ILLUSTRATION 8.

The net income of Blue Sky Ltd. for the year ended March 31, 2018 was Rs. 4,89,000.
Depreciation charged for the year was Rs. 87,000. Income for the year was arrived at
after adjusting for gain on sale of land Rs. 1,05,000, loss on sale of equipment Rs.
48,000 and writing off cost of equity issue Rs. 25,000.

Other Information:

March 31, 2018 March 31, 2017

Inventory 1,67,000 1,85,000
Receivables 1,45,000 1,42,000
Prepaid Expenses 8,000 12,000
Cash in hand and at bank 32,000 17,000
Payables 1,07,000 95,000
Expenses outstanding 9,000 13,000
Bank Overdraft 80,000 60,000
Required : Calculate cash from operating activities.

ILLUSTRATION 9.

The profit of Philips Ltd. after appropriations was Rs. 2,50,000. This profit was
arrived at after taking into consideration the following items:

S.No. Particulars Amount (Rs.)

1. Depreciation on Fixed Tangible Assets (Machinery) 20,000
2. Loss on Sale of Fixed Tangible Assets (Furniture) 2,000
3. Goodwill written off 9,000
4. Provision for Taxation 35,000
5. Transfer to General Reserve 17,500
6. Gain on Sale of Fixed Tangible Assets (Machinery) 8,000
Additional information:

Particulars 31.3.2017 (Rs.) 31.3.2018 (Rs.)

Trade Receivable (all good) 50,000 62,000
Trade Payables 45,000 55,000
Inventory 12,000 8,000
Income Received in Advance 8,000 -
Outstanding Expenses 6,000 3,000
Prepaid Expenses - 5,000

You are required to calculate cash from operating activities.

ILLUSTRATION 14.
From the following balance shares of ABC Ltd., find out cash from operating
activities only:
 Particulars Note no. 31.3.2018 31.3.2017
(Rs.) (Rs.)
I. EQUITY AND LIABILITIES
(1) Shareholder’s Funds:
(a) Share Capital 35,000 30,000
(b) Reserve and Surplus 1 22,000 3,500

(2) Non-Current Liabilities

Long-term Borrowings 2 25,000 21,000

(3) Current Liabilities

Trade Payables 12,500 8,500

TOTAL 94,500 63,000

II. ASSETS:
(1) Non-Current Assets:
(a) Fixed Assets
(i) Tangible Assets 3 41,000 32,000
(ii) Intangible Assets 4 8,000 10,000
(b) Non-Current Investments 5 8,000 3,000

(2) Current Assets:

(a) Inventory 24,500 6,000
(b) Cash & Bank Balance 13,000 12,000

TOTAL 94,500 63,000

Note: (1) Reserve & Surplus: 2018 2017

General Reserve 15,000 9,500

Profit & Loss Balance 7,000 (6,000)*

22,000 3,500

*Bracket denotes negative balance.

(2) Long-term Borrowings:

10% Debentures 25,000 21,000

(3) Tangible Assets:

Machinery 54,000 41,000
Less: Provision for Depreciation 13,000 9,000
41,000 32,000
(4) Intangible Assets:
Goodwill 8,000 10,000
(5) Rate of interest on Investments is 10% p.a.
Additional Information:

Debentures were issued on 31.3.2018.

Investment were made on 31.3.2018.

ILLUSTRATION 15.

X Ltd. earned a net profit after tax of Rs. 5,60,000 for the year ended 31st March,
2016. The relevant items of balance sheet appeared as follows:

31.3.2015 (Rs.) 31.3.2016 (Rs.)

Trade Receivables 70,000 90,000
Trade Payables 45,000 70,000
Outstanding Expenses 5,000 1,000
Prepaid Expenses - 2,000
Provision for Taxation 16,000 25,000
Bad Debts written off during the year Rs.5,000; Depreciation charged on plant and
machinery Rs. 40,000 and gain on sale of investments Rs. 10,000 appeared on the
Profit and Loss Statement for the year ended 31st March, 2016.

You are required to determine the Cash from operating activities.

ILLUSTRATION 19.

