CASH FLOW STATEMENT (AS -3)

Cash flow from Operating Activities Rs  Rs 

Cash flow from Operations ( before tax ) ( WN 1) X / ( X)
X / (X)
Less: Tax paid X
Cash Flow From Investing Activities
Asset Purchased (X)
Asset Sold X
Dividend / Interest Received X X / (X)
Cash Flow From Financing Activities
Issue of Shares/ Bonds / debenture X
Loan taken X
Loan Repaid / Redemption of Preference shares / Redemption of
Debenture (X)
Interim Dividend / Dividend paid (X) X / (X)
Net increase / ( decrease) in cash X / (X)
ADD: Cash and cash Equivalent at the beginning of period X
= Cash and cash Equivalent at the end of period X

WN 1. Cash Flow from operations ( Before tax) (Indirect Method)

P&L ( closing Balance) XX
- P&L ( Opening Balance) XX
Surplus XX
Add : Non- Cash , Non- Operating Expenses, Tax and Appropriations
Depreciation X
Amortization / written OFF entries X
Loss by fire, theft, accident X
Income tax provision X
Proposed dividend X
Transfer to General Reserve X
Interim Dividend X XX
Less : Non- Cash , Non- Operating Income
Rent received X
Appreciation of Asset X XX
Funds From Operation XX
Adjust working capital changes
- Increase in CA (X)
+ Decrease in CA X
+ Increase in CL X
- Decrease in CL (X) X
Cash flow from Operations X
Debtor 2020 2021
100 120 20
100 90 10

Creditor 100 120 20

100 90 10

Revenue
ADD : Op revenue- sales ( credit , cash ) X
ADD: Non-op – rent , X
ADD: Appreciation of land X
Total rev X
LESS:
Exp
COGS X
Op exp (credit, cash ) x
Non op exp ( accident, loss of fire) x
Dep , amortisation X
Tax X
NPAT X
Appropriation X
Proposed Dividend X
Interim dividend X
General reserves X
Retained Earnings / surplus X

NPAT 100
Appropriation
Proposed Dividend 50
Interim dividend -
General reserves 25
Retained Earnings / surplus 25
Following information, prepare Cash Flow Statement for Pioneer Ltd.

Balance Sheet of Pioneer Ltd., as on March 31

Particulars 2017 2018

(Rs.) (Rs.)

I. Equity and Liabilities

1. Shareholders’ Funds

a) Share capital 1 7,00,000 5,00,000

b) Reserve and surplus 2 4,20,000 2,50,000

Reserves

Surplus / retained earnings

2. Non-current Liabilities

Long-term borrowings:

10% Bank Loan 50,000 1,00,000

3. Current Liabilities

a) Trade Payables 45,000 50,000

b) Other current liabilities:

outstanding rent 7,000 5,000

c) Short-term provisions 3 50,000 30,000

Total 12,72,000 9,35,000

II. Assets

1. Non-current assets

a) Fixed assets

i) Tangible assets bld 6,00,000 5,00,000

Land 2,00,00,000 3,00,00,000

ii) Intangible assets 95,000 1,00,000

b) Non-current investments 1,00,000 -

2. Current assets

a) Inventories 1,30,000 50,000

b) Trade receivables 1,20,000 80,000

c) Cash and cash equivalents 3,27,000 2,05,000

Total 12,72,000 9,35,000