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Question 50 Chapter 8 -Unimax Publication Class 12 Part 2 - 2021
Balance Sheets of A as on 1.1.22 and 31.12.22 were as follows:
| Liabilities | 1.1.22 | 31.12.22 | Assets | 1.1.22 | 31.12.22 |
|---|---|---|---|---|---|
| Creditors | 40,000 | 44,000 | Cash | 10,000 | 7,000 |
| Mr. X’s Loan | 25,000 | - | Debtors | 30,000 | 50,000 |
| Bank Loan | 40,000 | 50,000 | Stock | 40,000 | 25,000 |
| Capital | 1,25,000 | 1,53,000 | Machinery | 80,000 | 55,000 |
| Land and Building | 70,000 | 1,10,000 | |||
| 2,30,000 | 2,47,000 | 2,30,000 | 2,47,000 |
During the year a machine costing 10,000 (accumulated depreciation 3,000) was sold for 5,000. Depreciation provided during the year was 18,000. Drawings during the year were17,000. You are required to prepare cash Flow Statement.
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31st DEC,2022
| Particulars | ₹ | ₹ | |
|---|---|---|---|
| A. Cash Flow from Operating Activities | |||
| Net Profit | 45,000 | ||
| Add: Depreciation | 18,000 | ||
| Loss on Sale Machinery | 2,000 | 20,000 | |
| 65,000 | |||
| Add: Increase in Current liabilities | |||
| Creditors | 4,000 | ||
| Decrease in Current Assets | 15,000 | 19,000 | 19,000 |
| Stock | 84,000 | ||
| Less: Increase in Current Assets | |||
| Debtors | (20,000) | (20,000) | |
| Purchase of Land and building | 64,000 | ||
| Cash Flow from Operating Activities | |||
| B. Cash Flow from investing Activities | |||
| Purchase of Land and Buildings | (40,000) | ||
| Sale of Machinery | 5,000 | ||
| Cash used in Investing Activities | (35,000) | ||
| C. Cash Flow from Financing Activities: | |||
| Repayment of Mrs. A’s Loan | (25,000) | ||
| Raising of Bank loan | 10,000 | ||
| Drawings | (17,000) | ||
| Cash used in Financing Activities | (32,000) | ||
| Net Decrease in cash and cash equivalents | (3,000) | ||
| Opening Cash Balance | 10,000 | ||
| Closing cash balance | 7,000 | ||
Working Notes:
CAPITAL A/C
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To Drawings | 17,000 | To Balance b/d | 1,25,000 |
| To balance c/d | 1,53,000 | By Net Profit (b.f.) | 45,000 |
| 1,70,000 | 1,70,000 |
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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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