Prepare cash flow statement for the following Balance sheet as on 31st March

Liabilities	2004	2005	Assets	2004	2005
Share capital	100000	110000	Land and building	60000	60000
Profit and loss a/c Loans	20000	23000	Plant and machinery	35000	45000
Loans	-	1000	stock	20000	25000
Creditors	15000	18000	Debtors	18000	28000
Bills payable	5000	4000	Bills receivable	2000	1000
			Cash	5000	6000
	140000	165000		5000	165000

SOLUTION

The solution is as follows −

Inflow	Rs.	Outflow	Rs.
Balance b/d	5000	Purchase of plant	10000
Issued share capital	10000	Increase current Assets
Loan	10000	Stock
Cash opening profit	3000	Decrease in bills payable	5000
Decrease in bills	1000	Balance c/d	10000
Receivable	3000		1000
Increase in creditors			6000
	32000		32000