Rs. Q2. Prepare Cash Flow Statement of Suryan Ltd. from the following: Balance Sheets 1.1.06 31./2.06 1.1.06 Liabilities Rs. Rs. Assets Share Capital 1,00.000 4,00,000 || Goodwill 8% Debentures 2,00,000 Machinery 1,25,000 Retained Earnings 60,000 90,000 | Stock 20,000 Creditors 40,000 1,00,000 Debtors 30,000 Bills Payable 20,000 40.000 Cash at Bank 50,000 Provision for Tax 30,000 40,000 Cash in hand 25,000 2,50,000 8,70,000 2,50,000 31.12.06 Rs. 20,000 4,75,000 80,000 1,00,000 1.50,000 45,000 8,70,000 (a) During 2006, the business of a sole trader was purchased by issuing shares for Rs. 2,00,000. The assets acquired from him were: Goodwill Rs. 20,000, Machinery Rs. 1, 00,000, Stock Rs. 50,000 and Debtors Rs. 30,000. (b) Provision for tax charged in 2006 was Rs. 35,000. () The debentures were issued at a premium of 5% which is included in the retained earnings. a (d) Depreciation charged on machinery was Rs. 30,000