The following is the Statement of Profit and Loss of Yamuna Limited for the year
ended March 31, 2018:

Particulars Note No. Amount

I. Revenue from Operations (Sales) 10,00,000
II. Expenses:
Purchases 5,00,000
Changes in Inventories (Opening
Inventory-Closing Inventory) (2,50,000 –
2,00,000) 50,000
Other Expenses 3,00,000

Total Expenses 8,50,000

III. Profit before Tax (I – II) 1,50,000
Additional Information:

(i) Trade receivable decrease by Rs. 30,000 during the year.

(ii) Prepaid expenses increase by Rs. 5,000 during the year.
(iii) Trade payables decrease by Rs. 15,000 during the year.
(iv) Outstanding expenses increased by Rs. 3,000 during the year.
(v) Operating expenses included depreciation of Rs. 25,000.
 Compute net cash provided by operations for the year ended March 31,
2018 by the indirect method.

ILLUSTRATION 20.
From the following information, calculate cash from operating activities:
Rs.
Profit and Loss Balance on 1st April, 2017 25,000
Profit and Loss Balance on 31st March, 2018 80,000
Depreciation on Fixed Assets 12,500
Amortization of Goodwill 8,000
Loss on Sale of Machine 20,000
Provision for Taxation 15,000
Transfer to General Reserve 30,000
Decrease in Trade Receivables 22,800
Decrease in Trade Payables 4,700
Outstanding Expenses on 1st April, 2017 5,000
Outstanding Expenses on 31st March, 2018 6,500
Prepaid Expenses on 1st April, 2017 2,000

ILLUSTRATION 21.
From the following particulars, calculate cash flows from investing activities:
Purchased (Rs.) Sold (Rs.)
Plant 6,20,000 2,00,000
Investments 2,40,000 80,000
Goodwill 1,00,000 -
Patents 1,50,000

Interest received on debentures held as investment Rs. 8,000.

Interest paid on debentures issued Rs. 15,000.
Dividend received on shares held as investment Rs. 20,000.
Dividend paid on equity share capital Rs. 25,000.
A plot of land was purchased out of the surplus funds for investment
purposes and was let out for commercial use and rent received Rs. 30,000.

ILLUSTRATION 23.
Calculate Cash Flows from Investing Activities from the following
information:
Particulars 31st March 2015 31st March 2014
Investment in shares of Miko Ltd. 18,00,000 8,00,000
12% Long Term Investments 1,50,000 5,00,000
Plant and Machinery 6,00,000 4,00,000
Goodwill 1,20,000 40,000
Additional information:
(i) 9% dividend was received from Miko Ltd.
(ii) A machine costing Rs. 50,000 (depreciation provided thereon Rs.
15,000) was sold for Rs. 40,000. Depreciation charged during the year
was Rs. 55,000.

ILLUSTRATION 24.

Form the following information calculate the amount Cash Flows from
Investing Activities:

Particulars 31st March 2015 31st March 2014

Plant and Machinery 8,50,000 10,00,000
Noncurrent Investments 40,000 1,00,000
Land (At cost) 2,00,000 1,00,000
Additional Information:

(i) Depreciation charged on Plant and Machinery was Rs. 50,000.

(ii) Plant and Machinery with a book value of Rs. 60,000 was sold for Rs.
40,000.
(iii) Land was sold at a gain of Rs. 60,000.

ILLUSTRATION 26.

From the following particulars, calculate Cash from Investing Activities:

Particulars Opening Balances Closing Balances

Plant & Machinery (at cost) 3,00,000 3,20,000
Accumulated Depreciation 90,000 1,00,000
Patents 2,60,000 1,40,000
Goodwill 80,000 1,00,000
Additional Information:

During the year:

(i) Depreciation charged on Plant and Machinery Rs. 36,000.

(ii) A machine having a book value of Rs. 20,000 was sold for Rs. 16,000.
(iii) Patents having a book value of Rs. 80,000 was sold for Rs. 1,10,000.

ILLUSTRATION 27.

The following balance appeared in the Plant & Machinery Account and
Accumulated Depreciation Account in the books of Piyush Ltd:

Balance as at 31.3.2014 (Rs.) 31.3.2013 (Rs.)

Plant & Machinery 9,32,000 8,50,000

Less : Accumulated Depreciation (4,40,000) (4,32,000)

During the year 2013-14, the company provided depreciation amounting to

Rs. 80,000 and a machine costing Rs. 1,05,000 was sold at a profit of 20% on its
book value.

