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Question 44 Chapter 15 of Class 12 Part – 2 – 2024
PREPARING OF CASH FLOW STATEMENT (WITHOUT ADJUSTMENT)
44. (CFS Showing Operating, Investing & Financing Activities) Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheet of Hitesh Ltd. :
| Particulars | Note No. | Figures for the current reporting period | Figures for the previous reporting period |
| I. Equity and Liabilities | |||
| Shareholders Fund : | |||
| Share Capital | 1,25,000 | 1,00,000 | |
| Reserves and surplus | |||
| Surplus (Profit and Loss Balance) | 35,000 | 25,000 | |
| Non-Current Liabilities | |||
| Long-term borrowings : | |||
| 10% Debentures | 40,000 | 50,000 | |
| Current Liabilities | |||
| Creditors | 30,000 | 20,000 | |
| Bills Payables | 50,000 | 10,000 | |
| Outstanding Expenses | 10,000 | 12,500 | |
| Total | 2,90,000 | 2,17,500 | |
| II. Assets | |||
| Non –Current Assets | |||
| Tangible Assets | |||
| Land end Building | 1,40,000 | 1,00,000 | |
| Machinery | 65,000 | 50,000 | |
| Intangible Assets : | |||
| Goodwill | 1,000 | 5,000 | |
| Current Assets | |||
| Inventories | 25,000 | 35,000 | |
| Trade Receivable | 20,000 | 10,000 | |
| Input IGST | 6,000 | 2,000 | |
| Input CGST | 12,000 | 4,000 | |
| Input SGST | 12,000 | 4,000 | |
| Cash and cash equivalents : | |||
| Cash | 9,000 | 7,500 | |
| Total | 2,90,000 | 2,17,500 |
Cash Flow Statement of Hitesh Ltd.
| Particulars |
Rs |
|
|---|---|---|
| (A) Cash Flow from Operating Activities | ||
| Add: General Reserve | 10,000 | |
| Goodwill Written off | 4,000 | |
| Interest on debentures | 5,000 | |
| Cash operating Profit before Working Capital adj. | 19,000 | |
| Add: Decrease in Current Assets | ||
| Inventories | 10,000 | |
| Add: Increase in Current Liabilities | ||
| Creditors | 10,000 | |
| Bills Payable | 40,000 | |
| Less: Increase in Current Assets | ||
| Trade Receivable | 30,000 | |
| Input IGST | 4,000 | |
| Input CGST | 8,000 | |
| Input SGST | 8,000 | |
| Less: Decrease in Current Liabilities | ||
| Outstanding Expenses | 2,500 | 46,500 |
| Cash used in Operating Activities | 46,500 |
|
| (B) Cash flows from Investing Activities | ||
| Outflow of Cash | ||
| Purchase of Land & Building | 40,000 | |
| Purchase of Machinery | 15,000 | 55,000 |
| Net cash used in investing Activities | 55,000 |
|
| (C) Cash flows from Financing Activities | ||
| Inflow of Cash | ||
| Issue of share capital | 25,000 | |
| Outflow of Cash | ||
| Redemption of Debenture | 10,000 | |
| Interest on Debentures (10% of 50,000) | 5,000 | 10,000 |
| Net cash flow from financing activities | 10,000 |
|
| Total Cash flow (A + B + C) | 1,500 | |
| Opening Balance Cash | 7,500 | |
| Closing Balance Cash | 9,000 | |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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