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Cash Flow Statement 4.53
Additional Information:
A piece of machinery costing ` 60,000 on which accumulated depreciation was ` 15,000 was sold for
` 30,000.
[Ans.: Cash Flow from Operating Activities = ` 75,000; Cash Used in
Investing Activities = ` 1,80,000; Cash Flow from Financing Activities = ` 75,000;
Net Decrease in Cash and Cash Equivalents = ` 30,000.]
20. From the following Balance Sheet of Sultan Ltd. as at 31st March, 2024, prepare a 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 4,00,000 5,50,000
(b) Trade Payables 1,50,000 40,000
(c) Short-term Provisions 5 1,90,000 1,50,000
Total 18,90,000 17,65,000
II. ASSETS
1. Non-Current Assets
(a) Property, Plant and Equipment and Intangible Assets:
(i) Property, Plant and Equipment (Machinery) 11,00,000 9,00,000
(ii) Intangible Assets (Goodwill) 40,000 90,000
(b) 10% 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 2,20,000 2,85,000
Total 18,90,000 17,65,000
Notes to Accounts
Particulars 31st March, 31st March,
2024 (`) 2023 (`)
1. Share Capital
Equity Share Capital 6,00,000 3,00,000
12% Preference 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
12% Bank Loan 4,00,000 5,00,000
4,00,000 5,50,000
5. Short-term Provisions
Provision for Tax 1,90,000 1,50,000

Additional Information:
(i) Machinery costing ` 1,00,000 on which depreciation charged was ` 70,000, was sold at a profit of
20% on book value. Depreciation charged during the year amounted to ` 70,000.