CASH FLOW STATEMENT -2

1 From the following balance sheet of Ramesh Ltd as at 31st March, 2017 and 2018, prepare cash
flow statement
Note 31stMarch, 31st March,
Particulars No. 2017 2018
Rs Rs
I Equity and Liabilities :
1. Shareholder's Funds :
(a) Share Capital 3,00,000 3,60,000
(b) Reserves and Surplus 1 1,60,000 2,00,000
2. Non-Current Liabilities :
Long-Term Borrowings 2 2,62,000 3,78,000
3. Current Liabilities :
(a) Trade Payables (Creditors) 16,000 20,000
(b) Cash Credit 12,,000 8,000
(c) Other Current Liabilities (Outstanding 6,000 2,000
expenses)
Total 7,56,000 9,68,,000
II. Assets :
1. Non-Current Assets :
(a) Fixed Assets :
(i) Tangible 3 4,60,000 6,40,000
(ii) Intangible (Goodwill) 20,000 10,000
2. Current Assets :
(a) Other current assets( Prepaid expenses) 20,000 16,000
(b) Inventories 40,000 34,000
(c) Trade Receivables 4 1,36,000 1,68,000
(d) Cash and Cash equivalents 80,000 1,00,000
Total 7,56,000 9,68,,000

Notes to Accounts
Sr. Particulars As on 31.3.2017 As on 31.3.2018
No. Rs Rs
1. Reserves and Surplus
General Reserve 60,000 60,000
Surplus (Balance in Statement of Profit and Loss) 1,00,000 1,40,000
1,60,000 2,00,000
2 Long term borrowings
12% Debentures 1,02,000 1,38,000
12% Public Deposits 1,60,000 2,40,000

1
 2,62,000 3,78,000

3. Fixed Assets (Tangible)

Building 3,00,000 4,40,000
Plant 1,60,000 2,00,000
4,60,000 6,40,000
4. Trade Receivables
Debtors 1,20,000 1,50,000
Bills Receivables 16,000 18,000
1,36,000 1,68,000
Additional information:
i) Depreciation charged on building Rs.20,000 and plant Rs.10,000.
ii) Interest paid on debentures Rs.14,400. New Debentures of Rs.36,000 were issued on 1st
October, 2017.
iii) Interest paid on deposits from public Rs.19,200 for the year.

2 From the following balance sheet of Ganesh Ltd as at 31st March, 2017 and 2018, prepare cash
. flow statement
Note 31stMarch, 31st March,
Particulars No. 2017 2018
Rs Rs
I Equity and Liabilities :
1. Shareholder's Funds :
(a) Share Capital 1 4,00,000 5,00,000
(b) Reserves and Surplus 1,02,000 2,44,000
2. Non-Current Liabilities :
10% Debentures 1,25,000 2,00,000
3. Current Liabilities :
(a) Trade Payables 83,000 15,000
(b) Short term borrowings (Bank Overdraft 10,000 12,000
(c) Short term provisions (Provision for tax) 11,000 18,000
Total 7,31,000 9,89,,000

II. Assets :
1. Non-Current Assets :
(a) Fixed Assets (Net) 2 6,10,000 8,60,000
(b) Long term investment 30,000 50,000

2. Current Assets :
(a) Trade Receivables 80,000 61,000
(b) Cash and Cash equivalents 11,000 18,000
Total 7,31,000 9,89,,000

2
 Notes to Accounts
Sr. Particulars As on 31.3.2017 As on 31.3.2018
No. Rs Rs
1. Share Capital
Equity Share Capital 2,00,000 3,50,000
15% Preference share capital 2,00,000 1,50,000
4,00,000 5,00,000
2. Fixed Assets
Cost 7,10,000 10,10,000
(-) Accumulated Depreciation (1,00,000) (1,50,000)
6,10,000 8,60,000
1,36,000 1,68,000

Additional Information:
i) Preference shares were redeemed on 31st March, 2018 at a premium of 10%.
ii) Dividend at 12% was paid to equity shares for the year 2016-17
iii) Fresh Debentures were issued on 1st April,2017

3 From the following balance sheet, prepare cash flow statement

Note 31stMarch, 31st March,

Particulars No. 2018 2017
Rs Rs
I Equity and Liabilities :
1. Shareholder's Funds :
(a) Share Capital 15,75,000 13,50,000
(b) Reserves and Surplus 1 10,44,000 6,41,250
2. Non-Current Liabilities :
Long term borrowings 2 4,95,000 7,20,000
3. Current Liabilities :
(a) Trade Payables 5,62,500 3,60,000
(b) Other current liabilities 3 27,000 45,000
(c) Short term provisions 4 1,71,000 1,57,500
Total 38,74,500 32,73,750

