Ownclasses

From the following Balance Sheets of Vijaya Ltd. as on 31-3-2009 and 31-3-2010 prepare a Cash Flow Statement.

Liabilities

31-3-2009

(Rs)

31-3-2010

(Rs)

Assets

31-3-2009

(Rs)

31-3-2010

(Rs)

Share Capital

General Reserve

Profit & loss account

Trade Creditors

 

45,000

15,000

10,000

8,700

65,000

27,500

15,000

11,000

Fixed Assets

Stock

Debtors

Cash

Preliminary expense

46,700

11,000

18,000

2,000

1,000

83,000

13,000

19,500

2,500

500

 

 

78,700

1,18,500

 

78,700

1,18,500

 

Additional Information:
(i) Depreciation on Fixed Assets for the year 2009-2010 was Rs. 14,700.
(ii) An interim dividend Rs. 7,000 has been paid to the shareholders during the year.


Answer

Cash Flow Statement

            (For the year ended 31st March 2010)



Particulars

Rs

Rs

 

(A) Cash Flow from Operating Activities :–

               

 Net Profit Before Tax

 

Adjustment: Add 1. Depreciation on Fixed Assets

 

                           2. written off Preliminary Expenses

 

 

Operating Profit Before Changes in Working Capital

 

Less : Increase in Current Assets

 

           Stock

 

           Debtors

 

Add: Increase in Current Liabilities

 

         Trade Creditors

 

Cash Flow from Operating Activities :–

 

(B). Cash Flow from Investing Activities:

 

Purchase of Fixed Assets

 

Net Cash Used in Investing Activities :–

 

 

(C). Cash Flow from Financing Activities:

 


Issue of Shares

 

Payment of Interim Dividend

 

Cash Flow from Financing Activities:

 

Net Increase in Cash & Cash Equivalent

 

      Add: Opening Balance of Cash & Cash Equivalent

 

             

Closing Balance of Cash & Cash Equivalent

 

 

 

 

24500

 

14700

 

500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




38500

 

 

 

 

 

(51000)

 

 

 

 

 

 

 

13000

 

 

 

39700

 

 

 

(2000)

 

(1500)

 

 

 

2300

 

 

 

 

 

 

 

(51000)

 

 

 

 

 

 

20000

 

(7000)

 

 

 

 

 

 

500

 

2000

 

 

 

2500



 

Working Note: Calculation of net profit before tax

 

Net profit as per profit and loss account (15000-10000)

Add transfer to general reserve

Interim dividend paid during the year

Net profit before tax

 

5000

12500

7000

24500

 

Fixed asset account

Particulars

Rs

Particulars

Rs

To balance  b/d

 

 

 

To bank a/c (purchase)

46700

 

 

 

51000

By depreciation a/c

 

By balance c/d

 

14700

 

83000

 

 

 

97700

 

97700