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Model Test Papers M.261

23. From the following Balance Sheet of Vivek Ltd. as at 31st March, 2018, prepare Cash
Flow Statement:

Particulars Note No. 31st March, 31st March,
2018 (`) 2017 (`)

I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 5,75,000 2,50,000
(b) Reserves and Surplus 1 1,00,000 72,000
2. Non-Current Liabilities
Long-term Borrowings: 10% Debentures 75,000 1,00,000
3. Current Liabilities
(a) Short-term Borrowings (Bank Overdraft) 10,000 18,000
(b) Trade Payables 1,50,000 90,000
Total 9,10,000 5,30,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets—Tangible 2 6,00,000 3,50,000
(b) Non-current Investments 50,000 70,000
2. Current Assets
(a) Inventories 80,000 60,000
(b) Trade Receivables 90,000 30,000
(c) Cash and Cash Equivalents 90,000 20,000
Total 9,10,000 5,30,000

Notes to Accounts
Particulars 31st March, 31st March,
2018 (`) 2017 (`)
1. Reserves and Surplus
Capital Reserve 5,000 ...
General Reserve 55,000 42,000
Surplus, i.e., Balance in Statement of Profit and Loss 40,000 30,000
1,00,000 72,000
2. Fixed Assets—Tangible
Plant and Machinery (Cost) 6,90,000 4,10,000
Less: Accumulated Depreciation 90,000 60,000
6,00,000 3,50,000
Additional Information:
(i) During the year, Plant and Machinery costing ` 35,000 (accumulated depreciation of
` 20,000) was sold for ` 28,000.
(ii) During the year, Non-current Investments were sold at a profit of 25%, which is
transferred to Capital Reserve.

(iii) Debentures were redeemed at a premium of 10% in the beginning of the year.
(iv) Tax of ` 25,000 was paid during the year. (6)