II. Assets :
1. Non-Current Assets :
(a) Tangible Fixed Assets 5 21,37,500 18,00,000
(b) Non current investment 3,85,000 3,85,000

3
 2. Current Assets :
(a) Trade Receivables 6,97,500 5,96,250
(b) Inventories 6,07,500 4,50,000
(c)Other Current Assets (Prepaid Expenses) 27,000 22,500
(d) Cash and Cash equivalents 20,000 20,000
Total 38,74,500 32,73,750

Notes to Accounts
Sr. Particulars As on 31.3.2018 As on 31.3.2017
No. Rs Rs
1. Reserves and Surplus
General Reserve 5,62,500 4,50,000
Surplus (Balance in Statement of Profit and Loss) 4,59,000 1,91,250
Capital Reserve 22,500
10,44,000 6,41,250
2 Long term borrowings
10% Debentures 4,95,000 7,20,000
3 Other Current Liabilities
Outstanding Expenses 27,000 45,000
4 Short term provisions
Provision for tax 1,71,000 1,57,500
5 Fixed Assets (Tangible)
Plant and Machinery 27,00,000 22,50,000
(-) Accumulated Depreciation (5,62,500) (4,50,000)
21,37,500 18,00,000
Additional Information:
i) During the year, plant and machinery with a net book value Rs.22,500 (accumulated
depreciation Rs.67,500) was sold for Rs.18,000.
ii) During the year , investment costing Rs.1,80,000 was sold at a profit of 12 ½ % on cost,
which is transferred to Capital Reserve and also investment costing Rs.1,80,000 was purchased.
iii) Tax of Rs.1,23,750 was paid during the year.
iv) At the beginning of the year, debentures of Rs.2,25,000 were redeemed at par.
v) Interest on debentures paid during the year Rs.49,500.
vi) Proposed dividend for 2016-17 is 67,500

4 From the following balance sheet, prepare cash flow statement

Note 31stMarch, 31st March,

Particulars No. 2018 2017
Rs Rs
I Equity and Liabilities :
1. Shareholder's Funds :
(a) Share Capital 5,00,000 4,00,000
(b) Reserves and Surplus 1 1,81,200 1,61,000
4
 2. Current Liabilities :
(a) Trade Payables 2,70,400 3,00,000
(b) Short term borrowings : Cash credit - 1,40,000
(c) Short term provisions (Provision for tax) 70,000 60,000
Total 10,21,600 10,61,000

II. Assets :
1. Non-Current Assets :
Fixed Assets (Net)
i) Tangible Assets 2 7,18,000 7,00,000
ii) Intangible Assets : Goodwill 10,000 -
2. Current Assets :
(a) Trade Receivables 1,28,400 1,60,000
(b)Inventories 1,48,000 2,00,000
(c) Cash and Cash equivalents 17,200 1,000
Total 10,21,600 10,61,000

Notes to Accounts
Sr. Particulars As on 31.3.2018 As on 31.3.2017
No. Rs Rs
1. Reserves and Surplus
General Reserve 1,20,000 1,00,000
Surplus (Balance in Statement of Profit and Loss) 61,200 61,000
1,81,2000 1,61,000
2 Fixed Assets (Tangible)
Land and Building 3,80,000 4,00,000
Plant and Machinery 3,38,000 3,00,000
7,18,000 7,00,000

Additional Information:
i) Dividend of Rs.46,000 was paid.
ii) The income tax paid during the year Rs.56,000
iii) Machinery was purchased during the year Rs.66,000.
iv) Depreciation written off on machinery Rs.28,000; building Rs.20,000

5 From the following balance sheet, prepare cash flow statement

Note 31stMarch, 31st March,

Particulars No. 2018 2017
Rs Rs
I Equity and Liabilities :
1. Shareholder's Funds :

5
 (a) Share Capital 7,00,000 6,00,000
(b) Reserves and Surplus 1 4,94,000 3,30,000
2. Non-Current Liabilities :
Long term borrowings – 15% Debentures 2,00,000 3,00,000

3. Current Liabilities :
(a) Trade Payables 2,50,000 1,60,000
(b) Other current liabilities: Outstanding Expense 12,000 10,000
(c) Short term provisions 2 76,000 70,000
Total 17,32,000 14,70,000

II. Assets :
1. Non-Current Assets :
(a) Tangible Fixed Assets 3 9,50,000 8,00,000
(b) Long term investment (at cost) 1,80,000 1,80,000

