Answer Either Question No. 11 or Question No. 12
From the following Balance Sheet of A Ltd., prepare Cash Flow Statement for the year ended on 31st March, 2023. (As per Accounting Standard)
| Particulars | Note No. | 31st March, 2023 (₹) | 31st March, 2022 (₹) |
|---|---|---|---|
| I. EQUITY AND LIABILITIES | |||
| 1. Shareholders' Funds | |||
| (a) Share Capital | 1,00,000 | 80,000 | |
| (b) Reserves and Surplus | 1 | 80,000 | 30,000 |
| 2. Non-Current Liabilities | |||
| Long-term Borrowing (10% Loan) | — | 75,000 | |
| 3. Current Liabilities | |||
| (a) Trade Payables | 90,000 | 46,000 | |
| (b) Short-term Borrowings | 45,000 | 32,000 | |
| Total | 3,15,000 | 2,63,000 | |
| II. ASSETS | |||
| 1. Non-Current Assets | |||
| Property, Plant & Equipment | 90,000 | 1,50,000 | |
| 2. Current Assets | |||
| (a) Inventories | 95,000 | 43,000 | |
| (b) Trade Receivables | 97,000 | 65,000 | |
| (c) Cash and Cash Equivalents | 33,000 | 5,000 | |
| Total | 3,15,000 | 2,63,000 |
Notes to Accounts
| Particulars | 31st March, 2023 (₹) | 31st March, 2022 (₹) |
|---|---|---|
| 1. Reserves and Surplus | ||
| Statement of Profit & Loss | 80,000 | 30,000 |
Additional Information:
Depreciation ₹ 10,000 has been charged on Plant & Machinery.
Or
What is Cash Flow Statement? What are the objectives of preparing it?
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Start your 14-day free trial to unlock the full solution →Cash Flow Statement of A Ltd.: Operating ₹27,500, Investing ₹50,000, Financing (₹49,500); net increase ₹28,000, reconciling opening cash ₹5,000 to closing ₹33,000.
Workings: Net profit for the year = increase in Statement of P&L = 80,000 − 30,000 = ₹50,000. Property, Plant & Equipment: Opening 1,50,000 − Depreciation 10,000 = 1,40,000; Closing 90,000 → book value of PPE sold (no purchase) = ₹50,000 (sold at book value, no gain/loss). Interest on 10% Loan (₹75,000 outstanding during the year) = ₹7,500 — added back in operating and shown as a financing outflow.
Cash Flow Statement of A Ltd. for the year ended 31st March, 2023
| Particulars | ₹ | ₹ |
|---|---|---|
| A. Cash Flow from Operating Activities | ||
| Net Profit for the year (80,000 − 30,000) | 50,000 | |
| Add: Depreciation | 10,000 | |
| Add: Interest on 10% Loan | 7,500 | |
| Operating Profit before Working Capital changes | 67,500 | |
| Add: Increase in Trade Payables | 44,000 | |
| Less: Increase in Inventories | (52,000) | |
| Less: Increase in Trade Receivables | (32,000) | |
| Net Cash from Operating Activities | 27,500 | |
| B. Cash Flow from Investing Activities | ||
| Sale of Property, Plant & Equipment | 50,000 | |
| Net Cash from Investing Activities | 50,000 | |
| C. Cash Flow from Financing Activities | ||
| Issue of Share Capital | 20,000 | |
| Increase in Short-term Borrowings | 13,000 | |
| Repayment of 10% Loan | (75,000) | |
| Interest paid on 10% Loan | (7,500) | |
| Net Cash used in Financing Activities | (49,500) | |
| Net Increase in Cash & Cash Equivalents (A+B+C) | 28,000 | |
| Add: Opening Cash & Cash Equivalents | 5,000 | |
| Closing Cash & Cash Equivalents | 33,000 | |
| … |
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