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Following is the Balance Sheet of Sn Ltd as at 31-3-2015 - Accountancy

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Following is the Balance Sheet of SN Ltd as at 31-3-2015:

                                                     S.N Ltd Balance Sheet as at 31-3-2015

Particulars Note No. 31-03-2015 (Rs.) 31-03-2014 (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

 

 

2,50,000

1,00,000

 

2,25,000

 

75,000

35,000 

 

 

2,00,000

(25,000)

 

2,50,000

 

25,000

45,000 

Total   6,85,000   4,95,000

 II. Assets

       1. Non – Current Assets

                a) Fixed Assets

                      Tangible assets

                      Intangible

                 b) Non – Current Investments

         2. Current Assets

                 a) Current Investments

                  b) Inventories

                  c) Cash and Cash Equivalents

 

 

 

5

6

 

 

 

7

 

 

 

 

5,01,500

10,000

50,000

 

25,000

53,500

45,000 

 

 

 

3,60,000

15,000

37,500

 

30,000

22,500

30,000 

 Total    6,85,000 4,95,000 

 

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)

 

1,00,000

 

(25,000)

    1,00,000 (25,000)

2.

 

Long term borrowings :

12 % Debentures

 

2,25,000

 

2,50,000

    2,25,000 2,50,000

3.

 

Short – term borrowings :

Bank Overdraft

 

75,000

 

25,000

    75,000 25,000

4.

 

Short – term provisions

Provisions for tax

 

35,000

 

45,000

    35,000 45,000

5.

 

 

Tangible Assets

Machinery

Accumulated Depreciation

 

6,01,500

(1,00,000)

 

4,10,500

(50,500)

    5,01,500 3,60,000

6.

 

Intangible Assets

Goodwill

 

10,000

 

15,000

    10,000 15,000

7.

 

Inventories

Stock in trade

 

53,500

 

22,500

    53,500 22,500

Additional Information

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

(ii) Tax Rs.35,000 was paid during the year

Prepare Cash flow Statement

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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

Intangible 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

 

 

 

 

49,000

5,000

30,000

25,000

____________

 

____________

 

 

31,000

 

____________

 

35,000

____________

 

 

1,25,000

 

 

 

 

 

1,09,500

 

 

___________

2,34,500

 

(31,000)

 

__________

2,03,500

(35,000)

___________

1,68,500

II

 

 

 

 

Cash Flow from Investing Activities

Purchase of Fixed Assets (6,01,500 – 4,10,500)

Purchase of Non – Current Investments

 

Net Cash Flows (or used in) Investing Activities

 

(1,91,000)

(12,500)

 

 

 

 

 

 

(2,03,500)

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

 

50,000

(25,000)

(30,000)

50,000

 

 

 

 

 

 

 

 

45,000

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 30,000)

 

10,000

60,000

 

 

Cash and Cash Equivalents at the end of the period

(Includes Current Investments of 25,000)

 

70,000

 

 

                                            Provision For Tax Account

Dr.                                                                                                             Cr.

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

To Bank A/c

To Balance c/d

35,000

35,000

By Balance b/d

By Statement of Profit and Loss

45,000

25,000

  70,000   70,000
Concept: Concept of Cash Flow Statement
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