Question

From the following Balance Sheet of Konal Traders prepare cash flow statement.

Liabilities	31.3.17 (₹)	31.3.18 (₹)	Assets	31.3.17 (₹)	31.3.178 (₹)
Share Capital	2,00,000	2,50,000	Cash	30,000	47,000
Creditors	70,000	45,000	Debtors	1,20,000	1,15,000
Profit and Loss A/c	10,000	23,000	Stock	80,000	90,000
			Land	50,000	66,000
	2,80,000	3,18,000		2,80,000	3,18,000

Answer 1

Cash Flow Statement For the year ended on 31st March 2017 and 31st March 2018
Particular	Amount (₹)	Amount (₹)
(A) Cash flow from Operating activities
Closing balance of Profit and Loss A/c	23,000
Less: Opening balance of Profit and Loss A/c	10,000
	13,000
Add: Decrease in Current Assets – Debtors	5,000
	18,000
Less: Increase in Current Assets – Stock	(10,000)
Less: Decrease in Current Liabilities – Creditors	(25,000)
Net Cash from Operating activities (A)		(17,000)
(B) Cash flow from Investing activities
Purchase of Land	16,000	16,000
Net Cash used in Investing activities (B)
(C) Cash flow from Financing activities
Amount of share capital received	50,000	50,000
Net Cash used in Financing activities (C)
Net increase in cash and cash equivalent (A+ C – B)		17,000
Cash equivalent in the beginning of period		30,000
Cash equivalent at the end of period.		47,000