Practical Problem 10
SOLUTION:
Cash Flow Statement For the year ended on 31st March 2017 and 31st March 2018
Particular | Amount (₹) | Amount (₹) |
(A) Cash flow from Operating activities | ||
Closing balance of Profit and Loss A/c | 23,000 | |
Less: Opening balance of Profit and Loss A/c | 10,000 | |
13,000 | ||
Add: Decrease in Current Assets – Debtors | 5,000 | |
18,000 | ||
Less: Increase in Current Assets – Stock | (10,000) | |
Less: Decrease in Current Liabilities – Creditors | (25,000) | |
Net Cash from Operating activities (A) | (17,000) | |
(B) Cash flow from Investing activities | ||
Purchase of Land | 16,000 | |
Net Cash used in Investing activities (B) | 16,000 | |
(C) Cash flow from Financing activities | ||
Amount of share capital received | 50,000 | |
Net Cash used in Financing activities (C) | 50,000 | |
Net increase in cash and cash equivalent (A+ C – B) | 17,000 | |
Cash equivalent in the beginning of period | 30,000 | |
Cash equivalent at the end of period. | 47,000 |