Madhav is a young entrepreneur. On 1st April, $\displaystyle 2019$, he formed a partnership firm with two of his friends, Mohan and Sohan. They started their business of exporting dry fruits. Their business was a successful business. Now they wanted to expand the business in many other countries. For meeting the financial requirements, they changed the form of business organisation and formed Madhav Ltd. The Balance Sheet of Madhav Ltd. as at $\displaystyle 31.3.2022$ was as follows : Balance Sheet of Madhav Ltd. as at 31st March, $\displaystyle 2022$ Note $\displaystyle 31.3.2022$ $\displaystyle 31.3.2021$ Particulars No. < < I Equity and Liabilities : 1. Shareholders' Funds (a) Share Capital $\displaystyle 35,00,000$ $\displaystyle 25,00,000$ (b) Reserves and Surplus $\displaystyle 12,50,000$ $\displaystyle 10,00,000$ (Statement of P & L) 2. Non - Current Liabilities Long - term Borrowings $\displaystyle 12,50,000$ $\displaystyle 3,50,000$ ($\displaystyle 10$% Debentures ) 3. Current Liabilities (a) Short - term Borrowings $\displaystyle 50,000$ $\displaystyle 75,000$ (Bank Overdraft) (b) Trade Payables $\displaystyle 2,50,000$ $\displaystyle 1,50,000$ (c) Short-term Provisions $\displaystyle 1$ $\displaystyle 1,50,000$ $\displaystyle 75,000$ Total $\displaystyle 64,50,000$ $\displaystyle 41,50,000$ II Assets : 1. Non - Current Assets Fixed Assets (a) Tangible Assets $\displaystyle 2$ $\displaystyle 40,00,000$ $\displaystyle 22,50,000$ (b) Intangible Assets $\displaystyle 3,50,000$ $\displaystyle 5,00,000$ (Goodwill) 2. Current Assets (a) Inventories $\displaystyle 6,25,000$ $\displaystyle 5,00,000$ (b) Trade Receivables $\displaystyle 12,50,000$ $\displaystyle 7,50,000$ (c) Cash and Cash Equivalents $\displaystyle 2,25,000$ $\displaystyle 1,50,000$ Total $\displaystyle 64,50,000$ $\displaystyle 41,50,000$ Notes to Accounts : Note $\displaystyle 31.3.2022$ $\displaystyle 31.3.2021$ No. Particulars Amount Amount < < $\displaystyle 1$ Short term Provisions Provision for Tax $\displaystyle 1,50,000$ $\displaystyle 75,000$ $\displaystyle 2$ Tangible Assets Plant and Machinery $\displaystyle 44,00,000$ $\displaystyle 25,00,000$ Less Accumulated Depreciation ($\displaystyle 4,00,000$) ($\displaystyle 2,50,000$) $\displaystyle 40,00,000$ $\displaystyle 22,50,000$ Additional Information : (i) A part of the machine costing ₹ $\displaystyle 1,25,000$ accumulated depreciation thereon being ₹ $\displaystyle 50,000$ was sold for ₹ $\displaystyle 45,000$ during the year. (ii) Interest of ₹ $\displaystyle 1,25,000$ was paid on Debentures. 'F $\displaystyle 7$ Calculate cash flows from nvesting 'I activities' and inancing activities of Madhav Ltd. from the information provided above.

Cash flows from Investing activities Particulars Details Amount ₹ ₹ Sale of machinery $\displaystyle 45,000$ ($\displaystyle 20,25,000$) Purchase of machinery $\displaystyle 1$ Cash used in investing activities ($\displaystyle 19,80,000$) Cash flows from Financing activities Particulars Details Amount ₹ ₹ Issue of shares $\displaystyle 10,00,000$ $\displaystyle 10$% Debentures issued $\displaystyle 9,00,000$ Interest on debentures paid ½ ($\displaystyle 1,25,000$) Payment of Bank Overdraft ½ $\displaystyle (25,000)$ Cash flows from Financing activities ½ $\displaystyle 17,50,000$ Working notes: Dr. Plant & Machinery A/c Cr. Particulars ₹ Particulars ₹ To Balance b/d $\displaystyle 25,00,000$ By Accumulated To Bank A/c $\displaystyle 20,25,000$ Depreciation A/c $\displaystyle 50,000$ (Purchase-Bal.Fig) By Bank A/c $\displaystyle 45,000$ By Statement of P & L $\displaystyle 30,000$ (Loss on sale A/c) By Balance c/d $\displaystyle 44,00,000$ $\displaystyle 45,25,000$ $\displaystyle 45,25,000$ Dr. Accumulated Depreciation A/c Cr. Particulars ₹ Particulars ₹ To Machinery A/c $\displaystyle 50,000$ By Balance b/d $\displaystyle 2,50,000$ To Balance c/d $\displaystyle 4,00,000$ By Depreciation A/c $\displaystyle 2,00,000$ $\displaystyle 4,50,000$ $\displaystyle 4,50,000$ PART-B OPTION-II (COMPUTERIZED ACCOUNTING)