Sums on Cash Flow Statement

1. From the following information, prepare a cash flow statement of A & Co. Ltd.

Balance Sheets of A& Co. Ltd as at 31st December….

Particulars Note 01.01.2015 (Rs) 31.12.2015 (Rs)

No.
I. EQUITY AND LIABILITIES
(1) Shareholders’ Funds
(a) Share Capital (1) 6,75,000 7,07,500
(b) Reserves and Surplus 1,35,000 3,57,750
(2) Share Application Money Pending
Allotment:
(3) Non-current Liabilities
(a) Long Term Borrowings- 14% 1,35,000 2,70,000
Debentures
(4) Current Liabilities:
(a) Short Term Borrowings - -
(b) Trade Payables- Sundry - -
Creditors
(c ) Other Current Liabilities- 1,08,000 2,16,000
Outstanding Expenses
(d) Short Term Provisions (3) - -
TOTAL 10,53,000 15,51,250
II. ASSETS
(1) Non-current Assets:
(a) Fixed Assets
(i) Tangible Assets- Plant and (4) 6,88,500 8,37,000
Machinery
(b) Non-current Investments 40,500 1,08,000
(2) Current Assets:
(a) Current Investments - -
(b) Inventories - -
(c ) Trade Receivables - -
(d) Cash and Cash Equivalents 54,000 2,01,250
(e) Short Term Loans and Advances - -
(f) Other Current Assets 2,70,000 4,05,000
TOTAL 10,53,000 15,51,250

Notes to Accounts:
Particulars 01.01.2015 (Rs) 31.12.2015 (Rs)
(1) Share Capital
Issued, Subscribed and Paid up Capital:
Equity Shares of Rs 10 each 4,05,000 5,72,500
12% Preference Shares of Rs 100 each 2,70,000 1,35,000
 6,75,000 7,07,500
Additional Information:

(1) Depreciation charged on P/M was Rs 81,000

(2) An interim dividend of 15% was paid on equity shares. Additional shares were issued on
31.12.2015

(3) Preference Shares were redeemed at a premium of 15%

(4) P/M with a book value of Rs 54,000 were sold at Rs 33,750

(5) Preference Dividend paid during the year Rs 32,400

(6) Debenture Interest paid during the year Rs 18,900

2. From the following Summary Cash Account of X Ltd, prepare cash flow statement for the year
ended 31st March, 2016. The Company does not have any cash equivalents.

Summary Cash Account for the year ended 31st March, 2016

Particulars Rs (000s) Particulars Rs (000s)

Balance as on 1.04.2015 50 Payment to Suppliers 2,000
Issue of Equity Shares 300 Purchase of Fixed Assets 200
Receipts from Customers 2,800 Overhead Expense 200
Sale of Fixed Assets 100 Wages and Salaries 100
Taxation 250
Dividend 50
Repayment of Bank Loan 300
Balance as on 31.03.2016 150
3,250 3,250

3. The Balance Sheets of Y Ltd at 31st December, 2014 and 2015 were as follows:

Balance Sheets of Y Ltd as at 31st December 2014 and 2015

Particulars Note 2014 2015

No. (Rs in 000) (Rs in 000)
I. EQUITY AND LIABILITIES
(1) Shareholders’ Funds
(a) Share Capital (3) 300 380
(b) Reserves and Surplus (7) 500 690
(2) Share Application Money Pending
Allotment:
(3) Non-current Liabilities
(a) Long Term Borrowings- 10% (5) 100 150
Debentures
(4) Current Liabilities:
 (a) Short Term Borrowings - -
(b) Trade Payables- Sundry 70 80
Creditors
(c ) Other Current Liabilities - -
(d) Short Term Provisions- Proposed (6) 30 40
Dividend
TOTAL 1,000 1,340
II. ASSETS
(1) Non-current Assets:
(a) Fixed Assets
(i) Tangible Assets- Property, Plant (1) 730 1,100
and Equipment

(b) Non-current Investments at cost 100 50

(2) Current Assets:
(a) Current Investments - -
(b) Inventories 80 110
(c ) Trade Receivables 110 180
(d) Cash and Cash Equivalents (20) (100)
TOTAL 1,000 1,340

Reference No:

1. Property, Plant and Equipment: During the year tangible property, Plant and Equipment with a
net book value of Rs 80,000 were sold for Rs 60,000. The Depreciation charge for the year on all
property, plant and equipment held at the end of the year Rs 1,00,000.

2. Investments: Investments which cost Rs 50,000 were sold during the year for Rs 40,000.

3. Issued Capital: Issued capital at 31st December, 2014 consisted of 3,00,000 equity shares of Rs 1
each. Another 80,000 shares were issued during the year at a price of Rs 2.25 per share.

4. Revaluation Reserve: Company’s property was revalued upwards by Rs 1,00,000 during the year

5. 10% Debentures: Rs 50,000 of 10% Debentures were issued on 1st January, 2015. All interest upto
31st December, 2015 has been paid.

6. Proposed Dividends: The proposed dividends are on company’s equity share capital. No interim
dividends were paid.

7. Reserves and Surplus:

Reserves and Surplus 2014 (Rs in 000) 2015 (Rs in

000)
Securities Premium 200 300
Revaluation Reserve 100 200
Accumulated Profits 200 190
500 690
st
Prepare a Cash Flow Statement for the year ended 31 December, 2015 complying with AS-3
4. From the following details to the Accounts of Grow More Ltd. prepare cash flow statement

Particulars Note 31.03.2016 31.03.2015

No. (Rs) (Rs)
I. EQUITY AND LIABILITIES
(1) Shareholders’ Funds
(a) Share Capital (1) 10,00,000 8,00,000
(b) Reserves and Surplus (2) 3,00,000 2,10,000
(2) Share Application Money Pending
Allotment:
(3) Non-current Liabilities
(a) Long Term Borrowings- 10% 2,00,000 -
Debentures
(4) Current Liabilities:
(a) Short Term Borrowings - -
(b) Trade Payables- Sundry 7,00,000 8,20,000
Creditors
(c ) Other Current Liabilities- - -
Outstanding Expenses
(d) Short Term Provisions (3) 3,00,000 1,70,000
TOTAL 25,00,000 20,00,000
II. ASSETS
(1) Non-current Assets:
(a) Fixed Assets
(i) Tangible Assets (4) 13,00,000 9,00,000

(b) Non-current Investments 1,00,000 -

(2) Current Assets:
(a) Current Investments - -
(b) Inventories 4,00,000 2,00,000
(c ) Trade Receivables- Sundry 5,00,000 7,00,000
Debtors
(d) Cash and Cash Equivalents 2,00,000 2,00,000
TOTAL 25,00,000 20,00,000

Notes to Accounts:
Particulars 31.03.2016 31.03.2015
(Rs) (Rs)
(1) Share Capital
Issued, Subscribed and Paid up Capital:
Equity Shares of Rs 10 each fully paid 10,00,000 8,00,000

(2) Reserves and Surplus

General Reserve 2,00,000 1,50,000
 Profit and Loss 1,00,000 60,000

(3) Short Term Provisions

Provision for Taxation 1,00,000 70,000
Proposed Dividend 2,00,000 1,00,000

(4) Tangible Assets

Plant and Machinery 7,00,000 5,00,000
Land and Building 6,00,000 4,00,000

Additional Information:

(1) Depreciation @ 25% was charged on the opening value of Plant and Machinery

(2) During the year one old machine costing Rs 50,000 (WDV Rs 20,000) was sold for Rs 35,000

(3) Rs 50,000 was paid towards income tax during the year

(4) Building under construction was not subject to any depreciation