Vijaya Ltd. Cash Flow Statement (for the year ended 31st March,2010)
Particulars		Amt (Rs)
I.Cash Flow from Operating Activities
Net Profit before Tax and Extraordinary Items [W.N.(ii)]		25,000
Adjustments for Non Cash And Non Operating Items
(+)Depreciation on Fixed Assets	14,700	14,700
Operating Profit before Working Capital Changes		39,700
(+)Decrease in Current Assets and Increase in Current Liabilities
Creditors	2,300
(-)Increase in Current Assets and Decrease in Current Liabilities
Debtors	(1,500)
Stock	(2,000)	(1,200)
Net Cash Flow from Operating Activities		38,500
II.Cash Flow from Investing Activities
Purchase of Fixed Assets [W.N. (i)]	(51,000)
Net Cash Used in Investing Activities		(51,000)
III.Cash Flow from Financing Activities
Proceeds from Issue of Shares	20,000
Payment of Interim Dividend	(7,000)
Net Cash Flow from Financing Activities		13,000
Net Increase in Cash and Cash Equivalents [I+II+III]		500
(+)Cash and Cash Equivalents at the Beginning of Period		2,000
Cash and Cash Equivalents at the End of Period		2,500

Working Notes

Dr	Fixed Assets Account		Cr
Particulars	Amt (Rs)	Particulars	Amt (Rs)
To Balance b/d	46,700	By Depreciation A/c	14,700
To Bank A/c (Balancing figure) (Purchase)	51,000	By Balance c/d	83,000
	97,700		97,700

2.Calculation of Net Profit before Tax and Extraordinary Items
Net profit for the year (15,000-10,000)	5,000
(+)Transfer to General Reserve	13,000
(+)interim dividend	7,000
Net Profit before tax and extra ordinary items	Rs.25,000

Notes :

Above cash flow statement is prepared as per Accounting Standard -3 (Revised).
Interim Dividend : Interim Dividend is a dividend that is declared by the Board of Directors and also paid within the same financial year. It does not require approval of the share holders. It is an item of Financing Activity.

Cash Flow Statement Questionbank