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BRILLIANT’S Cash Flow Statement 117

Solution: Cash Flow statement of ABCL corporation As on 31-03-2018

Particulars Amount Amount
(`) (`)
A. CASH FLOW FROM OPERATING ACTIVITIES
Profit as per P & L A/c 7,000
Add: Proposed Dividend 42,000
Transfer to General Reserve 30,000
Provision for Taxation (W.N.1) 45,000
Net Profit before taxation and extra-ordinary items 1,24,000
Add: Depreciation Written off
Machinery 12,000
Land & Building 22,500 34,500
Operating Profit before changes in Working Capital 1,58,500
Add: Decrease in Debtors 16,000
Less: Increase in stock
[1,26,000 – (1,00,000 + 25,000)] (1,000)
Decrease in Creditors (20,000)
1,53,500
Less: Income Tax Paid (35,000)
Cash Flow from Operating Activities 1,18,500
B. CASH FLOW FROM INVESTING ACTIVITIES
Sale of Machinery 38,000
Purchase of Land & Building (37,500)
Cash Flow from Investing Activities 500
C. CASH FLOW FROM FINANCING ACTIVITIES
Dividend Paid (42,000)
Net Increase in Cash & Cash Equivalents 77,000
Add: Opening Balance of cash & cash equivalents
(–1,60,000 + 52,000) –1,08,000
Closing Balance of cash & cash equivalents –31,000
(–40,000 + 9,000)
Dr. Provision for Taxation A/c Cr.

Particulars (`) Particulars (`)
To Tax Paid 35,000 By Balance b/d 30,000
To Balance c/d 40,000 By P & C a/c (Balancing Figure) 45,000
75,000 75,000