The following balances are extracted from XYZ Ltd. at the end of the year 2024-25: Assets 01.04.2024 ₹ 31.03.2025 ₹ Liability 1.04.2024 ₹ 31.03.2025 ₹ Land & Building 75,000 75,000 Share Capital 1,15,000 1,15,000 Mac

Answer 2(c) Cash Flow Statement for the year ending 31st March, 2025 Particulars (in ₹) (in ₹) Cash Flow from Operating Activities Net Profit for the year (11,500-8,000) 3,500 Loss on sale of Machinery 1,000 Depreciation current year 5,000 Dividend Paid 11,500 Profit on Redemption of Debenture (400) Operating profit before working capital changes 20,600 Increase in stock (12,000) Decrease in debtors 12,000 Increase in prepaid Exp. (500) Decrease in Creditors (3,500) Decrease in out. Exp. (500) (4,500) Net Cash Flow from Operating Activities (A) 16,100 Cash Flow from Investing Activities Sale of Machinery 2,000 Purchase of Machinery (15,000) Net Cash flow from Investing activities (B) (13,000) Cash Flow from Financing Activities Dividend Paid (11,500) Redemption of debentures (9,600) Net Cash Flow from Financial Activities (C) (21,100) Net decrease in Cash and Cash Equivalents (A+B+C) (18,000) Cash and Cash Equivalents at the beginning 1,00,000 Cash and Cash Equivalents at the end 82,000 Working Note: Machinery A/c (at cost) Particulars (Amount in ₹) Particulars (Amount in ₹) To Balance b/d 26,000 By Cash (Sales) 2,000 To Cash (Purchase) 15,000 By P&L (Loss on sale) 1,000 By Provision for depreciation 3,000 By Balance c/d 35,000 41,000 41,000 Provision for Depreciation A/c Particulars Amount (in ₹) Particulars Amount (in ₹) To Machinery 3,000 By Balance b/d 20,000 To Balance c/d 22,000 By P&L (CY Dep.) 5,000 25,000 25,000 Calculation of Cash and Cash Equivalents 1.04.2024 31.03.2025 Cash & Bank Balance ₹45,000 ₹45,000 Temporary Investment ₹55,000 ₹37,000 ₹1,00,000 ₹82,000