Question 60 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 60 Chapter 5 of +2-B

Question 60 Chapter 5 of +2-B

60. From the following Balance Sheet as at 31st March, 2019 and Statement of Profit and Loss for the year ended 31st March, 2019 of RSB Ltd. and additional information, prepare Cash Flow Statement:

Particulars Note No.  31st March, 2019 Rs 31st March,2018 Rs 
I. EQUITY AND LIABILITIES      
1. Shareholders’ Funds       
(a) Share Capital   6,00,000 5,00,000
(b) Reserves and Surplus 1 3,00,000 1,20,000
2. Non-Current Liabilities      
Long-term Borrowings (5% Debentures)   1,20,000 1,50,000
3. Current Liabilities      
(a) Trade Payables   13,000 —-
(b) Other Current Liabilities 2 2,85,000 2,38,000
(c) Short-term Provisions (Provision for Tax)   44,000 30,000
Total   13,62,000 10,38,000
II. ASSETS      
1. Non-Current Assets      
(a) Fixed Assets- Tangible 3 6,20,000 4,00,,000
(b) Non-current Investments      
2. Current Assets      
(a) Current Investments   34,000 20,000
(b) Inventories   3,28,000 2,63,000
(c) Trade Receivables   3,48,000 3,10,000
(d) Cash and Cash Equivalents 2 32,000 45,000
Total   13,62,000 10,38,000

 

STATEMENT OF PROFIT AND LOSS
For the year ended 31st March,2019
Particulars Note No.  31st March,  31st March, 
    2019 Rs  2018 Rs 
I. Revenue from Operations Net Sales 4 40,00,000 35,00,000
II. Other Income 5 35,000 30,000
III. Total Revenue I + II   40,35,000 35,30,000
IV. Expenses;      
Purchases of Stock-in-Trade   27,00,000 24,70,000
Change in Inventories of Stock-in-Trade 6 1,00,000 50,000
Finance Costs   27,500 20,000
Depreciation   40,000 45,000
Other Expenses   22,500 20,000
Total   28,90,000 26,05,000
III. Profit before Tax III− IV   11,45,000 9,25,000
VI. Less: Tax   3,45,000 2,25,000
V. Profit after Tax (V − VI)    8,00,000 7,00,000

Notes to Accounts

Particulars 31st March,  2019 Rs 31st March,2018 Rs 
1. Reserves and Surplus    
Debenture Redemption Reserve 1,00,000 1,00,000
Surplus, i.e., Balance in Statement of Profit and Loss 8,50,000 2,00,000
  9,50,000 3,00,000
2. Other Current Liabilities    
Interest on Debentures 35,000 20,000
Outstanding Expenses 4,000 5,000
  39,000 25,000
3. Fixed Assets–Tangible    
Cost 8,90,000 9,90,000
Less: Accumulated Depreciation 2,05,000 2,45,000
  6,85,000 7,45,000
4. Revenue from Operations    
Sales 42,00,000 35,75,000
Less: Sales Return 2,00,000 75,000
  40,00,000 35,00,000
5. Other Income    
Interest on Deposits 15,000 12,500
Dividend on Investments 10,000 17,500
Gain Profit on Sale of Fixed Assets 10,000 —-
  35,000 30,000
Particulars 31st March,  31st March,
  2019 Rs  2018 Rs 
6. Change in Inventories of Stock-in-Trade    
Opening Stock 2,00,000 2,50,000
Less: Closing Stock 1,00,000 2,00,000
  1,00,000 50,000

 

 

