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From the Following Balance Sheet of Jy Ltd. as at 31st March 2017, Prepare a Cash Flow Statement : - CBSE (Arts) Class 12 - Accountancy

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From the following Balance Sheet of JY Ltd. as at 31st March 2017, prepare a Cash Flow Statement :

Balance Sheet of JY Ltd.
as at 31.3.2017
Particular Note No.

31-3-2017

Rs

31-3-2016

Rs

I. Equity and Liabilities

  1. Shareholders' Funds:

     (a) Share capital

     (b) Reserves and surplus

  2. Non-current Liabilities:

    Long term-borrowing

  3. Current Liabilities:

    (a) Short-term borrowings

    (b) Short-term provisions

 

 

 

1

 

2

 

3

4

 

 

5,00,000

1,00,000

 

2,50,000

 

1,50,000

2,00,000

 

 

5,00,000

(25,000)

 

1,50,000

 

1,00,000

1,25,000

Total   12,00,000 8,50,000

II. Assets

   1. Non- Current Assets:

     (a) Fixed Assets:

         (i) Tangible

   2. Current Assets:

    (a) Trade Receivable

    (b) Cash and Cash Equivalents

    (c) Short-term Loans and Advances

 

 

 

5

 

 

 

 

 

 

 

6,00,000

 

2,75,000

1,25,000

2,00,000

 

 

 

4,50,000

 

2,25,000

75,000

1,00,000

Total   12,00,000 8,50,000

 

Notes to Accounts

Note No Particulars

31-3-2017

Rs

31-3-2016

Rs

1

 

 

2

 

 

3

 

 

 

4

 

 

 

5

 

 

Reserve and Surplus

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

 

 

1,00,000

 

(25,000)

1,00,000 (25,000)

Long-term borrowings :

10 % Debentures

 

 

2,50,000

 

1,50,000

2,50,000 1,50,000

Short-term borrowings :

Bank Overdraft

 

 

1,50,000

 

1,00,000

1,50,000 1,00,000

Short-term provisions:

(i) Proposed Dividend

(ii) Provision for Tax

 

 

75,000

1,25,000

 

50,000

75,000

2,00,000 1,25,000

Tangible Assets:

Machinery

Accumulated Depreciation

 

 

7,37,500

(1,37,500)

 

5,25,000

(75,000)

6,00,000 4,50,000

Additional Information:

Rs 1,00,000, 10% Debentures were issued on 31-3-2017.

Solution

  Particulars Rs Rs

A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

B

 

 

C

 

 

 

 

 

D

 

 

Cash Flow from Operating Activities

Profit as per statement of Profit and Loss on 31st March 2017

Less: Profit as per statement of Profit and Loss on 31st March 2016 (Loss)

 

Add: Proposed Dividend

     Provision for Tax

Net Profit Before Taxation and Extra-ordinary items

Items to be Added:

Depreciation Expenses (1,37,500 – 75,000)

Interest on Debentures (1,50,000 x 10%)

Operating Profit Before Working Capital Changes

Less: Decreases in Current Liabilities and Increases in Current Assets

    Increases in Trade Receivables (2,75,000 – 2,25,000)

    Increases in Short-term Loans & Advance (2,00,000 – 1,00,000)

Cash Generated from Operations

Less: Tax Paid during the year

Net Cash Flows from Operating Activities

Cash Flow from Investing Activities

Purchase of Machinery (7,37,500 – 5,25,000)

Cash Used in Investing Activities

Cash Flow from Financing Activities

Proceeds from Issue of 10% Debentures (2,50,000 – 1,50,000)

Increase in Bank Overdraft (1,50,000 – 1,00,000)

Dividend Paid i.e. Opening Proposed Dividend

Interest on Debentures (1,50,000 x 10%)

     Net Cash Flow from Financing Activities

Net Increase or Decrease in Cash and Cash Equivalents (A+B +C)

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

Cash and Cash Equivalents at the end of the period

1,00,000

(25,000)

1,25,000

75,000

1,25,000

 

 

 62,500

 15,000

 

 

 50,000

 1,00,000

 

 

 

 

 (2,12,500)

 

 

 1,00,000

 50,000

 (50,000)

 (15,000)

 

 

 

 

 

 

 

 

3,25,000

 

 

 

 77,500

 4,02,500

 

 

 1,50,000

 2,52,500

 75,000

 1,77,500

 

 2,12,500

 (2,12,500)

 

 

 

 

 

 85,000

 50,000

 75,000

 1,25,000

 

  Is there an error in this question or solution?

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Solution From the Following Balance Sheet of Jy Ltd. as at 31st March 2017, Prepare a Cash Flow Statement : Concept: Concept of Cash Flow Statement.
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