Cash flow from operating activities of Starline Ltd. for the year ended 31.03.2019 was Rs. 18,000. The Balance Sheet along with notes to accounts of Starline Ltd. as at 31-03-19 is given below:
Starline limited
Balance Sheet as at 31st March, 2019
| Particulars | Note no. | 31.3.2019 (₹) |
31.3.2018 (₹) |
|---|---|---|---|
| I – Equity and Liabilities : | |||
| 1. Shareholders Funds : | |||
| (a) Share Capital | 18,00,000 | 10,00,000 | |
| (b) Reserves and Surplus | 1 | 50,000 | 40,000 |
| 2. Non-Current Liabilities : | |||
| Long-term Borrowings | 2 | 1,00,000 | 4,00,000 |
| 3. Current Liabilities : | |||
| Short term Provisions | 3 | 2,50,000 | 3,60,000 |
| Total | 22,00,000 | 18,00,000 | |
| II – Assets : | |||
| 1. Non-Current Assets : | |||
| (a) Fixed Assets : | |||
| Tangible Assets | 4 | 14,00,000 | 10,00,000 |
| (ii) Intangible Assets | 5 | 1,80,000 | 70,000 |
| (b) Non-current Investments | |||
| 2. Current Assets : | |||
| (a) Current Investments | 30,000 | 1,90,000 | |
| (b) Trade Receivables | 2,90,000 | 3,10,000 | |
| (c) Cash and Cash Equivalents | 3,00,000 | 2,30,000 | |
| Total | 22,00,000 | 18,00,000 |
Notes to Accounts
| Note Number | Particulars | 31.3.2019 (₹) |
31.3.2018 (₹) |
|---|---|---|---|
| 1 | Reserves and Surplus | ||
| Surplus (Balance in Statement of Profit & Loss) | 50,000 | 40,000 | |
| 2 | Long-term Borrowings : | ||
| 8% Debentures | 1,00,000 | 4,00,000 | |
| 3 | Short Term Provisions: | ||
| Provision for Tax | 2,50,000 | 3,60,000 | |
| 4 | Tangible Assets: | ||
| Machinery | 15,20,000 | 10,90,000 | |
| Less: Accumulated depreciation | (1,20,000) | (90,000) | |
| Total | 14,00,000 | 10,00,000 | |
| 5 | Intangible Assets : | ||
| Goodwill | 1,80,000 | 70,000 |
You are given the following additional information :
(a) A machinery of the book value of Rs. 40,000 (depreciation provided thereon Rs. 12,000) was sold at a loss of Rs. 6,000.
(b) 8% debentures were redeemed on 1st July 2018.
Prepare Cash Flow Statement.
Marks-6, CBSE:2019-20/Main/05/Q-32