Following is the Balance Sheet of Bharat Gas Ltd. as at $\displaystyle 31.3.2023$ : Balance Sheet of Bharat Gas Ltd. as at $\displaystyle 31.3.2023$ Particulars Note $\displaystyle 31.3.2023$ $\displaystyle 31.3.2022$ No. c) c) I Equity and Liabilities : 1. Shareholders' funds (a) Share capital $\displaystyle 14,00,000$ $\displaystyle 10,00,000$ (b) Reserves and Surplus $\displaystyle 1$ $\displaystyle 5,00,000$ $\displaystyle 4,00,000$ 2. Non-current Liabilities Long term borrowings $\displaystyle 5,00,000$ $\displaystyle 1,40,000$ 3. Current liabilities (a) Trade payables $\displaystyle 1,00,000$ $\displaystyle 60,000$ (b) Short term provisions $\displaystyle 2$ $\displaystyle 80,000$ $\displaystyle 60,000$ Total $\displaystyle 25,80,000$ $\displaystyle 16,60,000$ II Assets : 1. Non-current Assets (a) Fixed Assets (Property, plant and equipment and intangible assets) (i) Tangible assets $\displaystyle 3$ $\displaystyle 16,00,000$ $\displaystyle 9,00,000$ (Property, plant and equipment) (ii) Intangible assets $\displaystyle 4$ $\displaystyle 1,40,000$ $\displaystyle 2,00,000$ 2. Current Assets (a) Inventories $\displaystyle 2,50,000$ $\displaystyle 2,00,000$ (b) Trade receivables $\displaystyle 5,00,000$ $\displaystyle 3,00,000$ (c) Cash and cash equivalents $\displaystyle 90,000$ $\displaystyle 60,000$ Total $\displaystyle 25,80,000$ $\displaystyle 16,60,000$ Notes to Accounts : Note Particulars $\displaystyle 31.3.2023$ $\displaystyle 31.3.2022$ No. c) c) 1. Reserves and Surplus : Balance in Statement of Profit and Loss $\displaystyle 5,00,000$ $\displaystyle 4,00,000$ $\displaystyle 5,00,000$ $\displaystyle 4,00,000$ 2. Short term provisions : Provision for Taxation $\displaystyle 80,000$ $\displaystyle 60,000$ $\displaystyle 80,000$ $\displaystyle 60,000$ 3. Tangible Assets : (Property, plant and equipment) Machinery $\displaystyle 18,50,000$ $\displaystyle 10,00,000$ Less : Accumulated Depreciation ($\displaystyle 2,50,000$) ($\displaystyle 1,00,000$) $\displaystyle 16,00,000$ $\displaystyle 9,00,000$ 4. Intangible Assets : Goodwill $\displaystyle 1,40,000$ $\displaystyle 2,00,000$ $\displaystyle 1,40,000$ $\displaystyle 2,00,000$ Adjustments : During the year a machine costing ₹ $\displaystyle 3,00,000$ on which accumulated depreciation was ₹ $\displaystyle 45,000$ was sold for ₹ $\displaystyle 1,35$,000. Calculate 'Cash flows from Operating Activities'.

Cash flow from Operating Activities Amount Amount Particulars ₹ ₹ Net Profit before Tax & Extra Ordinary Items $\displaystyle 1,80,000$ Adjustment for Non-cash and Non-operating items Add: Goodwill written off ………………….. ½ $\displaystyle 60,000$ Depreciation ……………………………….1 $\displaystyle 1,95,000$ Loss on sale of Machinery…………….1 $\displaystyle 1,20,000$ $\displaystyle 5,55,000$ Operating Profit before working capital changes Add- Decrease in Current Assets Increase in Current Liability Increase in Trade Payables…………..½ $\displaystyle 40,000$ Less: Increase in Current Assets Decrease in Current Liability $\displaystyle (50,000)$ Increase in Inventories ………… ½ Increase in Trade Receivables ……..½ ($\displaystyle 2,00,000$) Cash Generated from Operations $\displaystyle 3,45,000$ $\displaystyle (60,000)$ Less: Tax Paid……… ½ Cash flow from operating activities… ½ $\displaystyle 2,85,000$ Calculation of Net Profit before Tax and Extraordinary items:……………………..1 Net Profit for the year ₹ $\displaystyle 1,00,000$ + Provision for tax + ₹$\displaystyle 80,000$ Net Profit before Tax and Extraordinary items= ₹$\displaystyle 1,80,000$ Working Notes:- Accumulated Depreciation A/c Dr Cr Particulars ₹ Particulars ₹ $\displaystyle 45,000$ By balance b/d $\displaystyle 1,00,000$ To Machinery A/c $\displaystyle 2,50,000$ By Depreciation A/c $\displaystyle 1,95,000$ To balance c/d $\displaystyle 2,95,000$ $\displaystyle 2,95,000$ PART-B OPTION -II (Computerised Accounting)