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Model Test Papers M.389

23. You are required to prepare a Cash Flow Statement (as per AS–3) for the year
ended 31st March, 2018 from the following Balance Sheet and additional information:

BALANCE SHEET OF STAR LTD. as at 31st March, 2018
Particulars Note No. 31st March, 31st March,
2018 (`) 2017 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 5,00,000 4,00,000
(b) Reserves and Surplus 1 3,20,000 2,50,000
2. Non-Current Liabilities
Long-term Borrowings 2 2,00,000 1,00,000
3. Current Liabilities
Trade Payables 1,50,000 90,000
Total 11,70,000 8,40,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets—Tangible 3 7,00,000 5,00,000
(b) Non-Current Investments 70,000 50,000
2. Current Assets
(a) Inventories 60,000 90,000
(b) Trade Receivables 1,20,000 70,000
(c) Cash and Bank Balances 2,20,000 1,30,000
Total 11,70,000 8,40,000

Notes to Accounts
Particulars 31st March, 31st March,
2018 (`) 2017 (`)
1. Reserves and Surplus
Securities Premium Reserve 5,000 ...
General Reserve 1,00,000 80,000
Surplus, i.e., Balance in Statement of Profit and Loss 2,15,000 1,70,000
3,20,000 2,50,000
2. Long-term Borrowings
10% Debentures 2,00,000 1,00,000
3. Fixed Assets—Tangible
Machinery (Cost) 8,50,000 6,10,000
Less: Accumulated Depreciation 1,50,000 1,10,000
7,00,000 5,00,000
Additional Information:
(i) Machinery costing ` 1,00,000 (Accumulated Depreciation ` 70,000) was sold at a
loss of 20%.
(ii) Equity Shares were issued at a premium of 15% on 1st April, 2017.
(iii) Additional debentures were issued on 1st October, 2017 at a discount of 10%.
The company wrote off the discount on issue of debentures from Securities
Premium Reserve.
(iv) Interim Dividend paid during the year was ` 25,000. (6)