS: | |||
| (1) Non-Current Assets: | |||
| (a) Property, Plant and Equipment and Intangible Assets | |||
| (i) Property, Plant and Equipment (Plant) | 60,000 | 40,000 | |
| (ii) Intangible Assets | 10,000 | 20,000 | |
| (2) Current Assets: | |||
| (a) Inventory | 85,400 | 98,400 | |
| (b) Trade Receivables | 35,400 | 29,800 | |
| (c) Cash & Bank Balances | 15,600 | 18,000 | |
| Total | 2,06,400 | 2,06,200 | |
Notes:
| Particulars | 31.3.2022 (₹) |
31.3.2021 (₹) |
| (1) Long-term Borrowings: | ||
| 12% Debentures | 12,000 | 24,000 |
| (2) Short-term Provision: | ||
| Provision for Doubtful Debts | 1,600 | 1,400 |
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उत्तर
| Cash Flow Statement for the year ended 31st March, 2022. | ||
| Particulars | Amount (₹) |
Amount (₹) |
| A. Cash Flow from Operating Activities: | ||
| Add: Net Profit: | ||
| Increase in Reserve & Surplus (21,120 − 20,080) | 1,040 | |
| Interim dividend paid | 7,000 | |
| Net profit for the year | 8,040 | |
| Add: Non‑cash/non‑operating items | ||
| Intangible assets written off | 10,000 | |
| Provision for doubtful debts (1,600 − 1,400) | 200 | |
| Interest on debentures (W.N.1) | 2,640 | 12,840 |
| Operating profit before working capital changes | 20,880 | |
| Add: |
||
| Decrease in inventory | 13,000 | |
| Increase in trade payables | 2,960 | |
| Less: Increase in trade receivables | (5,600) | |
| Cash generated from operations | 10,360 | |
| Net Cash from Operating Activities (A) |
31,240 | |
| B. Cash Flow from Investing Activities: |
||
| Purchase of plant (No other investing items given) | (20,000) | |
| Net Cash used in Investing Activities (B) | (20,000) | |
| C. Cash Flow from Financing Activities: |
||
| Add: Proceeds from issue of share capital | 8,000 | |
| Less: |
||
| Redemption of debentures | (12,000) | |
| Interim dividend paid | (7,000) | |
| Interest on debentures paid | (2,640) | |
| Net Cash used in Financing Activities (C) |
(13,640) | |
| Net decrease in Cash & Cash Equivalents (A + B + C) |
(2,400) | |
| Add: Opening Cash & Bank | 18,000 | |
| Closing Cash & Bank |
15,600 | |
Working Note 1: Calculation of Interest on 12% Debentures (paid up‑to‑date).
Opening debentures = ₹ 24,000; ₹ 12,000 redeemed on 1‑Feb‑2022;
∴ Closing = ₹ 12,000.
Interest for Apr–Jan (10 months) on ₹ 24,000:
24,000 × 12% × `10/12` = ₹ 2,400
Interest for Feb–Mar (2 months) on ₹ 12,000:
12,000 × 12% × `2/12` = ₹ 240
Total interest paid = ₹ 2,400 + ₹ 240 = ₹ 2,640
Working Note 2: Calculation of Plant movement.
Closing plant ₹ 60,000 − Opening ₹ 40,000 = ₹ 20,000, and
The plant was purchased for ₹ 20,000.
Investing outflow: ₹ 20,000.
Working Note 3: Calculation of Intangible Assets.
Opening ₹ 20,000 − Closing ₹ 10,000 = ₹ 10,000;
Additional info: ₹ 10,000 written off,
Non‑cash expense, added back in Operating Activities.
