The data given ahead were provided by the accounting records of Shuchi diamonds Ltd.:

Income Statement

Liabilities

2011

2010

Assets

2011

2010

Share Capital:

2,32,500

1,57,500

Plant Assets

3,57,500

2,52,500

Reserves and Surplus

70,000

66,000

Less: Accumulated

(51,500)

(34,000)

 

 

 

Depreciation

 

 

Current Liabilities:

 

 

 

3,06,000

2,18,500

Account Payable

25,000

21,500

Investment (Long Term)

57,500

63,500

Accrued Liabilities

6,000

4,500

Current Assets:

 

 

Income Tax Payable

1,500

2,500

Inventory

72,000

55,000

Secured Loan:

 

 

Accounts Receivable

23,500

27,500

Bonds

1,97,500

1,22,500

Cash

23,000

7,500

 

 

 

Prepaid Expenses

500

2,500

 

4,82,500

3,74,500

 

4,82,500

3,74,500

(for the Year Ended on 31 March 2010) 

 

 

Rs.

Sales

 

3,49,000

Cost of Goods Sold

 

(2,60,000)

Gross Margin

 

89,000

Operating Expenses

 

(73,500)

(Including Depreciation Expenses of 18,500)

 

15,500

Other Income (Expenses):

 

 

Interest Expenses Paid

(11,500)

 

Interest Income Received

3,000

 

Gain on Sale of Investments

6,000

 

Loss on Sale of Plant

(1,500)

(4,000)

Provision Before Tax

 

11,500

Provision for tax

 

(3,500)

Provision After Tax

 

8,000

Comparative Balance Sheets (as on 31 March)

Analysis of selected transactions and accounts during 2010–11:

  1. Sold investments costing Rs.45,000 for Rs.51,000. Some investments were purchased for cash.
  2. Sold plant assets that cost Rs.5,000 with accumulated depreciation of Rs.1,000 for Rs.2,500.
  3. Issued Rs.50,000 of bonds at face value in exchange for plant assets on 31 March 2011. Some plant assets were purchased for cash also.
  4. Repaid Rs.25,000 of bonds as face value as majority.
  5. Issued 7,500 shares of Rs.10 each for cash at par.
  6. Paid cash dividends Rs.4,000—ignore corporate dividend tax.

Prepare cash flow statement for the year ended on 31 March 2011 as per AS-(3) (Revised) using indirect method.