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Cash Flow Statement 4.11
4. Dr. 10% INVESTMENT ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 10,50,000 By Bank A/c (80% of ` 10,00,000) (Bal. Fig.) 8,00,000
To Bank A/c (Purchased) 2,00,000 By Loss on Sale of Investment A/c 2,00,000
(Statement of Profit & Loss)
By Balance c/d 2,50,000
12,50,000 12,50,000

5. Dr. PLANT AND MACHINERY ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 85,00,000 By Bank A/c (Sale) 9,60,000*
To Gain (Profit) on Sale of Machine A/c 1,60,000 By Provision for Depreciation A/c 13,00,000
(Statement of Profit & Loss) By Balance c/d 93,20,000
To Bank A/c (Purchase) (Bal. Fig.) 29,20,000
1,15,80,000 1,15,80,000
* ` 21,00,000 – ` 13,00,000 (All Depreciation) + 20% of (` 21,00,000 – ` 13,00,000) = ` 9,60,000.
6. Dr. PROVISION FOR DEPRECIATION ACCOUNT Cr.
Particulars ` Particulars `
To Plant and Machinery A/c (Bal. Fig.) 13,00,000 By Balance b/d 42,50,000
(Accumulated Depreciation) By Depreciation A/c (Depreciation Provided) 14,50,000
To Balance c/d 44,00,000
57,00,000 57,00,000
Illustration 8. Prepare Cash Flow Statement on the basis of the information given in the
Balance Sheet of P.S. Ltd. as at 31st March, 2024:

Particulars Note No. 31st March, 31st March,
2024 (`) 2023 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 2,50,000 2,00,000
(b) Reserves and Surplus 1 70,000 50,000
2. Non-Current Liabilities
Long-term Borrowings (12% Debentures) 80,000 80,000
3. Current Liabilities
(a) Short-term Borrowings 2 ... 20,000
(b) Trade Payables 3 1,60,000 60,000
(c) Other Current Liabilities (Outstanding Expenses) 20,000 25,000
Total 5,80,000 4,35,000
II. ASSETS
1. Non-Current Assets
(a) Property, Plant and Equipment and Intangible Assets:
(i) Property, Plant and Equipment: Land and Building 2,80,000 2,00,000
(ii) Intangible Assets: Patents 2,000 10,000
(b) Long-term Loans and Advances 1,30,000 1,00,000
2. Current Assets
(a) Current Investments 5,000 3,000
(b) Inventories 90,000 70,000
(c) Trade Receivables 60,000 40,000
(d) Cash and Cash Equivalents 13,000 12,000
Total 5,80,000 4,35,000