Cash Flow Statement Page 25

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MODULE - 6A
Cash Flow Statement
Analysis of Financial Statements
Solution
Cash Flow Statement (Direct Method)
for the year ended, March 31, 2006
Particular
Amount
Notes
Rs
(A)
Cash flow from operating Activities
Cash receipts from Debtors (see Debtors A/c)
85,000
Cash payment for :
Cash paid to suppliers (see creditors A/c)
(73,000)
General expenses
(13,000)
(86,000)
Cash from operating activities
(1,000)
Taxes paid
(2000)
Net Cash from operating activities
(3,000)
(B)
Cash flow from Investing Activities
Purchase of fixed Assets
(49,000)
Net cash used in investing Activities
(49,000)
(C)
Cash flow from financing Activities
Proceeds from Raising secured loans
40,000
Dividend paid
(1,000)
Net cash from Financing Activities
39,000
Net Decrease in cash (– 3000 – 49000 + 39000)
(13,000)
[A + B + C]
Working Notes :
Debtors A/c
Dr.
Cr.
Particulars
Amount
Particulars
Amount
Rs.
Rs.
Balance b/d
5,000
Cash A/c (Received)
85000
(Bal. Fig.)
Sales A/c (Credit)
1,00,000
Balance c/d
20,000
1,05,000
1,05,000
86
ACCOUNTANCY

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