Check sibling questions

On the basis of information given by Aradhana Ltd., prepare Cash Flow Statement for the year ending 31st March, 2021:

Particulars  Note No.  31st March, 2020  31st March, 2021 
I. Equity and Liabilities       
1. Shareholder's Funds       
(a) Share Capital    5,00,000 7,30,000
(b) Reserves and Surplus  1 3,50,000 3,70,000
2. Non-current Liabilities       
Long-term Borrowings  2 4,00,000 2,00,000
3. Current Liabilities       
(a) Trade Payables  3 3,60,000 4,60,000
(b) Short Term provisions  4 3,25,000 3,20,000
Total    19,35,000 20,80,000
II. Assets       
1. Non-current Assets       
(a) Fixed Assets       
(i) Tangible Assets  5 4,50,000 5,00,000
(ii) Intangible Assets  6 3,10,000 3,02,000
(b) Long-term Loans and Advances    4,00,000 4,30,000
2. Current Assets       
(a) Inventories    2,70,000 2,90,000
(b) Trade Receivables    2,40,000 2,60,000
(c) Cash and Cash Equivalents    2,65,000 2,98,000
Total    19,35,000 20,80,000

 

Note to Accounts

Particulars   31st March 2020 31st March 2021
1. Reserves and Surplus Statement of Profit and loss  3,50,000 3,70,000
2. Long-term Borrowings 10% Debentures  4,00,000 2,00,000
3. Trade Payables     
Creditors  2,40,000 2,60,000
Bills Payable  1,20,000 2,00,000
  3,60,000 4,60,000
4. Short-Term Provisions Provision for Tax  3,25,000 3,20,000
5. Tangible Fixed Assets Machinery  5,50,000 6,60,000
Less: Provision for Depreciation  1,00,000 1,60,000
  4,50,000 5,00,000
6. Intangible Fixed Assets Patents  3,10,000 3,02,000

 

Additional Information:

1. Debentures were redeemed on 1st April,2020.

2. Tax paid during the year ₹2,80,000.

Answer

Particulars Details Amount
(A)  OPERATING ACTIVITIES      
Net Profit Before Tax & Extraordinary Items   295000  
Add:       
Depreciation for the year 60000    
Interest on Debentures 20000    
Patents written off 8000 88000  
       
Operating Profit Before Working Capital Changes 383000  
Add:      
Increase in Trade Payables      
Creditors 20000    
Bills Payables 80000    
Less :      
Increase in inventories 20000    
Increase in Trade Receivables 20000 60000  
    443000  
Less :  Tax Paid   280000  
Cash Flow from operating Activities     163000
       
(B)  INVESTING ACTIVITIES      
Purchase of Machinery   -110000  
Long term Loans and Advances   -30000  
Cash used in Investing Activities     -140000
       
(C ) FINANCING ACTIVITIES      
Cash Proceeds from issue of shares   230000  
Redemption of Debentures   -200000  
Interest on Debentures   -20000  
Cash Flow from Financing Activities     10000
       
Net Increase in cash and Cash Equivalents     33000
Add : Opening Cash and Cash Equivalents     265000
Closing Cash and Cash Equivalents     298000

 

Working Notes :-

Particular Amount
Closing Profit and Loss 370000
Less : Opening Profit and Loss 350000
Add : Provision for Tax 275000
Net Profit Before Tax &  295000
Extraordinary Items  

 

                                       PROVISION FOR TAXATION ACCOUNT
Particulars Amount Particulars Amount
To Bank A/c 280000 By Balance b/d   325000
         
To Balance c/d 320000 By Statement of P & L 275000
         
  600000     600000

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Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 12 years. He provides courses for Maths and Science at Teachoo.