Client Name : Henry & Henry Cash flow Statement Cash flow from operating activites Receipts from customers (Cash sales + total cash received) Cash paid for expenses and purchases (cash purchases + cash expenses paid) Net cash flow from operating activities Cash flow from investing activities Purchase new fittings Alteratios to buildings Met cash flow from investing activities. Cash flow from financign activities Bank loan repayment Drawings my partners Net cash flow from financing activities Met increase in cash during the year Opening cash balance (01/07/2020) Calculated closing cash balance Actual Closing Cash Balance (30/06/2021) Discrepancy/Missing Transactions 530,000 243,000 28,000 4,000 18,000 15,000 75,000 287,000 29,000 33,000 225,000 300,000 116,000 184,000 'Summary of transactions of Henry & Henry is provided for the year ended 30 June 2021 Credit sales of legal services 252,000) Credit purchases 191,000) Cash sales of legal services 293,000 Cash purchases 138,000 Discounts allowed 3,000 Discounts received 3,000 Accounts receivable balance 01/07/20 50,400 Accounts receivable balance 30/06/21 61,400 Accounts payable balance 01/07/20 35,850 Accounts payable balance 30/06/21 40,850 Bad debts written off 2,000 Increase in allowance for Doubtful Deb| 2,000 Repayment of bank loan 18,000 Drawings by Partners 15,000 Purchase of new Fittings 25,000 Alterations to buildings 4,000 Depreciation of plant 34,000 Cash expenses paid 105,000) Net profit for the year 73,000 Cash at bank 01/07/20 75,000 Cash at bank 30/6/21 116,000 CHAPTER 2 Client Name : General Ledger Reconstructions ACCOUNTS RECEIVABLE Date Details Debit Credit Balance 1/07/2020|Balance b/d 50,400 Credit sales of legal services 252,000 302,400 Bad debts are written off 2,000 300,400 Increas in allowance for doubtful debts 2,000 298,400 30/06/2021] Balance c/d 61,400 [Total cash received 237,000 Cash Sales 293,000, 530,000) [total receipts from customers 530,000 'ACCOUNTS PAYABLE 1/07/2020|Balance b/d 35,850 Credit Purchases 191,000 226,850 Discounts received 3,000 223,850 30/06/2021] Balance c/d 40,850 Total cash paid 183,000 cash purchase 138,000 321,000 Repayment bank loan 18,000 339,000 Drawings 15,000 354,000 Purchase new fittings 25,000 379,000 Alterations to building 4,000 383,000 cash expenses paid 105,000 288,000 total payments 488,000 Client Name ; Henry & Henry Reconciliation of Cash Flow Net profit adjustment Net profit for the year add back depreciation add back bad debts written off Increase in allowance for doubtful debts change in accounts receivable change in accounts payable subtract discounts received Net cash from operating activities Missing adjustment (cash sales) Final Net Cash from Operating Activities 73,000 34,000 2,000 2,000 11,000 5,000 3,000 185,000 287,000 102,000