Question 62 Chapter 15 of Class 12 Part – 2 – 2024

Question 62 Chapter 15 of Class 12 Part – 2 – 2024

62. (CFS Showing Operating, Investing & Financing Activities) From the following balance sheets of ABC Ltd. An the additional information given make out a statement of Cash flow.

BALANCE SHEETS
Particulars	Note No.	31st March,2018	31st March,2017
I. Equity and Liabilities
Shareholders Fund :
Equity Share Capital		4,00,000	3,00,000
8% preference share capital		1,00,000	1,50,000
Reserves and Surplus
General Reserve		70,000	40,000
Balance in Statement of Profit and Loss		48,000	30,000
Current Liabilities
Trade Payable		1,49,000	1,17,000
Provision for Taxation		50,000	40,000
Total		8,17,000	6,77,000
II. Assets
Non-Current Assets :
Tangible Assets
Land and Building		1,70,000	2,00,000
Plant		2,00,000	80,000
Intangible Assets
Goodwill		90,000	1,15,000
Current Assets :
Inventories (stock)		1,09,000	77,000
Trade Receivable		2,30,000	1,80,000
Cash at Bank		8,000	10,000
Cash in hand		10,000	15,000
Total		8,17,000	6,77,000

Additional information (1) Depreciation provided during 2017-18 : Plant ₹ 10,000, Land and building ₹ 20,000.
(2) An interim dividend of ₹ 20,000 has been paid during 2017-18.
(3) Income tax paid during the year ₹ 35,000.
(4) Proposed dividend 31-3-2018 31-3-2017
50,000 42,000

The solution of Question 62 Chapter 15 of Class 12 Part – 2 – 2024: - 

Cash Flow Statement for the year ended 31st March 2007

Particulars		Rs
(A) Cash Flow from Operating Activities
Net Profit before Tax and Extraordinary Items*		18,000
Adjustment of non-Cash & Non-Operating Items
Add: Transfer to General Reserve	35,000
Proposed Dividend	42,000
Depreciation on Plant	10,000
Depreciation on Land & Building	20,000
Interim Dividend	20,000
Provision for taxation	45,000
Goodwill written off	25,000	25,000
Cash operating Profit before Working Capital adj.		83,000
Add: Increase in current Liabilities:
Trade Payable	32,000
Less : Increase in current Assets:
Inventories	32,000
Trade Receivables	40,000
Bills Receivables	10,000	50,000
Less: Income Tax Paid		30,000
Cash flow from Operating Activities		1,25,000
(B) Cash flows from Investing Activities
Inflow of Cash
Sale of Land & Building		10,000
Outflow of Cash
Purchase of Plant		1,30,000
Cash used in Investing Activities
Net cash used in investing Activities		1,20,000
(C) Cash flows from Financing Activities
Inflow of Cash
Issue of Share Capital	2,00,000
Outflow of Cash
Dividend paid	42,000
Interim Dividend Paid	20,000
Redemption of preference shares	50,000	12,000
Net cash flow from financing activities		12,000
Net Increase in Cash & Cash Equivalents (A + B + C)		7,000
Add: Cash & Cash equivalents in the beginning		25,000
Cash & Cash equivalents at the end		18,000

Plant Account

Particulars	Amount ₹	Particulars	Amount ₹
To Balance b/d	80,000	By Depreciation	10,000
To Bank –Purchase (Bal. fig.)	1,30,000	By Balance c/d	2,00,000
	2,10,000		2,10,000

Land & Building Account

Particulars	Amount ₹	Particulars	Amount ₹
To Balance b/d	2,00,000	By Depreciation	20,000
		By Bank – Sale	10,000
		By Balance c/d	1,70,000
	2,00,000		2,00,000

Provision for Taxation Account

Particulars	Amount ₹	Particulars	Amount ₹
To Bank – Payment	35,000	By Balance b/d	40,000
To Balance c/d	50,000
		By Profit & Loss	45,000
	85,000		85,000