The solution of Question 60 Chapter 4 of +2-B: –


Cash Flow Statement for the year ended 31st March,2019
Particulars
Rs
I. Cash Flow from Financing Activities    
Profit as per Statement of Profit and Loss : 8,00,000  
Provision for Tax 3,45,000 11,45,000
Net Profit before tax and extraordinary items   11,45,000
Items to be Added:    
Finance Cost 27,500  
Depreciation and Amortisation Expenses 40,000 95,000
Items to be Deducted:    
Interest on Deposits 15,000  
Dividend received on Investments 10,000  
Gain on sale of fixed asset 10,000 35,000
Net Profit before working capital changes   11,77,500
Add : Increase in Current Liabilities    
Trade Payables 20,000  
Add : Decrease in Current Assets    
Inventories 1,00,000  
Less: Decrease in Current Liabilities    
Outstanding expenses 1,000  
Add: Increase in Current Liabilities    
Trade Receivable 2,50,000 10,46,500
Cash Generated from Operations   10,46,500
Less: Tax Paid (WN 3)   3,10,000
Net Cash Flow from Operating Activities   7,36,500
II. Cash Flow from Financing Activities    
Sale of Fixed Asset (WN 1(b)) 30,000  
Purchase of Investments 5,00,000  
Dividend received on Investments 10,000  
Interest Received on deposits 15,000  
Net Cash Used in Investing Activities   4,45,000
III: Cash Flow from Financing Activities    
Proceeds from Issue of shares 2,50,000  
Proceeds from Issue of debentures 5,00,000  
Redemption of debentures (WN 2) 2,00,000  
Finance Cost paid 12,500  
Interim Dividend paid 1,00,000  
Proposed Dividend Paid 50,000 3,87,500
Net Cash Flow from Financing Activities   3,87,500
IV. Net Decrease in Cash and Cash Equivalents
  6,79,000
Add: Cash and Cash Equivalents in the beginning of the period
  1,95,000
Cash and Cash Equivalents at the end of the period
  8,74,000

 

Accumulated Depreciation Account
Particulars
Rs Particular Rs
To Fixed Asset A/c (On Sale of
machinery)
80,000 By Balance b/d 2,45,000
To Balance c/d 2,05,000 By Profit and Loss A/c 40,000
  2,85,000   2,85,000

 

Accumulated Depreciation Account
Particulars
Rs Particular Rs
To Balance b/d 9,90,000 By Accumulated Depreciation A/c 80,000
To Statement of Profit & Loss A/c 10,000 By Bank A/c (Sale of Machine) (Bal. Fig.) 30,000
    By Balance c/d 8,90,000
  10,00,000   10,00,000

 

5% Debentures Account
Particulars
Rs Particular Rs
To Bank A/c (Redemption Bal. Fig.) 2,00,000 By Balance b/d 2,45,000
To Balance c/d 2,05,000 By Bank A/c (Issue of Debentures) 40,000
  2,85,000   2,85,000

 

Provision for Tax Account
Particulars
Rs Particular Rs
To Bank A/c- Tax Paid 3,10,000 By Balance b/d 2,25,000
To Balance c/d 2,60,000 By Profit and Loss A/c 3,45,000
  5,70,000   5,70,000


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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 60 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 59 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 59 Chapter 5 of +2-B

Question 59 Chapter 5 of +2-B

59. Prepare Cash Flow Statement from the following:

I. Revenue from Operations Net Sales 36,00,000
II. Expenses;  
Purchases of Stock-in-Trade 28,16,000
Change in Inventories of Stock-in-Trade -65,000
Finance Costs 15,000
Depreciation and Amortisation Expenses 80,000
Other Expenses 5,34,000
Total 33,80,000
III. Profit before Tax I − II 2,20,000
IV. Less: Provision for Tax 40,000
V. Profit after Tax III − IV  1,80,000

 

    2019 Rs  2018 Rs 
I. EQUITY AND LIABILITIES      
1. Shareholders’ Funds       
(a) Share Capital   6,00,000 5,00,000
(b) Reserves and Surplus 1 3,00,000 1,20,000
2. Non-Current Liabilities      
Long-term Loan    1,20,000 1,50,000
3. Current Liabilities      
(a) Short-term Borrowings: Bank Overdraft   13,000 —-
(b) Trade Payables (Creditors)   2,85,000 2,38,000
(c) Short-term Provision: Provision form Tax   44,000 30,000
Total   13,62,000 10,38,000
II. ASSETS      
1. Non-Current Assets      
(a) Fixed Assets   6,20,000 4,00,,000
2. Current Assets      
(a) a Short-term Investments (Marketable Security)   34,000 20,000
(b) Inventories   3,28,000 2,63,000
(c) Trade Receivables   3,48,000 3,10,000
(d) Cash and Cash Equivalents 2 32,000 45,000
Total   13,62,000 10,38,000

Notes to Accounts

Particulars Note No.  31st March,  31st March,
    2019 Rs  2018 Rs 
1. Reserves and Surplus      
Surplus, i.e., Balance in Statement of Profit and Loss   3,00,000 1,20,000
    3,00,000 1,20,000
2. Cash and Cash Equivalents 1    
Cash in Hand   32,000 17,000
Cash at Bank   —— 28,000
    32,000 45,000

 

 

The solution of Question 59 Chapter 4 of +2-B: –


Cash Flow Statement for the year ended 31st March,2019
Particulars
Rs
I. Cash Flow from Financing Activities    
Profit as per Statement of Profit and Loss :    
Closing Balance of Profit & Loss 3,00,000  
Less: Opening Balance of Profit & Loss 1,20,000  
Provision for Tax 40,000 2,20,000
Net Profit before tax and extraordinary items   2,20,000
Items to be Added:    
Finance Cost 15,000  
Depreciation and Amortisation Expenses 80,000 95,000
Operating Profit before Working Capital Adjustments   3,15,000
Less: Increase in Current Assets    
Inventories 65,000  
Trade Receivables 38,000 1,03,000
Add: Increase in Current Liabilities    
Trade Payables 47,000 56,000
Cash Generated from Operations   26,000
Less: Tax Paid (WN 3)   35,000
Net Cash Flow from Operating Activities   2,33,000
II. Cash Flow from Financing Activities    
Purchase of Fixed Assets (WN1)   3,00,000
Net Cash Used in Investing Activities   3,00,000
III: Cash Flow from Financing Activities    
Proceeds from Issue of Equity Shares 1,00,000  
Bank Overdraft 13,000  
Redemption of Long-Term Loan 30,000  
Interest 15,000 68,000
Net Cash Flow from Financing Activities   68,000
IV. Net Decrease in Cash and Cash Equivalents
  1,000
Add: Cash and Cash Equivalents in the beginning of the period
  66,000
Cash and Cash Equivalents at the end of the period
  67,000

 

Fixed Assets Account
Particulars
Rs Particular Rs
To Balance b/d 4,00,000 By Depreciation A/c 80,000
To Bank A/c (Purchases – Bal. Fig.) 3,00,000 By Balance c/d 6,20,000
  7,00,000   7,00,000

 

Provision for Taxation Account
Particulars
Rs Particular Rs
To Bank A/c (Tax Paid) (Bal. Fig.) 26,000 By Balance b/d 30,000
To Balance c/d 44,000 By Profit and Loss A/c 40,000
  70,000   70,000


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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 59 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 58 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 58 Chapter 5 of +2-B

Question 58 Chapter 5 of +2-B

58. From the following Balance Sheet of Samta Ltd., as at 31st March, 2019, prepare Cash Flow Statement:

Particulars Note No.  31st March, 2019 Rs 31st March, 2018 Rs 
I. EQUITY AND LIABILITIES      
1. Shareholders’ Funds       
(a) Share Capital 1 7,50,000 7,50,000
(b) Reserves and Surplus 2 3,10,000 -20,000
2. Non-Current Liabilities      
Long-term Borrowings (8% Debentures)   2,60,000 1,50,000
3. Current Liabilities      
(a) Short-term Borrowings  (8% Bank Loan)   40,000 50,000
(b) Trade Payables   1,20,000 1,10,000
(c)  Short-term Provisions 3 50,000 40,000
Total   15,30,000 10,80,000
II. ASSETS      
1. Non-Current Assets      
(a) Fixed Assets    8,60,000 6,20,000
(i) Tangible Assets (Net)   15,000 40,000
(ii) Intangible Assets (Goodwill)   1,25,000 80,000
(b) Non-Current Investments      
2. Current Assets      
(a) Current Investments   5,000 15,000
(b) Inventories   1,95,000 1,00,000
(c) Trade Receivables   2,00,000 2,00,000
(d) Cash and Cash Equivalents   1,30,000 25,000
Total   15,30,000 10,80,000

Notes to Accounts

Particulars 31st March, 2019 ( Rs) 31st March, 2018 ( Rs)
1. Share Capital    
Equity Share Capital 5,50,000 4,50,000
10% Preference Share Capital 2,00,000 3,00,000
  7,50,000 7,50,000
2. Reserves and Surplus    
Securities Premium Reserve 10,000 —-
General Reserve  1,50,000 1,20,000
Surplus i.e., Balance in Statement of Profit and Loss 1,50,000 (1,40,000)
  3,10,000 -20,000
3. Short-term Provisions    
Provision for Tax 50,000 40,000
  50,000 40,000

 

Additional Information :
(i) During the year a piece of machinery costing Rs 60,000 on which depreciation charged was 20,000 was sold at 50% of its book value. Depreciation provided on tangible Assets Rs 60,000;
(ii) Income tax Rs 45,000 was provided;
(iii) Additional Debentures were issued at par on 1st October, 2018 and Bank Loan was repaid on the same date;
(iv) At the end of the year Preference Shares were redeemed at a premium of 5%.

