From the following particulars, prepare a Cash Flow Statement of Chalsa Ltd for the year that ended on 31 December 2007:

 

Dr.                                     Profit & Loss A/c for the Year that Ended on 31 December 2007                             Cr.

 

 

 

 

To Opening Stock

5,500

By Sales

2,16,000

To Purchases

80,500

By Closing Stock

20,000

To Wages

16,000

By Loss of Stock

5,000

To Gross Profit c/d

1,39,000

 

 

 

2,41,000

 

2,41,000

To Expenses

10,000

By Gross Profit b/d

1,39,000

To Depreciation

12,000

By Income from Investment (Tax Free)

6,000

To Bad Debt

1,000

 

 

To Loss on Sale of Plant

5,000

 

 

To Loss of Stock less Insurance Claim (i.e., Net loss)

1,000

 

 

To Deferred Expenses

5,000

 

 

To Income Tax

10,000

 

 

To Net Profit c/d

1,01,000

 

 

 

1 45000

 

1 45000

To Dividend

8,000

By Balance b/d

30,000

To Reserve

23,000

By Net Profit b/d

1,01,000

To Balance c/d

100,000

 

 

 

1,31,000

 

1,31,000

Balance Sheets

Liabilities

2006
Rs.

2007
Rs.

Assets

2006
Rs.

2007
Rs.

Share Capital

80,000

90,000

Fixed Assets

80,000

2,10,000

Reserve

50,000

73,000

Investment

68,500

30,000

Profit & Loss A/c

30,000

1,00,000

Stock in Trade

5,500

20,000

Creditors

30,000

20,000

Debtors

50,000

55,000

Liabilities for Expenses

8,000

10,000

Cash & Bank

3,500

1,500

Proposed Dividend

5,000

10,000

Prepaid Expenses

5,000

4,000

Provision for Taxation

15,000

20,000

Deferred Expenses

10,500

5,500

Advance Income from Investment

5,000

3,000

 

 

 

 

2,23,000

3,26,000

 

2,23,000

3,26,000