From the following Balance Sheets of Tiger Super Steel Ltd., prepare Cash Flow Statement- Bzzii

 8. From the following Balance Sheets of Tiger Super Steel Ltd., prepare Cash Flow Statement:

Balance Sheet of Tiger Super Steel Ltd.
as at 31st March 2014 and 31st March 2017

ParticularsNote No.March 31, 2017
(Rs)
March 31, 2016
(Rs)
I) Equity and Liabilities   
1. Shareholders’ Funds   
a) Share capital11,40,0001,20,000
b) Reserves and surplus222,80015,200
2. Current Liabilities   
a) Trade payables321,20014,000
b) Other current liabilities42,4003,200
c) Short-term provisions528,40022,400
Total 2,14,8001,74,800
II) Assets   
1. Non-Current Assets   
a) Fixed assets   
i) Tangible assets696,40076,000
ii) Intangible assets 18,80024,000
b) Non-current investments 14,0004,000
2. Current Assets   
a) Inventories 31,20034,000
b) Trade receivables 43,20030,000
c) Cash and Cash Equivalents 11,2006,800
Total  2,14,8001,74,800

Notes to accounts:

 20172016
1. Share Capital  
Equity share capital1,20,00080,000
10% Preference share capital20,00040,000
 1,40,0001,20,000
2. Reserves and surplus  
General reserve12,0008,000
Balance in statement of profit and loss10,8007,200
 22,80015,200
3. Trade payables  
Bills payable21,20014,000
4. Other current liabilities  
Outstanding expenses2,4003,200
5. Short-term provisions  
Provision for taxation12,80011,200
Proposed dividend15,60011,200
 28,40022,400
6. Tangible assets  
Land and building20,00040,000
Plant76,40036,000
 96,40076,000


Additional Information:
Depreciation Charge on Land & Building Rs 20,000, and Plant Rs 10,000 during the year.






Cash Flow Statement 

of Tiger Super Steels Ltd

 ParticularsAmount (Rs.)Amount (Rs.)
A.Cash Flow from Operating Activities  
 Profit as per the Balance Sheet (10,800 –7,200)3,600 
 General Reserve4,000 
 Proposed Dividend15,600 
 Provision for Taxation12,800 
 Net Profit before Taxation and Extraordinary 36,000
 Items to be added:  
  Depreciation on Land and Building20,000
  Depreciation on Plant10,000
  Goodwill written off5,20035,200
 Operating Profit before Working Capital changes 71,200
  Add:Increase in Current Liabilities
  Bills Payable 7,200
  Add:Decrease in Current Assets
  Inventories 2,80010,000
    81,200
  Less: Increase in Current Assets
  Trade Receivables (13,200)
  Less:Decrease in Current Liabilities
  Outstanding Expenses (800)(14,000)
 Cash Generated from Operating Activities 67,200
  Less:Income Tax paid(11,200)
 Net Cash from Operating Activities 56,000
B.Cash Flow from Investing Activities  
  Purchases of Plant (40,400)
  Purchases of Investment (20,000)
 Net Cash used in Investing Activities (60,400)
C.Cash Flow from Financing Activities  
  Issue of Equity Shares 40,000
  Dividend paid (11,200)
  Redemption of 10% Preference Shares (20,000)
 Net Cash from Financing Activities 8,800
D.Net Increase in Cash and Cash Equivalent 4,400
  Add: Cash and Cash Equivalent in the beginning6,800
E.Cash and Cash Equivalents at the end 11,200

Working Notes

1.

Plant Account

DateParticularsJ.F.Amount (Rs.)DateParticularsJ.F.Amount (Rs.)
 To Balance b/d 36,000 By Depreciation 10,000
 To Bank A/c (Purchases- Balancing figure) 50,400 By Balance c/d 76,400
   86,400   86,400

2. 

Net Profit before Tax3,600
Profit and Loss Account12,800
Less:Provision for Tax16,400

Chapter-6 Cash Flow Statement



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