Question

Form the following Balance Sheets and information of Sun Ltd. Prepare Cash Flow Statement.

(ii) A machine with a book values of ₹ 90,000 was sold for ₹ 50,000.
(iii) Depreciation charged during the years ₹ 60,000.
(iv) Debenture were issued on 1st April,2018.
(v) Investments were purchased on 31st March, 2019,
(vi) Preference shares were redeemed on 31st March, 2019,
(vii) An interim divided @ 15% was paid on equity share on 31st December,2018.
(viii) Fresh equity share were issued at a premium of 5% on 31st March, 2019.

Answer 1

Correct Answer - Cash Flow from Operating Activites = ₹ 2,85,000; Cash Used in Investing Activities = ₹ 2,90,000; Cash Flow from Finacing Activities = ₹1,05,000; Net Increase in Cash and Cash Equivalents = ₹ 1,00,000.
Cash and Cash Equivalent = Cash and Cash Equivalent + Current Investments.