1.

From the following Balance Sheet of Combiplast Ltd. for the year ended 31st March, 2022 and additional
information, calculate Cash Flow from Investing Activities:
Particulars Note No. 31st March, 31st March,
2022 (`) 2021 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 7,50,000 5,00,000
(b) Reserves and Surplus 10,00,000 8,50,000
2. Current Liabilities 4,50,000 3,50,000
Total 22,00,000 17,00,000
II. ASSETS
1. Non-Current Assets
(a) Property, Plant and Equipment and Intangible Assets:
Property, Plant and Equipment 1 12,00,000 12,00,000
(b) Non-Current Investments 5,00,000 3,00,000
2. Current Assets
(a) Trade Receivables 3,00,000 1,10,000
(b) Cash and Cash Equivalents 2,00,000 90,000
Total 22,00,000 17,00,000

Note to Accounts
Particulars 31st March, 31st March,
2022 (`) 2021 (`)
1. Property, Plant and Equipment
Land 3,00,000 3,00,000
Building 4,00,000 4,00,000
Plant and Machinery 5,00,000 5,00,000
12,00,000 12,00,000

Additional Information: During the year the company sold machinery at Book Value of ` 1,50,000.
[Ans.: Cash Used in Investing Activities = ` 2,00,000.]
2. From the following Balance Sheet of Kumar Ltd. as at 31st March, 2022, prepare Cash Flow Statement:
Particulars Note No. 31st March, 31st March,
2022 (`) 2021 (`)

I. EQUITY AND LIABILITIES

1. Shareholders’ Funds
(a) Share Capital 1 16,00,000 10,40,000
(b) Reserves and Surplus 2 5,50,000 2,60,000
2. Non-Current Liabilities
Long-term Borrowings:
9% Debentures 4,00,000 6,00,000
3. Current Liabilities
Trade Payables 4,50,000 1,00,000
Total 30,00,000 20,00,000
II. ASSETS
1. Non-Current Assets
Property, Plant and Equipment and Intangible Assets:
—Property, Plant and Equipment (Machinery) 20,00,000 15,00,000
2. Current Assets
(a) Inventories 3,00,000 2,00,000
(b) Trade Receivables 2,00,000 1,00,000
(c) Cash and Cash Equivalents 5,00,000 2,00,000
Total 30,00,000 20,00,000

1
Notes to Accounts
Particulars 31st March, 31st March,
2022 (`) 2021 (`)
1. Share Capital
Equity Share Capital 15,00,000 10,00,000
7% Preference Share Capital 1,00,000 40,000
16,00,000 10,40,000
2. Reserves and Surplus
General Reserve 4,00,000 60,000
Surplus, i.e., Balance in Statement of Profit & Loss 1,50,000 2,00,000
5,50,000 2,60,000

Additional Information:
1. During the year, a machinery costing ` 20,000 was sold for ` 6,000.
2. Dividend paid during the year ` 50,000. (Foreign 2008, Modified)
[Ans.: Cash Flow from Operating Activities = ` 5,58,000; Cash Used in Investing
Activities = ` 5,14,000; Cash Flow from Financing Activities = ` 2,56,000;
Net Increase in Cash and Cash Equivalents = ` 3,00,000.]
[Hint: Calculation of Net Profit before Tax and Extraordinary Items: `
Net Loss (50,000)
Add: Dividend Paid during the Year 50,000
Transfer to General Reserve 3,40,000
Net Profit before Tax and Extraordinary Items 3,40,000 .]

3. Following are the Balance Sheets of Krishtec Ltd. for the years ended 31st March, 2012 and 2011:
Particulars Note No. 31st March, 31st March,
2012 (`) 2011 (`)

I. EQUITY AND LIABILITIES

1. Shareholders’ Funds
(a) Share Capital 12,00,000 8,00,000
(b) Reserves and Surplus 3,50,000 4,00,000
(Surplus, i.e., Balance in Statement of Profit & Loss)
2. Non-Current Liabilities
Long-term Borrowings 4,40,000 3,50,000
3. Current Liabilities
Trade Payables 60,000 50,000
Total 20,50,000 16,00,000
II. ASSETS
1. Non-Current Assets
Property, Plant and Equipment and Intangible Assets:
Property, Plant and Equipment 12,00,000 9,00,000
2. Current Assets
(a) Inventories 2,00,000 1,00,000
(b) Trade Receivables 3,10,000 2,30,000
(c) Cash and Cash Equivalents 3,40,000 3,70,000
Total 20,50,000 16,00,000

Prepare a Cash Flow Statement after taking into account the following adjustments:
(a) The company paid interest ` 36,000 on its long-term borrowings.
(b) Depreciation charged on tangible fixed assets was ` 1,20,000. (AI 2013, Modified)
[Ans.: Cash Used in Operating Activities = ` 64,000; Cash Used in Investing Activities =
` 4,20,000; Cash Flow from Financing Activities = ` 4,54,000;
Net Decrease in Cash and Cash Equivalents = ` 30,000.]

2
 4. Prepare Cash Flow Statement from the following Balance Sheet:
Particulars Note No. 31st March, 31st March,
2013 2012
` `

I. EQUITY AND LIABILITIES

1. Shareholders’ Funds
(a) Share Capital 6,00,000 5,00,000
(b) Reserves and Surplus 1 4,00,000 2,00,000
2. Current Liabilities
Trade Payables 2,80,000 1,80,000
Total 12,80,000 8,80,000
II. ASSETS
1. Non-Current Assets
Property, Plant and Equipment and Intangible Assets:
Property, Plant and Equipment (Machinery) 5,00,000 3,00,000
2. Current Assets
(a) Inventories 1,00,000 1,50,000
(b) Trade Receivables 6,00,000 4,00,000
(c) Cash and Cash Equivalents 80,000 30,000
Total 12,80,000 8,80,000

Note to Accounts

Particulars 31st March, 31st March,

2013 (`) 2012 (`)
1. Reserves and Surplus
Surplus, i.e., Balance in Statement of Profit & Loss 4,00,000 2,00,000

Additional Information:
(i) An old machinery having book value of ` 50,000 was sold for ` 60,000.
(ii) Depreciation provided on Machinery during the year was ` 30,000. (AI 2014 C)
[Ans.: Cash Flow from Operating Activities = ` 1,70,000; Cash Used in Investing
Activities = ` 2,20,000; Cash Flow from Financing Activities = ` 1,00,000.]

5. From the following Balance Sheet, prepare Cash Flow Statement:

Particulars Note No. 31st March, 31st March,

2022 (`) 2021 (`)

I. EQUITY AND LIABILITIES

1. Shareholders’ Funds
(a) Share Capital 2,50,000 2,00,000
(b) Reserves and Surplus 1 90,600 80,500
2. Current Liabilities
(a) Short-term Borrowings: Bank Loan ... 70,000
(b) Trade Payables 1,35,200 1,50,000
(c) Short-term Provisions: Provision for Tax 35,000 30,000
Total 5,10,800 5,30,500

3
 II. ASSETS
1. Non-Current Assets
Property, Plant and Equipment and Intangible Assets:
(i) Property, Plant and Equipment 2 3,59,000 3,50,000
(ii) Intangible Assets: Goodwill 5,000 ... 
2. Current Assets
(a) Inventories 74,000 1,00,000
(b) Trade Receivables 64,200 80,000
(c) Cash and Cash Equivalents 8,600 500
Total 5,10,800 5,30,500

Notes to Accounts

Particulars 31st March, 31st March,

2022 (`) 2021 (`)
1. Reserves and Surplus
General Reserve 60,000 50,000
Surplus, i.e., Balance in Statement of Profit & Loss 30,600 30,500
90,600 80,500
  2. Property, Plant and Equipment
Land and Building 1,90,000 2,00,000
Plant and Machinery 1,69,000 1,50,000
3,59,000 3,50,000

