From the following Balance Sheet of Bose Ltd. as at 31st March, $\displaystyle 2024$, calculate 'Cash Flows from Operating Activities' . Balance Sheet of Bose Ltd. as at 31st March, $\displaystyle 2024$ Note $\displaystyle 31.03.2024$ $\displaystyle 31.03.2023$ Particulars No. ( ) ( ) I Equity and Liabilities : 1. Shareholders' Funds (a) Share Capital $\displaystyle 37,00,000$ $\displaystyle 25,00,000$ (b) Reserves and Surplus $\displaystyle 1$ $\displaystyle 5,00,000$ $\displaystyle 12,00,000$ $\displaystyle 2$ Non-Current Liabilities Long term borrowings $\displaystyle 2$ $\displaystyle 20,00,000$ $\displaystyle 18,00,000$ 3. Current Liabilities (a) Short term borrowings $\displaystyle 6,00,000$ $\displaystyle 5,50,000$ (b) Trade Payables $\displaystyle 5,00,000$ $\displaystyle 3,50,000$ Total $\displaystyle 73,00,000$ $\displaystyle 64,00,000$ II Assets : 1. Non-Current Assets (a) Property, Plant and Equipment and Intangible Assets (i) Property, Plant and Equipment $\displaystyle 3$ $\displaystyle 45,00,000$ $\displaystyle 41,00,000$ (ii) Intangible Assets $\displaystyle 4$ $\displaystyle 3,00,000$ $\displaystyle 5,00,000$ 2. Current Assets (a) Current Investments $\displaystyle 5,00,000$ $\displaystyle 2,00,000$ (b) Inventories $\displaystyle 8,00,000$ $\displaystyle 10,00,000$ (c) Trade Receivables $\displaystyle 10,00,000$ $\displaystyle 2,00,000$ (d) Cash and Cash equivalents $\displaystyle 2,00,000$ $\displaystyle 4,00,000$ Total $\displaystyle 73,00,000$ $\displaystyle 64,00,000$ Notes to Accounts : Note $\displaystyle 31.3.2024$ $\displaystyle 31.3.2023$ Particulars No. ( ) ( ) $\displaystyle 1$ Reserves and Surplus (i.e. Balance in the Statement of Profit and Loss) $\displaystyle 5,00,000$ $\displaystyle 12,00,000$ $\displaystyle 2$ Long Term Borrowings $\displaystyle 20,00,000$ $\displaystyle 18,00,000$ $\displaystyle 10$% Debentures $\displaystyle 3$ Property, Plant and Equipment $\displaystyle 50,00,000$ $\displaystyle 44,00,000$ Plant and Machinery Less : Accumulated Depreciation $\displaystyle 5,00,000$ $\displaystyle 3,00,000$ $\displaystyle 45,00,000$ $\displaystyle 41,00,000$ $\displaystyle 4$ Intangible Assets Goodwill $\displaystyle 3,00,000$ $\displaystyle 5,00,000$ Additional Information : (i) A piece of machinery costing ₹ $\displaystyle 4,00,000$ on which accumulated depreciation was $\displaystyle 3,00,000$ was sold at a loss of $\displaystyle 70$,000. (ii) $\displaystyle 10$% Debentures of $\displaystyle 2,00,000$ were issued on 31.3.2024.

Calculation of Cash Flows from Operating Activities: Particulars Amount(₹) Net Profit before Tax and Extraordinary Items ($\displaystyle 7,00,000$) ½ Add: Non-Cash & Non-Operating Items: Depreciation on Machinery $\displaystyle 5,00,000$ ½ Goodwill written off $\displaystyle 2,00,000$ ½ Interest on $\displaystyle 10$% debentures $\displaystyle 1,80,000$ ½ Loss on sale of Machinery $\displaystyle 70,000$ ½ $\displaystyle 9,50,000$ Operating Profit before Working Capital Changes $\displaystyle 2,50,000$ ½ Add: Increase in Current Liabilities & Decrease in Current Assets Increase in Trade Payables $\displaystyle 1,50,000$ ½ Decrease in Inventories $\displaystyle 2,00,000$ Less: Decrease in Current Liabilities & Increase in Current Assets Increase in Trade Receivables ($\displaystyle 8,00,000$) ½ ($\displaystyle 4,50,000$) Cash generated from operations ($\displaystyle 2,00,000$) Less: Tax paid NIL Net cash used in operating activities ($\displaystyle 2,00,000$) ½ Working notes: Dr. Accumulated Depreciation A/c Cr. Particulars Amount Particulars Amount (₹) (₹) To Plant and Machinery A/c $\displaystyle 3,00,000$ By Balance b/d $\displaystyle 3,00,000$ To Balance c/d $\displaystyle 5,00,000$ By Statement of Profit & Loss $\displaystyle 5,00,000$ $\displaystyle 8,00,000$ $\displaystyle 8,00,000$ Dr. Plant and Machinery A/c Cr. Particulars Amount Particulars Amount (₹) (₹) To Balance b/d $\displaystyle 44,00,000$ By Accumulated Depreciation A/c $\displaystyle 3,00,000$ By Bank A/c $\displaystyle 30,000$ To Bank A/c $\displaystyle 10,00,000$ By Statement of Profit & Loss- $\displaystyle 70,000$ (Balancing figure) Loss on sale of machinery By Balance c/d $\displaystyle 50,00,000$ $\displaystyle 54,00,000$ $\displaystyle 54,00,000$ PART B OPTION-II (Computerised Accounting)