Cash Flow Statement

Q.1. Following is the summarized Balance sheet of ABC Ltd.

LIABILITIES 1-4-18 31-03-19 ASSETS 1-4-18 31-03-19
Share Capital 1,00,000 1,25,000 Furniture — 3,000
General Reserve 25,000 30,000 Buildings 1,05,000 96,000
P & L A/c. 15,250 15,300 Machinery 70,000 60,000
Term Loan 40,000 — Stock 40,000 32,000
Sundry Creditors 70,000 67,000 Debtors 50,000 55,000
Provision for Tax 15,000 18,000 Prepaid Expenses ------ 5,000
Cash at bank 250 4,300
2,65,250 2,55,300 2,65,250 2,55,300
Additional Information:
1. Depreciation written off during the year; Building Rs 29,000 and Machinery Rs 25,000.
2. During the year Machinery having Book Value Rs 5,000 was sold at a loss of Rs. 1,800.
3. Provision for Tax of last year is paid in the current year.
4. Dividend for the Year 2017-18 declared and paid during the year 2018-2019, Rs. 5,000.

Prepare cash flow statement for the year ended on 31st March 2019.

Q.2. Following is the balance sheet of EVER YOUNG Ltd. along with the additional information.
LABILITIES 2001 2000 ASSETS 2001 2000
Equity Share Capital 40,000 30,000 Goodwill 8,000 10,000
9% Preference Share Capital 10,000 15,000 Land & Buildings 20,000 20,000
General Reserve 7,000 4,000 Plant & Machinery 20,000 8,000
P & L A/c. 4,800 3,000 Trade Investments 5,000 3,000
Sundry Creditors 8,300 5,500 Sundry Debtors 15,000 15,000
RDD 1,600 2,000 Stock 10,900 7,700
Outstanding Expenses 5,000 4,200 Cash & Bank Bal. 1,800 2,500
Provision for tax 5,000 4,000 Preliminary Exp. 1000 1,500
Total Rs. 81,700 67,700 81,700 67,700
Additional Information: A machine has been sold for Rs. 1,000. Its written down value was Rs.
1,200. Depreciation of Rs. 1,000 is charged on plant and machinery for the year ending 31st
December, 2001 Income Tax Rs. 3,500 was paid during the year and charged against Provision for
taxation account. An interim dividend of Rs. 2,000 has been paid in the current year in addition to
Final dividend of previous year amounting to Rs. 5500

Prepare cash flow statement for the year 2000

 Q3. Following is the summarized Balance sheet of Pioneer Company Limited
LIABILITIES 2004 2005 ASSETS 2004 2005
Equity Share Cap. 4,50,000 4,50,000 Fixed Assets(Net) 4,00,000 3,20,000
General Reserve 3,00,000 3,10,000 Investments 50,000 60,000
P & L A/c. 56,000 68,000 Stock 2,40,000 2,10,000
Creditors (Trade) 1,68,000 1,34,000 Debtors-Trade 2,10,000 4,55,000
Mortgage Loan — 2,70,000 Bank Balance 1, 49,000 1,97,000
Prov. for taxation 75,000 10,000
10,49,000 12,42,000 10,49,000 12,42,000
During the year part of the fixed assets having Book Value Rs. 10,000 was sold for Rs. 12,000.
The profit was included in the profit and loss account. Dividend paid during the year was Rs.
40,000. Investments costing Rs. 8,000 were sold during the year for Rs. 8,500. Provision for
taxation made during the year was Rs. 9,000
Prepare cash flow statement for the year 2005

