From the following information of Varsha Ltd., prepare a cash flow statement as per AS-03: Equity & Liabilities Previous Year (₹) Current Year (₹) Assets Previous Year (₹) Current Year (₹) Share Capital 5,00,000 7,00

Cash Flow Statement (AS-3, Indirect Method) Particulars Amount (₹) Amount (₹) (A) Cash flow from operating activities Net Profit before Tax & Extraordinary items: 1,60,000 Depreciation on Plant & Machinery 70,000 Depreciation on Land & Building 10,000 2,40,000 Decrease in Stock (2,60,000+80,000-2,40,000) 1,00,000 Increase in Debtors (30,000) Increase in Creditors 10,000 Decrease in bills payable (40,000) 2,80,000 Income Tax paid (60,000) 2,20,000 (B) Cash flows from investing activities : Purchase of plant & Machinery (20,000) (20,000) (C) Cash flows from Financing Activities Payments of Bank overdraft (1,40,000) Interim dividend paid (50,000) (1,90,000) Net increase in cash and cash equivalents (A+B+C) 10,000 Cash & Bank Balance at the beginning 30,000 Cash & Bank Balance at the end 40,000 Working Notes: (1) Plant & Machinery Account Dr. Particulars Amount (₹) Cr. Particulars Amount (₹) To Balance b/d 2,70,000 By Depreciation (Bal. Figure) 70,000 To Share Capital 70,000 By Balance c/d 2,90,000 To Bank A/c (Purchase) 20,000 3,60,000 3,60,000 (2) Provision for Tax Account Dr. Particulars Amount (₹) Cr. Particulars Amount (₹) To Bank A/c 60,000 By Balance b/d 80,000 To Balance c/d 1,00,000 By Profit & Loss A/c (Charged from P & L) 80,000 1,60,000 1,60,000 Note: Overdraft of ₹1,40,000 may be adjusted against the opening bank balance also.