question_answer

From the following balance sheets of Karunesh Ltd as on 31st March, 2016 and 2017, prepare a cash flow statement. Balance Sheet as at 31st March, 2016 and 2017

	Particulars	Note No.	31st March, 2016 Amt (Rs.)	31st March, 2017 Amt (Rs.)
I.	EQUITY AND LIABILITIES
	1. Shareholders' Funds
	(a) Equity Share Capital		3,00,000	3,60,000
	(b) Reserves and Surplus	1	1,60,000	2,00,000
	2. Non-current Liabilities
	Long-term Borrowings	2	2,62,000	3,78,000
	3. Current Liabilities
	(a) Trade Payables		16,000	20,000
	(b) Cash Credit		12,000	8,000
	(c) Other Current Liabilities	3	6,000	2,000
	Total		7,56,000	9,68,000
II.	ASSETS
	1. Non-current Assets
	Fixed Assets
	(i) Tangible	4	4,60,000	6,40,000
	(ii)	5	20,000	10,000
	2. Current Assets
	(a) Inventories		40,000	34,000
	(b) Trade Receivables	6	1,36,000	1,68,000
	(c) Other Current Assets : Prepaid Expenses	7	20,000	16,000
	(d) Cash and Cash Equivalents		80,000	1,00,000
	Total		7,56,000	9,68,000

Notes to Accounts

	Particulars	2016 Amt (Rs.)	2017 Amt (Rs.)
1.	Reserves and Surplus
	General Reserve	60,000	60,000
	Balance of Statement of Profit and Loss	1,00,000	1,40,000
		1,60,000	2,00,000
2.	Long-term Borrowings
	12% Debentures	1,02,000	1,38,000
	12% Public Deposits	1,60,000	2,40,000
		2,62,000	3,78,000
3.	Other Current Liabilities
	Outstanding Expenses	6,000	2,000
		6,000	2,000
4.	Fixed Assets (Tangible)
	Building	3,00,000	4,40,000
	Plant	1,60,000	2,00,000
		4,60,000	6,40,000
5.	Fixed Assets (Intangible)
	Goodwill	20,000	10,000
		20,000	10,000
6.	Trade Receivables
	Debtors	1,20,000	1,50,000
	Bills Receivables	16,000	18,000
7.	Other Current Assets
	Prepaid Expenses	20,000	16,000
		20,000	16,000

Additional Information

(a) Depreciation charged on building Rs. 20,000 and plant Rs. 10,000.

(b) Interest paid on debentures Rs. 14,400. New debentures of Rs. 36,000 were issued on 1st October, 2016.

(c) Interest paid on deposits from public Rs. 19,200 for the year.

Answer:

Net cash from operating activities = Rs. 91,600; Net cash used in investing activities = Rs. 2,10,000, Net cash from financing activities = Rs. 1,42,400