You are required to calculate Cash from Investing Activities.

ILLUSTRATION 29.

From the following particulars of Bharat Gas Limited, calculate Cash Flows
from Investing Activities. Also show the workings clearly preparing the
ledger accounts.

Assets 31.3.2017 (Rs.) 31.32018 (Rs.)

Goodwill 1,00,000 3,00,000
Patents 2,80,000 1,60,000
Machinery 10,20,000 12,40,000
10% Long term investment 60,000 1,60,000
Investment in land 1,00,000 1,00,000
Shares of Amar tax Ltd. 1,00,000 1,00,000
Additional Information:

1. Patents were written off to the extent of Rs. 40,000 and some Patents were
sold at a profit of Rs. 20,000.
2. A Machine costing Rs. 1,40,000 (Depreciation provided thereon Rs. 60,000)
was sold for Rs. 50,000. Depreciation charged during the year was Rs.
1,40,000.
3. On March 31, 2018, 10% Investments were purchased for Rs. 1,80,000 and
some Investments were sold at a profit of Rs. 20,000. Interest on
Investment was received on March 31, 2018.
4. Amartax Ltd. paid Dividend @ 10% on its shares.
5. A plot of Land was purchased out of surplus funds for investment
purposes and let out for commercial use and rent received Rs. 30,000.

ILLUSTRATION 30.

From the following activities, calculate cash flows from financing activities:

31.3.2018 (Rs.) 31.3.2017 (Rs.)

Equity Share Capital 8,00,000 6,00,000
12% Preference Share Capital - 2,00,000
14% Debentures 1,00,000 -
Additional Information:

(i) Equity Shares were issued at a premium of 15%.

 (ii) 12% Preference Shares were redeemed at a premium of 5%.
(iii) 14% debentures were issued at a discount of 1%.
(iv) Dividend paid on old Preference Shares Rs. 24,000.
(v) Interest paid on debentures Rs. 14,000.
(vi) Underwriting commission of Equity Shares Rs. 10,000.
(vii) Proposed Dividend on Equity Shares for the year ended 31.3.2018 Rs.
1,20,000.
(viii) Proposed Dividend on Equity Shares for the year ended 31.3.2017 Rs.
90,000.

ILLUSTRATION 31.

From the following particulars from Rajeshwar Ltd, calculate:

(i) Cash Flows from Operating Activities, and

(ii) Cash Flows from Financing Activities.

31.3.2017 (Rs.) 31.3.2018 (Rs.)

Equity Share Capital 6,00,000 10,00,000
18% Preference Share Capital 4,00,000 3,00,000
Securities Premium Reserve 1,00,000 2,60,000
14% debentures 2,00,000 2,50,000
Discount on Debentures 5,000 6,000
Unserwriting commission on issue of - 20,000
Shares
Bank Overdraft 1,00,000 1,50,000
Interest on Bank Overdraft 15,000 20,000
Profit & Loss Balance 3,50,000 5,00,000
Additional Information:

1. Preference shares were redeemed on 31st March, 2018 at a premium of 5%.

Such premium has been provided out of profit.
2. New shares and debentures were issued on March 31, 2018.
3. Dividend on preference shares was paid.
4. Proposed Dividend on Equity Share Capital was:
For 31st March 2018 @ 20%
For 31st March 2017 @ 15%.

ILLUSTRATION 33.

From the following information of X Ltd., Calculate Cash flows financing activities:

Particulars 31st March, 2018 31st March, 2017

Equity Share Capital 30,00,000 20,00,000
12% Debentures - 3,00,000
10% Debentures 5,00,000 -
Bank Overdraft 80,000 1,00,000
Additional Information:

(i) During the year 2017-18, X Ltd. issued bonus shares in the ratio of 2 : 1 by
capitalizing reserve.
(ii) 12% Debentures were redeemed on 1st July 2017 and new 10% Debentures
were issued on the same date at a discount of 5%.
(iii) Proposed Dividend on equity share capital for previous year ended 31st
March 2017 was paid @ 8%.
(iv) Interest paid on Bank Overdraft Rs. 10,000.

ILLUSTRATION 35.

Prepare a Cash Statement from the following Balance Sheets of Gujarat Spinning
Mills Ltd.

Particulars Note 31.3.2018 (Rs.) 31.3.2017 (Rs.)

No.
I. EQUITY AND
LIABILITIES :
(1) Shareholder’s Funds:
(a) Share Capital 5,00,000 4,00,000
(b) Reserve & Surplus 1 3,05,000 2,10,000

(2) Non-Current Liabilities:

Long-term Borrowing 2 3,10,000 3,00,000

(3) Current Liabilities:

Trade Payables 95,000 80,000

TOTAL 12,10,000 9,90,000

II. ASSETS:
(1) Non-Current Assets:
(a) Fixed Assets 7,00,000 5,00,000
(b) Non-Current
Investments 56,000 70,000

(2) Current Assets:

(a) Inventory 2,80,000 2,10,000
(b) Trade Receivable 3 1,14,000 1,40,000
(c) Cash & Bank Balance 60,000 70,000

TOTAL 12,10,000 9,90,000

Notes: (1) Reserve & Surplus: 31.3.2018 (Rs.) 31.3.2017 (Rs.)

 General Reserve 1,15,000 1,00,000

Profit & Loss Balance 1,90, 000 1,10,000

3,05,000 2,10,000

(2)Long-term Borrowings:
12% Debentures 1,50,000 2,00,000
14% Mortgage Loan 1,60,000 1,00,000
3,10,000 3,00,000
(3) Trade Receivables:
Sundry Debtors 94,000 1,25,000
Bills Receivables 20,000 15,000
1,14,000 1,40,000

Total interest paid on long-term borrowings during the year amounted to Rs.
37,800.

ILLUSTRATION 36.

From the following Balance Sheets of Aruna Sugars Ltd., you are required to prepare
a statement of Cash-Flow:-

Particulars Note No. 31-3-2018 (Rs.) 31-3-2017 (Rs.)

I. EQUITY AND
LIABILITIES:
(1) Shareholder’s Funds:
(a) Share Capital 3,00,000 2,00,000
(b) Reserve and Surplus 1 54,000 40,000

(2) Non-Current Liabilities

Long-term Borrowings 2 95,000 50,000

(3) Current Liabilities

(a) Trade Payables 90,000 75,000
(b) Other Current Liabilities 3 35,000 25,000

TOTAL 5,74,000 3,90,000

II. ASSETS:
(1) Non-Current Assets:
(a) Fixed Assets:
(i) Tangible Assets 4 1,70,000 90,000
(ii) Intangible Assets 5 67,000 1,05,000
(b) Non-Current
Investments 65,000 40,000

(2) Current Assets:

 (a) Current Investments 6 15,000 10,000
(b) Inventory 90,000 50,000
(c) Trade Receivables 1,20,000 50,000
(d) Cash and Bank Balance 39,000 35,000
(e) Other Current Assets 7 8,000 10,000

TOTAL 5,74,000 3,90,000

Note: 31.3.2018 (Rs.) 31.3.2017 (Rs.)

(1) Reserve and Surplus:

Security Premium Reserve 6,000 -
Surplus i.e., Balance in Statement of
Profit & Loss 48,000 40,000

54,000 40,000
(2) Long-term Borrowings:
Pubic Deposits 95,000 50,000
(3) Other Current Liabilities:
Outstanding Expenses 35,000 25,000
(4) Tangible Assets:
Land & Buildings 1,70,000 90,000
(5) Intangible Assets:
Goodwill 60,000 90,000
Patents 7,000 15,000
67,000 1,05,000
(6) Current Investments:
Marketable Securities 15,000 10,000
(7) Other Current Assets :
Prepaid Expenses 8,000 10,000

Additional Information:

(1) Interest paid on public deposits amounted to Rs. 9,000.

(2) On 1st April, 2017, 10,000 shares of Rs. 10 each were issued at 6% premium.

ILLUSTRATION 37.

Following are the Balance Sheets of X Ltd. for two years. Prepare a Cash Flow
Statement:

Particulars Note 31.3.2018 (Rs.) 31.3.2017 (Rs.)

