Nee Ltd. had the following figures as on 1 April 2010:


Fixed Assets—Cost


Less: Depreciation



Bank Balance


Current Assets,


other than Bank Balance

Current Liabilities


Capital (Shares of 10 Each)


The company made the following estimates:

  1. The profit would be Rs.1,74,000 after depreciation of Rs.1,80,000.
  2. The company will acquire fixed assets costing Rs.3,00,000 after selling one machine for Rs.60,000 costing Rs.1,50,000 and on which depreciation provided will amount to Rs.1,05,000.
  3. Current assets and current liabilities, other than bank balance, at the end of March 2011 are expected to be Rs.8,85,000 and Rs.3,90,000, respectively.
  4. The company will pay dividend of 10% and corporate dividend tax thereon of 11%.

At the end of the accounting year, the company sends all the cash in hand to the bank. Prepare a cash flow statement for the year ended on 31 March 2011 and estimate the bank balance or overdraft as on that date.