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Cash Flow Analysis

FOR PRIVATE CIRCULATION ONLY

Q1. From the following balances, you are required to calculate cash from operations:
Particulars
31.03.23 31.03.24
Rs. Rs.
Debtors 50,000 47,000
Bills Receivable 10,000 12,500
Creditors 20,000 25,000
Expenses Outstanding 1,000 1,200
Expenses Prepaid 800 700
Accrued Income 600 750
Income received in advance 300 250
Net Profit made - 1,30,000
Bills Payable 8,000 6,000

Q2. Balance Sheets of a firm as on 1st April 2023and 31st March 2024 were as follows:
Liabilities 1.4.2023 31.04.2024 Assets 1.04.2023 31.03.2024
Rs. Rs. Rs. Rs.
Creditors 40,000 44,000 Cash 10,000 47,000
Loan from X 25,000 - Debtors 30,000 50,000
Loan from Y 40,000 50,000 Stock 35,000 25,000
Capital 1,25,000 1,53,000 Machinery 80,000 55,000
Land 40,000 10,000
Building 35,000 60,000
2,30,000 2,47,000 2,30,000 2,47,000
During the year a machine costing Rs. 10,000 (accumulated depreciation Rs. 3,000) was
sold for Rs. 5,000. The balance of provision for depreciation against machinery as on 1st
April 2023 was Rs. 25,000 and on 31st March 2024 Rs. 40,000. Net profit for the year
amounted to Rs.45,000. Prepare Cash Flow Statement.
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Q3. X Ltd. supplies you the following, Balance Sheets for the year ending 31.03.2023
and 31.03.24.
Liabilities 31.03.23 31.03.24 Assets 31.03.23 31.03.24
Share Capital 70,000 74,000 Bank Balance 9,000 7,800
10% Bonds 12,000 6,000 Sundry Debtors 14,900 17,700
Sundry Creditors 10,360 11,840 Inventories 49,200 42,700
Provision for Land 20,000 30,000
doubtful debts 700 800 Goodwill 10,000 5,000
P/LA/c 10,040 10,560 --
1,03,100 1,03,200 1,03,100 1,03,200
Additional Information:
(a) Dividend paid during the year was Rs. 3,500.
(b) Land purchased for Rs. 10,000.
(c) Goodwill written off Rs. 5,000
(d) Bonds Rs. 6,000 redeemed during 2023.
Prepare Cash Flow Statement for the year-ended 31.03.24
Q4. From the following Profit and Loss Account, you are requited to compute Cash from
Operations
PROFIT AND LOSS ACCOUNT for the year ending 31.03.2024
Particulars Rs. Particulars Rs.
Salaries 5,000 Gross Profit 25,000
Rent 1,000 Profit on Sale of Land 5,000
Depredation 2,000 Income Tax Refund 3,000
Loss on Sale of Plant 1,000
Goodwill Written off 4,000
Proposed Dividend 5,000
Provision for Taxation 5,000
Net Profit 10,000
33,000 33,000

Q5. From the following particulars, calculate cash from operations

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March 31st
Particulars 2023 2024
Rs. Rs.
Debtors 50,000 47,000
Bills Receivable 10,000 12,500
Creditors 20,000 25,000
Bills Payable 8,000 6,000
Outstanding Expenses 1,000 1,200
Prepaid Expenses 800 700
Accrued Income 600 750
Income received in Advance 300 250
Profit made during the year 1,30,000

Q6. From the following details you are required to calculate cash from operation:
March 31st
Particulars 2023 2024
Rs. Rs.
Debtors 1,00,000 94,000
Bills Receivable 20,000 25,000
Creditors 40,000 50,000
Bills Payable 16,000 12,000
Outstanding Expenses 2,000 2,400
Prepaid Expenses 1,600 1,400
Accrued Income 1,200 1,500
Income received in Advance 600 500
Profit made during the year - 2,60,000
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Q7. The financial position of ABC Ltd. on 1st April 2023 and 31st march 2024 was as
follows:
Assets 1-04-2023 31-03-2024
Rs. Rs.
Cash 8,000 7,200
Debtors 70,000 76,800
Stock 50,000 44,000
Land 40,000 60,000
Building 1,00,000 1,10,000
Machinery: 2,14,000 2,44,000
Provision for Depreciation (54,000) (72,000)
4,28,000 4,70,000
Liabilities
Current Liabilities 72,000 82,000
Loan from associate company - 40,000
Loan from Bank 60,000 50,000
Capital and Reserves 2,96,000 2,98,000
4,28,000 4,70,000
During the year Rs. 52,000 were paid as dividends. Prepare a cash flow statement.

