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
