question_answer

From the following balance sheets of Drishti Ltd, prepare cash from operating activities for the year ended 31st March, 2018. Balance Sheet as at 31st March, 2018

	Particulars	Note No.	31st March, 2018 (Rs.)	31st March, 2017 (Rs.)
I.	EQUITY AND LIABILITIES
	1. Shareholder's Funds
	(a) Equity Share Capital		1,40,000	1,20,000
	(b) Reserve and Surplus	1	88,000	14,000
	2. Non-current Liabilities
	Long-term borrowings	2	1,00,000	84,000
	3. Current Liabilities
	Trade Payables		50,000	34,000
	TOTAL		3,78,000	2,52,000
II.	ASSETS
	1. Non-current Assets
	(a) Fixed Assets
	(i) Tangible Assets	3	1,64,000	1,28,000
	(ii) Intangible Assets		32,000	40,000
	(b) Non-current Investments		32,000	12,000
	2. Current Assets
	(a) Inventory		98,000	24,000
	(b) Cash and Cash Equivalents		52,000	48,000
	TOTAL		3,78,000	2,52,000

Notes to Accounts

	Particulars	31st March, 2018 (Rs.)	31st March, 2017 (Rs.)
1.	Reserve and Surplus
	General Reserve	60,000	40,000
	Surplus i.e. Statement of Profit and Loss	28,000	(26,000)
2.	Long-term Borrowings
	12% Debentures	1,00,000	84,000
3.	Tangible Assets
	Machinery	2,16,000	1,64,000
	(-) Provision for Depreciation	(52,000)	(36,000)
		1,64,000	1,28,000

Additional Information

(i) Debentures were issued on 31st March, 2018.

(ii) Non-current investments were purchased on 31st March, 2018.

(iii) Rate of interest on investments is 10% p.a.

Answer:

Cash flow from operating activities = Rs. 48,880