Question No 46 Chapter 8 – UNIMAX Class 12 Part 2 – 2021

Question No 46 Chapter 8 – UNIMAX Class 12 Part 2 – 2021

46.From the following balance sheet of Jaskaran Ltd. As at 31st March ,2021 and 2022, prepare a cash flow statement.

BALANCE SHEET

Particulars	Note No.	31st March 2021(Amt.)	31st March 2022(Amt.)
I. Equity and liabilities
(1) Shareholders’ funds
Equity Share Capital		3,00,000	3,60,000
Reserve and Surplus	1	1,60,000	2,00,000
(2) Non- Current Liabilities
Long -term Borrowings	2	2,62,000	3,78,000
(3) Current Liabilities
Trade Payables	3	28,000	28,000
Other Current Liabilities (Outstanding Expenses)		6,000	2,000
Total		7,56,000	9,68,000
B. Assets
(1) Non-Current Assets
(a)Fixed Assets
(I)Tangible	4	4,60,000	6,40,000
(II)Intangible (Goodwill)		20,000	10,000
(2) Current Assets
Investment (Stock)		40,000	34,000
Trade Receivables	5	1,36,000	1,68,000
Other Current Assets		20,000	16,000
Cash and Cash Equivalents
Cash at Bank		80,000	1,00,000
Total		7,56,000	9,68,000

Notes to Accounts

Particulars	31st March 2021(Amt.)	31st March 2022Amt.)
1.Reserve and Surplus
General Reserve	60,000	60,000
Balance of Statement of profit and loss	1,00,000	1,40,000
	1,60,000	2,00,000
2. Long -term Borrowings
12% Debentures	1,02,000	1,38,000
12% public Deposits	1,60,000	2,40,000
	2,62,000	3,78,000
3.Trade Payables
Creditors	16,000	20,000
Bills Payable	12,000	8,000
	28,000	28,000
4.Fixed Assets (Tangible)
Building	3,00,000	4,40,000
Plant	1,60,000	2,00,000
	4,60,000	6,40,000
5.Trade Receivables
Debtors	1,20,000	1,50,000
Bill Receivables	16,000	18,000
Total	1,36,000	1,68,000

Additional Information:

I. Depreciation charged on building 20,000 and plant 10,000.
II. Interest paid on debentures 14,400. New debentures of 36,000 were issued om 1st October ,2021.
III. Interest paid on deposits from public 19,200 for the year.

The solution of Question No 46 Chapter 8 – UNIMAX Class 12 Part 2 – 2021: -

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31st MARCH . 2022

Particulars	₹	₹
I. cash flow from operating activities
Net Profit as per Statement and Loss (1,40,000-1,00,000)		40,000
(+) Goodwill Written off	10,000
Depreciation on Building	20,000
Depreciation on Plant	10,000
Interest on Debentures Paid (to be shown under Financing Activities)	14,400
Interest on Public Deposits Paid (to be shown under Financing Activities)	19,200	73,600
Operating Profit before Working capital Changes		1,13,600
(+) Decrease in Current Assets and Increase in Current Liabilities
Stock (Inventories) (40,000-34,000)	6,000
Other Current Assets (20,000-16,000)	4,000
Creditors (20,000-16,000)	4,000	14,000
		1,27,600
(-) Increase in Current Assets and decrease in Current Liabilities
Debtors (1,50,000-1,20,000)	(30,000)
Bills Receivable (18,000-16,000)	(2,000)
Bill Payable (12,000-8,000)	(4,000)
Outstanding Expenses (6,000-2,000)	(4,000)	(40,000)
Net Cash from Operating Activities		87,600
B. Cash Flow from investing Activities
Cash Payment for Building	(1,60,000)
Cash Payment for Plant	(50,000)
Net Cash used in investing Activities		(2,10,000)
C. Cash Flow from Financing Activities
Cash Proceeds from issue of Equity Shares	60,000	-
Cash Proceeds from Issue of Debentures	36,000	-
Cash Proceeds from Public Deposits	80,000	-
Interest on Debentures Paid	(14,400)
Interest on Public Deposits Paid	(19,200)
Net Cash from Financing Activities		1,42,400
Net Increase in Cash and Cash Equivalents(A+B+C)		20,000
Cash and Cash Equivalents in the Beginning of the year		80,000
Cash and Cash Equivalents in the End of the year		1,00,000

Working Notes: 1

BUILDING ACCOUNT

Particulars	₹	Particulars	₹
TO Balance b/d	3,00,000	By Depreciation	20,000
To Bank A/c (Purchase) (Balancing Figure)	1,60,000	By Balance c/d	4,40,000
	4,60,000		4,60,000

PLANT ACCOUNT

Particulars	₹	Particulars	₹
TO Balance b/d	1,60,000	By Depreciation	10,000
To Bank A/c (Purchase) (Balancing Figure)	50,000	By Balance c/d	2,00,000
	2,10,000		2,10,000