No.
I. EQUITY AND LIABILTIES:
(1) Shareholder’s Funds:
(a) Share Capital 3,00,000 2,00,000
(b) Reserve & Surplus 80,000 30,000
(2) Non-Current Liabilities:
 Long-term Borrowings 1 - 75,000
(3) Current Liabilities:
(a) Short-term Borrowings 2 25,000 37,000
(b) Trade Payables 1,50,000 96,000
(c) Short term Provision (Provision
for Tax) 15,000 12,000

TOTAL 5,70,000 4,50,000

II. ASSETS
(1) Non-Current Assets:
Fixed Assets 3 3,40,000 3,00,000
(2) Current Assets:
(a) Current Investments (Short-
term Investments) 30,000 20,000
(b) Inventory 90,000 60,000
(c) Trade Receivables 97,000 65,000
(d) Cash & Bank Balances 13,000 5,000

TOTAL 5,70,000 4,50,000

Notes: 31.3.2018 (Rs.) 31.3.2017 (Rs.)

(1) Long-term Borrowings:

15% Loan - 75,000
(2) Short-term Borrowings:
Bank Overdraft 25,000 37,000
(3) Fixed Assets:
Plant & Machinery 4,00,000 3,50,000
Less: Accumulated Depreciation 60,000 50,000

3,40,000 3,00,000

Additional Information:

(1) Contingent liability: 31.3.2018 (Rs.) 31.3.2017 (Rs.)

Proposed Dividend 30,000 20,000
(2) Loan was repaid on 1st April, 2017.

ILLUSTRATION 38.

Following is the Balance Sheet of R.S. Ltd. as at 31st March, 2018:

R.S. Ltd. Balance Sheet as at 31-3-2018

Particulars Note 31.3.2018 31.3.2017

 No. (Rs.) (Rs.)
I. Equity and Liabilities
(1) Shareholder’s Funds
(a) Share Capital
(b) Reserves and Surplus 9,00,000 7,00,000
(2) Non-current Liabilities
Long-term borrowing (12% Debentures) 2,50,000 1,00,000
(3) Current Liabilities
(a) Short-term borrowings
(b) Trade Payables
4,50,000 3,50,000

II. Assets 1,50,000 75,000

(1) Non-current Assets
(a) Fixed Assets 2,00,000 1,25,000
(i) Tangible
(ii) Intangible (Goodwill)
(b) Non-current Investments 19,50,000 13,50,000
(2) Current Assets
(a) Current Investments
(b) Inventories
(c) Cash and Bank Balances

14,65,000 9,15,000

1,00,000 1,50,000

1,50,000 1,00,000

40,000 70,000

1,22,000 72,000

73,000 43,000

19,50,000 13,50,000

Notes to Accounts:
 Particulars Note 31-3-2018 31-3-2017
No. (Rs.) (Rs.)
I. Equity and Liabilities
(1) Shareholder’s Funds
(a) Share Capital 9,00,000 7,00,000
(b) Reserves and Surplus 2,50,000 1,00,000
(2) Non-current Liabilities
Long-term borrowings (12%
Debentures) 4,50,000 3,50,000
(3) Current Liabilities
(a) Short-term borrowings
(b) Trade Payables 1 1,50,000 75,000
2,00,000 1,25,000

19,50,000 13,50,000

II. Assets
(1) Non-current Assets
(a) Fixed Assets 2
(i) Tangible
(ii) Intangible 14,65,000 9,15,000
(Goodwill)
(b) Non-current Investments 1,00,000 1,50,000
(2) Current Assets
(a) Current Investments 1,50,000 1,00,000
(b) Inventories
(c) Cash and Bank Balance 40,000 70,000
1,22,000 72,000

TOTAL 73,000 43,000

19,50,000 13,50,000

Notes to Accounts:

Note Particulars 31-3-2018 (Rs.) 31-3-2017 .)

No.
1. Short-term borrowings- Bank 1,50,000 75,000
overdraft

2. Tangible Assets
Machinery 16,75,000 10,55,000
Accumulated Depreciation (2,10,000) (1,40,000)

14,65,000 9,15,000
Additional Information:

(1) Contingent Liability: 31.3.2018 (Rs.) 31.3.2017 (Rs.)

