From the following Balance Sheet and information of Light

Ltd, prepare Cash Flow Statement

BALANCE SHEET as at 31st March, 2021

Particulars 31/03/21 31/03/20

I. EQUITY AND LIABILITIES

1. Shareholders' Funds
(a) Share Capital 4,50,000 5,00,000
(b) Reserve and Surplus 2,55,000 1,00,000

2. Non-Current Liabilities
Long term Borrowings: 10% Debentures 2,00,000 1,00,000
 BALANCE SHEET as at 31st March, 2021

Particulars 31/03/21 31/03/20

3. Current Liabilities
(a) Trade Payables 1,33,000 46,000
(b) Other current liabilities 5,000 10,000
(c) Short term provisions 12,000 24,000

TOTAL 10,55,000 7,80,000

 Particulars 31/03/21 31/03/20

II. ASSETS
1. Non-current Assets
(a) Fixed Assets (Property, Plant,
Equipment)- Tangible 6,20,000 5,10,000
(b) 10% investments 80,000 30,000

2. Current Assets
(a) Current Investments 10,000 8,000
(b) Inventories 90,000 1,00,000
(c) Trade Receivables 1,85,000 90,000
(d) Cash and Cash Equivalents 70,000 42,000
10,55,000 7,80,000
Notes to Accounts

Particulars 31/03/21 31/03/20

1. Share Capital
Equity Share Capital 3,50,000 3,00,000
12% Preference Share Capital 1,00,000 2,00,000
2. Reserve and Surplus
Securities Premium Reserve 5,000 ---
Surplus, Balance in Statement of Profit & Loss 2,50,000 1,00,000
3. Other Current Liabilities
Premium on redemption of Preference shares 5000 10,000
4. Trade Receivables
Sundry Debtors 2,00,000 1,00,000
Less: Provision for doubtful debts 15,000 10,000
You are informed that during the year:

(i) A machine with a book value of 40,000 was sold for 25,000
(ii) Depreciation charged during the year was 70,000
(iii) Preference shares were redeemed on 31st December, 2020 at a premium
of 5%
(iv) An Interim Dividend @15% was paid on Equity Shares on 31st January,
2021
(v) Dividend @12% was proposed on Preference Shares for the year ended 31st
March, 2021 on 1,00,000 and for the year ended 31st march, 2020 on
2,00,000.
(vi) Fresh Equity shares were issued at a premium of 10% on 31st March, 2021
 CASH FLOW STATEMENT for the year ended 31st March, 2021

Particulars Rs. Rs.

I. Cash Flow from Operating Activities

Closing Balance in statement of profit and loss 2,50,000
Less: Opening Balance in statement of profit and (1,00,000) 1,50,000
loss
Add: Provision for Tax 12,000
Preference Dividend 24,000
Interim Dividend 45,000 81,000

Net profit before Tax and extraordinary items 2,31,000

 CASH FLOW STATEMENT for the year ended 31st March, 2021

Particulars Rs. Rs.

Net profit before tax and extraordinary items 2,31,000

Add: Non-Cash and Non-Operating Expenses
Depreciation 70,000
Provision for Doubtful Debts 5000
Interest on Long Term Borrowings 10,000
Loss on sale of machinery 15,000

Less: Interest on investments (3000)

Operating profit before working capital 3,28,000

changes
 CASH FLOW STATEMENT for the year ended 31st March, 2021

Particulars Rs. Rs.

Operating Profit before working capital changes 3,28,000

Add: Decrease in current assets,
Increase in current liabilities.
Inventories 10,000
Trade Payables 87,000

Less: Increase in current assets

Trade Receivables (1,00,000)
Cash generated from operations 3,25,000
Less: Income Tax Paid (24,000)

Cash flow from operating activities 3,01,000

 CASH FLOW STATEMENT for the year ended 31st March, 2021

Particulars Rs. Rs.

II. Cash Flow from Investing Activities

Purchase of fixed assets (2,20,000)
Proceeds from sale of machinery 25,000
Interest on investments 3000
Purchase of investments (50,000)

Cash used in investing activities (2,42,000)

 CASH FLOW STATEMENT for the year ended 31st March, 2021

Particulars Rs. Rs.

III. Cash Flow from Financing Activities

Proceeds from issue of equity shares 50,000
Premium received on issue of equity shares 5000
Proceeds from long term borrowings 1,00,000
Redemption of preference shares (1,00,000)
Premium paid on redemption of preference shares (5000)
Interest paid on Long term borrowings (10,000)
Interim Dividend Paid (45,000)
Preference Dividend paid during the year (24,000)

Cash used in financing activities (29,000)

 CASH FLOW STATEMENT for the year ended 31st March, 2021

Particulars Rs. Rs.

Cash used in financing activities (29,000)

Net increase in cash and cash equivalents 30,000

Cash and Cash Equivalents at 1st Apr 2020 50,000

Cash and Cash Equivalents at 31st Mar 2021 80,000