Page No 5.106:
Question 41:
Prepare a Cash
Flow Statement on the basis of the information given in the Balance Sheet of
Libra Ltd. as at 31st March, 2021 and 31st March 2020:
|
Particulars |
Note
No. |
31st
March, 2021 ( `) |
31st
March, 2020 ( `) |
|
I. EQUITY AND LIABILITIES |
|
|
|
|
1. Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
8,00,000 |
6,00,000 |
|
(b) Reserves and Surplus |
1 |
4,00,000 |
3,00,000 |
|
2. Non-Current Liabilities |
|
|
|
|
Long-term Borrowings |
|
1,00,000 |
1,50,000 |
|
3. Current Liabilities |
|
|
|
|
(a) Trade Payables |
|
40,000 |
48,000 |
|
Total |
|
13,40,000 |
10,98,000 |
|
II. ASSETS |
|
|
|
|
1, Non-Current Assets |
|
|
|
|
(a) Fixed Assets: |
|
|
|
|
Tangible Assets |
|
8,50,000 |
5,60,000 |
|
(b) Non-Current Investments |
|
2,32,000 |
1,60,000 |
|
2. Current Assets |
|
|
|
|
(a) Current Investments |
|
50,000 |
1,34,000 |
|
(b) Inventories |
|
76,000 |
82,000 |
|
(c) Trade Receivables |
|
38,000 |
92,000 |
|
(d) Cash and Cash Equivalents |
|
94,000 |
70,000 |
|
Total |
|
13,40,000 |
10,98,000 |
|
|
|
|
|
Notes to Accounts
|
Particulars |
31st
March, 2021 ( `) |
31st
March, 2020 ( `) |
|
I. Reserves and Surplus |
|
|
|
Surplus, i.e., Balance in
Statement of Profit and Loss |
4,00,000 |
3,00,000 |
|
|
|
|
Answer:
|
|
Cash Flow Statement for the year ended March 31, 2021 |
||
|
|
Particulars |
Details (
`) |
Amount (
`) |
|
A |
Cash
from Operating Activities |
|
|
|
|
Net
Profit |
|
1,00,000 |
|
|
Operating Profit
Before Working Capital Changes |
|
1,00,000 |
|
|
Add:
Decrease in Current Assets |
|
|
|
|
Inventories |
6,000 |
|
|
|
Trade Receivables |
54,000 |
|
|
|
Less:
Decrease in Current Liabilities |
|
|
|
|
Trade Payables |
(8,000) |
52,000 |
|
|
|
|
|
|
|
Cash Generated
from Operations |
|
1,52,000 |
|
|
Less:
Tax Paid |
|
- |
|
|
Net Cash
Flow from Operating Activities |
|
1,52,000 |
|
|
|
|
|
|
B |
Cash
From Investing Activities |
|
|
|
|
Purchase of Tangible
Assets |
(2,90,000) |
|
|
|
Purchase on
Non-Current Investment |
(72,000) |
|
|
|
|
|
|
|
|
Net Cash
Used in Investing Activities |
|
(3,62,000) |
|
|
|
|
|
|
C |
Cash
From Financing Activities |
|
|
|
|
Issue of Share
Capital |
2,00,000 |
|
|
|
Long Term
Borrowings |
(50,000) |
|
|
|
|
|
|
|
|
Net Cash
Flow from Financing Activities |
|
1,50,000 |
|
|
|
|
|
|
D |
Net Decrease in
Cash and Cash Equivalents |
|
(60,000) |
|
|
Add:
Cash and Cash Equivalents in the beginning of the period (70,000 + 1,34,000) |
|
2,04,000 |
|
|
Cash
and Cash Equivalents at the end of the period (94,000 + 50,000) |
|
1,44,000 |
|
|
|
|
|
|
|
|
|
|
Page No 5.107:
Question
42 Balance Sheet of Varun Ltd as at 31st March,
2021 is as s follows:
|
Particulars |
Note
No. |
31st March, 2021 (`) |
31st March, 2020 (`) |
|
I.
EQUITY AND LIABILITIES 1.
Shareholders’ Funds (a)
Share Capital (b)
Reserves and Surplus: Surplus,
i.e., Balance in Statement of Profit and Loss 2.
Non-Current Liabilities Long-term
Borrowings 3.
Current Liabilities Trade
Payables |
|
2,00,000 98,000 90,000 82,000 |
2,00,000 96,000 60,000 72000 |
|
Total |
|
4,70,000 |
4,28,000 |
|
li.
ASSETS 1.
Non-Current Assets Fixed
Assets (Tangible) 2.
