The Balance Sheet of Moon Ltd. as on 31st March 2025 and 2024 were given as: Particulars Notes 31 st March, 2025 ₹ 31 st March, 2024 ₹ Equity and…

CA Intermediate · Advanced Accounting · PYQS · May 2025
The Balance Sheet of Moon Ltd. as on 31st March 2025 and 2024 were given as: Particulars Notes 31 st March, 2025 ₹ 31 st March, 2024 ₹ Equity and Liabilities 1. Shareholder Funds (a) Share Capital 1 8,00,000 6,00,000 (b) Reserves and Surplus 2 80,000 50,000 2. Non-Current Liabilities (a) Deferred Tax Liability 6,000 - 3. Current liabilities (a) Trade payable 40,000 25,000 (b) Short term provisions (Provision for tax) 15,000 10,000 Total 9,41,000 6,85,000 Assets 1. Non-Current Assets (a) Property Plant and Equipment 3 3,95,000 2,90,000 2. Current Assets (a) Trade Receivable 20,000 10,000 (b) Inventories 2,50,000 2,00,000 (c) Cash and cash equivalent 4 2,76,000 1,85,000 Total 9,41,000 6,85,000 Notes to Accounts Notes Particulars 2025 (₹) 2024(₹) 1. Share Capital Equity Shares of 10 each 8,00,000 6,00,000 2. Reserve & Surplus Profit and loss Account 80,000 50,000 3. Property, Plant and Equipment (at WDV) Building 1,00,000 1,00,000 Furniture and fixtures 2,95,000 1,90,000 Total 3,95,000 2,90,000 4. Cash & Cash equivalents 2,76,000 1,85,000 Further information related to Profit and loss A/c for the year ended March, 2025 is as under: (i) Profit before tax is 45,000 (ii) Tax expense during the year 15,000 (it includes deferred tax liability of 6,000 created during the year) (iii) Depreciation charged on furniture and fixture for the year was - 35,000. One old furniture item was sold for 17,000 and the profit on such disposal amounting to current year 8,000 was booked in the current year. Prepare a Cash Flow Statement for the year ended 31st March, 2025.

Suggested Answer and Working Notes:

Moon Ltd. Cash Flow Statement for the year ended 31st March, 2025 ₹ Cash flows from operating activities Net Profit before taxation 45,000 Adjustments for: Depreciation 35,000 Profit on sale of Furniture & Fixtures (8,000) Operating profit before working capital changes 72,000 Increase in Trade receivables (10,000) Increase in inventories (50,000) Increase in Trade payables 15,000 Cash generated from operations 27,000 Income taxes paid (W.N.1) (4,000) Net cash generated from operating activities 23,000 Cash flows from investing activities Sale of Furniture & Fixtures 17,000 Purchase of Furniture & Fixtures (W.N.2) (1,49,000) Net cash used in investing activities (1,32,000) Cash flows from financing activities Issue of shares for cash 2,00,000 Net cash generated from financing activities 2,00,000 Net decrease in cash and cash equivalents 91,000 Cash and cash equivalents at beginning of period (31.3.2024) 1,85,000 Cash and cash equivalents at end of period (31.3.2025) 2,76,000 Working Notes: ₹ 1. Income taxes paid Income tax expense for the year 15,000 Add: Income tax liability at the beginning of the year 10,000 25,000 Less: Income tax liability at the end of the year (15,000) Less: DTL (6,000) 4,000 2 Property, plant and equipment acquisitions Furniture & Fixtures ₹ W.D.V. at 31.3.2025 2,95,000 Add back: Depreciation for the year 35,000 Disposals (17,000 -8,000) 9,000 3,39,000 Less: W.D.V. at 31.12.2024 (1,90,000) Acquisitions during 2024-2025 1,49,000

Topics: AS 3

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