Profit and Loss Account For the year ended March 31, 1999

Ref Rs.
1 Sales
2 Cost of goods sold
3 Depreciation
4 Gross Profit
Operating expenses
5 Office and administrative 141,500
6 Interest expense 8,500
7 Loss on sale of equipment 20,000
8 Selling and administrative 55,000
9 Amortization of goodwill 25,000
Net Loss

Current
Comparative Balance Sheet as on March 31, 1998 and March 31, 1999 1,999
ASSETS Rs.
Cash 140,000
Debtors 80,000
Stock 100,000
Prepaid rent 10,000
Land 150,000
Equipment net of depreciation 440,000
Goodwill 75,000
Total assets 995,000
CAPITAL and LIABILITIES
Creditors 60,000
Bills payable 10,000
Interest payable 10,000
Accrued wages 20,000
Long-term loans 245,000
Share capital 600,000
Reserve and surplus 50,000
Total Liabilities 995,000
 Cash Flow statement for the year ended march31, 1999 Rs. Rs.
Rs. Cash flow from operating activities
560,000 Net Profit/Loss -75,000
325,000 Adjustments
60,000 Depreciation 60,000
175,000 Goodwill amortization 25,000
Interest expense 8,500
Loss on sale of equipment 20,000
113,500

Operating profit before working capital changes 38,500

250,000
-75,000 Increase in Debtor -25,000
Increase in stock -20,000
Previous Decrease in prepaid rent 2,000
1,998 Decrease in Creditors -30,000
Rs. increase in bills payable 5,000
95,000 increase in accrued wages 2,000
55,000 Net cash flow from working capital changes -66,000
80,000
12,000 Cash flow from operating activities -27,500
150,000
600,000 Cash flow from investing activities
100,000 Net sale of equipment 80,000
1,092,000 net cash generated from Investing activities 80,000

90,000 Cash flow from financing activities

5,000 Interest paid -7500
9,000 Net cash generated from financing activities
18,000
245,000 Net Increase/(Decrease) in cash
600,000 cash at the beginning of the year
125,000 cash at the end of the year
1,092,000
Ref

2
6
6
7

-27,500

Opening Balance 600000

Depreciation 60,000
80,000 540,000
Sale Book Value 100,000 20,000
Amount Received 80,000
Machine at the end 440,000

52,500

95,000
147,500
 Inventory Trade Payable
Operating Current Assets Current Liabilities
Cuurent Prev
CA 120 100 20 Minus
CA 40 50 -10 Plus
CL 120 100 20 Plus
CL 40 50 -10 Minus

Investing

Finance
Trade Payable
Current Liabilities