To Bank (tax paid) To Balance c/d 60,000 1,00,000 1.60.000 By Balance b/d By Transfer from P & L A/C 50,000 1.10.000 1.60.000 Proposed Dividend 150 50 To Bank (dividends paid) To Balance cld 15,000 20.000 35,000 By Balance b/d By Transfer from P & L A/C 15,000 20.000 35,000 Illustration 14 From following information of Mahendra Ltd. prepare cash flow statement for the year ended 31.3.2014 by Indirect Method. 31.3.2013 31.3.2014 3.00.000 1,50.000 Equity share capital 8% Preference shares Capital reserve General reserve Profit & Loss Account Proposed dividend Sundry creditors Bills payable Liability for expenses Provision for taxation 4,00.000 1,00,000 20,000 50,000 48,000 50,000 47,000 16,000 36,000 50.000 8.17.000 Goodwill Land and building Plant Investment Sundry debtors Stock Bills receivable Cash in hand Cash at bank Preliminary expenses 40,000 30,000 42,000 25,000 20.000 30,000 40.000 6.77.000 1,00,000 2,00,000 80,000 20,000 1,40.000 77,000 20,000 15,000 10.000 15.000 6.77,000 80,000 1,70,000 2,00,000 30,000 1.70,000 1,09,000 30,000 10,000 8,000 10.000 8.17.000 Additional informations: (i) A piece of land has been sold during the year and the profit on sale has been credited to capital reserve. Depreciation charged on building during the year is $5,000; no additions under this head during the year. (ii) A machine was sold for 510,000. The written down value of the machine was 12,000. Depreciation of 10,000 is charged on plant in 2013-14. (ii) Investments are trade investments. 3,000 by way of dividend is received including 1,000 from pre- acquisition profit which has been credited to investment account. (iv) An interim dividend of $20,000 has been paid in 2013-14