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HELP DESK: 9931148498 CASH FS

Q1. The balance Sheets of Rajneesh Ltd. as on 31st December, 2012 and 2013 were as follows:

Equity and Liabilities 2012 2013

Shareholder’s Fund
Share capital 1,00,000 1,25,000
Reserves and surplus 30,250 33,800
Non-Current liabilities
Long-term borrowings (Public deposits) 10,000 7,500
Current Liabilities
Short-term borrowings (Bank overdraft) 35,000 _____
Trade payables 75,000 72,600
Short-term provision (Proposed dividend) 15,000 16,500
2,65,250 2,55,400
Assets
Non-Current Assets
Fixed Assets 1,75,000 1,82,000
Current Assets
Inventories 50,000 37,000
Trade receivables 40,000 32,100
Cash in hand 250 4,300
2,65,250 2,55,400
Note to Account:

Fixed Assets
Land and Buildings 1,00,000 95,000
Plant and Machinery 75,000 87,000
1,75,000 1,82,000
Additional information:

i. Rs. 6,000 was written off as depreciation on buildings and Rs. 7,500 on plant and machinery during the
year 2013.
ii. Land purchased during the year 2013 amounted to Rs. 19,000.
iii. Interest paid on public deposits during the year 2013 Rs. 950.

Prepare a cash flow statement.

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Q2. Given below is the Balance Sheet of Victors Limited:

Equity and Liabilities Note no. 2012 2013

Shareholder’s fund Rs. Rs.
Share capital 1,60,000 1,60,000
Reserve and surplus 60,000 1,60,000
Non-current Liabilities
Long-term borrowings (Loan) 1,50,000 _____
Current Liabilities
Short-term borrowings (Bank overdraft) 74,000 50,000
Trade payable 92,000 1,80,000
Short-term provision 1 64,000 90,000
6,00,000 6,40,000
Assets
Non-Current Assets
Fixed Assets (Plant) 3,00,000 2,40,000
Current Assets
Inventories 1,00,000 1,80,000
Trade receivables 2 1,90,000 1,94,000
Cash in hand 10,000 26,000
6,00,000 6,40,000
Notes to Accounts:

1. Shorts-term Provision
Provision for taxation 24,000 30,000
Proposed dividend 40,000 60,000
64,000 90,000
2. Trade Receivables
Trade debtors 1,60,000 1,72,000
Bills receivable 30,000 22,000
1,90,000 1,94,000
Additional information:

a) Loan was repaid in the beginning of the year 2013.

b) Part of the plant whose original cost Rs. 1,00,000 (written down value Rs. 70,000) was sold during the year
at a loss of Rs. 10,000.
c) Depreciation provided on plant during the year was Rs. 20,000.

From the above information prepare a cash flow statement as per Accounting Standard-3.

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Q3. From the following balance sheets and additional information of premier Ltd. make out a cash flow
statement:

Note No. 2012 2013

Equity and liabilities:
Shareholders' Fund
Share capital 3,00,000 4,00,000
Reserve and Surplus 1 70,000 1,18,000
Non-current Liabilities
Long-term borrowings (Mortgage loan) 1,50,000 1,00,000
Current Liabilities
Trade payables 75,000 99,000
Short-term provision 2 82,000 1,00,000
6,77,000 8,17,000

Assets
Non-current Assets
Fixed Assets
Tangible 3 2,80,000 3,70,000
Intangible (goodwill) 1,15,000 90,000
Current Assets
Inventories 77,000 1,09,000
Trade receivables 1,80,000 2,30,000
Cash in hand and at bank 25,000 18,000
6,77,000 8,17,000

Notes to Account:

1. Reserve and Surplus

General Reserve 40,000 70,000
Surplus-Balance in Statement of Profit & Loss 30,000 48,000
70,000 1,18,000
2. Short-term Provision
Provision for taxation 40,000 50,000
Proposed dividend 42,000 50,000
82,000 1,00,000
3. Tangible Assets
Land and Buildings 2,00,000 1,70,000
plant 80,000 2,00,000
2,80,000 3,70,000
Additional information:

a) Depreciation of Rs. 10,000 and 20,000 have been charged on plant and buildings respectively during the
year 2013.
b) An interim dividend of Rs. 20,000 has been paid in 2013.
c) Rs. 35,000 income tax has been paid during the year 2013.
d) Interest of Rs. 12,000 has been paid on mortgage loan during the year 2013.