Proposed Dividend 2,00,000 1,25,000

(2) Rs. 1,00,000, 12% Debentures were issued on 31-3-2018.
(3) During the year a price of machinery costing Rs. 80,000, on which
accumulated depreciation was Rs. 40,000, was sold at a loss of Rs. 10,000.

Prepare a Cash Flow Statement.

ILLUSTRARION 41.

You are required to prepare a Cash-Flow Statement (as per AS-3 ) for the year
2016-17 from the following Balance Sheets.

Balance Sheets of Honesty Ltd.

as at 31st March, 2016 and 31st March, 2017

Particulars Note 31-3-2017 (Rs.) 31-3-2016 (Rs.)

No.
I. EQUITY AND
LIABILTIES :
(1) Shareholder’s Funds:
(a) Share Capital (Equity
Share Capital) 14,00,000 10,00,000
(b) Reserve and Surplus
(Statement of P & L) 5,00,000 4,00,000
(2) Non-Current Liabilities:
Long Term Borrowings
(10% Debentures) 5,00,000 1,40,000
(3) Current Liabilities:
(a) Short Term
Borrowings (Bank
Overdraft) 20,000 30,000
(b) Trade Payables
(Creditors) 1,00,000 60,000
(c) Short Term Provisions 1 60,000 30,000

TOTAL 25,80,000 16,60,000

II. ASSETS:
(1) Non-Current Assets:
Fixed Assets:
(i) Tangible 16,00,000 9,00,000
(ii) Intangible 1,40,000 2,00,000
 (Goodwill)
(2) Current Assets :
(a) Inventory 2,50,000 2,00,000
(b) Trade Receivables 5,00,000 3,00,000
(c) Cash & Bank Balance
(Cash at Bank) 90,000 60,000

TOTAL 25,80,000 16,60,000

Notes to Accounts:

Particulars 31-3-2017 (Rs.) 31-3-2016 (Rs.)

1. Short term provisions:
Provision for taxation 60,000 30,000
2. Fixed Assets (Tangible)
Plant and Machinery 17,60,000 10,00,000
Less: Accumulated Depreciation (1,60,000) (1,00,000)
Additional Information:

During the year 2016-17:

(i) A part of the machine, costing Rs. 50,000, accumulated depreciation

thereon being Rs. 20,000, was sold for Rs. 18,000.
(ii) Tax paid Rs. 20,000.
(iii) Interest paid on Debentures Rs. 50,000.

ILLUSTRATION 42.

Following are the Balance Sheets of X Ltd.

BALANCE SHEET as at …………….

Particulars Note 31.3.2019(Rs.) 31.3.2018(Rs.)

no.
I. EQUITY AND LIABILITIES:
(1) Shareholder’s Funds:
(a) Share Capital 4,50,000 4,50,000
(b) Reserve & Surplus 1 4,78,000 3,56,000
(2) Non-Current Liabilities:
Long-term Borrowings 2 1,70,000 -
(3) Current Liabilities:
(a) Trade Payables 1,09,000 2,03,000
(b) Short term Provision 3 35,000 40,000

TOTAL 12,42,000 10,49,000

II. ASSETS
(1) Non-Current Assets:
Fixed Assets:
(i) Tangible Assets 4 3,20,000 4,00,000
 (ii) Intangible Assets 5 60,000 50,000
(2) Current Assets:
(a) Current Investments
(Short-term) 70,000 78,000
(b) Inventory 1,70,000 2,15,000
(c) Trade Receivables 4,55,000 2,10,000
(d) Cash and Bank 1,67,000 96,000

TOTAL 12,42,000 10,49,000

Notes: (1) Reserve & Surplus: 31.3.2019 (Rs.) 31.3.2018 (Rs.)

Retained Earnings 4,78,000 3,56,000

(2)Long-term Borrowings:

Mortgage Loan 1,70,000 -

(3) Short term Provision:

Provision for Taxation 35,000 40,000
(4) Tangible Assets:
Land 1,40,000 2,50,000
Plant & Machinery 1,80,000 1,50,000
(5) Intangible Assets:
Goodwill 60,000 50,000

Additional Information:-

(i) Gain on sale of Land Rs. 30,000.