 

 

The solution of Question 58 Chapter 4 of +2-B: –


Cash Flow Statement for the year ended 31st March,2019
Particulars
Rs
I. Cash Flow from Financing Activities    
Profit as per Statement of Profit and Loss :    
Closing Balance of Profit & Loss 1,50,000  
Less: Opening Balance of Profit & Loss 1,40,000  
Provision for Tax 45,000  
General Reserve 30,000 3,65,000
Net Profit before tax and extraordinary items   3,65,000
Items to be Added:    
Depreciation on Fixed Assets 60,000  
Loss on sale of Fixed Assets 20,000  
Interest on Debentures 16,400  
Interest on Bank Loan 3,600  
Premium on Redemption of Preference Shares 5,000  
Goodwill written off 25,000 1,30,000
Operating Profit before Working Capital Adjustments   4,95,000
Less: Increase in Current Assets    
Inventories 95,000  
Add: Increase in Current Liabilities    
Trade Payables 10,000 85,000
Cash Generated from Operations   4,10,000
Less: Tax Paid (WN 3)   35,000
Net Cash Flow from Operating Activities   3,75,000
II. Cash Flow from Financing Activities    
Sale of Fixed Assets 20,000  
Purchase of Fixed Assets (WN) 3,40,000  
Purchase of Investment 45,000 3,65,000
Net Cash Used in Investing Activities   3,65,000
III: Cash Flow from Financing Activities    
Proceeds from Issue of Equity Shares 1,00,000  
Proceeds from Issue of Debentures 1,10,000  
Interest on Debentures Paid 16,400  
Redemption of Preference Share Capital 1,00,000  
Premium on Redemption of Preference Share Capital 5,000  
Security Premium Reserve 10,000  
Repayment of Bank Loan 10,000  
Interest on Bank Loan Paid 3,600 85,000
Net Cash Flow from Financing Activities   85,000
IV. Net Decrease in Cash and Cash Equivalents
  95,000
Add: Cash and Cash Equivalents in the beginning of the period
  40,000
Cash and Cash Equivalents at the end of the period
  1,35,000

 

Fixed Assets Account
Particulars
Rs Particular Rs
To Balance b/d 6,20,000 By Bank A/c (Sale) 20,000
To Bank A/c (Purchases – Bal. Fig.) 3,40,000 By Depreciation A/c 60,000
    By Loss on Sale (Profit and Loss A/c) 20,000
    By Balance c/d 8,60,000
  9,60,000   9,60,000

 

Provision for Taxation Account
Particulars
Rs Particular Rs
To Bank A/c (Tax Paid) (Bal. Fig.) 35,000 By Balance b/d 40,000
To Balance c/d 50,000 By Profit and Loss A/c 45,000
  85,000   85,000


Thanks, Please Like and share with your friends  

Comment if you have any question.

Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 58 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 57 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 57 Chapter 5 of +2-B

Question 57 Chapter 5 of +2-B

57. From the following Balance Sheet and information of Volvo Ltd., prepare Cash Flow Statement:

Particulars Note No.  31st March,  31st March,
    2019 Rs  2018 Rs 
I. EQUITY AND LIABILITIES      
1. Shareholders’ Funds       
(a) Share Capital 1 2,25,000 2,50,000
(b) Reserves and Surplus 2 1,27,500 50,000
2. Non-Current Liabilities      
Long-term Borrowings : 10% Debentures   1,00,000 50,000
3. Current Liabilities      
(a) Trade Payables   72,500 35,000
(b) Other Current Liabilities−Premium on Redemption of Preference Shares   2,500 5,000
Total   5,27,500 3,90,000
II. ASSETS      
1. Non-Current Assets      
(a) Fixed Assets – Tangible    3,10,000 2,55,000
(b) 10% Investments   45,000 15,000
2. Current Assets      
(a) Current Investments   5,000 4,000
(b) Inventories   45,000 50,000
(c) Trade Receivables 3 92,500 45,000
(d) Cash and Cash Equivalents 4 35,000 21,000
Total   5,27,500 3,90,000