Additional Information:

1. Proposed Dividend for the year ended 31st March, 2022 was ` 25,000 and for the year ended
31st March, 2021 was ` 14,000.
2. Interim Dividend paid during the year was ` 9,000.
3. Income Tax paid during the year ` 28,000.
4. Machinery was purchased during the year ` 33,000.
5. Depreciation to be charged on machinery ` 14,000 and on building ` 10,000.
[Ans.: Cash Flow from Operating Activities = ` 89,100; Cash Used in Investing Activities =
` 38,000; Cash Used in Financing Activities = ` 43,000.]

6. From the following Balance Sheet and information of Volvo Ltd., prepare Cash Flow Statement:

Particulars Note No. 31st March, 31st March,

2022 (`) 2021 (`)

I. EQUITY AND LIABILITIES

1. Shareholders’ Funds
(a) Share Capital 1 2,25,000 2,50,000
(b) Reserves and Surplus 2 1,27,500 50,000
2. Non-Current Liabilities
Long-term Borrowings: 10% Debentures 1,00,000 50,000
3. Current Liabilities
(a) Trade Payables 72,500 35,000
(b) Other Current Liabilities—Premium on Redemption of Preference Shares 2,500 5,000
Total 5,27,500 3,90,000

4
 II. ASSETS
1. Non-Current Assets
(a) Property, Plant and Equipment and Intangible Assets:
—Property, Plant and Equipment (Machinery) 3,10,000 2,55,000
(b) Non-current Investments (10% Investments) 40,000 15,000
2. Current Assets
(a) Current Investments 5,000 4,000
(b) Inventories 45,000 50,000
(c) Trade Receivables 3 92,500 45,000
(d) Cash and Cash Equivalents 4 35,000 21,000
Total 5,27,500 3,90,000

Notes to Accounts
Particulars 31st March, 31st March,
2022 (`) 2021 (`)
1. Share Capital
Equity Share Capital 1,75,000 1,50,000
12% Preference Share Capital 50,000 1,00,000
2,25,000 2,50,000
2. Reserves and Surplus
General Reserve 10,000 15,000
Surplus, i.e., Balance in Statement of Profit & Loss 1,17,500 35,000
1,27,500 50,000
3. Trade Receivables
Sundry Debtors 1,00,000 50,000
Less: Provision for Doubtful Debts 7,500 5,000
92,500 45,000
4. Cash and Cash Equivalents
Cash in Hand 12,500 6,000
Cash at Bank 22,500 15,000
35,000 21,000

Additional Information:
(i) You are informed that during the year:
Proposed Dividend: 31st March, 2022 31st March, 2021
Equity Share Capital Nil Nil
Preference Share Capital 12% 12%
(ii) A machine with a book value of ` 20,000 was sold for ` 12,500;
(iii) Depreciation charged during the year was ` 35,000;
(iv) Preference shares were redeemed on 31st March, 2021 at a premium of 5%;
(v) An interim dividend of ` 5,000 was paid on equity shares on 31st March, 2022 out of General Reserve;
(vi) Fresh equity shares were issued on 31st March, 2022; and
(vii) Additional investments were purchased on 31st March, 2022.
[Ans.: Cash Flow from Operating Activities = ` 1,35,500; Cash Used in
Investing Activities = ` 1,21,000; Cash Flow from Financing Activities = ` 500;
Net Increase in Cash and Cash Equivalents = ` 15,000.]

