Particulars To Balance b/d 1.05,000 Particulars By Bank By Loss on sale of Machinery By Provision for Depreciation By Balance cld 5,000 2.000 3,000 95.000 1.05.000 1,05.000 Particulars To Machinery A/C To Balance cid PROVISION FOR DEPRECIATION Particulars 3.000 By Balance b/d 40,000 By P. and L. Ale (deprn. charged-balancing figure) 43,000 25,000 18,000 43,000 65 (ii) Modern Approach CASH FLOW STATEMENT Net Cash Flows from Operating Activities *59.000 Cash flows from Investing Activities: Sale of Machinery 5.000 Purchase of Land (10,000) Purchase of Building (25.000) Net Cash flows from Investing Activities (30,000) ) Cash flows from Financing Activities: Loan from Bank 10,000 Mrs. A's Loan repaid (25.000) Drawings (17.000) Net Cash Flow from Financial Activities 32,000 Net Increase (Decrease) in cash and cash equivalents 3.000 Cash and Cash Equivalents on Jan. 1. 2003 10.000 Cash and Cash Equivalents on Dec. 31, 2003 7,000 Illustrations 12.6. The following are the summarised Balance Sheet of a company as on December, 2002 and 2003: Liabilities Assets 2002 2003 2002 2003 2,50,000 60,000 30.600 Land and Buildings Machinery Share Capital General Reserve Profit and Loss Bank Loan (Long-term) Sundry Creditors Provision for Taxation 2,00,000 50,000 30.500 70,000 1.50,000 30,000 2.00.000 1,50.000 1,00,000 80,000 500 Stock Sundry Debtors Cash Bank Goodwill 1.90,000 1.69,000 74.000 64,200 600 8.000 5.000 5,10,800 1.35,200 35,000 5.30,500 5.10.800 5.30,500 Additional Information During the year ended 31 December, 2003: 1. Dividend of 23,000 was paid. 2. Assets of another company were purchased for a consideration of 50,000 payable in shares. The following assets were purchased: Stock * 20,000: Machinery + 25,000. 3. Machinery was further purchased for 8,000. 4. Depreciation written off machinery 12,000. 5. Income tax provided during the year 33,000. 6. Loss on sale of machinery * 200 was written off to General Reserve. You are required to prepare a cash flow statement