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Cash Flow Statement 4.13
Illustration 9. From the following Balance Sheet of Bhushan Steel Ltd., prepare
Cash Flow Statement:
Particulars Note No. 31st March, 31st March,
2024 (`) 2023 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 1 9,50,000 8,00,000
(b) Reserves and Surplus 2 1,44,000 (20,000)
2. Non-Current Liabilities
Long-term Borrowings: 15% Debentures 5,00,000 4,00,000
3. Current Liabilities
(a) Trade Payables 2,02,000 82,000
(b) Short-term Provisions (Provision for Tax) 18,000 18,000
Total 18,14,000 12,80,000
II. ASSET
1. Non-Current Assets
(a) Property, Plant and Equipment and Intangible Assets:
—Property, Plant and Equipment 3 9,04,000 3,40,000
(b) Investments (Non-Current) 90,000 80,000
2. Current Assets
(a) Inventories 4,00,000 3,00,000
(b) Trade Receivables 4 1,12,000 3,52,000
(c) Cash and Cash Equivalents 3,08,000 2,08,000
Total 18,14,000 12,80,000
Notes to Accounts
Particulars 31st March, 31st March,
2024 (`) 2023 (`)
1. Share Capital
Equity Share Capital 8,00,000 6,00,000
12% Preference Share Capital 1,50,000 2,00,000
9,50,000 8,00,000
2. Reserves and Surplus
Securities Premium 10,000 10,000
Surplus, i.e., Balance in Statement of Profit & Loss 1,34,000 (30,000)
1,44,000 (20,000)
3. Property, Plant and Equipment
Plant and Machinery 10,00,000 4,00,000
Less: Accumulated Depreciation 96,000 60,000
9,04,000 3,40,000
4. Trade Receivables
Sundry Debtors 1,44,000 3,72,000
Less: Provision for Doubtful Debts 32,000 20,000
1,12,000 3,52,000
Additional Information:
1. Dividend on equity shares @ 9% was paid during the year.
2. Investments costing ` 20,000 were sold at a profit of 40%.
3. Plant costing ` 40,000 (accumulated depreciation ` 16,000) were sold for ` 34,000.
4. Fresh Equity Shares were issued at a premium of 5% and preference shares were redeemed
at par on 1st April, 2023.
5. Additional debentures amounting to ` 1,00,000 issued on 1st August, 2023 at a discount
of 10% but redeemable at par after two years. The company wrote off discount on issue
of debentures from Securities Premium.