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Cash Flow Statement 4.45
Notes to Accounts
Particulars 31st March, 31st March,
2024 (`) 2023 (`)
1. Share Capital
Equity Share Capital 1,80,000 1,55,000
12% Preference Share Capital 20,000 25,000
2,00,000 1,80,000
2. Reserves and Surplus
General Reserve 4,000 4,000
Surplus, i.e., Balance in Statement of Profit & Loss 2,400 2,000
6,400 6,000
3. Short-term Provisions
Provision for Tax 8,400 6,000
4. Property, Plant and Equipment
Cost of Machinery 1,80,000 1,82,000
Less: Accumulated Depreciation 30,000 22,000
1,50,000 1,60,000

Additional Information:
1. Machinery sold for ` 10,000, their cost ` 20,000 and accumulated depreciation till date of sale of
them ` 6,000.
2. Interim Dividend during the year ` 9,000.
3. Tax paid ` 7,000.
4. Proposed dividend for the years ended 31st March, 2023 and 2024 were ` 10,000 and ` 11,600 respectively.
[Ans.: Cash Flow from Operating Activities = ` 22,200; Cash Used in Investing Activities =
` 8,000; Cash Used in Financing Activities = ` 9,600;
Net Increase in Cash and Cash Equivalents = ` 4,600.]
[Hints: 1. It has been assumed that the new debentures have been issued at the end of the Current
Accounting Year.
2. Proposed Dividend includes dividend on Equity as well as Preference Shares.]

12. From the following summarised Balance Sheets of Add Gel Pens Ltd. as at 31st March, 2024 and
31st March, 2023 and the additional information, prepare Cash Flow Statement:

BALANCE SHEETS
Particulars Note No. 31st March, 31st March,
2024 (`) 2023 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 1 3,00,000 2,00,000
(b) Reserves and Surplus 2 1,60,000 80,000
2. Non-Current Liabilities
Long-term Borrowings 3 50,000 50,000
3. Current Liabilities
(a) Short-term Borrowings 4 30,000 1,75,000
(b) Trade Payables 50,000 40,000
(c) Short-term Provisions 5 80,000 60,000
Total 6,70,000 6,05,000