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Prepare Cash Flow Statement from the Following: - Accountancy

Numerical

Prepare Cash Flow Statement from the following:

STATEMENT OF PROFIT AND LOSS
for the year ended 31st March, 2019

Particulars

Note No.

(₹)

I. Revenue from Operations
(Net Sales)

  36,00,000
II. Expenses    

    Purchases of Stock-in-Trade

  28,16,000

    Change in Inventories of Stock-in-Trade

  (65,000)

    Finance Costs

  15,000

    Depreciation and Amortisation Expenses

  80,000

    Other Expenses

  5,34,000

Total

  33,80,000
III. Profit before Tax (I − II)   2,20,000

IV. Less: Provision for Tax

  40,000

V. Profit after Tax (III − IV)

  1,80,000


as at 31st March, 2019

Particulars

Note No.

31st March, 2019

(₹)

31st March, 2018

(₹)

I. EQUITY AND LIABILITIES      

1. Shareholders' Funds

     

 (a) Share Capital

  6,00,000 5,00,000

 (b) Reserves and Surplus

1 3,00,000 1,20,000

2. Non-Current Liabilities

     

 Long-term Loan

  1,20,000 1,50,000

3. Current Liabilities

     

(a) Short-term Borrowings:
Bank Overdraft

  13,000 ...

(b) Trade Payables (Creditors)

  2,85,000 2,38,000

(c) Short-term Provision: 
Provision form Tax

  44,000 30,000

Total

  13,62,000 10,38,000
II. ASSETS      

1. Non-Current Assets

     

  Fixed Assets

  6,20,000 4,00,000

2. Current Assets

     

(a) Short-term Investments (Marketable Security)

  34,000 20,000

(b) Inventories

  3,28,000 2,63,000

(c) Trade Receivables

  3,48,000 3,10,000

(d) Cash and Cash Equivalents

2 32,000 45,000

Total

  13,62,000 10,38,000

 

Particulars

31st March, 2019

(₹)

31st March, 2018

(₹)

1. Reserves and Surplus    

    Surplus, i.e., Balance in Statement of Profit and Loss

3,00,000 1,20,000
2. Cash and Cash Equivalents    

    Cash in Hand

32,000 17,000

    Cash at Bank

... 28,000
  32,000 45,000
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Solution

Cash Flow Statement

for the year ended March 31, 2019

 

Particulars

Amount

(₹)

Amount

(₹)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

1,80,000

 

 

Provision for Taxation

40,000

 

 

Profit Before Taxation

2,20,000

 

 

Items to be Added:

 

 

 

Finance Cost

15,000

 

 

Depreciation and Amortisation Expenses

80,000

 

 

Operating Profit before Working Capital Adjustments

3,15,000

 

 

Less: Increase in Current Assets

 

 

 

Inventories

(65,000)

 

 

Trade Receivables

(38,000)

 

 

Add: Increase in Current Liabilities

 

 

 

Trade Payables

47,000

 

 

Cash Generated from Operations

2,59,000

 

 

Less: Tax Paid

(26,000)

 

 

Net Cash Flow from Operating Activities

 

2,33,000

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

Purchase of Fixed Assets

(3,00,000)

 

 

Net Cash Used in Investing Activities

 

(3,00,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of Share Capital

1,00,000

 

  Bank Overdraft 13,000  

 

Redemption of Long-Term Loan

(30,000)

 

 

Interest (Finance Cost)

(15,000)

 

 

Net Cash Flow from Financing Activities

 

68,000

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

1,000

 

Add: Cash and Cash Equivalent in the beginning of the period (17,000 + 28,000 + 20,000)

 

65,000

 

Cash and Cash Equivalents at the end of the period (32,000 + 34,000)

 

66,000

Working Notes:

WN1

Provision for Taxation Account

Dr.

Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

Bank A/c (Tax Paid- Bal. Fig.)

26,000

Balance b/d

30,000

Balance c/d

44,000

Profit and Loss A/c

40,000

 

70,000

 

70,000

WN2

Fixed Assets Account

Dr.

Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

Balance b/d

4,00,000

Depreciation A/c

80,000

Bank A/c (Purchases- Bal. Fig.)

3,00,000

Balance c/d

6,20,000

 

7,00,000

 

7,00,000

Note: Short-term Investments are considered as a part of Cash and Cash Equivalents

Concept: Preparation of Cash Flow Statement
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APPEARS IN

TS Grewal Class 12 Accountancy - Analysis of Financial Statements
Chapter 4 Cash Flow Statement
Exercise | Q 59 | Page 121
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