Experts solve 39A fast with proper workings and show all necessary accounts

Solution:
 

Cash Flow Statement
for the year ended 31/3/20181

Particulars	Details (Rs.)	Amount (Rs.)
A. CASH FLOW FROM OPERATING ACTIVITIES Net profit before tax Adjustments for non-cash and non-operating items Depreciation Intangible Assets  Less: Gain on sale of machinery Operating expenses before Working capital changes Add: Decrease in current liabilities:   Other current assets Increase in current liabilities   Trade payables Less: Increase in current assets   Inventory   Trade receivables Less: Tax Paid Cash flow from operating activities	1,52,200 15,000 16,000 (12,000) 1,78,200 2,000 49,000 (1,10,000) (70,000) (30,000) 19,200	19,200
B. CASH FLOW FROM INVESTING ACTIVITIES Purchase of machinery Sale of machinery Cash used in investing activities	(98,000) 35,000 (63,000)	(63,000)
C. CASH FLOW FROM FINANCING ACTIVITIES Proceeds from issue of debentures Interest Paid Dividend Paid Cash flow from financing activities	1,20,000 (7,200) (30,000) 82,800	82,800
Total cash flow during the year		39,000

Working Notes:
Reserves on 31/3/2013 =          1,07,000
Less:Reserves on 31/3/2012 =    25,000
Add: Prov. for taxation =               40,000
Add: dividend paid =                    30,000
Add; interest paid =                       7,200
                                                  1,59,200
 

Machinery A/c

Particulars	Amount(Rs.)	Particulars	Amount(Rs.)
To bal b/d To P/L A/c To bank A/c(bal. fig.)	1,20,000 12,000 98,000	By bank A/c By dep A/c By bal c/d	35,000 15,000 1,80,000
	2,30,000		2,30,000