Balance Sheets of Honululu Ltd as on 31 March 2007 and 31 March 2008 were as follows:
|
Liabilities |
As on 31 March 2007 |
As on 31 March 2008 |
Assets |
As on 31 March 2007 |
As on 31 |
|
Equity Share Capital (Rs. 10) |
3,00,000 |
4,00,000 |
Land & Building |
2,00,000 |
1,70,000 |
|
896 Preference Shares of Rs. 100 called up & paid up |
1,12,500 |
– |
Plant & Machinery |
80,000 |
2,00,000 |
|
Securities premium |
20,000 |
7,000 |
Furniture |
80,000 |
2,00,000 |
|
Capital Redemption Reserve |
– |
1,10,000 |
Investment |
20,000 |
35,000 |
|
General Reserve |
30,000 |
50,000 |
Inventory |
77,000 |
1,00,000 |
|
Profit & Loss A/c |
60,000 |
40,000 |
Sundry Debtors |
1,40,000 |
1,70,000 |
|
Sundry Creditors |
12,500 |
50,000 |
Cash & Bank |
25,000 |
22,000 |
|
Proposed Dividend |
20,000 |
30,000 |
Preliminary Expenses |
35,000 |
30,000 |
|
Provision for Taxation |
20,000 |
30,000 |
|||
|
Bills Payable |
5,000 |
– |
|||
|
Unclaimed Dividend |
– |
3,000 |
|||
|
5,80,000 |
7,20,000 |
5,80,000 |
7,20,000 |
Additional Information:
- During the year 2007–08, an old machine, whose book value was Rs. 60,000, was sold at a loss of Rs. 8,000, and it was replaced by a new machine costing Rs. 1,60,000.
- Depreciation on furniture provided for the year 2007–08 amounted to Rs. 15,000. A part of the furniture was sold at a Profit of Rs. 3,000 and the cost of new furniture acquired during the year was Rs. 78,000.
- A Preference Share final call @ Rs. 25 per share was made before redeeming the preference shares at a premium of 10%. The Securities Premium Account was utilized to provide the premium paid and the redemption was made partly out of profit and partly out of new issue of Equity Shares at 5% premium.
- A bonus Dividend was declared during 2007–08 to the old Equity Shareholders, @ one Equity Share at par for every five Equity Shares held, out of general reserve.
- Before Redemption, a Preference Dividend for the year 2007–08 was paid by the company.
Prepare a Cash Flow Statement for the year that ended on 31 March 2008.