Read the following hypothetical text and answer the given questions on the basis of the same.

In 2011, two young Indian entrepreneurs, Vaishali Bhatia and Vivek Bhatia decided to start an online auto portal. At that time, there were no major players in the market and they saw an opportunity to fill the gap.

They used a user-friendly website and mobile app which made it easy for users to research and buy cars. It was converted into a company Car Easy Ltd in 2018


From the following Balance Sheet of the company as on 31st March, 2022, calculate Cash Flows From Operating Activities

Balance Sheet of Car Easy Ltd 31st March, 2022
Particulars Note No. 31.03.2022
31.03.2021
I Equity and Liabilities:
Shareholders’ Funds
(a) Share Capital 9,00,000 3,00,000
(b) Reserves and Surplus 1 75,000 3,60,000
2. Non-Current Liabilities
Long-term Borrowings 2 2,40,000 1,80,000
3. Current Liabilities
(a) Trade Payables 18,000 60,000
(b) Short-term provisions 3 2,04,000 2,10,000
Total 14,37,000 11,10,000
II Assets :
1. Non-Current Assets
Fixed Assets 4 10,08,000 5,76,000
2. Current Assets
(a) Inventories 3,54,000 3,87,000
(b) Cash and Cash Equivalents 75,000 1,47,000
Total 14,37,000 11,10,000
Note to Accounts :
Note No. Particulars 31.03.2022
31.03.2021
1 Reserves and Surplus (Surplus i.e., Balance in the Statement of Profit and Loss) 75,000 3,60,000
2 Long-term Borrowings
10% Debentures 2,40,000 1,80,000
3 Short-term Provisions
Provision for Tax 2,04,000 2,10,000
4 Fixed Assets
Machinery 11,52,000 6,45,000
Accumulated Depreciation (1,44,000) (69,000)
Total 10,08,000 5,76,000
Additional Information:

Additional Information:
(i) 10% Debentures were issued on 31st March, 2021.
(ii) Tax of ₹80,000 was paid during the year.

Marks-6, CBSE:2022-23/Zone-1/Set-1/Q-34

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