Balance Sheet of R Ltd (Rs. in ’000)
|
Liabilities |
As on 31 |
As on 31 |
Assets |
As on 31 |
As on 31 |
|
Share Capital |
1,000 |
800 |
Machinery |
700 |
500 |
|
Reserve |
200 |
150 |
Building |
600 |
400 |
|
Profit & Loss A/c |
100 |
60 |
Investment |
100 |
– |
|
Debentures |
200 |
– |
Debtors |
500 |
700 |
|
Tax Provision |
100 |
70 |
Stock |
400 |
200 |
|
Proposed Dividend |
200 |
100 |
Cash & Bank |
200 |
200 |
|
Sundry Creditors |
700 |
820 |
|||
|
2,500 |
2,000 |
2,500 |
2,000 |
Additional details:
- Building is still under construction and no depreciation was charged.
- Depreciation was charged @ 25% on the opening value of machinery.
- An old machine costing Rs. 50,000 was sold for Rs. 35,000 (Written Down Value [WDV]—Rs. 20,000).
- Income tax paid during the year—Rs. 50,000.
Prepare a Cash Flow Statement as per AS-3 and interpret it.