From following balance sheet of Mahendra Ltd. prepare cash flow statement for the year ended 31.3.2011 by Indirect Method.
|
|
31.3.2010 |
31.3.2011 |
|
|
Rs |
Rs |
|
Liabilities |
|
|
|
Equity share capital |
3,00,000 |
4,00,000 |
|
8% Preference shares |
1,50,000 |
1,00,000 |
|
Capital reserve |
|
20,000 |
|
General reserve |
40,000 |
50,000 |
|
Profit and Loss account |
30,000 |
48,000 |
|
Proposed dividend |
42,000 |
50,000 |
|
Sundry creditors |
25,000 |
47,000 |
|
Bills payable |
20,000 |
16,000 |
|
Liability for expenses |
30,000 |
36,000 |
|
Provision for taxation |
40,000 |
50,000 |
|
|
6,77,000 |
8,17,000 |
|
Assets |
|
|
|
Goodwill |
1,00,000 |
80,000 |
|
Land and building Plant |
2,00,000 80,000 |
1,70,000 2,00,000 |
|
Investment |
20,000 |
30,000 |
|
Sundry debtors |
1,40,000 |
1,70,000 |
|
Stock |
77,000 |
1,09,000 |
|
Bills receivable |
20,000 |
30,000 |
|
Cash in hand |
15,000 |
10,000 |
|
Cash at bank |
10,000 |
8,000 |
|
Preliminary expenses |
15,000 6,77,000 |
10,000 8,17,000 |
Additional information’s:
(i) A piece of land has been sold during the year and the profit on sale has been credited to capital reserve. Depreciation charged on building during the year is Rs.5,000; no additions under this head during the year.
(ii) A machine was sold for Rs.10,000. The written down value of the machine was Rs.12,000. Depreciation of Rs.10,000 is charged on plant in 2010 11.
(iii) Investments are trade investments. Rs.3,000 by way of dividend is received including Rs.1,000 from pre acquisition profit which has been credited to investment account.
(iv) An interim dividend of Rs.20,000 has been paid in 2010 11.