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Question
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.
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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 |