Current Assets (a)
Inventories (b)
Trade Receivables (c)
Cash and Cash Equivalents |
|
3,42,000 44,000 76,800 7,200 |
3,00,000 50,000 70,000 8,000 |
|
Total |
|
4,70,000 |
428,000 |
Notes
to Accounts
|
Particulars |
|
|
31st March, 2021 (`) |
31st March, 2020 (`) |
Loan
from Z Ltd. Loan
from Bank |
|
|
40,000 50,000 |
------ 60,000 |
|
|
|
|
90,000 |
60,000 |
|
2. Fixed Assets (Tangible) (i) Land (ii)
Building (iii)
Machinery Less:
Accumulated Depreciation |
31-03-2021 2,44,000 72,000 |
31-03-2020 2,14,000 54,000 |
60,000 1,10,000 1,72,000 |
40,000 1,00,000 1,60,000 |
|
|
|
|
3,42,000 |
3,00,000 |
Additional Information: During the year ` 52, ,000 were paid as interim dividend.
Prepare Cash Flow Statement.
Answer:
|
Cash Flow Statement |
||
|
Particulars |
Detail |
` |
|
I.
Cash
flow from operating activities Net profit as per
Statement of profit and loss (98,000-96,000) Add: Interim Dividend |
52000 |
2,000 52000 |
|
Net
profit before tax and extraordinary items Add: Depreciation on Machinery |
|
54,000 , 18,000 |
|
Operating
Profit Before Working Capital Changes Add: Trade Payable (82,000-72,000) Inventories (50,000-44,000) |
10,000 6,000 |
72,000 16000 |
|
|
|
88,000 |
|
Less: Current Assets (76,800-70,000) |
|
(6,800) |
|
Cash
Generated from operation |
|
81,200 |
|
Less:
Tax
paid |
|
-------- |
|
Cash
flow from operating activities |
|
81,200 |
|
II.
Cash
flow from Investing activities Payments for
the purchase of Land Payments for
the purchase of Building Payments for
the purchase of Machinery |
|
(20,000) (10,000) (30,000) |
|
Cash
Used in Investing activities |
|
(60,000) |
|
III.
Cash flow from Financing activities Proceeds from loan from Z Ltd. Repayment of Bank loan Payment of Interim dividend |
(10,000) (52,000) |
40,000 (62,000) |
|
Cash
used in Financing activities |
|
(22,000) |
|
Net
Decrease in Cash and cash equivalents [81,200+(60,000)+
(22,000)] Add: Opening Cash and
Cash Equivalents |
|
(800) 8,000 |
|
Closing
Cash and Cash Equivalents |
|
7,200 |
Working notes:
|
Dr. |
Fixed Assets A/c |
Cr. |
|
|
Particulars |
` |
Particulars |
` |
|
To Balance B/d To Bank a/c (Purchase) |
2,14,000 40,000 |
By Balance C/d |
2,44,000 |
|
|
5,12,000 |
|
5,12,000 |
Space
|
Dr. |
Provision
for Depreciation A/c |
Cr. |
|
|
Particulars |
` |
Particulars |
` |
|
To Balance C/d |
72,000 |
By Balance B/d By P&L a/c (Dep. provided during the year) |
54,000 18,000 |
|
|
72,000 |
|
72,000 |
Page No 5.108:
Question 43:
Following are the
Balance Sheets of Solar Power Ltd. as at 31st March, 2014 and 2013:
|
Solar
Power Ltd. |
|||||
|
BALANCE
SHEET |
|||||
|
Particulars |
Note No. |
31st
March, 2014 ( `) |
31st
March, 2013 ( `) |
||
|
I. EQUITY AND LIABILITIES |
|
|
|
||
|
1. Shareholders' Funds |
|
|
|
||
|
(a) Share Capital |
|
24,00,000 |
22,00,000 |
||
|
(b) Reserves and Surplus |
1 |
6,00,000 |
4,00,000 |
||
|
2. Non-Current Liabilities |
|
|
|
||
|
Long-term Borrowings |
|
4,80,000 |
3,40,000 |
||
|
3. Current Liabilities |
|
|
|
||
|
(a) Trade Payables |
|
3,58,000 |
4,08,000 |
||
|
(b) Short-term Provisions |
|
1,00,000 |
1,54,000 |
||
|
Total |
|
39,38,000 |
35,02,000 |
||
|
II. ASSETS |
|
|
|
||
|
1. Non-Current Assets |
|
|
|
||
|
Fixed Assets: |
|
|
|
||
|
(i)
Tangible Assets |
2 |
21,40,000 |
17,00,000 |
||
|
(ii) Intangible Assets |
3 |
80,000 |
2,24,000 |
||
|
2. Current Assets |
|
|
|
||
|
(a) Current Investments |
|
4,80,000 |
3,00,000 |
||
|
(b) Inventories |
|
2,58,000 |
2,42,000 |
||
|
(c) Trade Receivables |
|
3,40,000 |
2,86,000 |
||
|
(d) Cash and Cash Equivalents |
|
6,40,000 |
7,50,000 |
||
|
Total |
|
39,38,000 |
35,02,000 |
||
|
|
|
|
|
||
Notes to Accounts
|
|
||
|
Particulars |
31st
March, 2014 ( `) |
31st
March, 2013 ( `) |
|
1. Revenue and Surplus
Surplus, i.e., Balance in
Statement of Profit and Loss |
6,00,000 |
4,00,000 |
|
2. Tangible Assets |
|
|
|
Machinery |
25,40,000 |
20,00,000 |
|
Less: Accumulated Depreciation |
(4,00,000) |
(3,00,000) |
|
|
21,40,000 |
17,00,000 |
|
3.
