Practical Problem 09
Following is the Balance Sheet of Sakshi Limited. Prepare cashflow statement.:
Liabilities | 31.3.17 (₹) | 31.3.18 (₹) | Assets | 31.3.17 (₹) | 31.3.18 (₹) |
Share Capital | 2,00,000 | 3,00,000 | Cash | 20,000 | 30,000 |
Creditors | 60,000 | 90,000 | Debtors | 1,40,000 | 2,50,000 |
Profit and Loss A/c | 40,000 | 70,000 | Stock | 80,000 | 70,000 |
Land | 60,000 | 1,10,000 | |||
3,00,000 | 4,60,000 | 3,00,000 | 4,60,000 |
SOLUTION:
Cash Flow Statement For the year ended 31st March, 2017 and 31st March, 2018
Particulars | Amount (₹) | Amount (₹) |
(A) Cash flow from Operating activities | ||
Closing balance of Profit and Loss A/c | 70,000 | |
Less: Opening balance of Profit and Loss A/c | 40,000 | |
30,000 | ||
Add: Decrease in Current Asset – Stock | 10,000 | |
Add: Increase in Current Liabilities – Creditors | 30,000 | |
70,000 | ||
Less: Increase in Current Asset – Debtors | 1,10,000 | |
Net Cash from Operating activities (A) | (40,000) | |
(B) Cash flow from Investing activities | ||
Purchase of Land | 50,000 | |
Net Cash used in Investing activities (B) | 50,000 | |
(C) Cash flow from Financing activities | ||
Amount of share capital received | 1,00,000 | |
Net Cash from Financing activities (C) | 1,00,000 | |
Net increase in cash and cash equivalent (A + C – B) | 10,000 | |
Cash equivalent in the beginning of period | 20,000 | |
Cash equivalent at the end of period | 30,000 |