Prepare Cash Flow Statement from the following Balance Sheets of Rohit Engineering Ltd.

Balance Sheets Liabilities 2006 2007 Assets 2006 2007 Rs. Rs. Rs. Rs.

Share Capital 17,00,000 18,35,000 Building 8,00,000 10,00,000 Reserves 40,000 83,700 Plant & Machinery 2,50,000 3,70,000 Profit & Loss Fixtures & Fittings 5,000 6,000 Appropriation A/c 1,00,000 1,30,000 Cash 2,000 2,200 Provision for Dividends 70,000 50,000 Debtors 1,00,000 45,000 Creditors 1,00,000 95,000 Accounts Receivables 8,000 9,000 Bank Overdraft 8,000 18,000 Stock 4,00,000 3,43,700 Bills Payable 14,000 13,000 Prepaid Expenses 3,000 3,100 Loan on Mortgage 10,000 70,000 Investments 1,64,000 1,70,000 Goodwill 3,00,000 3,43,700 Preliminary ________ ________ Expenses 10,000 2,000 20,42,000 22,94,700 20,42,000 22,94,700

(a) Depreciation is charged on Building at 3% of cost Rs. 9,00,000. On Plant and Machinery at 8% of cost Rs. 4,00,000. On Fixtures at 5% of cost Rs. 8,000.

(b) Investments were purchased and interest received Rs. 3,000 was used in writing down the book value of investments.

(c) The declared dividend for 2000 was paid and interim dividend for Rs. 20,000 paid out of the Profit and Loss Appropriation Account.