Q8. Condensed versions of the comparative balance sheets and income statement of
Scindia Ltd. are presented below:
Comparative Balance Sheets March 31, 2024 and 2023
Assets 2024 2023
Rs. Rs.
Cash 46,000 28,900
Debtors 41,000 45,000
Inventories 48,000 51,000
Prepaid Expenses 4,100 3,700
Machinery 3,30,000 3,10,000
Accumulated depreciation-Machinery (1,31,000) (1,85,000)
Buildings 5,80,000 4,75,000
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Accumulated depreciation--Buildings (2,25,000) (2,15,000)

Land 60,000 50,000
7,53,100 5,63,600
Liabilities and Capital
Creditors 32,500 37,000
Wages payable 4,500 7,500
Income tax payable 7,000 5,000
Mortgage note payable 2009 1,00,000 -
Equity share capital, Rs. 20 per share 4,00,000 3,50,000
Share premium 55,000 45,000
Profit and loss appropriation account 1,54,100 1,19,100
7,53,100 5,63,600
Additional information:
(i) Dividends of Rs. 40,000 were declared during the year.
(ii) Machinery with an original cost of Rs. 80,000 and accumulated depreciation of Rs.
74,000 was sold during the year for Rs. 6,000 cash. New machinery was also purchased
for Rs. 1,00,000 cash.
(iii) Land and buildings were acquired during the year at a cost of Rs. 1,15,000. In
addition to the down payment of Rs. 15,000, a ten year 10% mortgage note for Rs.
1,00,000 was issued to the vendor.
Income Statement for the year ended March 31, 2024
Sales 8,10,000
Cost of goods sold 4,60,000
Gross profit on sales 3,50,000
Operating expenses:
Depreciation expenses-machinery 20,000
Depreciation expenses-buildings 10,000
Other operating expenses 1,75,500 2,05,500
Income before income tax 1,44,500
Income tax 69,500
75,000
Prepare a cash flow statement.
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Q9. The following are the summaries of the balance sheets of a limited company as at 31
March 2023 and 31st March2024:
Liabilities 2023 2024 Assets 2023 2024
Rs. Rs. Rs. Rs.
Sundry creditors 39,500 41,135 Cash at bank 2,500 2,700
Bills Payable 33,780 11,525 Debtors 85,175 72,625
Bank Overdraft 59,510 -- Advances 2,315 735
Provision for tax 40,000 50,000 Stock 1,11,040 97,370
Reserves 50,000 50,000 Land and
building
Profit and loss 1,48,500 1,44,250
account 39,690 41,220 Plant and
machinery
Share capital 2,00,000 2,60,000 1,12,950 1,16,200
Goodwill
-- 20,000
462480 453880 462480 453880
The following additional information is available from the books:
(i) During the year ended 31.03.2024, an additional dividend of Rs. 26,000 was
paid.
(ii) The assets of another company were purchased for Rs. 60,000 payable in fully
paid shares of the company. These assets consisted of stock Rs.21,640,
machinery Rs.18,360 and goodwill Rs.20,000. In addition, sundry purchases
of plant were made totaling Rs. 5,650
(iii) Income tax paid during 2006 was Rs. 25,000
(iv) The net profit for the year before tax was Rs. 62,530.
Prepare a cash flow statement.
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Q10. From the following balance sheets of X Ltd., make out the cash flow statement as
per AS-3 (Revised).
Liabilities 2023 2024
Rs. Rs.
Equity share capital 3,00,000 4,00,000
8% Preference Share Capital 1,50,000 1,00,000
General Reserve 40,000 70,000
Profit and loss account 30,000 48,000
Proposed dividend 42,000 50,000
Creditors 55,000 83,000
Bills payable 20,000 16,000
Provision for taxation 40,000 50,000
6,77,000 8,17,000
Assets
Goodwill 1,15,000 90,000
Land and building 2,00,000 1,70,000
Plant 80,000 2,00,000
Debtors 1,60,000 2,00,000
Stock 77,000 1,09,000
Bills receivable 20,000 30,000
Cash in hand 15,000 10,000
Cash at bank 10,000 8,000
6,77,000 8,17,000
Additional Information:
a) Depreciation of Rs. 10,000 and Rs. 20,000 have been charged on plant and land
and buildigs respectively during the year.
b) An interim dividend of Rs. 20,000 has been paid during the year.
c) Rs. 35,000 income tax was paid during the year

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