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Q4. Following are the summarized balance sheets of DNI Ltd. as on 31 st March, 2014 and 31st March, 2013:

Equity and Liabilities Note no. 31.3.14 31.3.13

Shareholders’ funds Rs. Rs.
Share capital 4,00,000 4,00,000
Reserves and surplus 1 1,81,200 1,61,000
Non-current Liabilities
Long-term borrowings 2 1,24,000 1,40,000
Current liabilities
Trade payable 1,85,000 2,20,000
Short-term provision 3 61,000 67,400
9,51,200 9,88,400
Assets
Non-current Assets
Fixed assets 4
Tangible 7,50,400 7,36,000
Intangible _____ 10,000
Current Assets
Inventories 59,200 80,000
Trade receivables 1,28,000 1,60,000
Cash and cash equivalents 13,600 2,400
9,51,00 9,88,400
Notes of Accounts:

31.3.14 31.3.13
1. Reserves and surplus
General Reserve 1,20,000 1,00,000
Surplus-Balance in profit & Loss statement 61,200 61,000
1,81,200 1,61,000
2. Long-term Borrowings
Term Loan from ICICI 1,24,000 1,40,000
3. Short-term provisions
Provision for taxation 61,000 67,400
4. Fixed Assets
Tangible: Premises 3,80,000 4,00,000
Machinery 3,38,000 3,00,000
Equipment 32,400 36,000
7,50,400 7,36,000
Intangible: Goodwill _______ 10,000
Other information:

i. Dividend of Rs. 20,000 was paid during the year.

ii. Depreciation on premises is provided at 5%.
iii. Machinery of Rs. 60,000 was acquired during the year.
iv. Income Tax provision for the year was Rs. 60,000.
v. Loan interest paid during the year Rs. 16,800.

Prepare a cash flow statement.

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Q5. X Ltd. made a profit of Rs. 5,00,000 after considering the following item:

Rs.
i. Preliminary Expenses written off 5,000
ii. Depreciation on fixed assets 50,000
iii. Loss on sale of Machinery 20,000
iv. Provision for doubtful Debts 10,000
v. Gain on sale of Land 7,500
The following is the position of current assets and current liabilities:

1992 1993
Debtors 52,000 78,000
Bills Receivable 15,000 12,000
Prepaid Expenses 2,000 3,000
Creditors 40,000 51,000
Bills Payable 19,000 12,000
Expenses Payable 34,000 20,000
Calculation Cash from Operating Activities.

Q6. The net income of Blue Sky Ltd. for the year ended March 31, 2003 was Rs. 4,89,000. Depreciation charge
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. The current assets
and current liabilities of Blue Sky Ltd. as at March 31, 2012 and 2003 are given here:

March 31, 2012 March 31, 2013

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

Q7. From the following figures calculate cash from operating activities:

1992 1993
Balance of profit & Loss A/c 3,00,000 2,50,000
Balance of bills Receivable 20,000 18,000
Provision for Depreciation 60,000 80,000
Outstanding wages 18,000 15,000
Prepaid insurance 6,000 9,000
Goodwill 40,000 32,000
Provision for doubtful Debts 40,000 32,000
Balance of debtors 1,20,000 80,000
Cash and bank Balance 30,000 25,000

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Q8. From the following statement, calculate the Cash Generated from Operating Activities:
Statement of Profit for the year ending March 31st, 2005

Rs. Rs.
To salaries 10,000 By Gross Profit 85,000
To Rent 5,000 By profit on Sale of Machinery 5,000
To Depreciation 20,000 By dividend Received 3,000
To Loss on Sale of Building 5,000 By commission Accrued 4,000
To Goodwill Written off 8,000 By income tax Refund 6,000
To proposed dividend 10,000
To provision for Tax 21,000
To Net Profit 24,000
1,03,000 1,03,000
Q9. Following is the Balance Sheet of Wisben Ltd. as on 31st March 2012:

Particulars 2011-12 2010-11

Rs. Rs.
i. Equity and Liabilities
1. Shareholders’ Funds:
a) Share capital 7,00,000 6,00,000
b) Reserves and Surplus (Profit & Loss Balance) 2,00,000 1,10,000
2. Non-Current Liabilities:
Long term borrowings 3,00,000 2,00,000
3. Current Liabilities:
Trade payables 30,000 25,000
Total 12,30,000 9,35,000
ii. Assets
1. Non-Current Assets:
a) Fixed Assets:
Tangible Assets 11,00,000 8,00,000
2. Current Assets:
a) Inventories 70,000 60,000
b) Trade Receivables 32,000 40,000
c) Cash and Cash Equivalents 28,000 35,000
Total 12,30,000 9,35,000
Adjustments:
During the year a piece of machinery of the book value of Rs. 80,000 was sold for Rs. 65,000.
Depreciation provided on tangible assets during the year amounted to Rs. 2,00,000. Prepare a Cash Flow
Statement.

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Q10. From the following Balance Sheet of X Ltd. prepare a Cash Flow Statement.

