Page 243 - DMGT202_COST_AND_MANAGEMENT_ACCOUNTING

Cost and Management Accounting

Notes Increase in debtors (18,000)

Decrease in stock 1,68,000
Increase in advances (1,200)
Decrease in creditors (6,000)
Increase in outstanding expenses 24,000
Cash generated from operation 3,86,800
Income tax paid (86,800)
Net Cash from Operating Activities 3,00,000
Cash Flows from Investing Activities:
Purchase of land (48,000)
Purchase of building and equipments (2,88,000)
Sale of equipment 36,000
Net Cash Used in Investing Activities (3,00,000)
Cash Flows from Financing Activities:
Issue of share capital 84,000
Dividend paid (72.000)
Net Cash from Financing Activities 12,000
Net Increase in Cash and Cash Equivalents 12,000
Cash and Cash Equivalents at the beginning 60,000
Cash and Cash Equivalents at the end 72.000

Example: From the following balance sheets of Sudhir Ltd., for the year ended 31st
March, 2006 and 2007, prepare a cash fl ow statement.

Particulars 31.3.2006 31.3.2007
` `
Assets
Property 2,00,000 2,50,000
Plant and machinery 4,00,000 4,50,000
Less: Depreciation 1.40.000 2,60,000 1.50.000 3,00,000
Loans to subsidiary Co. — 15,000
Share in subsidiary Co. 20,000 20,000
Stock in trade 1,40,000 1,50,000
Debtors 1,00,000 1,50,000
Bank 35,000 1,57,000
7,55,000 10,42,000
Liabilities
Equity Share of ` 20 each 3,00,000 4,00,000
Share premium — 10,000

Profit & Loss appropriation A/c 1,00,000 1,00,000

Profit for the year — 2,00,000
6% Debentures 1,50,000 1,00,000

Profit on Redemption of Debentures — 2,000
Sundry creditors 1,40,000 1,10,000
Provision for taxation 50,000 1,00,000
Proposed dividend 15,000 20,000
7,55,000 10,42,000

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