Read the following hypothetical text and answer the given question on this basis:
Madhav is a young entrepreneur. On 1st April, 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 31.3.2022 was as follows:
Balance Sheet of Madhav Ltd. as at 31st March, 2022
| Particulars | Note No. | 31.03.2022 ₹ |
31.03.2021 ₹ |
|---|---|---|---|
| I Equity and Liabilities: | |||
| Shareholders’ Funds | |||
| (a) Share Capital | 35,00,000 | 25,00,000 | |
| (b) Reserves and Surplus (Statement of P&L) |
12,50,000 | 10,00,000 | |
| 2. Non-Current Liabilities | |||
| Long-term Borrowings (10% Debentures) |
12,50,000 | 3,50,000 | |
| 3. Current Liabilities | |||
| Short-term Borrowings (Bank overdraft) |
50,000 | 75,000 | |
| (b) Trade Payables | 2,50,000 | 1,50,000 | |
| (c) Short-term Provisions | 1 | 1,50,000 | 75,000 |
| Total | 64,50,000 | 41,50,000 | |
| II Assets : | |||
| 1. Non-Current Assets | |||
| Fixed Assets | |||
| (a) Tangible Assets | 2 | 40,00,000 | 22,50,000 |
| (b) Intangible Assets (Goodwill) | 3,50,000 | 5,00,000 | |
| 2. Current Assets | |||
| (a) Inventories | 6,25,000 | 5,00,000 | |
| (b) Trade Receivables | 12,50,000 | 7,50,000 | |
| (c) Cash and Cash Equivalents | 2,25,000 | 1,50,000 | |
| Total | 64,50,000 | 41,50,000 |
Notes to Accounts:
| Note No. | Particulars | 31.03.2022 ₹ |
31.03.2021 ₹ |
|---|---|---|---|
| 1 | Short-term Provisions | ||
| Provision for Tax | 1,50,000 | 75,000 | |
| 2 | Fixed Assets | ||
| Plant and Machinery | 44,00,000 | 25,00,000 | |
| Accumulated Depreciation | (4,00,000) | (2,50,000) | |
| Total | 40,00,000 | 22,50,000 |
Additional Information:
(i) A part of the machine costing ₹1,25,000 accumulated depreciation thereon being ₹50,000 was sold for ₹45,000 during the year.
(ii) Interest of ₹1,25,000 was paid on Debentures.
Calculate cash flows from Investing and Financing activities of Madhav Ltd. from the information provided above.
Marks-6, CBSE:2022-23/Zone-4/Set-1/Q-34
Answer :