Subject: 12TH ACC
Topic: Cash Flow
Confidence Holds Our Heads High
QUESTIONS
1. From the following Balance Sheet, prepare Cash Flow Statement:
Particulars Note No. 31st Mar, 2019 31st Mar, 2018
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 2,50,000 2,00,000
(b) Reserves and Surplus, 1 90,600 80,500
2. Current Liabilities
(a) Short-term Borrowings: Bank Loan ... 70,000
(b) Trade Payables 1,35,200 1,50,000
(c) Short-term Provisions:
(Provision for Tax) 35,000 30,000
Total 5,10,800 5,30,500
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets:
(i) Tangible Assets 2 3,59,000 3,50,000
(ii) Intangible Assets: Goodwill 5,000 ...
2. Current Assets
(a) Inventories 74,000 1,00,000
(b) Trade Receivables 64,200 80,000
(c) Cash and Cash Equivalents 8,600 500
Total 5,10,800 5,30,500
Notes to Accounts
Particulars 31st Mar, 2019 31st Mar, 2018
I. Reserves and Surplus
General Reserve 60,000 50,000
Surplus, i.e., Balance in P/L Statement 30,600 30,500
90,600 80,500
2. Tangible Assets
Land and Building 1,90,000 2,00,000
Plant and Machinery 1,69,000 1,50,000
3,59,000 3,50,000
Additional Information:
(a) Proposed Dividend for the year ended 31st March, 2019 was ₹25,000 and for the year
ended 31st March, 2018 was ₹14,000.
(b) Interim Dividend paid during the year was ₹9,000.
(c) Income Tax paid during the year was ₹28,000.
(d) Machinery was purchased during the year ₹33,000.
(e) Depreciation to be charged on machinery ₹14,000 and building ₹10,000.
2. Following was the Balance Sheet of M.M. Ltd. as at 31st March, 2015:
Particulars Note No. 31st Mar 2015 31st Mar 2014
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 5,00,000 4,00,000
(b) Reserves and Surplus 1 2,00,000 (50,000)
2. Non-Current Liabilities
(a) Long-term Borrowings 2 4,50,000 5,00,000
3. Current Liabilities
(a) Short-term Borrowings 3 1,50,000 50,000
(b) Short-term Provisions 4 70,000 90,000
Total 13,70,000 9,90,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets:
(i) Tangible Assets 5 10,03,000 7,20,000
(ii) Intangible Assets 6 20,000 30,000
(b) Non-Current Investments 1,00,000 75,000
2. Current Assets
(a) Current Investments 50,000 60,000
(b) Inventories 7 1,07,000 45,000
(c) Cash and Cash Equivalents 90,000 60,000
Total 13,70,000 9,90,000
Notes to Accounts:
Particular 31st Mar 2015 31st Mar 2014
Reserves and Surplus
Surplus, i.e., Balance in P/L Statement 2,00,000 (50,000)
Long-term Borrowings – 12% Debentures 4,50,000 5,00,000
Short-term Borrowings - Bank Overdraft 1,50,000 50,000
Short-term Provisions - Provision for Tax 70,000 90,000
Tangible Assets
Machinery 12,03,000 8,21,000
Less: Accumulated Depreciation (2,00,000) (1,01,000)
10,03,000 7,20,000
Intangible Assets - Goodwill 20,000 30,000
Inventories - Stock-in-Trade 1,07,000 45,000
Additional Information:
1.12% Debentures were redeemed on 31st March, 2015.
[Link] ₹70,000 was paid during the year.
Prepare Cash Flow Statement.
3. Following is the Balance Sheet of Mevanca Limited as at 31st March, 2017:
Mevanca Limited
BALANCE SHEET as at 31st March, 2017:
Particulars Note No. 31st Mar, 2017 31st Mar, 2016
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 3,00,000 1,00,000
(b) Reserves and Surplus 1 25,000 1,20,000
2. Non-Current Liabilities
Long-term Borrowings 2 80,000 60,000
3. Current Liabilities
(a) Trade Payables 6,000 20,000
(b) Short-term Provisions 3 68,000 70,000
Total 4,79,000 3,70,000
II. ASSETS
1. Non-Current Assets
Fixed Assets 4 3,36,000 1,92,000
2. Current Assets
(a) Inventories 67,000 60,000
(b) Trade Receivables 51,000 65,000
(c) Cash and Cash Equivalents 25,000 49,000
(d) Other Current Assets … 4,000
Total 4,79,000 3,70,000
Notes to Accounts:
Particulars 31st Mar, 2017 31st Mar, 2016
1. Reserves and Surplus
Surplus, i.e., Balance in P/L Statement 25,000 1,20,000
25,000 1,20,000
2. Long-term Borrowings
10% Long-term Loan 80,000 60,000
80,000 60,000
3. Short-term Provisions
Provision for Tax 68,000 70,000
68,000 70,000
4. Fixed Assets
Machinery 3,84,000 2,15,000
Accumulated Depreciation (48,000) (23,000)
3,36,000 1,92,000
Additional Information:
(i) Additional loan was taken on 1st July, 2016.
(ii) Tax of ₹53,000 was paid during the year.
Prepare Cash Flow Statement.
4. From the following Balance Sheet of Mishi Ltd. as at 31st March, 2019, prepare Cash Flow
Statement:
Particulars Note No. 31st Mar, 2019 31st Mar, 2018
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 16,00,000 12,00,000
(b) Reserves and Surplus 1 6,60,000 4,40,000
2. Non-Current Liabilities
(a) Long-term Borrowings
- (10% Debentures) 3,20,000 2,00,000
3. Current Liabilities
(a) Short-term Borrowing (Bank Loan) 80,000 1,10,000
(b) Trade Payables 1,50,000 1,80,000
Total 28,10,000 21,30,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets−Tangible 2 19,00,000 12,10,000
(b) Non-Current Investments 2,70,000 2,00,000
2. Current Assets
(a) Current Investments 1,60,000 80,000
(b) Trade Receivables 1,80,000 4,00,000
(c) Cash and Cash Equivalents 3 3,00,000 2,40,000
Total 28,10,000 21,30,000
Notes to Accounts
Particulars 31st Mar, 2019 31st Mar, 2018
1. Reserves and Surplus:
Securities Premium Reserve 20,000 ...
General Reserve 3,00,000 2,40,000
Surplus i.e., Balance in the P/L Statement 3,40,000 2,00,000
6,60,000 4,40,000
2. Fixed Assets−Tangible
Machinery (Cost) 21,40,000 14,00,000
Less: Accumulated Depreciation 2,40,000 1,90,000
19,00,000 12,10,000
3. Cash and Cash Equivalents
Cash in Hand 1,40,000 1,10,000
Bank Balance 1,60,000 1,30,000
3,00,000 2,40,000
Additional Information:
(i) During the year, Machinery costing ₹1,40,000 (accumulated depreciation provided
thereon ₹1,10,000) was sold for ₹20,000.
(ii) During the year, Non-current Investments costing ₹80,000 were sold at a profit of
₹16,000.