Question 41 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 41 Chapter 5 of +2-B

Cash Flow from Financing Activities

41. Following is the Balance Sheet of Fine Products Ltd. as at 31st March, 2019:

Particulars	Note No.	31st March 2019 Rs	31st March 2018 Rs
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital		3,50,000	3,00,000
(b) Reserves and Surplus	1	57,000	38,000
3. Current Liabilities
(a) Trade Payables		53,000	35,000
(b) Other Current Liabilities		6,000	8,000
(c) Short-term Provisions	2	32,000	28,000
Total		4,98,000	4,09,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets :
Tangible Assets	3	2,48,000	2,00,000
Intangible Assets (Goodwill)		40,000	50,000
(b) Non-Current Investments		35,000	10,000
2. Current Assets
(a) Inventories		39,000	57,000
(b) Trade Receivables		1,08,000	75,000
(c) Cash and Bank Balance		28,000	17,000
Total		4,98,000	4,09,000

Notes to Accounts

Particulars	31st March,	31st March, 2018 (Rs)
	2019 (Rs)
1. Reserves and Surplus
General Reserve	30,000	20,000
Surplus, i.e., Balance in Statement of Profit and Loss	27,000	18,000
	57,000	38,000
2. Short-term Provisions
Provision for Tax	32,000	28,000
3. Tangible Fixed Assets
Land and Building	57,000	1,10,000
Plant and Machinery	1,91,000	90,000
	2,48,000	2,00,000

Note: Proposed dividends on equity for the years ended 31st March, 2018 and 2019 are Rs 39,000 and Rs 45,000 respectively.
You are required to prepare Cash Flow Statement for the year ended 31st March, 2019.

 

The solution of Question 41 Chapter 4 of +2-B: -

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

Particulars		Rs
I. Cash Flow from Financing Activities
Profit as per Statement of Profit and Loss :		9,000
Profit Before Tax and extraordinary Items		9,000
Items to be Added:
General Reserve	10,000
Goodwill	10,000
Provision for Taxation	32,000
Proposed Dividend	39,000	1,00,000
Operating Profit before Working Capital Adjustments		1,00,000
Less: Increase in Current Assets
Trade Receivables	33,000
Less: Decrease in Current Liabilities
Other Current Liabilities	2,000
Add: Decrease in Current Assets
Inventories	18,000
Add: Increase in Current Liabilities
Trade Payables	18,000	1,000
Cash Generated from Operations		1,01,000
Less: Taxes Paid		28,000
Cash Flow from Operating Activities		73,000
II. Cash Flow from Financing Activities
Sale of Land & Building	53,000
Purchase of Non-Current Investments	25,000
Purchase of Plant & Machinery	1,01,000	73,000
Net Cash Used in Investing Activities		73,000
III: Cash Flow from Financing Activities
Proceeds from Issue of Share Capita	50,000
Dividend Paid	39,000	11,000
Net Cash Flow from Financing Activities		11,000
IV. Net Increase or Decrease in Cash and Cash Equivalents		11,000
Add: Cash and Cash Equivalent in the beginning of the period		17,000
Cash and Cash Equivalents at the end of the period		28,000

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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