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M.236 An Aid to Accountancy—CBSE XII

23. Following is the Balance Sheet of Grow More Ltd. as on 31st March, 2018:

Particulars Note No. 31st March, 31st March,
2018 (`) 2017 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 40,00,000 30,00,000
(b) Reserves and Surplus 1 10,00,000 6,00,000
2. Non-Current Liabilities
Long-term Borrowings (10% Debentures) 6,00,000 4,00,000
3. Current Liabilities
(a) Trade Payables 3,00,000 4,00,000
(b) Short-term Provisions 2 1,40,000 1,20,000
Total 60,40,000 45,20,000
II. ASSETS
1. Non-Current Assets
Fixed Assets:
(i) Tangible Assets 3 38,00,000 30,00,000
(ii) Intangible Assets 4 9,40,000 5,40,000
2. Current Assets
(a) Inventories 5,00,000 3,20,000
(b) Trade Receivables 4,20,000 4,20,000
(c) Cash and Cash Equivalents 3,80,000 2,40,000
Total 60,40,000 45,20,000

Notes to Accounts
Particulars 31st March, 31st March,
2018 (`) 2017 (`)
1. Reserves and Surplus
Surplus, i.e., Balance in Statement of Profit and Loss 10,00,000 6,00,000
2. Short-term Provisions
Provision for Tax 1,40,000 1,20,000
3. Tangible Assets
Machinery 42,00,000 33,00,000
Less: Accumulated Depreciation 4,00,000 3,00,000
38,00,000 30,00,000
4. Intangible Assets
Goodwill 9,40,000 5,40,000

Prepare Cash Flow Statement after taking into account the following adjustments:
(i) During the year, a piece of machinery costing ` 40,000 on which accumulated
depreciation was ` 30,000, was sold for ` 9,000.
(ii) New shares were issued at a premium of 2% and new Debentures were issued
at a discount of 10% on 1st April, 2017.
(iii) Discount on Issue of Debentures was adjusted against the Securities Premium
Reserve.
(iv) An interim Divided @ 15% was paid on 31st December, 2017. (6)