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You Are Required to Prepare Cash Flow Statement for the Year Ended 31st March, 2019. - Accountancy

Numerical

Following is the Balance Sheet of Fine Products Ltd. as at 31st March, 2019

Particulars

Note No.

31st March, 2019

(₹)

31st March, 2018

(₹)

I. EQUITY AND LIABILITIES :      

1. Shareholders' Funds

     

(a) Share Capital: Equity Share Capital

 

3,50,000

3,00,000

(b) Reserves and Surplus

1

57,000

38,000

2. Current Liabilities : 

     

(a) Trade Payables

 

53,000

35,000

(b) Other Current Liabilities

 

6,000

8,000

(c) Short-term Provisions

2

32,000

28,000

Total  

4,98,000

4,09,000

II. ASSETS :      

1. Non-Current Assets :

     

(a) Fixed Assets:

     

(i) Tangible Assets

3

2,48,000

2,00,000

(ii) Intangible Assets (Goodwill)

 

40,000

50,000

(b) Non-Current Investments

 

35,000

10,000

2. Current Assets :

     

(a) Inventories

 

39,000

57,000

(b) Trade Receivables

 

1,08,000

75,000

(c) Cash and Bank Balance

 

28,000

17,000

Total  

4,98,000

4,09,000

Notes to Accounts

Particulars

31st March, 2019

(₹)

31st March, 2018

(₹)

1. Reserves and Surplus    

General Reserve

30,000

20,000

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

27,000

18,000

 

57,000

38,000

2. Short-term Provisions    

Provision for Tax

32,000

28,000

3. Tangible Fixed Assets    

Land and Building

57,000

1,10,000

Plant and Machinery

1,91,000

90,000

 

2,48,000

2,00,000

Note: Proposed dividends on equity for the years ended 31st March, 2018 and 2019 are ₹ 39,000 and ₹ 45,000 respectively. You are required to prepare Cash Flow Statement for the year ended 31st March, 2019.

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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

 

9,000

 

Items to be Added:

 

 

 

General Reserve

10,000

 

 

Goodwill

10,000

 

 

Provision for Taxation

32,000

 

 

Proposed Dividend

39,000

1,00,000

 

Operating Profit before Working Capital Adjustments

 

1,00,000

 

Less: Increase in Current Assets

 

 

 

  Trade Receivables

(33,000)

 

 

Less: Decrease in Current Liabilities

 

 

 

Other Current Liabilities

(2,000)

 

 

Add: Decrease in Current Assets

 

 

 

Inventories

18,000

 

 

Add: Increase in CurrentLiabilities

 

 

 

      Trade Payables

18,000

1,000

 

Cash Generated from Operations

 

1,01,000

 

Less: Tax Paid

 

(28,000)

 

Net Cash Flows from Operating Activities

 

73,000

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

Purchase of Non-Current Investments

 

(25,000)

 

Purchase of Plant & Machinery

 

(1,01,000)

 

Sale of Land & Building

 

53,000

 

Net Cash Used in Investing Activities

 

(73,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

Dividend Paid

 

(39,000)

 

Proceeds from Issue of Share Capital

 

50,000

 

Net Cash Flow from Financing Activities

 

11,000

D

Net Increase or Decrease in Cash and Cash Equivalents

 

11,000

 

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

 

17,000

 

Cash and Cash Equivalents at the end of the period

 

28,000

Note: Proposed Dividend treatment is as per AS-4 (Revised).

Concept: Preparation of Cash Flow Statement
  Is there an error in this question or solution?
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APPEARS IN

TS Grewal Class 12 Accountancy - Analysis of Financial Statements
Chapter 4 Cash Flow Statement
Exercise | Q 41 | Page 104
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