Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Advertisement
Advertisement
Advertisement
Advertisement
Question 54 Chapter 5 of +2-B
54. (CFS Showing Operating, Investing & Financing Activities) From the following balance sheet and additional information of Good Wood Co. Ltd., you are required to prepare the Cash flow statement as per AS-3 (Revised).
| Particulars | Note No. | 31st March,2017 | 31st March,2018 |
| I. Equity and Liabilities | |||
| Shareholders Fund : | |||
| (a) Share Capital | 30,000 | 45,000 | |
| (b) Reserves and Surplus | 7,000 | 18,500 | |
| 2. Current Liabilities | |||
| Trade Payable | 1 | 10,500 | 13,500 |
| Total | 47,500 | 77,000 | |
| II. Assets | |||
| 1. Non-Current Assets : | |||
| (i) Fixed Assets | 20,000 | 49,000 | |
| 2. Current Assets | |||
| (a) Inventories (Stock) | 9,000 | 9,000 | |
| (b) Trade Receivables (Debtors) | 12,000 | 10,000 | |
| (c) Cash and Cash Equivalents (Cash) | 6,500 | 9,000 | |
| Total | 47,500 | 77,000 |
Notes to Accounts
| Particulars | 2017-18 ₹ | 2016-17 ₹ |
| 1. Trade Payable | ||
| Creditors | 8,000 | 9,500 |
| Bills Payable | 2,500 | 4,000 |
| 10,500 | 13,500 |
Additional Information
(i) Income tax paid during the year 4,500.
(ii) Interim Dividend paid during the year was 12% per annum on the opening balance of share capital
Cash Flow Statement
| Particulars |
Rs |
|
|---|---|---|
| (A) Cash Flow from Operating Activities | ||
| Net Profit before Tax and Extraordinary Items* | 19,600 | |
| Cash operating Profit before Working Capital adj. | 19,600 | |
| Add: Increase in current Liabilities: | ||
| Creditors | 1,500 | |
| Bills payable | 1,500 | |
| Add: Decrease in current Assets: | ||
| Trade Receivable | 2,000 | 5,000 |
| Less: Tax Paid | 4,500 | |
| Cash flow from Operating Activities | 20,100 |
|
| (B) Cash flows from Investing Activities | ||
| Outflow of Cash | ||
| Purchase of Fixed Assets | ||
| Cash used in Investing Activities | 29,000 | |
| Net cash used in investing Activities | 29,000 |
|
| (C) Cash flows from Financing Activities | ||
| Inflow of Cash | ||
| Issue of Equity Shares | 15,000 | |
| Outflow of Cash | ||
| Interim Dividend Paid | 3,600 | 11,400 |
| Net cash flow from financing activities | 11,400 |
|
| Net decrease in cash & Cash equivalents (A + B + C) | 2,500 | |
| Add: Cash equivalent at the beginning of the year | 6,500 | |
| Cash equivalent at the end of year | 9,000 | |
Working Note
Net Profit before Tax and Extraordinary Items
| Particulars |
Amount ₹ |
|---|---|
| Net Profit of the Current Year | 11,500 |
| Add: Interim Dividend Paid | 3,600 |
| Provision of Tax | 4,500 |
| 19,600 |
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.
This guide covers "Question 54 Chapter 5 of +2-B - USHA Publication 12 Class", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to USHA Publication Part 2 volume I.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "Question 54 Chapter 5 of +2-B - USHA Publication 12 Class" instantly.
