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Question
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 |
