From the following Balance Sheet of Mohan Ltd., prepare cash flow Statement:
Balance Sheet of Mohan Ltd.,
as at 31st March 2016 and 31 March 2017
| Particulars | Note No. | March 31, 2017 (Rs) | March 31, 2016 (Rs) |
| I) Equity and Liabilities | |||
| 1. Shareholders’ Funds | |||
| a) Equity share capital | 3,00,000 | 2,00,000 | |
| b) Reserves and surplus | 2,00,000 | 1,60,000 | |
| 2. Non-current liabilities | |||
| a) Long-term borrowings | 1 | 80,000 | 1,00,000 |
| 3. Current liabilities | |||
| Trade payables | 1,20,000 | 1,40,000 | |
| Short-term provisions | 2 | 70,000 | 60,000 |
| Total | 7,70,000 | 6,60,000 | |
| II) Assets | |||
| 1. Non-current assets | |||
| Fixed assets | 3 | 5,00,000 | 3,20,000 |
| 2. Current assets | |||
| a) Inventories | 1,50,000 | 1,30,000 | |
| b) Trade receivables | 4 | 90,000 | 1,20,000 |
| c) Cash and cash equivalents | 5 | 30,000 | 90,000 |
| Total | 7,70,000 | 6,60,000 |
Notes to accounts:
| 2017 | 2016 | |
| 1. Long-term borrowings | ||
| Bank Loan | 80,000 | 1,00,000 |
| 2. Short-term provision | ||
| Proposed dividend | 70,000 | 60,000 |
| 3. Fixed assets | 6,00,000 | 4,00,000 |
| Less: Accumulated Depreciation | 1,00,000 | 80,000 |
| (Net) Fixed Assets | 5,00,000 | 3,20,000 |
| 4. Trade receivables | ||
| Debtors | 60,000 | 1,00,000 |
| Bills receivables | 30,000 | 20,000 |
| 90,000 | 1,20,000 | |
| 5. Cash and cash equivalents Bank | 30,000 | 90,000 |
Additional Information:
Machine Costing Rs. 80,000 on which accumulated depreciation was Rs. 50,000 was sold for Rs. 20,000.
Cash Flow Statement of Mohan Ltd.
| Particulars | Amount (Rs.) | Amount (Rs.) |
| 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 | |
| Adjustments: | ||
| Depreciation | 70,000 | |
| Loss on Sale of Machine | 10,000 | 80,000 |
| Operating Profit before Working Capital changes | 1,90,000 | |
| Add:Decrease in Current Assets | ||
| Debtors | 40,000 | 40,000 |
| 2,30,000 | ||
| Less:Increase in Current Assets Inventories | (20,000) | |
| Bills Receivable | (10,000) | |
| Less:Decrease in Current Liabilities Trade Payables | (20,000) | (50,000) |
| Net Cash from Operations | 1,80,000 | |
| b. Cash Flow from Investing Activities | ||
| Proceeds from Sale of Fixed Assets | 20,000 | |
| Purchases of Fixed Assets | (2,80,000) | |
| Net Cash outflow from Investing activity | (2,60,000) | |
| c. Cash Flow from Financing Activities | ||
| Issue of Shares | 1,00,000 | |
| Bank Loan Paid | (20,000) | |
| Dividend Paid | (60,000) | |
| Net Cash from Financing Activities | 20,000 | |
| d. Net Decrease in Cash and Cash Equivalents (A+B+C) | (60,000) | |
| Add: Cash and Cash Equivalents in the beginning | 90,000 | |
| e. Cash and Cash equivalents at the end | 30,000 | |
Fixed Assets Account
| Date | Particulars | J.F. | Amount (Rs.) | Date | Particulars | J.F. | Amount (Rs.) |
| Balance b/d | 4,00,000 | Bank | 20,000 | ||||
| Bank (Purchases- Balancing fig.) | 2,80,000 | Profit and Loss | 10,000 | ||||
| Accumulated Depreciation | 50,000 | ||||||
| Balance c/d | 6,00,000 | ||||||
| 6,80,000 | 6,80,000 | ||||||
Accumulated Depreciation Account
| Date | Particulars | J.F. | Amount (Rs.) | Date | Particulars | J.F. | Amount (Rs.) |
| Fixed Assets | 50,000 | Balance b/d | 80,000 | ||||
| Balance c/d | 1,00,000 | Profit and Loss (Balance fig.) | 70,000 | ||||
| 1,50,000 | 1,50,000 | ||||||