5
 7. Prepare Cash Flow Statement from the following:
STATEMENT OF PROFIT & LOSS for the year ended 31st March, 2022
Particulars Note No.  `
I. Revenue from Operations (Net Sales) 36,00,000
II. Expenses:
Purchases of Stock-in-Trade 28,16,000
Change in Inventories of Stock-in-Trade (65,000)
Finance Costs 15,000
Depreciation and Amortisation Expenses 80,000
Other Expenses 5,34,000
Total 33,80,000
III. Profit before Tax (I – II) 2,20,000
IV. Less: Provision for Tax 40,000
V. Profit after Tax (III – IV) 1,80,000

BALANCE SHEET as at 31st March, 2022

Particulars Note No. 31st March, 31st March,
2022 (`) 2021 (`)

I. EQUITY AND LIABILITIES

1. Shareholders’ Funds
(a) Share Capital 6,00,000 5,00,000
(b) Reserves and Surplus 1 3,00,000 1,20,000
2. Non-Current Liabilities
Long-term Loan 1,20,000 1,50,000
3. Current Liabilities
(a) Short-term Borrowings: Bank Overdraft 13,000 ...
(b) Trade Payables (Creditors) 2,85,000 2,38,000
(c) Short-term Provisions: Provision for Tax 44,000 30,000
Total 13,62,000 10,38,000
II. ASSETS
1. Non-Current Assets
Property, Plant and Equipment and Intangible Assets:
Property, Plant and Equipment 6,20,000 4,00,000
2. Current Assets
(a) Short-term Investments (Marketable Securities) 34,000 20,000
(b) Inventories 3,28,000 2,63,000
(c) Trade Receivables 3,48,000 3,10,000
(d) Cash and Cash Equivalents 2 32,000 45,000
Total 13,62,000 10,38,000

Notes to Accounts
Particulars 31st March, 31st March,
2022 (`) 2021 (`)
1. Reserves and Surplus
Surplus, i.e., Balance in Statement of Profit & Loss 3,00,000 1,20,000
2. Cash and Cash Equivalents
Cash in Hand 32,000 17,000
Cash at Bank ... 28,000
32,000 45,000

[Ans.: Cash Flow from Operating Activities = ` 2,33,000; Cash Used in Investing Activities =
` 3,00,000; Cash Flow from Financing Activities = ` 68,000;
Net Increase in Cash and Cash Equivalents = ` 1,000.]
[Hint: Cash and Cash Equivalents = Cash in Hand + Cash at Bank + Short-term Investments.]

6
 8. Compute Cash Flow from Operating Activities from the following:
Particulars Closing Opening
Balances (`) Balances (`)

Surplus, i.e., Balance in Statement of Profit & Loss 65,000 60,000

Trade Receivables:
  Debtors 67,000 1,02,000
  Bills Receivable 1,03,000 62,000
General Reserve 2,37,000 2,02,000
Provision for Depreciation 30,000 20,000
Outstanding Expenses 12,000 30,000
Goodwill 70,000 80,000

An asset costing ` 40,000 having book value of ` 28,000 was sold for ` 36,000.
[Ans.: Cash Flow from Operating Activities = ` 40,000.]

9. From the following Balance Sheet, prepare Cash Flow Statement:

BALANCE SHEET as at...

Particulars Note No. 31st March, 31st March,
2022 (`) 2021 (`)

I. EQUITY AND LIABILITIES

1. Shareholders’ Funds
(a) Share Capital 2,50,000 2,00,000
(b) Reserves and Surplus (General Reserve) 70,000 50,000
2. Non-Current Liabilities
Long-term Borrowings (12% Debentures) 80,000 1,00,000
3. Current Liabilities
(a) Trade Payables 1,60,000 60,000
(b) Other Current Liabilities 20,000 25,000
Total 5,80,000 4,35,000
II. ASSETS
1. Non-Current Assets
Property, Plant and Equipment and Intangible Assets:
(i) Property, Plant and Equipment 4,10,000 3,00,000
(ii) Intangible Assets (Goodwill) 2,000 10,000
2. Current Assets
(a) Inventories 90,000 70,000
(b) Trade Receivables 60,000 40,000
(c) Cash and Cash Equivalents 18,000 15,000
Total 5,80,000 4,35,000

[Ans.: Cash Flow from Operating Activities = ` 95,000; Cash Used in Investing Activities = ` 1,10,000;
Cash Flow from Financing Activities = ` 18,000;
Net Increase in Cash and Cash Equivalents = ` 3,000.]