Q4. Prepare Cash flow statement as per AS-3 for the year ended 31st December 2001
LIABILITIES 2000 2001 ASSETS 2000 2001
Equity Share Capital 30,000 40,000 Goodwill 10,000 8,000
7% Redeemable Pref. Shares 15,000 10,000 Land 20,000 17,000
Capital Reserve — 2,000 Plant & Machinery 8,000 20,000
General Reserve 4,000 5,000 Investments 2,000 3,000
P& L A/c 3,000 4,800 Debtors 14,000 17,000
Sundry Creditors 2,500 4,700 Stock 7,700 10,900
Bills Payable 6,200 6,600 Bills Receivable 2,000 3,000
Liability for Expenses 3,000 3,600 Cash in hand 1,500 1,000
Provision for taxation 4,000 5,000 Cash at bank 1,000 800
Misc. Expenses 1,500 1,000
Total (Rs) 67,700 81,700 Total (Rs) 67,700 81,700
i) A plot of land was sold in 2001 and profit on its sale was transferred to capital reserve.
ii) A machine has been sold for Rs. 3,600 on 1-1-2001. It was originally purchased for Rs.10000/-
on 1-1-1998 and its WDV as on the date of sale was Rs. 5,120.
iii) Depreciation of Rs. 4,000 is charged on plant account in 2001.
iv) Income tax Rs. 3,500 was paid during the year and charged against provision for taxation.
v) An interim dividend of Rs. 2,000 has been paid in 2001.
vi) Investments costing Rs.500 were sold on 10-5-2001 for Rs.800 and on 10-7-200l further
investments costing Rs. 1,500 were purchased.
 Q5. From the following data, prepare a Cash Flow statement for the year ended 31st Dec,2001
Balance sheet as at 31st December, 2000 and 2001
LIABILITIES 2001 2000 ASSETS 2001 2000
Rupees Rupees Rupees Rupees
Equity Share Capital 550 400 Land 35 85
Retained Earning 336 325 Buildings 600 200
Debentures 500 250 Machinery 500 300
Accumulated depreciation 275 150 Investments (Long Terms) 70 110
Creditors 100 75 Marketable Investments 106 50
Bills Payable 50 25 Inventories 95 70
Share Premium 60 — Sundry Debtors 150 125
Cash 315 285
Total Rs. 1,871 1,225 Total Rs 1,871 1,225
Income statement for the year ended 31st December 2001 (Rs. in thousands)
Rs. Rs.
Sales (Net) 600
Cost of Goods sold 337
Gross Profit 263
Operating Expenses:
Depreciation on Machinery 50
Depreciation on Buildings 80
Other Expenses 115 245
18
Non-Operating Income
Profit on sale of long term investments 12
Dividend from Investment 15
45
Loss on sale of machinery (sale proceeds Rs. 15,000) (5)
Net Income 40
Less: Dividend Paid (29)
Net income after dividend 11

Q6. The following are the balance sheets of Z Limited as at 31st March 2002 and 2001
Liabilities 31.3.01 31.3.02 Assets 31.3.01 31.3.02
Rs. Rs. Rs. Rs.
Share capital 1,20,000 1,56,000 Goodwill — 12,000
Reserves 30,000 35,000 Building 89,100 86,550
Profit & Loss A/c. 23,814 25,732 Plant & Machinery 67,770 69,720
Sundry Creditors 23,700 19,681 Cash 1,500 1,620
Bills Payable 20,268 5,915 Sundry Debtors 51,105 43,575
Bank Overdraft 35,706 — Sundry Advances 1,389 441
Prov. for tax 24,000 30,000 Stock 66,624 58,422
2,77,488 2,72,328 2,77,488 2,72,328
The following additional information is obtained: -
1. During the year ended 31st March 2002, an interim dividend of Rs. 16,000 was paid,
2. The assets and liabilities of another company were purchased for Rs. 36000 payable in fully
paid shares of the company. These assets consisted of stock Rs. 14,984, machinery Rs. 11,016
and goodwill Rs. 12,000 and creditors Rs. 2,000. Additional plant for Rs. 3,390 was purchased.
3. Income tax paid during the year amounted to Rs. 15,000.
You are required to prepare Cash Flow statement for the year ending 31st March 2002
Q 7 From following information,
Prepare a cash flow statement of C.P. Ltd. For the year ended 31st March 2019
BALANCE SHEET
2017-18 2018-19 2017-18 2018-19
LIABILITIES ASSETS
Rs. Rs. Rs. Rs.
Share Capital 40,00,000 44,10,000 Building 17,00,000 24,25,000
8% Debentures 5,00,000 7,00,000 Plant and Machinery 23,75,000 25,50,000
Security Premium - 40,000 Goodwill 9,37,500 7,12,500
Dividend Eq. Reserve 1,50,000 2,12,500 Short term Advances 3,86,000 4,46,750
Profit and Loss A/c 7,50,000 11,25,000 Stock 2,20,000 3,24,500
Creditors 5,12,500 1,80,000 Debtors 1,61,750 1,29,500
Provision for tax 1,35,000 2,05,000 Cash and Bank 1,49,250 2,27,250
Interim Dividend Declared 1,62,500 1,95,000 Prepaid Expenses 1,68,000 1,82,000
Discount on issue of Shares 1,12,500 70,000
62,10,000 70,67,500 62,10,000 70,67,500

Additional Information:
1) Income Tax paid during the year was Rs.1,62,500
2) Debentures are issued at a premium of 20%.
3) Final Dividend declared & paid Rs. 1,82,500.
4) Ignore Depreciation on Fixed Assets.