Following is the Balance Sheet of K K Ltd as at 31-3-2015:
K.K. 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 |
10,00,000 4,00,000
9,00,000
3,00,000 1,40,000 |
8,00,000 (1,00,000)
10,00,000
1,00,000 1,80,000 |
| Total | 27,40,000 | 19,80,000 | |
|
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 |
5 6
7
|
20,06,000 40,000 2,00,000
1,00,000 2,14,000 1,80,000 |
14,40,000 60,000 1,50,000
1,20,000 90,000 1,20,000 |
| Total | 27,40,000 | 19,80,000 |
| 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) |
4,00,000 |
(1,00,000) |
| 4,00,000 | (1,00,000) | ||
|
2.
|
Long term borrowings : 12 % Debentures |
9,00,000 |
10,00,000 |
| 9,00,000 | 10,00,000 | ||
|
3.
|
Short – term borrowings : Bank Overdraft |
3,00,000 |
1,00,000 |
| 3,00,000 | 1,00,000 | ||
|
4.
|
Short – term provisions Provisions for tax |
1,40,000 |
1,80,000 |
| 1,40,000 | 1,80,000 | ||
|
5.
|
Tangible Assets Machinery Accumulated Depreciation |
24,06,000 (4,00,000) |
16,42,000 (2,02,000) |
| 20,06,000 | 14,40,000 | ||
|
6.
|
Intangible Assets Goodwill |
40,000 |
60,000 |
| 40,000 | 60,000 | ||
|
7.
|
Inventories Stock in trade |
2,14,000 |
90,000 |
| 2,14,000 | 90,000 |
Additional Information
(i) 12% Debentures were redeemed on 31-3-2015
(ii) Tax 1,40,000 was paid during the year
Prepare Cash flow Statement.
Solution
| 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 10,00,000) 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 |
1,98,000 20,000 1,20,000 1,00,000 ______________
______________
1,24,000 ______________
1,40,000 ______________
|
5,00,000
4,38,000
______________ 9,38,000
(1,24,000) ______________ 8,14,000 (1,40,000) ______________ 6,74,000 |
|
II
|
Cash Flow from Investing Activities Purchase of Fixed Assets (24,06,000 – 16,42,000) Purchase of Non – Current Investments
Net Cash Flows (or used in) Investing Activities |
(7,64,000) (50,000) ______________
|
(8,14,000) |
|
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 |
2,00,000 (1,00,000) (1,20,000) 2,00,000 ______________
|
1,80,000 |
|
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 1,20,000) |
|
40,000 2,40,000
|
|
Cash and Cash Equivalents at the end of the period (Includes Current Investments of 1,00,000) |
2,00,000
|
Provision For Tax Account
Dr. Cr.
| Particulars | Amount(Rs.) | Particulars | Amount(Rs.) |
|
To Bank A/c To Balance c/d
|
1,40,000 1,40,000
|
By Balance b/d By Statement of Profit and Loss
|
1,80,000 1,00,000
|
| 2,80,000 | 2,80,000 |