Notes to Accounts

Particulars 31st March, 2019 ( Rs) 31st March, 2018 ( Rs)
1. 1. Share Capital    
Equity Share Capital 1,75,000 1,50,000
10% Preference Share Capital 50,000 1,00,000
  2,25,000 2,50,000
2. Reserves and Surplus    
General Reserve  10,000 15,000
Surplus i.e., Balance in Statement of Profit and Loss 1,17,500 35,000
  1,27,500 50,000
3. Trade Receivables     
Sundry Debtors  1,00,000 50,000
Less: Provision for Doubtful Debts 7,500 5,000
  92,500 45,000
4. Cash and Cash Equivalents    
Cash in Hand 12,500 6,000
Cash in Bank 22,500 15,000
  35,000 21,000

Additional Information :
(i) You are informed during the year:

Proposed Dividend 31st March, 31st March,
  2019 Rs 2018 Rs
Equity Share Capital  Nil Nil
Preference Share Capital  12% 12%

(ii) A machine with a book value of Rs 20,000 was sold for Rs 12,500;
(iii) Depreciation charged during the year was Rs 35,000;
(iv) Preference shares were redeemed on 31st March, 2018 at a premium of 5%;
(v) An Interim dividend of Rs 5,000 was paid on equity shares on 31st March, 2019 out of General
Reserve;
(vi) Fresh equity shares were Issued on 31st March, 2019; and
(vii) Additional Investments were purchased on 31st March, 2019.

 

The solution of Question 57 Chapter 4 of +2-B: –


Cash Flow Statement for the year ended 31st March,2019
Particulars
Rs
I. Cash Flow from Financing Activities    
Profit as per Statement of Profit and Loss :    
Closing Balance of Profit & Loss 1,17,500  
Less: Opening Balance of Profit & Loss 35,000  
Provision for Tax 12,000 94,500
Net Profit before tax and extraordinary items   94,500
Items to be Added:    
Depreciation on Fixed Assets 35,000  
Loss on Fixed Assets 7,500  
Interest on Debentures 5,000  
Provision for Doubtful Debts 2,500  
Items to be Deducted:    
Interest on Investment 1,500 48,500
Operating Profit before Working Capital Adjustments   1,43,000
Less: Increase in Current Assets    
Trade Payables 50,000  
Add: Decrease in Current Assets    
Inventory 5,000  
Add: Increase in Current Liabilities    
Trade Payables 37,500 7,500
Cash Generated from Operations   1,35,500
Less: Tax Paid (WN 3)  
Net Cash Flow from Operating Activities   1,35,500
II. Cash Flow from Financing Activities    
Sale of Fixed Assets 12,500  
Purchase of Fixed Assets (WN) 1,10,000  
Purchase of Investment 25,000  
Interest on Investment 1,500 1,21,000
Net Cash Used in Investing Activities   1,21,000
III: Cash Flow from Financing Activities    
Proceeds from Issue of Equity Shares 25,000  
Proceeds from Issue of issue of Debentures 50,000  
Interest on Debentures Paid 5,000  
Redemption of Preference Share Capital 50,000  
Security Premium Reserve 2,500  
Dividend Paid on Preference Share Capital 12,000  
Dividend Paid on Equity Share Capital 5,000 500
Net Cash Flow from Financing Activities   500
IV. Net Decrease in Cash and Cash Equivalents
  15,000
Add: Cash and Cash Equivalents in the beginning of the period
  25,000
Cash and Cash Equivalents at the end of the period
  40,000

 

Fixed Assets Account
Particulars
Rs Particular Rs
To Balance b/d 2,55,000 By Bank A/c (Sale) 12,500
To Bank A/c (Purchases – Bal. Fig.) 1,10,000 By Depreciation A/c 35,000
    By Loss on Sale (Profit and Loss A/c) 7,500
    By Balance c/d 3,10,000
  3,65,000   3,65,000

 

Thanks, Please Like and share with your friends  

Comment if you have any question.

Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 57 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 56 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 56 Chapter 5 of +2-B

Question 56 Chapter 5 of +2-B

56. From the following Balance Sheet and information of Sun Ltd., prepare Cash Flow Statement:

Particulars Note No.  31st March,  31st March, 
    2019 Rs 2018 Rs 
I. EQUITY AND LIABILITIES      
1. Shareholders’ Funds       
(a) Share Capital 1 7,00,000 6,00,000
(b) Reserves and Surplus 2 4,10,000 2,00,000
2. Non-Current Liabilities      
Long-term Borrowings : 10% Debentures   3,00,000 2,00,000
3. Current Liabilities      
Trade Payables   1,40,000 60,000
Total   15,50,000 10,60,000
II. ASSETS      
1. Non-Current Assets      
(a) Fixed Assets – Tangible    7,00,000 6,00,000
(b) 10% Investments   2,00,000 1,00,000
2. Current Assets      
(a) Current Investments   90,000 50,000
(b) Inventories   2,00,000 1,00,000
(c) Trade Receivables 3 2,80,000 1,90,000
(d) Cash and Cash Equivalents   80,000 20,000
Total   15,50,000 10,60,000

Notes to Accounts

Particulars 31st March, 2019 ( Rs) 31st March, 2018 ( Rs)
1. 1. Share Capital    
Equity Share Capital 5,00,000 3,00,000
10% Preference Share Capital 2,00,000 3,00,000
  7,00,000 6,00,000
2. Reserves and Surplus    
Securities Premium Reserve 10,000 —-
Surplus i.e., Balance in Statement of Profit and Loss 4,00,000 2,00,000
  4,10,000 2,00,000
3. Trade Receivables     
Sundry Debtors  3,00,000 2,00,000
Less: Provision for Doubtful Debts 20,000 10,000
  2,80,000 1,90,000

You are informed that during the year:

(i) Proposed Dividend 31st March,  31st March, 
  2019 Rs  2018 Rs
Equity Share Capita Nil Nil
Preference Share Capital 10% 10%

(ii) A machine with a book value of Rs 90,000 was sold for Rs 50,000;
(iii) Depreciation charged during the year Rs 60,000;
(iv) Debentures were issued on 1st April, 2018;
(v) Investments were purchased on 31st March, 2019;
(vi) Preference shares were redeemed on 31st December,2018;
(vii) An interim dividend @ 15% was paid on equity shares on 31st December, 2018;
(viii) Fresh equity shares were issued at a premium of 5% on 31st March, 2019.

 

The solution of Question 56 Chapter 4 of +2-B: –


Cash Flow Statement for the year ended 31st March,2019
Particulars
Rs
I. Cash Flow from Financing Activities    
Profit as per Statement of Profit and Loss :    
Closing Balance of Profit & Loss 4,00,000  
Less: Opening Balance of Profit & Loss 2,00,000  
Provision for Tax 30,000 2,30,000
Net Profit before tax and extraordinary items   2,30,000
Items to be Added:    
Depreciation on Fixed Assets 60,000  
Loss on Fixed Assets 40,000  
Interest on Debentures 30,000  
Dividend on Equity Shares 45,000  
Provision for Doubtful Debts 10,000  
Items to be Deducted:    
Interest on Investment 10,000 1,75,000
Operating Profit before Working Capital Adjustments   4,05,000
Less: Increase in Current Assets    
Trade Payables 1,00,000  
Inventories 1,00,000 2,00,000
Add: Decrease in Current Assets    
Trade Receivables 80,000 80,000
Cash Generated from Operations   2,85,000
Less: Tax Paid (WN 3)  
Net Cash Flow from Operating Activities   2,85,000
II. Cash Flow from Financing Activities    
Sale of Fixed Assets 50,000  
Purchase of Fixed Assets (WN) 2,50,000  
Purchase of Investment 1,00,000  
Interest on Investment 10,000 2,90,000
Net Cash Used in Investing Activities   2,90,000
III: Cash Flow from Financing Activities    
Proceeds from Issue of Equity Shares 2,00,000  
Proceeds from Issue of issue of Debentures 1,00,000  
Interest on Debentures Paid 30,000  
Redemption of Preference Share Capital 1,00,000  
Security Premium Reserve 10,000  
Dividend Paid on Preference Share Capital 30,000  
Dividend Paid on Equity Share Capital 45,000 1,05,000
Net Cash Flow from Financing Activities   1,05,000
IV. