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Question No 39 Chapter 8 – UNIMAX Class 12 Part 2 – 2021
39. from the following balance sheet of Vivek Ltd., prepare cash flow statement:
| Particulars | 2021 | 2022 |
|---|---|---|
| I. Equity and liabilities | ||
| (1) Shareholders’ funds | ||
| Equity Capital | 2,00,000 | 2,50,000 |
| 12%pref. Share Capital | 50,000 | 40,000 |
| Reserve & Surplus | ||
| General Reserve | 35,000 | 55,000 |
| Profit and Loss A/c | 15,000 | 17,000 |
| Current Liabilities | ||
| Creditors | 23,000 | 5,000 |
| Total | 3,23,000 | 3,67,000 |
| Assets | ||
| Non-Current Assets | ||
| Tangible | ||
| Building | 1,00,000 | 80,000 |
| Plant | 40,000 | 70,000 |
| Intangible | ||
| Goodwill | 30,000 | 20,000 |
| Current Assets | ||
| Stock | 18,000 | 20,000 |
| Debtors | 1,20,000 | 1,60,000 |
| Cash | 15,000 | 17,000 |
| Total | 3,23,000 | 3,67,000 |
VIVEK LTD. CASH FLOW STATEMENT
FOR THE YEAR ENDED 31st DEC. 2022
| Particulars | ₹ | ₹ | |
|---|---|---|---|
| (A)cash flow from operating activities | |||
| Net Profit as per Profit and Loss A/c | 2,000 | ||
| Add: Transfer to General Reserve | 2,000 | 20,000 | |
| Net Profit before tax | 22,000 | ||
| Add: Non-Cash items (expenses) | |||
| 12%Dividend on Pref. Share | 6,000 | ||
| Depreciation on Plant | 30,000 | ||
| Depreciation on Building | 50,000 | ||
| Goodwill written off | 10,000 | 96,000 | 96,000 |
| Operating Profit before working capital charges | 1,18,000 | ||
| Add: Increase in current liabilities &Decrease in Current Assets | Nil | Nil | |
| Nil | Nil | 1,12,000 | |
| Less: Decrease in Current Liabilities | |||
| Creditors | (18,000) | ||
| Increase in Current Assets | |||
| Debtors | (40,000) | ||
| Stock | (2,000) | (60,000) | (60,000) |
| Net Cash flow from Operating Activities | 58,000 | ||
| (B) Cash flow from Investing Activities | |||
| Purchase of Building | (30,000) | ||
| Purchase of Plant | (60,000) | (90,000) | |
| Net cash used in Investing Activities | (90,000) | ||
| (C)Cash flow from financing Activities | |||
| 12%Dividend on pref. Share | (6,000) | ||
| Cash proceeds from issue of Equity share | 50,000 | ||
| Out flow as redemption of pref. Capital | (10,000) | ||
| Net cash flow from financing Activities | 34,000 | ||
| Net Increase in cash and cash equivalents | 2,000 | ||
| Opening cash balance | 15,000 | ||
| Closing cash balance | 17,000 | ||
Working Notes:
BUILDING A/C
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To balance b/d | 1,00,000 | By P&L A/c (Dep) | 50,000 |
| To bank A/c | 30,000 | By balance c/d | 80,000 |
| (Purchase of Building) [BF] | |||
| 1,30,000 | 1,30,000 |
PLANT A/C
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To balance b/d | 40,000 | By P&L A/c (Dep.) | 30,000 |
| To bank A/c | 60,000 | By balance c/d | 70,000 |
| (Purchase of plant) [B.F.] | |||
| 1,00,000 | 1,00,000 |
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 No 39 Chapter 8 – UNIMAX Class 12 Part 2 – 2021", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Unimax Accountancy Class 12 Part 2 - 2023.
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