7
 10. The Balance Sheet of Virendra Paper Ltd. as at 31st March, 2022 is given below:

Particulars Note No. 31st March, 31st March,

2022 (`) 2021 (`)

I. EQUITY AND LIABILITIES

1. Shareholders’ Funds

(a) Share Capital 7,20,000 6,00,000
(b) Reserves and Surplus:

Surplus, i.e., Balance in Statement of Profit & Loss 4,80,000 3,75,000
2. Non-Current Liabilities

Long-term Borrowings:
10% Debentures 2,70,000 4,50,000
3. Current Liabilities

Trade Payables 1,20,000 90,000
Total 15,90,000 15,15,000
II. ASSETS

1. Non-Current Assets
Property, Plant and Equipment and Intangible Assets:
—Property, Plant and Equipment 1 7,50,000 7,20,000
2. Current Assets


(a) Inventories 3,60,000 4,20,000

(b) Trade Receivables 3,00,000 2,25,000
(c) Cash and Cash Equivalents 1,80,000 1,50,000
Total 15,90,000 15,15,000

Note to Accounts
Particulars 31st March, 31st March,
2022 (`) 2021 (`)
1. Property, Plant and Equipment
Land 2,40,000 3,00,000
31st March, 31st March,
2022 (`) 2021(`)
Plant and Machinery 7,50,000 6,00,000
Less:  Accumulated Depreciation 2,40,000 1,80,000
5,10,000 4,20,000 5,10,000 4,20,000
7,50,000 7,20,000

Additional Information:

1. Interim Dividend of ` 75,000 has been paid during the year.
2. Debenture Interest paid during the year ` 27,000.
You are required to prepare Cash Flow Statement.
[Ans.: Cash Flow from Operating Activities = ` 2,82,000; Cash Used in Investing Activities = ` 90,000;
Cash Used in Financing Activities = ` 1,62,000; Net Increase in Cash and Cash Equivalents = ` 30,000.]

8
 11. Following is the Balance Sheet of Akash Ltd. as at 31st March, 2014:
Particulars Note No. 31st March, 31st March,
2014 (`) 2013 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 15,00,000 14,00,000
(b) Reserves and Surplus 1 2,50,000 1,10,000
2. Non-Current Liabilities
Long-term Borrowings 2,00,000 1,25,000
3. Current Liabilities
(a) Short-term Borrowings 2 12,000 10,000
(b) Trade Payables 15,000 83,000
(c) Short-term Provisions 3 18,000 11,000
Total 19,95,000 17,39,000
II. ASSETS
1. Non-Current Assets
Property, Plant and Equipment and Intangible Assets:
(i) Property, Plant and Equipment 4 18,60,000 16,10,000
(ii) Intangible Assets 5 50,000 30,000
2. Current Assets
(a) Current Investments 8,000 5,000
(b) Inventories 37,000 59,000
(c) Trade Receivables 26,000 23,000
(d) Cash and Cash Equivalents 14,000 12,000
Total 19,95,000 17,39,000

Notes to Accounts
Particulars 31st March, 31st March,
2014 (`) 2013 (`)
1. Reserves and Surplus
Surplus, i.e., Balance in Statement of Profit & Loss 2,50,000 1,10,000
2. Short-term Borrowings
Bank Overdraft 12,000 10,000
3. Short-term Provisions
Provision for Tax 18,000 11,000
4. Property, Plant and Equipment
Machinery 20,00,000 17,00,000
Less:  Accumulated Depreciation (1,40,000) (90,000)
18,60,000 16,10,000
5. Intangible Assets
Patents 50,000 30,000

Additional Information:
(i) Tax paid during the year amounted to ` 16,000.
(ii) Machine with a net book value of ` 10,000 (Accumulated Depreciation ` 40,000) was sold for ` 2,000.
Prepare Cash Flow Statement. (CBSE Sample Paper 2016)
[Ans.: Cash Flow from Operating Activities = ` 1,96,000; Cash Used in Investing Activities = ` 3,68,000;
Cash Flow from Financing Activities = ` 1,77,000; Net Increase in Cash and Cash Equivalents = ` 5,000.]

9
 12. From the following Balance Sheet as at 31st March, 2022 and Statement of Profit & Loss for the year ended
31st March, 2022 of RSB Ltd. and additional information, prepare Cash Flow Statement:
Particulars Note No. 31st March, 31st March,
2022 (`) 2021 (`)

I. EQUITY AND LIABILITIES

1. Shareholders’ Funds
(a) Share Capital 7,50,000 5,00,000
(b) Reserves and Surplus 1 9,50,000 3,00,000
2. Non-Current Liabilities
Long-term Borrowings (5% Debentures) 7,00,000 4,00,000
3. Current Liabilities
(a) Trade Payables 1,10,000 90,000
(b) Other Current Liabilities 2 39,000 25,000
(c) Short-term Provisions (Provision for Tax) 2,60,000 2,25,000
Total 28,09,000 15,40,000
II. ASSETS
1. Non-Current Assets
(a) Property, Plant and Equipment and Intangible Assets:
—Property, Plant and Equipment 3 6,85,000 7,45,000
(b) Non-current Investments 7,50,000 2,50,000
2. Current Assets
(a) Current Investments 6,74,000 95,000
(b) Inventories 1,00,000 2,00,000
(c) Trade Receivables 4,00,000 1,50,000
(d) Cash and Cash Equivalents 2,00,000 1,00,000
Total 28,09,000 15,40,000

STATEMENT OF PROFIT & LOSS

for the year ended 31st March, 2022
Particulars Note No. 31st March, 31st March,
2022 (`) 2021 (`)

I. Revenue from Operations 4 40,00,000 35,00,000

II. Other Income 5 35,000 30,000
III. Total Revenue (I + II) 40,35,000 35,30,000
IV. Expenses:
Purchases of Stock-in-Trade 27,00,000 24,70,000
Change in Inventories of Stock-in-Trade 6 1,00,000 50,000
Finance Cost 27,500 20,000
Depreciation 40,000 45,000
Other Expenses 22,500 20,000
Total Expenses 28,90,000 26,05,000
V. Profit before Tax (III – IV) 11,45,000 9,25,000
VI. Less: Tax 3,45,000 2,25,000
VII. Profit after Tax (V – VI) 8,00,000 7,00,000

10
Notes to Accounts

Particulars 31st March, 31st March,

2022 (`) 2021 (`)

1. Reserves and Surplus

Debentures Redemption Reserve 1,00,000 1,00,000
Surplus, i.e., Balance in Statement of Profit & Loss 8,50,000 2,00,000
9,50,000 3,00,000
2. Other Current Liabilities
Interest on Debentures 35,000 20,000
Outstanding Expenses 4,000 5,000
39,000 25,000
3. Property, Plant and Equipment
Machinery (Cost) 8,90,000 9,90,000
Less:  Accumulated Depreciation 2,05,000 2,45,000
6,85,000 7,45,000
4. Revenue from Operations
Sales 42,00,000 35,75,000
Less:  Sales Return 2,00,000 75,000
40,00,000 35,00,000
5. Other Income
Interest on Deposits 15,000 12,500
Dividend on Investments 10,000 17,500
Gain (Profit) on Sale of Fixed Assets 10,000 ...
35,000 30,000
6. Change in Inventories of Stock-in-Trade
Opening Stock 2,00,000 2,50,000
Less:  Closing Stock 1,00,000 2,00,000
1,00,000 50,000

Additional Information:
(i) Additional debentures were issued on 1st October, 2021 of ` 5,00,000. On the same date, part of outstanding
debentures were redeemed and interest was paid, whereas interest on outstanding debentures was paid
on 10th April, 2022.
(ii) Board of Directors proposed dividend in both the years @ 10%.
(iii) Interim Dividend of ` 1,00,000 was paid during the year.
(iv) A machinery with original cost of ` 1,00,000 on which depreciation till date was provided of ` 80,000 was
sold at a profit of ` 10,000.
[Ans.: Cash Flow from Operating Activities = ` 7,36,500; Cash Used in Investing Activities =
` 4,45,000; Cash Flow from Financing Activities = ` 3,87,500;
Net Increase in Cash and Cash Equivalents = ` 6,79,000.]

11
 13. From the following information, calculate Net Profit before Tax and Extraordinary Items: `
Opening Surplus, i.e., Balance in Statement of Profit & Loss (2,00,000)
Closing Surplus, i.e., Balance in Statement of Profit & Loss 6,72,000
Dividend paid in current year (Last year’s proposed dividend) 1,44,000
Interim Dividend paid during the year 1,80,000
Transfer to Reserve 2,00,000
Provision for Tax for the current year 3,00,000
Refund of Tax 6,000
Loss due to Earthquake 4,00,000
Insurance proceeds from earthquake disaster settlement 2,00,000
[Ans.: Net Profit Tax and Extraordinary Items = ` 18,90,000.]
[Hint: Net Profit for the year = ` 6,72,000 + ` 2,00,000 (Loss) = ` 8,72,000.]

14. From the following Balance Sheet of SRS Ltd. and the additional information as on 31st March, 2022,
prepare a Cash Flow Statement:

SRS Ltd.
BALANCE SHEET
as on 31st March, 2022
Particulars Note No. 31st March, 31st March,
2022 (`) 2021 (`)

I. EQUITY AND LIABILITIES

1. Shareholders’ Funds
(a) Share Capital 4,50,000 3,50,000
(b) Reserves and Surplus 1 1,25,000 50,000
2. Non-Current Liabilities
Long-term Borrowings 2 2,25,000 1,75,000
3. Current Liabilities
(a) Short-term Borrowings 3 75,000 37,500
(b) Short-term Provisions 4 1,00,000 62,500
Total 9,75,000 6,75,000
II. ASSETS
1. Non-Current Assets
Property, Plant and Equipment and Intangible Assets:
(a)
(i) Property, Plant and Equipment 5 7,32,500 4,52,500
(ii) Intangible 6 50,000 75,000
(b) Non-current Investments 75,000 50,000
2. Current Assets
(a) Current Investments 20,000 35,000
(b) Inventories 7 61,000 36,000
(c) Cash and Cash Equivalents 36,500 26,500
Total 9,75,000 6,75,000

12
Notes to Accounts

Particulars 31st March, 31st March,

2022 (`) 2021 (`)
1. Reserves and Surplus
Surplus, i.e., Balance in Statement of Profit & Loss 1,25,000 50,000
2. Long-term Borrowings
12% Debentures 2,25,000 1,75,000
3. Short-term Borrowings
Bank Overdraft 75,000 37,500
4. Short-term Provisions
Provision for Tax 1,00,000 62,500
5. Property, Plant and Equipment
Machinery 8,37,500 5,22,500
Accumulated Depreciation (1,05,000) (70,000)
7,32,500 4,52,500
6. Intangible Assets
Goodwill 50,000 75,000
7. Inventories
Stock-in-Trade 61,000 36,000

Additional Information:
(i)
` 50,000, 12% Debentures were issued on 31st March, 2022.
(ii) During the year, a piece of machinery costing ` 40,000, on which accumulated depreciation was
` 20,000, was sold at a loss of ` 5,000. (AI 2017, Modified)

[Ans.: Cash Flow from Op0erating Activities = ` 1,93,500; Cash Used in Investing Activities = ` 3,65,000;
Cash Flow from Financing Activities = ` 1,66,500; Net Decrease in
Cash and Cash Equivalents = ` 5,000.]

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