Given below are the extracts of the Balance Sheet of BGH Limited: Particulars 31 st March, 2024 (₹) 31 st March, 2023 (₹) Share Capital 5,00,000…

CA Intermediate · Advanced Accounting · PYQS · January 2025
Given below are the extracts of the Balance Sheet of BGH Limited: Particulars 31 st March, 2024 (₹) 31 st March, 2023 (₹) Share Capital 5,00,000 4,00,000 Profit & Loss Account 1,10,000 60,000 10% Debentures (issued at the end of the year) 1,00,000 - Bank Loan 2,50,000 2,00,000 Trade Payable 60,000 75,000 Dividend Payable - 50,000 Interest Payable on Bank Loan (Current Year) 25,000 20,000 Goodwill 1,20,000 1,50,000 Trade Receivables 65,000 95,000 Inventory 55,000 30,000 You are required to prepare for the year ended 31st March, 2024: Cash Flow from Operating Activities; Cash Flow from Financing Activities.

Suggested Answer and Working Notes:

Cash Flow from Operating Activities for the Year Ended 31 March 2024 Particulars ₹ Cash Flow from Operating Activities Retained earnings (1,10,000-60,000) 50,000 Adjustments for non-cash items Goodwill Amortisation 30,000 Interest expenses 25,000 1,05,000 Changes in Working Capital Decrease in Trade Receivables 30,000 Increase in Inventory (25,000) Decrease in Trade Payables (15,000) Cash Flow from Operating Activities 95,000 Cash Flow from Financing Activities for the Year Ended 31 March 2024 Increase in Share Capital 1,00,000 Increase in Bank Loan 50,000 Issue of 10% Debentures 1,00,000 Dividend Paid (50,000) Interest Paid (20,000) Cash Flow from Financing Activities 1,80,000

Topics: AS 3

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