(ii) Depreciation on Plant & Machinery was provided at 10% on last year’s
balance.
(iii) Interest paid on Mortgage Loan amounted to Rs. 24,300.
(iv) Provision for income tax made during the year 2018-19 was Rs. 32,000.

ILLUSTRATION 43.

The Balance Sheets of Rajneesh Ltd., for the years ending on 31st March 2019 and
2018 were as follows:

Particulars Note No. 2019 (Rs.) 2018 (Rs.)

I. EQUITY AND LIABILITIES:
(1) Shareholder’s Funds:
(a) Share Capital 1,25,000 1,00,000
(b) Reserve and Surplus 1 33,800 30,250
(2) Non-Current Liabilities:
Long-Ter Borrowings 7,500 10,000
(3) Current Liabilities:
(a) Short-term Borrowings 2 - 35,000
 (b) Trade Payables 72,000 75,000
(c) Short-term Provisions 3 16,500 15,000

TOTAL 2,55,400 2,65,250

II. ASSETS:
(1) Non-Current Assets:
Fixed Assets 4 1,82,000 1,75,000
(2) Current Assets:
(a) Inventories 37,000 50,000
(b) Trade Receivables 32,100 40,000
(c) Cash and Bank Balances 5 4,300 250

TOTAL 2,55,400 2,65,250

Notes:

(1) Reserve and Surplus: 2019 (Rs.) 2018 (Rs.)

Profits & Loss Balance 33,800 30,250
(2) Short-term Borrowings:
Bank Overdraft - 35,000
(3) Short-term Provisions:
Provision for Tax 16,500 15,000
(4) Fixed Assets:
Land & Buildings 95,000 1,00,000
Plant & Machinery 87,000 75,000
(5) Cash & Bank Balance:
Cash in hand 300 250
Bank Balance 4,000 -

4,300 250

Additional Information:

(i) Depreciation written off on Land & Buildings during the year 2018-19 was
Rs. 6,000.
(ii) Land was purchased for Rs. 19,000 during the year 2018-19.

Prepare the Cash Flow Statement Rajneesh Ltd.

ILLUSTRATION 44.

From the following Balance Sheets of Surya Roshni Ltd., as at 31st March 2012
and 2011, prepare a statement of cash flow:

Particulars Note 2012 (Rs.) 2011 (Rs.)

No.
I. EQUITY AND LIABILITIES:
(1) Shareholder’s Funds:
 (a) Share Capital 4,75,000 4,00,000
(b) Reserve and Surplus 1 1,16,000 (30,000)
(2) Non-Current Liabilities:
Long-term Borrowings 2 2,50,000 2,00,000
(3) Current Liabilities:
(a) Trade Payables 1,10,000 50,000
(b) Short term Provision 3 16,000 10,000

TOTAL 9,67,000 6,30,000

II. ASSETS:
(1) Non-Current Assets:
(a) Fixed Assets 4 4,52,000 1,70,000
(b) Non-Current 45,000 40,000
Investments
(2) Current Assets:
(a) Current Investments
(Short-term) 30,000 50,000
(b) Inventory 2,00,000 1,50,000
(c) Trade Receivables 56,000 1,76,000
(d) Cash & Bank 1,84,000 44,000

TOTAL 9,67,000 6,30,000

Notes:

(1) Reserve & Surplus: 2012 (Rs.) 2011 (Rs.)

Securities Premium 60,000 -
Profit & Loss Balance 56,000 (30,000)

1,16,000 (30,000)

(2) Long-term Borrowings:

15% Debentures 2,50,000 2,00,000
(3) Short term Provision:
Provision for Doubtful Debts 14,000 10,000
Provision for Repairs 2,000 -
16,000 10,000

(4) Fixed Assets: 5,00,000 2,00,000

Less: Accumulated Depreciation 48,000 30,000
4,52,000 1,70,000

Additional Information:-

I. Interim Dividend paid during the year Rs. 36,000.

II. Non-Current Investments costing Rs. 10,000 were sold at a profit of 40%.
III. Tangible Fixed Assets Costing Rs. 20,000 (accumulated depreciation Rs.
8,000) were sold for Rs. 17,000.
IV. Additional debentures amounting to Rs. 50,000 were issued at par on 1st
August 2011. Interest on debentures has been paid regularly.