2. Current Assets :
(a) Trade Receivables 2,45,000 2,25,000
(b) Inventories 2,70,000 2,00,000
(c) Cash and Cash equivalents 87,000 65,000
Total 17,32,000 14,70,000

Notes to Accounts
Sr. Particulars As on 31.3.2018 As on 31.3.2017
No. Rs Rs
1. Reserves and Surplus
Surplus (Balance in Statement of Profit and Loss) 4,84,000 3,30,000
Capital Reserve (profit on sale of investment) 10,000
4,94,000 3,30,000
2 Short term provisions
Provision for tax 76,000 70,000
3 Fixed Assets
Fixed Assets (at cost) 12,00,000 10,00,000
(-) Accumulated Depreciation (2,50,000) (2,00,000)
9,50,000 8,00,000
Additional information:
i) Proposed dividend for the year 2016-17 -30,000 and 2017 -18 – 34,000.
ii) During the year ended 31st March,2018, fixed assets with a net book value Rs.10,000
(accumulated depreciation Rs.30,000) was sold for Rs.8,000.
iii) During the year ended 31st March,2018, investment costing Rs.80,000 was sold.
iv) Debentures were redeemed at a premium of 10%.
v) Tax of Rs.75,000 was paid.
6
 vi) Debentures interest paid during the year ended 31st March,2018 was Rs.30,000

6 From the following balance sheet, prepare cash flow statement

Note 31stMarch, 31st March,
Particulars No. 2017 2018
Rs Rs
I Equity and Liabilities :
1. Shareholder's Funds :
(a) Share Capital 4,50,000 4,50,000
(b) Reserves and Surplus 1 3,56,000 3,78,000
2. Non-Current Liabilities :
Mortgage loan - 2,70,000
3. Current Liabilities :
(a) Trade Payables 1,68,000 1,34,000
(b) Short term provisions (Provision for tax) 75,000 10,000
Total 10,49,000 12,42,000

II. Assets :
1. Non-Current Assets :
(a) Tangible Fixed Assets 4,00,000 3,20,000
(b)Non Current Investment 50,000 60,000

2. Current Assets :
(a) Trade Receivables 2,10,000 4,55,000
(b) Inventories 2,40,000 2,10,000
(c) Cash and Cash equivalents 1,49,000 1,97,000
Total 10,49,000 12,42,000

Notes to accounts
Sr. Particulars As on 31.3.2017 As on 31.3.2018
No. Rs Rs
1. Reserves and Surplus
General Reserve 3,00,000 3,10,000
Surplus (Balance in Statement of Profit and Loss) 56,000 68,000
3,56,000 3,78,000
Additional information:
i). Investments costing Rs.8,000 were sold during the year 2017-18 for Rs.8,500
ii) Provision for tax made during the year was Rs.9,000.
iii) During the year, part of fixed assets costing Rs.10,000 was sold for Rs.12,000 and the profit
was included in the statement of profit and loss.
iv) Dividend paid during the year amounted to Rs.40,000.

7
7 From the given notes to accounts ad cash flow statement of XYZ Ltd. Complete the missing
figures:
Sr. Particulars As on 31.3.2018 As on 31.3.2017
No. Rs Rs
1. Reserves and Surplus
General Reserve 2,50,000 1,50,000
Surplus (Balance in Statement of Profit and Loss) 1,34,000 90,000
3,84,000 2,40,000
2 Long term borrowings
Debentures - 1,35,000
3 Provision for tax 60,000 44,000
4 Inangible Assets (Goodwill) 80,000 1,20,000

Cash Flow Statement

For the year ended 31st March, 2015
Particulars Amount
A. Cash Flow from Operating Activities
Net Profit before tax ….........
Add : Adjustments for Non cash and non operating expenses
Intangible assets written off …..........
Operating Profit before Working Capital Changes …...........
Add : Decrease in Current Increase in Current liabilities
Inventories 76,000
………..
Less: Increase in Current Assets Decrease in Current liabilities
Trade Receivables ….........
Trade Payables 1,66,000 (2,34,000)
Net Cash Flows from Operating Activities …….......
Payment of Tax (…........)
Net Cash Flow from Operating Activities ….........

B. Cash Flow from Investing Activities

Proceeds from Sale of land and building
3,10,000
Purchase of land and building (…..........)
Proceeds from sale of Non current investment 54,000
Net Cash flow from Investing Activities
34,000

8
C. Cash Flow from Financing Activities
Issue of Share Capital ……......
Redemption of Debentures (…........)
Net Cash used in financing Activities (…........)
Net increase in Cash and Cash Equivalents (A-B+C)
…........
Add: Cash and Cash Equivalent in the beginning of the period
20,000
Cash and Cash Equivalents at the end of the period
36,000