1. The summarized balance sheet of Bharthesh Ltd. as on 31.3.21 and 31.3.
2022 are
as
follows:
Liabilities 2021 2022 Assets 2021 2022
Share capital 4,50,000 4,50,000 Fixed asset 4,00,000 3,20,000
General Reserve 3,00,000 3,10,000 Investment 50,000 60,000
P & L a/c 56,000 68,000 Stock 2,40,000 2,10,000
Creditors 1,68,000 1,34,000 Debtor 2,10,000 4,55,000
Tax provision 75,000 10,000 Bank 1,49,000 1,97,000
Mortgage loan - 2,70,000
10,49,00 12,42,00 10,49,000 12,42,00
0 0 0
Additional Details:
1. Investment costing Rs. 8,000 were sold for Rs. 8,500
2. Tax provision made during the year was Rs. 9,000
3. During the year part of fixed assets costing Rs 10,000 was sold for Rs 12,000 and
the profit was included in P & L A/c. You are required to prepare cash flow statement
for 2022.
Opening balance of Fixed assets 2022 – 400000
Sale (12000) Profit 2000 10000
390000
Closing balance 2022. 320000
Depreciation 70000
Investments opening 50000
Sale -8500(500 profit) 8000
42000
Closing 2022 60000
Purchase 18000
Fixed Assets A/c
Particulars Amount Particulars Amount
To Balance B/d 400000 By Bank A/c (Sale) 12000
To P&L A/c(profit on sale) 2000 By Depreciation a/c 70000
By balance C/d 320000
402000 402000
Investment A/c
Particulars Amount Particulars Amount
To Balance B/d 50000 By Bank A/c (Sale) 8500
To P&L A/c(profit on sale) 500 By balance C/d 60000
To Bank a/c (Purchase) 18000
68500 68500
Tax provision A/c
Particulars Amount Particulars Amount
To Bank a/c (Tax Paid) 74000 By Balance B/d 75000
To Balance C/d 10000 By P & L A/c(Provision) 9000
84000 84000
Cash Flow Statement for the year ended 31/03/2022 (Indirect Method)
Particulars Amount
A. Cash Flow From Operating Activities:
Net Profit Before Tax and Extra ordinary items (cal)
Difference b/n P & L a/c 12000
Transfer to General Reserve 10000
Dividend paid -
Tax Provision 9000
31000
Add: Depreciation and amortisation 70000
Loss on Sale of Assets -
Less: Profit on Sale of Fixed assets (2000)
Profit on sale of Investments (500)
Net profit before working capital changes 98500
Add: Decrease in Currents Assets / Increase in Current
Liabilities 30000
Decrease in stock (240000-210000)
Less: Increase in Currents Assets / Decrease in Current (245000)
Liabilities (34000)
Increase in Debtor (210000-455000)
Decrease in Creditors (168000 – 134000)
Net Profit before tax (150500)
Less: Income Tax paid (74000)
Cash Flow From Operating Activities (A) (22450
0)
B. Cash Flow From investing Activities
+ Sale of Fixed assets 12000
+ sale of Investments 8500
- Purchase of Investments (18000)
Cash Flow From investing Activities (B) 2500
C. Cash Flow From Financing Activities
+Issues of shares , Debentures. And -
+ Bank loan procured – Mortgage Loan 270000
- Redemption of shares/debentures or Repayment of loan -
- Interest paid/dividend paid -
Cash Flow From Financing Activities (C) 270000
Net cash Flow from all activities (A+B+C) 48000
Add: Opening Bank Balance 149000
Closing bank balance 197000
2. The summarized balance sheet of Jay Ltd as on 31.3.21 and 31.3.2022 are as
follows:
Liabilities 2021 2022 Assets 2021 2022
Share capital 1,00,00 1,00,000 Building 46,800 45,000
General Reserve 0 42,000 Plant and Machinery 38,280 42,030
Creditors 38,400 6,380 Goodwill 13,000 13,000
Tax provision 9,750 21,000 Investment 10,000 11,250
Prov. for doubtful 19,000 1,200 Stock 30,000 28,000
debt 1,000 Debtor 22,070 22,300
Cash 8,000 9,000
1,68,15 1,70,580 1,68,15 1,70,58
0 0 0
After taking the following information in to account, prepare a cash flow statement for
the year ending 31.12.2022
1. The profit for 2021‐2022 was Rs.8,600 against this had been charged Dep. Rs.
3,050
and increase in provision for doubtful debt Rs.200
2. Income tax Rs.18,000 was paid during the year charged against the provision and
in
addition Rs.20,000 was charged against profit and carried to the provision.
3. An interim dividend Of Rs.5,000 was paid in January 2022
4. Additional plant was purchased in September 2021 for Rs.5,000
5. Investments (cost Rs.5,000) were sold 2022 for Rs. 4800 and on 1st march 2022
another investment was made for Rs. 6,250.
P & M A/c
Particulars Amount Particulars Amount
To balance B/d 38280 By Depreciation 1250
To Bank A/c (Purchase) 5000 By Balance c/d 42030
43280 43280
Investment A/c
Particulars Amount Particulars Amount
To Balance B/d 10000 By Bank A/c (sale) 4800
To Bank a/c (Purchase) 6250 By P & L A/c (Loss on sale) 200
By Balance c/d 11250
16250 16250
Tax provision A/c
Particulars Amount Particulars Amount
To Bank A/c (Tax Paid) 18000 By balance B/d 19000
To Balance C/d 21000 By P & L A/c 20000
39000 39000
Cash Flow Statement for the year ended 31/03/2022 (Indirect Method)
Particulars Amoun
t
A. Cash Flow From Operating Activities:
Net Profit Before Tax and Extra ordinary items
Difference b/n P & L a/c -
Transfer to General Reserve 3600
Dividend paid 5000
Tax Provision 20000
28600
Add: Depreciation
On P & M 1250
On building 1800
Loss on Sale of Assets 200
Less: Profit on Sale of Fixed assets -
Net profit before working capital changes 31850
Add: Decrease in Currents Assets / Increase in Current
Liabilities 2000
Decrease in stock 200
Increase in Provision
Less: Increase in Currents Assets / Decrease in Current (230)
Liabilities (3370)
Increase in Debtor
Decrease in Creditors
Net Profit before tax 30450
Less: Income Tax paid (18000)
Cash Flow From Operating Activities (A) 12450
B. Cash Flow From investing Activities
+ Sale of investments 4800
- Purchase of Investments (6250)
- Purchase of Plant (5000)
Cash Flow From investing Activities (B) (6450)
C. Cash Flow From Financing Activities
+Issues of shares , Debentures. And -
+ Bank loan procured – Mortgage Loan -
- Redemption of shares/debentures or Repayment of loan -
- Interim dividend paid (5000)
Cash Flow From Financing Activities (C) (5000)
Net cash Flow from all activities (A+B+C) 1000
Add: Opening Bank Balance 8000
Closing bank balance 9000
