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4.20 Analysis of Financial Statements—CBSE XII
Working Notes:
1. Dr. LAND AND BUILDING ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 6,50,000 By Bank A/c (Sale) 3,50,000
To Gain on Sale of Land and Building A/c 50,000 (Bal. Fig.)
(Statement of Profit & Loss) By Balance c/d 3,50,000
7,00,000 7,00,000

2. Dr. MACHINERY ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 2,75,000 By Depreciation A/c 27,500
To Bank A/c (Purchase) (Bal. Fig.) 4,77,500 By Balance c/d 7,25,000
7,52,500 7,52,500
Illustration12. From the following Balance Sheet of Essar Steel Ltd. as at 31st March, 2024,
prepare its Cash Flow Statement:

Particulars Note No. 31st March, 31st March,
2024 (`) 2023 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 1 7,00,000 5,00,000
(b) Reserves and Surplus 2 2,50,000 3,25,000
2. Non-Current Liabilities
Long-term Borrowings 3 2,00,000 2,00,000
3. Current Liabilities
(a) Short-term Borrowings 4 ... 50,000
(b) Short-term Provisions 5 50,000 25,000
Total 12,00,000 11,00,000
II. ASSETS
1. Non-Current Assets
(a) Property, Plant and Equipment and Intangible Assets:
Property, Plant and Equipment (Machinery) 5,00,000 3,00,000
(b) Non-current Investments 2,00,000 1,40,000
2. Current Assets
(a) Inventories 1,50,000 2,00,000
(b) Trade Receivables 1,80,000 1,50,000
(c) Cash and Cash Equivalents 1,70,000 3,10,000
Total 12,00,000 11,00,000

Notes to Accounts
Particulars 31st March, 31st March,
2024 (`) 2023 (`)
1. Share Capital
Equity Share Capital 6,00,000 3,00,000
12% Preference Share Capital 1,00,000 2,00,000
7,00,000 5,00,000
2. Reserves and Surplus
General Reserve 1,50,000 3,75,000
Surplus, i.e., Balance in Statement of Profit & Loss 1,00,000 (50,000)
2,50,000 3,25,000
3. Long-term Borrowings
9% Debentures 2,00,000 2,00,000
4. Short-term Borrowings
Current Maturities of Long-term Debts (9% Debentures) ... 50,000
5. Short-term Provisions
Provision for Tax 50,000 25,000