Azad, inspired by 'Make - in - India' mission, initiated his start - up in the form of a compare 'Azad Ltd.' alon with six other remoters in 2016. The company has been earning good revenue consistently. The financial position of Azad Ltd. as at 31st March, $\displaystyle 2022$ was as follows : Balance Sheet of Azad 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 $\displaystyle 19,00,000$ $\displaystyle 17,00,000$ (b) Reserves and Surplus $\displaystyle 1$ $\displaystyle 6,00,000$ $\displaystyle 3,00,000$ 2. Non-Current Liabilities Long-term Borrowings $\displaystyle 2$ $\displaystyle 5,00,000$ $\displaystyle 4,00,000$ 3. Current Liabilities (a) Short-term Borrowings $\displaystyle 3$ $\displaystyle 1,70,000$ $\displaystyle 1,75,000$ (b) Short-term Provisions $\displaystyle 4$ $\displaystyle 2,00,000$ $\displaystyle 1,65,000$ Total $\displaystyle 33,70,000$ $\displaystyle 27,40,000$ II Assets : 1. Non-Current Assets (a) Fixed Assets (i) Tangible Assets $\displaystyle 5$ $\displaystyle 24,00,000$ $\displaystyle 19,00,000$ (ii) Intangible Assets $\displaystyle 6$ $\displaystyle 4,00,000$ $\displaystyle 3,00,000$ (b) Non-current Investments $\displaystyle 1,00,000$ $\displaystyle 2,00,000$ 2. Current Assets (a) Current Investments $\displaystyle 1,40,000$ $\displaystyle 1,70,000$ (b) Inventories $\displaystyle 2,60,000$ $\displaystyle 1,30,000$ (c) Cash and Cash Equivalents $\displaystyle 70,000$ $\displaystyle 40,000$ Total $\displaystyle 33,70,000$ $\displaystyle 27,40,000$ Notes to Accounts : Note $\displaystyle 31.3.2022$ $\displaystyle 31.3.2021$ No. < < ($\displaystyle 1$) Reserves and Surplus $\displaystyle 6,00,000$ $\displaystyle 3,00,000$ (Surplus i.e. Balance in Statement of Profit and Loss) ($\displaystyle 2$) Long-term Borrowings $\displaystyle 12$% Debentures $\displaystyle 5,00,000$ $\displaystyle 4,00,000$ ($\displaystyle 3$) Short-term Borrowings Bank Overdraft $\displaystyle 1,70,000$ $\displaystyle 1,75,000$ ($\displaystyle 4$) Short-term Provisions Provision for Tax $\displaystyle 2,00,000$ $\displaystyle 1,65,000$ ($\displaystyle 5$) Tangible Assets Machinery $\displaystyle 26,00,000$ $\displaystyle 20,00,000$ Less Accumulated Depreciation ($\displaystyle 2,00,000$) ($\displaystyle 1,00,000$) $\displaystyle 24,00,000$ $\displaystyle 19,00,000$ ($\displaystyle 6$) Intangible Assets Goodwill $\displaystyle 4,00,000$ $\displaystyle 3,00,000$ Additional Information : (i) ₹ $\displaystyle 1,00,000$, $\displaystyle 12$% Debentures were issued on 1st April, 2021. (ii) A piece of machinery costing ₹ $\displaystyle 80,000$ on which accumulated depreciation was ₹ $\displaystyle 40,000$, was sold at a gain of ₹ $\displaystyle 10$,000. Calculate cash flows from Investing Activities and Financing Activities .

Azad Ltd. Cash Flows from Investing Activities Particulars Details Amount ₹ ₹ Purchase of Machinery ($\displaystyle 6,80,000$) ½ $\displaystyle 50,000$ ½ Sale of Machinery ($\displaystyle 1,00,000$) ½ Purchase of Intangible Assets $\displaystyle 1,00,000$ ½ Sale of Non- Current Investments Net Cash used in Investing Activities ($\displaystyle 6,30,000$) ½ Cash Flows from Financing Activities Particulars Details Amount ₹ ₹ Proceeds from issue of share capital $\displaystyle 2,00,000$ ½ Proceeds from $\displaystyle 12$% Debentures $\displaystyle 1,00,000$ ½ Repayment of Bank Overdraft $\displaystyle (5,000)$ ½ Payment of Interest on $\displaystyle 12$% Debentures $\displaystyle (60,000)$ ½ Net Cash inflow from Financing Activities $\displaystyle 2,35,000$ ½ Working Notes: Dr Machinery A/c Cr Particulars Amount Particulars Amount ₹ ₹ To Bal b/d $\displaystyle 20,00,000$ By Accumulated To Gain on sale of Depreciation A/c $\displaystyle 40,000$ Machinery A/c $\displaystyle 10,000$ By Bank A/c $\displaystyle 50,000$ To Bank (b/f) $\displaystyle 6,80,000$ By Bal c/d $\displaystyle 26,00,000$ (purchase) $\displaystyle 26,90,000$ $\displaystyle 26,90,000$ Dr Accumulated Depreciation A/c Cr Particulars Amount Particulars Amount ₹ ₹ To Accumulated Depreciation A/c By Bal b/d $\displaystyle 1,00,000$ To Bal c/d $\displaystyle 40,000$ By Depreciation A/c / Statement of Profit & Loss $\displaystyle 2,00,000$ $\displaystyle 1,40,000$ $\displaystyle 2,40,000$ $\displaystyle 2,40,000$ . PART B OPTION II Computerised Accounting