Intangible Assets |
|
|
|
Goodwill |
80,000 |
2,24,000 |
|
|
|
|
Additional Information:
During the year, a piece of machinery costing `48,000
on which accumulated depreciation was ` 32,000. was
sold for ` 12,000.
Prepare Cash Flow Statement.
Answer:
|
|
Cash Flow Statement for the year ended March 31, 2014 |
|||
|
|
Particulars |
Amount (
`) |
Amount (
`) |
|
|
A |
Cash Flow from Operating Activities |
|
|
|
|
|
Profit as per Statement of Profit and Loss |
2,00,000 |
|
|
|
|
Profit Before Taxation |
|
2,00,000 |
|
|
|
Items to be Added: |
|
|
|
|
|
Amortisation of
Goodwill |
1,44,000 |
|
|
|
|
Depreciation |
1,32,000 |
|
|
|
|
Loss on Sale of Fixed Assets |
4,000 |
2,80,000 |
|
|
|
Operating Profit before Working Capital Adjustments |
|
4,80,000 |
|
|
|
Less: Increase in Current
Assets |
|
|
|
|
|
|
Inventories |
16,000 |
|
|
|
|
Trade
Receivables |
54,000 |
|
|
|
Less: Decrease in
Current Liabilities |
|
|
|
|
|
Trade Payables |
50,000 |
|
|
|
|
Short-Term Provisions |
54,000 |
1,74,000 |
|
|
|
Net Cash Generated from Operating Activities |
|
3,06,000 |
|
|
|
|
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
|
|
|
Sale of Machinery |
12,000 |
|
|
|
|
Purchase of Machinery |
(5,88,000) |
|
|
|
Net Cash Used in Investing Activities |
|
(5,76,000) |
|
|
|
|
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
|
|
Proceeds from
Issue of Share Capital |
2,00,000 |
|
|
|
|
Proceeds from
Long Term Borrowings |
1,40,000 |
|
|
|
|
Net Cash Flow from Financing Activities |
|
3,40,000 |
|
|
|
|
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
70,000 |
|
|
|
|
Add: Cash and Cash Equivalent in the
beginning of the Period |
|
10,50,000 |
|
|
Cash and Cash Equivalents at the end of the period |
|
11,20,000 |
|
|
|
|
|
|
|
Working Notes:
|
Machinery Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
( `) |
Particulars |
( `) |
|
Balance b/d |
20,00,000 |
Bank A/c (Sale) |
12,000 |
|
Bank A/c (Purchase-
Bal. Fig.) |
5,88,000 |
Depreciation on
Part of Machinery |
32,000 |
|
|
|
Profit and Loss
A/c (Loss on Sale) |
4,000 |
|
|
|
Balance c/d |
25,40,000 |
|
|
25,88,000 |
|
25,88,000 |
|
|
|
|
|
|
Accumulated Depreciation Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
( `) |
Particulars |
( `) |
|
Machinery A/c |
32,000 |
Balance b/d |
3,00,000 |
|
Balance c/d |
4,00,000 |
Profit and Loss
A/c (Dep. charged during the year- Bal. Fig.) |
1,32,000 |
|
|
4,32,000 |
|
4,32,000 |
|
|
|
|
|
Page No 5.109:
Question 44:
Following is the
Balance Sheet of Fine Products Ltd. as at 31st March, 2021:
|
Particulars |
Note No. |
31st March, 2021 (
`) |
31st March, 2020 (
`) |
|
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, 2021 (
`) |
31st March, 2020 (
`) |
|
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, 2020
and 2021 are ` 39,000 and ` 45,000 respectively.
You are required to prepare Cash
Flow Statement for the year ended 31st March, 2021.
Answer:
|
Cash Flow Statement for the year ended March 31, 2021 |
||||
|
|
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 Current Liabilities |
|
|
|
|
|
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).