Following are the summarized Balance Sheets of Bibhu–Ribhu Enterprise Ltd, as on 31 March 2002 and 31 March 2003:
|
Liabilities |
As on 31 |
Ason 31 |
Assets |
As on 31 |
As on 31 |
|
Share Capital |
2,00,000 |
2,50,000 |
Goodwill |
– |
5,000 |
|
General Reserve |
50,000 |
60,000 |
Land & Building |
2,00,000 |
1,90,000 |
|
Profit & Loss A/c |
30,500 |
30,600 |
Machinery |
1,50,000 |
1,69,000 |
|
Long-term Loan |
70,000 |
– |
inventory |
1,00,000 |
74,000 |
|
Sundry Creditors |
1,50,000 |
1,35,200 |
Sundry Debtors |
80,000 |
64,200 |
|
Provision for Taxation |
30,000 |
35,000 |
Bank |
– |
8,000 |
|
5,30,500 |
5,10,800 |
5,30,500 |
5,10,800 |
Additional information:
During the year that ended on 31 March 2003, the following transactions took place:
- Dividends of Rs. 23,000 were paid.
- An inventory of Rs. 20,000 and machinery of Rs. 25,000 of another company were purchased for a consideration of Rs. 45,000 payable in shares.
- Machinery was further purchased for cash at Rs. 8,000.
- Depreciation written off on machinery was Rs. 12,000.
- Income Tax provided during the year was Rs. 33,000.
- Sale of old machinery of Rs. 2,000 at a loss of Rs. 300, which was written off to general reserve.
Prepare a Cash Flow Statement for the year that ended on 31 March 2003 using modern method, as per the revised guidelines of AS-3.