From the following Balance Sheet of Rama Ltd. as at 31st March, $\displaystyle 2025$, calculate cash flows from Investing Activities and cash flows from Financing Activities. Note $\displaystyle 31$-$\displaystyle 3$-$\displaystyle 2025$ $\displaystyle 31$-$\displaystyle 3$-$\displaystyle 2024$ Particulars No. ($\displaystyle 0$ (f) I. Equity and Liabilities : 1. Shareholders funds (a) Share Capital $\displaystyle 21,00,000$ $\displaystyle 10,00,000$ (b) Reserves and Surplus $\displaystyle 1$ $\displaystyle 1,30,000$ $\displaystyle 2,40,000$ 2. Non-current liabilities Long-term borrowings $\displaystyle 2$ $\displaystyle 2,50,000$ $\displaystyle 3,20,000$ 3. Current Liabilities (a) Short-term borrowings $\displaystyle 3$ $\displaystyle 90,000$ $\displaystyle 70,000$ (b) Trade Payables $\displaystyle 20,000$ $\displaystyle 60,000$ Total $\displaystyle 25,90,000$ $\displaystyle 16,90,000$ II. Assets : 1. Non-current Assets (a) Property, Plant and Equipment and Intangible Assets (i) Property Plant and $\displaystyle 4$ $\displaystyle 14,00,000$ $\displaystyle 9,00,000$ Equipment (ii) Intangible Assets $\displaystyle 5$ $\displaystyle 4,00,000$ $\displaystyle 2,40,000$ (b) Non-current Investments $\displaystyle 5,44,000$ $\displaystyle 3,40,000$ 2. Current Assets (a) Inventories $\displaystyle 1,45,000$ $\displaystyle 54,000$ (b) Trade Receivables $\displaystyle 62,000$ $\displaystyle 1,26,000$ (c) Cash and Cash Equivalents $\displaystyle 39,000$ $\displaystyle 30,000$ Total $\displaystyle 25,90,000$ $\displaystyle 16,90,000$ Notes to Accounts : Note Particulars $\displaystyle 31$-$\displaystyle 03$-$\displaystyle 2025$ $\displaystyle 31$-$\displaystyle 03$-$\displaystyle 2024$ No. co) co) 1. Reserves and Surplus 1.e. Balance in $\displaystyle 1,30,000$ $\displaystyle 2,40,000$ Statement of Profit and Loss 2. Long-term borrowings $\displaystyle 10$% Debentures $\displaystyle 2,50,000$ $\displaystyle 3,20,000$ 3. Short-term borrowings Bank overdraft $\displaystyle 90,000$ $\displaystyle 70,000$ 4. Property, Plant and Equipment Plant and Machinery $\displaystyle 15,20,000$ $\displaystyle 9,80,000$ Accumulated Depreciation ($\displaystyle 1,20,000$) $\displaystyle (80,000)$ $\displaystyle 14,00,000$ $\displaystyle 9,00,000$ 5. Intangible Assets : Goodwill $\displaystyle 4,00,000$ $\displaystyle 2,40,000$ Additional Information : (i) Depreciation amounting to ₹ $\displaystyle 80,000$ was charged on plant and machinery during the year. (ii) During the year a new machine costing ₹ $\displaystyle 8,00,000$ was purchased and an old machine was sold at a profit of ₹ $\displaystyle 8$,000. (iii) Interest paid on debentures amounted to ₹ $\displaystyle 32$,000.

Calculation of Cash Flows from Investing Activities 31st for the year ended March $\displaystyle 2025$ Particulars Details (₹) Amount (₹) Purchase of Goodwill ½ ($\displaystyle 1,60,000$) Purchase of Machinery ½ ($\displaystyle 8,00,000$) Proceeds from sale of Machinery $\displaystyle 2,28,000$ ½ Purchase of Non-Current Investments ($\displaystyle 2,04,000$) ½ Cash used in investing activities ½ ($\displaystyle 9,36,000$) Working Notes : Dr. Plant and Machinery A/c Cr. Particulars Amount Particulars Amount (₹) (₹) To Balance b/d $\displaystyle 9,80,000$ By Bank/Cash A/c (Bal. $\displaystyle 2,28,000$ figure) To Statement of Profit & Loss- $\displaystyle 8,000$ By Accumulated $\displaystyle 40,000$ (Gain on sale) Depreciation A/c To Bank/Cash A/c $\displaystyle 8,00,000$ By Balance c/d $\displaystyle 15,20,000$ $\displaystyle 17,88,000$ $\displaystyle 17,88,000$ Dr. Accumulated Depreciation A/c Cr. Particulars Amount Particulars Amount (₹) (₹) To Machinery A/c (Bal. figure) $\displaystyle 40,000$ By Balance b/d $\displaystyle 80,000$ To Balance c/d $\displaystyle 1,20,000$ By Depreciation A/c/ Statement $\displaystyle 80,000$ of Profit & Loss $\displaystyle 1,60,000$ $\displaystyle 1,60,000$ Calculation of Cash Flows from Financing Activities for the year ended 31st March $\displaystyle 2025$ Particulars Details (₹) Amount (₹) Issue of Equity Share Capital $\displaystyle 11,00,000$ ½ Redemption of $\displaystyle 10$% Debentures $\displaystyle (70,000)$ ½ Interest paid on Debentures ½ $\displaystyle (32,000)$ Bank Overdraft Raised ½ $\displaystyle 20,000$ Cash flows from financing activities ½ $\displaystyle 10,18,000$ . PART B OPTION II (Computerised Accounting)