A Ltd Profit & Loss A/C for the year ended 31st march , 2008 as follows:

Particulars Amount ( Rs )
Sales 570000
Interest income 2000
Gain on sale of investments 7000

COGS 445000
Depreciation Exp 89000
Selling & Adm Exp 46000
Interest Exp 14000
Loss on sale of P/M 3000
Profit before IT & extraordinary item ( 18000)
Income tax 0
Profit before extraordinary item ( 18000)
Extraordinary item Nil

Net profit ( 18000)

Balance Sheet as on 31st March 2007 & 31st March 2008

Particulars Amount ( Rs ) Amount ( Rs )

2008 2007
Sources of Funds
Shareholder’s funds
Equity Share Capital 155000 85000
P/L A/C 102000 120000
Total shareholder’s funds 257000 205000
Loan Funds
- Secured Loans 97000 57000
- Unsecured Loans 181000 191000
Total Loan Funds 278000 248000
Total Sources of Funds 535000 453000
Application of Funds
Fixed Assets
P&M,Cost 720000 540000
Less: Accumulated Depr 362000 305000
Net Book Value 358000 235000
Investments 18000 66000
Current assets
-Inventories 151000 119000
-Debtors( less Prov for D/D Rs 29000 166000
8000& Rs 12000 )
Prepaid exp 6000 2000
Cash 12000 69000
Total Current Assets ( A ) 198000 356000
Current Liabilities
-Bills payable 6000 9000
-Creditors 24000 178000
-Income tax Payable 9000 17000
Total Current Liabilities ( B ) 39000 204000
Net Working Capital ( A-B) 159000 152000
Total Application of Funds 535000 453000

Additional Information :

1) Purchased machinery costing Rs 150000 with cash

2) Sold machinery with cost of Rs 45000 & accumulated depreciation of Rs 32000
for Rs 10000
3) Purchased investments for Rs 30000
4) Sold invest costing Rs 78000 for Rs 85000
5) Purchased machinery for Rs 75000 in exchange for secured debentures
6) Issued shares at par for Rs 50000
7) Converted secured debentures of Rs 20000 to equity shares of rs 10 at par
8) Repaid unsecured loans of Rs 10000
9) Redeemed secured debentures of Rs 15000 at par
10) Wrote off Rs 14000 of debtors when a customer became insolvent & provided Rs
10000 for doubtful debts , included in S&D Exp

Prepare Cash Flow Statement by – Direct Method & Indirect Method