From the following Summary Cash Account of X Ltd. prepare Cash Flow Statement fo

Question

From the following Summary Cash Account of X Ltd. prepare Cash Flow Statement for the year ended 31st March, 2006 in accordance with AS 3 (Revised) using the direct method. The company does not have any cash equivalents

Summary Cash Account for the year ended 31.3.2006
Rs. %u2019000
Balance on 1.4.2005 50

Payment to Suppliers 2,000
Issue of Equity Shares 300

Purchase of Fixed Assets 200
Receipts from Customers 2,800

Overhead expense 200
Sale of Fixed Assets 100

Wages and Salaries 100
Taxation 250
Dividend 50
Repayment of Bank Loan 300
Balance on 31.3.2006 150

Explanation / Answer

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Please find the answer as follows:

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Cash flow from Operating Activities Amount Receipts from Customers 2800 Payment to Suppliers -2000 Overhead Expense -200 Wages and Salaries -100 Taxation -250 Cash flow Provided by Operating Activities (A) 250

Cash flow from Investing Activities
Issue of Equity Shares 300 Purchase of Fixed Assets -200 Sale of Fixed Assets 100 Cash flow Provided by Investing Activities (B) 200

Cash flow from Financing Activities
Repayment of Bank Loan -300 Dividend -50 Cash flow Used by Financing Activities (C) -350

Increase in Cash (A + B + C) 100 Add Opening Cash Balance 50 Closing Cash Balance 150

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