Question 54 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 54 Chapter 5 of +2-B

54. From the following Balance Sheet of SRS Ltd. and the additional information as on 31st March, 2016, prepare a Cash Flow Statement:

SRS Ltd.

Particulars	Note No.	31st March, 2016 Rs	31st March, 2015 Rs
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital		4,50,000	3,50,000
(b) Reserves and Surplus	1	1,25,000	50,000
2. Non-Current Liabilities
Long-term Borrowings	2	2,25,000	1,75,000
2. Current Liabilities
(a) Short-term Borrowings	3	75,000	37,500
(b) Short -term Provisions	4	1,00,000	62,500
Total		9,75,000	6,75,000
II. ASSETS
1. Non-Current Assets
Fixed Assets :
(i) Tangible Assets	5	7,32,500	4,52,500
(ii) Intangible Assets: Goodwill	6	50,000	75,000
(b) Non-current Investments		75,000	50,000
2. Current Assets
(a) Current Investments		20,000	35,000
(b) Inventories	7	61,000	36,000
(c) Cash and Cash Equivalents		36,500	26,500
Total		9,75,000	6,75,000

Notes to Accounts

Particulars	31st March, 2016 ( Rs)	31st March, 2015 ( Rs)
1. Reserves and Surplus
Surplus, i.e., Balance in Statement of Profit and Loss	1,25,000	50,000
	1,25,000	50,000
2. Short-term Borrowings :
Cash and Cash Equivalents	2,25,000	1,75,000
	2,25,000	1,75,000
3. Short-term Borrowings
Bank Overdraft	75,000	37,500
	75,000	37,500
4. Short-term Provisions
Provision for Tax	1,00,000	62,500
	1,00,000	62,500
5. Tangible Assets
Machinery	8,37,500	5,22,500
Accumulated Depreciation	(1,05,000)	-70,000
	7,32,500	4,52,500
6. Intangible Assets
Goodwill	50,000	75,000
	50,000	75,000
7. Inventories
Stock-in-Trade	61,000	36,000
	61,000	36,000

Additional Information:
i Rs 50,000, 12% Debentures were issued on 31st March, 2016.
ii During the year, a piece of machinery costing Rs 40,000, on which accumulated depreciation was Rs 20,000, was sold at a loss of Rs 5,000.

 

The solution of Question 54 Chapter 4 of +2-B: -

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

Particulars		Rs
I. Cash Flow from Financing Activities
Profit as per Statement of Profit and Loss :
Closing Balance of Profit & Loss	1,25,000
Less: Opening Balance of Profit & Loss	50,000
Provision for Tax	1,00,000	1,75,000
Net Profit before tax and extraordinary items		1,75,000
Items to be Added:
Goodwill written off	25,000
Debentures Interest	21,000
Depreciation (WN 2)	55,000
Loss on Sale of Machinery	5,000	1,06,000
Operating Profit before Working Capital Adjustments		2,81,000
Less: Increase in Current Assets
Inventories	25,000
Cash Generated from Operations		2,56,000
Less: Tax Paid (WN 3)		62,500
Net Cash Flow from Operating Activities		1,93,500
II. Cash Flow from Financing Activities
Sale of machinery	15,000
Purchase of machinery (WN 1)	3,55,000
Purchase of non-current investment	25,000	3,65,000
Net Cash Used in Investing Activities		3,65,000
III: Cash Flow from Financing Activities
Proceeds from Issue of Equity Shares	1,00,000
Increase in Bank Overdraft	37,500
Interest on Debentures paid	21,000
Proceeds from Issue of Debentures	50,000	1,66,500
Net Cash Flow from Financing Activities		1,66,500
IV. Net Decrease in Cash and Cash Equivalents		(5,000)
Add: Cash and Cash Equivalents in the beginning of the period		61,500
Cash and Cash Equivalents at the end of the period		56,500

 

Machinery Account

Particulars	Rs	Particular	Rs
To Balance b/d	5,22,500	By Depreciation A/c	20,000
To Bank A/c (Purchases - Bal. Fig.)	3,55,000	By Bank (Sales)	15,000
		By Loss on Sale (Profit and Loss A/c)	5,000
		By Balance c/d	8,37,500
	8,77,500		8,77,500

 

Accumulated Depreciation Account

Particulars	Rs	Particular	Rs
To Machinery A/c	20,000	By Balance b/d	70,000
		By Profit and Loss A/c (Dep. charged during the year- Bal. Fig.)	55,000
To Balance c/d	1,05,000
	1,25,000		1,25,000

 

 

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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