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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Following is the Balance Sheet of Mevanca Limited as at 31st March, 2025:
Mevanca Limited: Balance Sheet as at 31st March, 2025
| Particulars | Note No. | 31st March, 2025 (₹) | 31st March, 2024 (₹) |
|---|---|---|---|
| I. EQUITY AND LIABILITIES | |||
| 1. Shareholders’ Funds | |||
| (a) Share Capital | 3,00,000 | 1,00,000 | |
| (b) Reserves and Surplus | 1 | 25,000 | 1,20,000 |
| 2. Non-Current Liabilities — Long-term Borrowings | 2 | 80,000 | 60,000 |
| 3. Current Liabilities | |||
| (a) Trade Payables | 6,000 | 20,000 | |
| (b) Short-term Provisions | 3 | 68,000 | 70,000 |
| Total | 4,79,000 | 3,70,000 | |
| II. ASSETS | |||
| 1. Non-Current Assets — Fixed Assets | 4 | 3,36,000 | 1,92,000 |
| 2. Current Assets | |||
| (a) Inventories | 67,000 | 60,000 | |
| (b) Trade Receivables | 51,000 | 65,000 | |
| (c) Cash and Cash Equivalents | 25,000 | 49,000 | |
| (d) Other Current Assets | – | 4,000 | |
| Total | 4,79,000 | 3,70,000 | |
Notes to Accounts: (1) Surplus: 25,000/1,20,000. (2) 10% Long-term Loan: 80,000/60,000. (3) Provision for Tax: 68,000/70,000. (4) Machinery: 3,84,000/2,15,000; Less: Accumulated Depreciation: (48,000)/(23,000); Net: 3,36,000/1,92,000.
Additional Information:
(i) The additional loan was taken on 1st July, 2024.
(ii) Tax of ₹53,000 was paid during the year.
Prepare Cash Flow Statement.
Cash Flow Statement for the year ended 31st March, 2025
| A. Cash Flow from Operating Activities | ||
| Particulars | Amount (₹) | Amount (₹) |
|---|---|---|
| Net Loss as per Statement of Profit and Loss (25,000 − 1,20,000) | (95,000) | |
| Add: Provision for Tax made (WN1) | 51,000 | |
| Net Loss before Tax and Extraordinary Items | (44,000) | |
| Add: Depreciation charged during the year (48,000 − 23,000) | 25,000 | |
| Add: Interest paid on loan (WN2) | 7,500 | |
| Net Loss before Working Capital Changes | (11,500) | |
| Add: Decrease in Trade Receivables (65,000 − 51,000) | 14,000 | |
| Add: Decrease in Other Current Assets | 4,000 | |
| Less: Decrease in Trade Payables (20,000 − 6,000) | (14,000) | |
| Less: Increase in Inventories (67,000 − 60,000) | (7,000) | |
| Net Loss before Tax | (14,500) | |
| Less: Tax Paid during the year | (53,000) | |
| Cash Used in Operating Activities | (67,500) | |
| B. Cash Flow from Investing Activities | ||
| Purchase of Machinery (3,84,000 − 2,15,000) | (1,69,000) | |
| Cash Used in Investing Activities | (1,69,000) | |
| C. Cash Flow from Financing Activities | ||
| Proceeds from Issue of Shares (3,00,000 − 1,00,000) | 2,00,000 | |
| Proceeds from Additional Loan Taken (80,000 − 60,000) | 20,000 | |
| Interest Paid on Long-term Loan (WN2) | (7,500) | |
| Cash Flow from Financing Activities | 2,12,500 | |
| Net Decrease in Cash and Cash Equivalents | (24,000) | |
| Add: Opening Balance of Cash and Cash Equivalents | 49,000 | |
| Cash and Cash Equivalents at the end of the year | 25,000 | |
Working Note 1: Provision for Tax Account
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Cash A/c (Tax Paid) | 53,000 | By Balance b/d | 70,000 |
| To Balance c/d | 68,000 | By Statement of Profit and Loss (Provision made during the year, balancing figure) | 51,000 |
| Total | 1,21,000 | Total | 1,21,000 |
Working Note 2: Interest on Loan
| Interest on Loan taken on 1st July, 2024 (9 months): 20,000 × 10% × 9/12 | 1,500 |
| Interest on Loan existing as on 31st March, 2024 (full year): 60,000 × 10% | 6,000 |
| Total Interest Paid on Loan | 7,500 |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Vol 3 Chapter 5 Q.44 - Cash Flow Statement", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 5 - Cash Flow Statement.
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