Particulars Note 31st March 31st March

no. 2011 Rs. 2012 Rs.
i. Equity and Liabilities
1. Shareholders’ funds
a) Share capital 3,00,000 3,50,000
b) Reserves and Surplus 1 40,000 2,20,000
2. Non-Current Liabilities
Long-term Borrowings 2 2,10,000 2,50,000
3. Current liabilities
Trade payables 85,000 1,25,000
Total 6,35,000 9,45,000
ii. Assets
1. Non-Current Assets
a) Fixed Assets (tangible Assets) 3 3,20,000 4,10,000
b) Intangible Assets 4 1,00,000 80,000
c) Non-Current Investments 5 30,000 80,000
2. Current Assets
a) Inventories 60,000 2,45,000
b) Cash and Cash equivalents 6 1,20,000 1,30,000
c) Other current Assets (Discount on issue 5,000 _____
Debentures)
Total 6,35,000 9,45,000
Notes:

1. Reserves and Surplus

Particulars 31st March 2011 (Rs.) 31st March 2012 (Rs.)

Machinery (Cost) 4,10,000 5,40,000
Less: accumulated Depreciation 90,000 1,30,000
3,20,000 4,10,000
2. Long-term Borrowings 31st March 2011 (Rs.) 31st March 2012 (Rs.)
10% Debentures of Rs. 100 each 2,10,000 2,50,000
3. Tangible Assets
Particulars 31st March 2011(Rs.) 31st March 2012 (Rs.)
Machinery (Cost) 4,10,000 5,40,000
Less: Accumulated Depreciation 90,000 1,30,000
3,20,000 4,10,000
4. Intangible Assets 31st March 2011 (Rs.) 31st March 2012 (Rs.)
Goodwill 1,00,000 80,000
5. Non-current investments
10% Investment 30,000 80,000
6. Cash and cash Equivalents
Particulars 31st March 2011 (Rs.) 31st March 2012 (Rs.)
Cash and bank Balance 20,000 40,000
Marketable Securities 1,00,000 90,000
1,20,000 1,30,000
Additional Information:

i. Investment costing Rs. 30,000 was sold for Rs. 28,000 during 2011-12.
ii. Machine costing Rs. 70,000 (book value Rs. 40,000) was disposed off for Rs. 25,000.

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Q11. The Balance Sheet of Jharkhand Bros. were as follows: Balance Sheet

Liabilities 1.4.96 31.3.97 Assets 1.4.96 31.3.97

Capital 125000 150000 Cash 10000 5000
Bank O.D 40000 50000 Debtors 30000 52000
Creditors 40000 47000 Stock 35000 25000
Loan 25000 ____ Machinery 30000 55000
Land 40000 50000
Buildings 35000 60000
Adjustment:

1. During the year machine costing Rs. 10000 (accumulated dep. Rs.3000) was sold for 5000.
2. Net profit for the year amounted to Rs. 45000.
3. The provision for dep. Against Machinery as on 1.4.96 and 31.3.97 were 25000 and 40000.

Prepare cash flow statement as per as-3.

Q12. From the following balance Sheet of A ltd. prepare fund flow Statement:

Liabilities 31.3.08 31.3.09 Assets 31.3.08 31.3.09

Equity share Capital 500000 700000 P. Machinery 100000 200000
10% debentures 200000 0 Fr. For depreciation 30000 48000
Capital Reserve 0 30000
Profit/loss a/c 40000 100000 Land 400000 350000
Prov. For doubtful debts 10000 16000 Stock 190000 245000
Provision for tax 25000 32000 Debtors 176000 140000
P. dividend 30000 40000 Bank 74000 92000
Creditors 125000 105000 Cash 20000 44000
Adjustments:

1. A piece of land has been sold during the year ended 31st March, 2009 and the profit is credited to capital
reserve.
2. Machinery costing Rs. 20000 (Accumulated dep. Rs. 8000) was sold for Rs. 9000.
3. Debentures are redeemed on 1st April as at a premium of 6% and Premium on redemption is debited to
P.L a/c.

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Q. From the following information of Purity Ltd. Calculate:-

(i) Cash from Operating Activities.

(ii) Cash from Financing Activities.

Particulars 31.03.2018 31.03.2017

Trade Receivables 17,000 20,000
Inventories 25,000 30,000
Prepaid Expenses 12,000 10,000
Expenses Outstanding 9,000 7,000
Provision for Tax 15,000 10,000
Cash in hand 50,000 75,000
Furniture (at book value) 1,20,000 1,60,000
General Reserve 50,000 40,000
10% Debentures 40,000 30,000
Goodwill 60,000 70,000
Trade Payables 21,000 25,000
Balance of Profit & Loss (Cr.) 1,30,000 1,20,000
Share Capital 5,00,000 3,00,000
Additional information:-

(a) Contingent Liability 31.03.2018 31.03.2017

Proposed Dividend 5,000 4,000

(b) A piece of Furniture costing Rs. 30,000 (accumulated Depreciation Rs. 3,000) was sold for Rs. 25,000.
(c) Tax of Rs. 9,000 was paid.
(d) Interim Dividend of Rs. 4,000 was Paid.
(e) The Company Paid Rs. 3,000 as interest on Debentures.

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