From the following Balance Sheets of ABC Co. Ltd. for the years 2007 and 2008, prepare a Cash Flow Statement.

Balance Sheets Liabilities 2007 2008 Assets 2007 2008 Rs. Rs. Rs. Rs.

Equity Shares of Rs. 100 each 4,50,000 6,00,000 Land 1,83,000 1,98.000 Security Premium — 15,000 Plant and Machinery 6,00,000 7,25,000 Profit and Loss Accumulated Appropriation Depreciation (1,20,000) (1,45,000)

Account 60,000 60,000 Loan to Subsidiary Co. 25,000 Nil Profit for the year — 50,000 8% Debentures 2,50,000 2,00,000 Share in Subsidiary Co.

30,000 40,000 Profit on Redemption of — 1,000 Inventory Stock 1,60,000 1,48,000 Debentures Sundry Debtors 1,20,000 1,62,000 Sundry Creditors 2,20,000 1,90,000 Bank Balance 67,000 98,000 Provision for Taxation 40,000 50,000 Proposed Dividend 45,000 60,000 ________ ________ 10,65,000 12,26,000 10,65,000 12,26,000 During the year, plant costing Rs. 40,000 was sold for Rs. 15,000. Accumulated depreciation on plant was Rs. 20,000. Loss on sale of plant was charged to P & L A/c.

Tax paid during the year Rs. 55,000.