Question 35 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 35 Chapter 5 of +2-B

Cash Flow from Financing Activities

35. From the following information, calculate Cash Flow from Investing and Financing Activities:

Particulars	31st March,	31st March,
	2019 Rs	2018 Rs
Machinery (At cost)	50,000	40,000
Accumulated Depreciation	12,000	10,000
Capital	35,000	30,000
Bank Loan	--	10,000

During the year, a machine costing Rs 10,000 was sold at a loss of Rs 2,000. Depreciation on machinery charged during the year amounted to Rs 6,000.

The solution of Question 35 Chapter 4 of +2-B: -

 

Cash Flow From for the year ended 31st March, 2019

Particulars		Rs
I. Cash Flow from Financing Activities
Sale of Machine	4,000
Less: Purchase of Machinery (WN 1)	20,000	16,000
Net Cash from used in Investing Activities		16,000
II. Cash Flow from Financing Activities
Proceeds from Issue of Equity Shares	5,000
Less: Repayment of Bank Loan	10,000	5,000
Net Cash Flow from Financing Activities		5,000

 

Machinery Account

Particulars	Rs	Particular	Rs
To Balance b/d	40,000	By Accumulated Depreciation A/c*	4,000
To Bank A/c (Purchase) (Bal. Fig.)	20,000	By Bank A/c (Sale)	4,000
		By Loss on Sale (Profit and Loss A/c)	2,000
		By Balance c/d	50,000
	60,000		60,000

 

Accumulated Depreciation Account*

Particulars	Rs	Particular	Rs
To Machinery A/c (Bal. Fig.)	4,000	By Balance b/d	10,000
To Balance c/d	12,000	By Profit and Loss A/c (Dep. charged during the year)	6,000
	16,000		16,000

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Also, Check out the solved question of previous Chapters: -

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 - Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 - Accounting for Partnership Firms - Fundamentals
• Chapter No. 3 - Goodwill: Nature and Valuation
• Chapter No. 4 - Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 - Admission of a Partner
• Chapter No. 6 - Retirement/Death of a Partner
• Chapter No. 7 - Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 - Company Accounts -  Accounting for Share Capital
• Chapter No. 9 - Company Accounts - Issue of Debentures
• Chapter No. 10 - Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis 
• Chapter No. 3 - Tools of Financial Statement Analysis - Comparative Statements and Common- Size Statements
• Chapter No. 4 - Accounting Ratios
• Chapter No. 5 - Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication