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Cash FL

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23 views

Cash FL

Uploaded by

yash d
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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1

Kautilya
DPP-09
Cash flow Statement
1. From the following Balance Sheet of Mohan Ltd. Prepare cash flow Statement:
Balance sheet of Mohan Limited as on ………….

Liabilities 2006 2007 Assets 2005 (Rs.) 2006


Amount Amount (Rs.)
(Rs,) (Rs.)
Equity Share Capital 2,00,000 3,00,000 Fixed Assets 4,00,000 6,00,000
Profit & Loss 1,60,000 1,60,000 Stock 1,30,000 1,50,000
Bank Loan 1,00,000 1,00,000 Debtors 1,00,000 60,000
Accumulated Dep. 80,000 80,000 Bill Receivables 20,000 30,000
Creditors 1,40,000 1,40,000 Bank 90,000 30,000
Proposed Dividend 60,000 60,000
7,40,000 8,70,000 7,40,000 8,70,000

Additional Information:
Machine Costing
Rs. 80,000 on which accumulated depreciation was Rs. 50,000 was sold for Rs. 20,000 .
2

Answer Key
1. (H&S)
3

Hints & Solutions


1. (H&S)
Particulars Amount Amount

A Cash Flow from Operating Activities


Profit as per the Balance Sheet (2,00,000 - 1,60,000) 40,000
Proposed Dividend 70,000
Net profit before Taxation and Extraordinary Items 1,10,000
Adjustment of non-cash items:
Depreciation 70,000
Loss on sale of machine 10,000 80,000
Operating Profit before Working Capital Changes 1,90, 000
Changes in Working Capital:
Decrease in Debtors 40,000
Increase in Stock (20,000)
Increase in Bills Receivables (10,000)
Decrease in Creditors (20,000) (10,000)
Net Cash from Operating Activities (A) 1,80,000

B. Cash Flow from Investing Activities


Sale of fixed assets 20,000
Purchase of fixed assets (2,80,000)
Net Cash from Investing Activities (B) (2,60,000)

C. Cash Flow from Financing Activities


Issue of Equity Shares 1,00,000
Dividend paid (60,000)
Bank loan paid (20,000)
Net Cash from Financing Activities (C) 20,000

D. Net Increase in Cash and Cash Equivalent (60,000)


Cash Equivalents in the Beginning 90,000
E. Cash and Cash Equivalents at the End 30,000
4

Working Note
Fixed Assets A/C
Particulars Amount Particulars Amount

To Balance b/d 4,00,000 By Bank 20,000


To Bank(purchase) 2,80,000 By Profit & Loss 10,000
By Accumulated Depreciation 50,000
By Balance c/d 6,00,000

6,80,000 6,80,000

Accumulated Depreciation A/c

Particulars Amount Particulars Amount

To Fixed Assets 50,000 By Balance b/d 80,000


To Balance c/d 1,00,000 By Profit and loss 70,000

1,50,000 1,50,000

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