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Cash Flow Statement—Based on Accounting Standard-3 (Revised) 3.7

Note: Calculation of Net Profit before Tax: `
Closing Surplus, i.e., Balance in Statement of Profit and Loss 8,00,000
Less: Opening Surplus, i.e., Balance in Statement of Profit and Loss 4,00,000
4,00,000
Add: Dividend paid on Preference Shares 20,000
Interim Dividend on Equity Shares 2,40,000
Interest paid on Debentures 1,00,000 3,60,000
Net Profit before Tax 7,60,000
Illustration 5.
Prepare Cash Flow Statement from the Balance Sheet of P.S. Ltd. as at 31st March, 2019:
Particulars Note No. 31st March, 31st March,
2019 (`) 2018 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 2,50,000 2,00,000
(b) Reserves and Surplus 1 70,000 50,000
2. Non-Current Liabilities
Long-term Borrowings 2 80,000 1,00,000
3. Current Liabilities
(a) Trade Payables 3 1,60,000 60,000
(b) Other Current Liabilities 4 20,000 25,000
Total 5,80,000 4,35,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets:
(i) Tangible Assets 5 2,80,000 2,00,000
(ii) Intangible Assets 6 2,000 10,000
(b) Long-term Loans and Advances 1,30,000 1,00,000
2. Current Assets
(a) Inventories 90,000 70,000
(b) Trade Receivables 60,000 40,000
(c) Cash and Bank Balances 18,000 15,000
Total 5,80,000 4,35,000
Notes to Accounts
Particulars 31st March, 31st March,
2019 (`) 2018 (`)
1. Reserves and Surplus
Surplus, i.e., Balance in Statement of Profit and Loss 70,000 50,000
2. Long-term Borrowings
12% Debentures 80,000 1,00,000
3. Trade Payables
Creditors 60,000 40,000
Bills Payable 1,00,000 20,000
1,60,000 60,000
4. Other Current Liabilities
Outstanding Expenses 20,000 25,000
5. Tangible Assets
Land and Building 2,80,000 2,00,000
6. Intangible Assets
Goodwill 2,000 10,000