Page 140 - afs12

4.58 Analysis of Financial Statements—CBSE XII
5. At the end of the year some Non-current Investments costing ` 40,000 were sold at a loss of 25%
and some Non-current Investments costing ` 20,000 were sold at a profit of 25%. Profit/Loss on
investments was adjusted against Capital Reserve. Additional Non-current investments were made
on 31st March, 2024.
[Ans.: Cash Flow from Operating Activities = ` 4,34,000; Cash Flow from
Investing Activities = ` 51,000; Cash Flow from Financing Activities = ` 30,000;
Increase in Cash and Cash Equivalents = ` 5,15,000.]
[Hints:
1. Dr. 10% INVESTMENTS ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 60,000 By Bank A/c (Sale) 30,000
To Capital Reserve A/c (Profit) 5,000 By Capital Reserve A/c (Loss on Sale) 10,000
To Bank A/c (Purchase) 1,60,000 By Bank A/c (` 20,000 + ` 5,000) 25,000
(Balancing Figure) By Balance c/d 1,60,000
2,25,000 2,25,000

2. Depreciation on Plant and Machinery—` 30,000; Sale of Building—` 1,50,000.]
25. From the following Balance Sheet of Varun Ltd. as at 31st March, 2024, prepare Cash Flow Statement:
Particulars Note No. 31st March, 31st March,
2024 (`) 2023 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 1,50,000 1,25,000
(b) Reserves and Surplus 1 75,000 60,000
2. Non-Current Liabilities
Long-term Borrowings : Bank Loan 20,000 ...
3. Current Liabilities
(a) Short-term Borrowings: Bank Overdraft 10,000 5,000
(b) Trade Payables 2 70,000 65,000
(c) Short-term Provisions 3 25,000 15,000
Total 3,50,000 2,70,000
II. ASSETS
1. Non-Current Assets
(a) Property, Plant and Equipment and Intangible Assets:
—Property, Plant and Equipment 30,000 20,000
(b) Non-current Investments 10,000 15,000
2. Current Assets
(a) Inventories (Stock) 1,20,000 87,000
(b) Trade Receivables (Debtors) 90,000 98,000
(c) Cash and Cash Equivalents 1,00,000 50,000
Total 3,50,000 2,70,000