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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Question 60 Chapter 5 of +2-B
60. (Cash Flow Statement Showing Operating, Investing & Financing Activities) The Balance sheet of R. Ltd. is as follows
| BALANCE SHEETS | |||
| Particulars | Note No. | 31st March,2018 | 31st March,2017 |
| I. Equity and Liabilities | |||
| Shareholders Fund : | |||
| Equity Share Capital | 50,000 | 50,000 | |
| Reserves and Surplus | |||
| General Reserve | 50,000 | 50,000 | |
| Balance in Statement of Profit and Loss | 49,000 | 48,000 | |
| Non-current Liabilities | |||
| Long-term Borrowings : | |||
| Loan from Associate company | 20,000 | ||
| Loan from Bank | 25,000 | 31,000 | |
| Current Liabilities | |||
| Trade Payable | 41,000 | 36,000 | |
| Total | 2,35,000 | 2,15,000 | |
| II. Assets | |||
| Non-Current Assets : | |||
| Tangible Assets | |||
| Land | 30,000 | 20,000 | |
| Building | 55,000 | 50,000 | |
| Machinery | 86,000 | 80,000 | |
| Current Assets : | |||
| Inventories | 22,000 | 25,000 | |
| Trade Receivable | 38,400 | 35,000 | |
| Cash | 3,600 | 5,000 | |
| Total | 2,35,000 | 2,15,000 |
During the year ₹ 26,000 was paid as a dividend for the previous year. The provision for depreciation against machinery as of 1-4-2017 was ₹ 27,000 and on 1-4-2018 ₹ 36,000. You are required to prepare the cash flow statement.
Cash Flow Statement for the year ended 31st March 2018
| Particulars |
Rs |
|
|---|---|---|
| (A) Cash Flow from Operating Activities | ||
| Net Profit before Tax and Extraordinary Items* | 1,000 | |
| Adjustment of non-Cash & Non-Operating Items | ||
| Add: Dividend Paid | 26,000 | |
| Depreciation on Machinery | 9,000 | 35,000 |
| Cash operating Profit before Working Capital adj. | 36,000 | |
| Add: Increase in Current Liabilities: | ||
| Trade Payable | 5,000 | |
| Add: Decrease in current Assets: | ||
| Inventories | 3,000 | |
| Add : Decrease in current Assets: | ||
| Trade Receivables | 3,400 | 4,600 |
| Cash flow from Operating Activities | 40,600 |
|
| (B) Cash flows from Investing Activities | ||
| Outflow of Cash | ||
| Purchase of land | 10,000 | |
| Purchase of Building | 5,000 | |
| Purchase of Machinery | 15,000 | 30,000 |
| Net cash used in investing Activities | 30,000 |
|
| (C) Cash flows from Financing Activities | ||
| Inflow of Cash | ||
| Loan from Associate company | 20,000 | |
| Outflow of Cash | ||
| Repayment of Bank loan | 6,000 | |
| Dividend Paid | 26,000 | 12,000 |
| Net cash flow from financing activities | 12,000 |
|
| Net Increase in Cash & Cash Equivalents (A + B + C) | 1,400 | |
| Add: Cash & Cash equivalents in the beginning | 5,000 | |
| Cash & Cash equivalents at the end | 3,600 | |
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.
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