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Following Was the Balance Sheet of M.M Ltd at on 31.3.2015. - CBSE (Arts) Class 12 - Accountancy

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Following was the Balance Sheet of M.M Ltd at on 31.3.2015.

                                                        M.M. Ltd Balance Sheet as at 31-3-2015

Particulars Note No. 31-3-2015 (Rs.) 31-3-2014 (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) Short – term borrowings

              b) Short – term provisions

 

 

 

1

 

2

 

3

4

 

 

5,00,000

2,00,000

 

4,50,000

 

1,50,000

70,000

 

 

4,00,000

(50,000)

 

5,00,000

 

50,000

90,000

Total   13,70,000 9,90,000

II. Assets

     1. Non – Current Assets

               a) Fixed Assets

                     Tangible assets

                     Intangible assets

               b) Non – Current Investments

      2. Current Assets

                a) Current Investments

                b) Inventories

                c) Cash and Cash Equivalents

 

 

 

5

6

 

 

 

7

 

 

 

 

10,03,000

20,000

1,00,000

 

50,000

1,07,000

90,000

 

 

 

7,20,000

30,000

75,000

 

60,000

45,000

60,000

Total   13,70,000 9,90,000

 

Note No Particulars 31-3-2015(Rs.) 31-3-2014(Rs.)

1.

 

Reserve and Surplus

(Surplus i.e. Balance in Statement of Profit and Loss)

 

2,00,000

 

(50,000)

    2,00,000 (50,000)

2.

 

Long term borrowings :

12 % Debentures

 

4,50,000

 

5,00,000

    4,50,000 5,00,000

3.

 

Short – term borrowings :

Bank Overdraft

 

1,50,000

 

50,000

    1,50,000 50,000

4.

 

Short – term provisions

Provisions for tax

 

70,000

 

90,000

    70,000 90,000

5.

 

 

Tangible Assets

Machinery

Accumulated Depreciation

 

12,03,000

(2,00,000)

 

8,21,000

(1,01,000)

    10,03,000 7,20,000

6.

 

Intangible Assets

Goodwill

 

20,000

 

30,000

    20,000 30,000

7.

 

Inventories

Stock in trade

 

1,07,000

 

45,000

    1,07,000 45,000

Additional Information

(i) 12% Debentures were redeemed on 31-3-2015

(ii) Tax Rs. 70,000 was paid during the year

Prepare Cash flow Statement.

Solution

                                                                               Cash Flow Statement

                                                                     for the year ended 31st March 2015

  Particulars Amount (Rs.) Amount (Rs.)

I

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flow from Operating Activities

A. Net Profit before Tax and Extraordinary items*

       Adjustments for Non-Cash and Non – Operating Items

B. Add : Items to be added

Depreciation

Intagible Assets Written off

Interest on Debentures (12% of 5,00,000)

Provision for Tax

 

C. Less : Items to be Deducted

 

D. Operating Profit before Working Capital Adjustments (A+B-C)

E. Add : Decrease in Current Assets and Increase in Current Liabilities

F: Less : Increase in Current Assets and Decrease in Current Liabilities

Inventories

 

            Cash Generated from Operations (D+E-F)

Less : Income Tax Paid (Net of Refund)

 

            Net Cash Flows from (or used in) Operating Activities

 

 

 

 

99,000

10,000

60,000

50,000

______________

 

______________

 

 

 

62,000

______________

 

70,000

______________

 

 

2,50,000

 

 

 

 

 

2,19,000

 

 

______________

4,69,000

 

 

(62,000)

______________

4,07,000

(70,000)

______________

3,37,000

II

 

 

 

 

Cash Flow from Investing Activities

Purchase of Fixed Assets (12,03,000 – 8,21,000)

Purchase of Non – Current Investments

 

              Net Cash Flows (or used in) Investing Activities

 

(3,82,000)

(25,000)

______________

 

 

 

 

 

(4,07,000)

III

 

 

 

 

 

 

Cash Flow from Financing Activities

Proceeds from Issue of Share Capital

Redemption of Debentures

Interest Paid on Debentures

Increase in Bank Overdraft

 

             Net Cash Flow from Financing Activities

 

1,00,000

(50,000)

(60,000)

1,00,000

______________

 

 

 

 

 

 

 

90,000

IV

 

 

Net Increase or Decrease in Cash and Cash Equivalents (I+ II+III)

             Add : Cash and Cash Equivalents in the beginning of the period

                     (includes Current Investments of 60,000)

 

 

 

20,000

1,20,000

 

 

Cash and Cash Equivalents at the end of the period

(Includes Current Investments of 50,000)

 

1,40,000

 

 

                                                       Provision For Tax Account

Dr.                                                                                                                                              Cr.

Particulars Amount(Rs.) Particulars Amount(Rs.)

To Bank A/c

To Balance c/d

 

70,000

70,000

 

By Balance b/d

By Statement of Profit and Loss

 

90,000

50,000

 

  1,40,000   1,40,000
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Solution Following Was the Balance Sheet of M.M Ltd at on 31.3.2015. Concept: Concept of Cash Flow Statement.
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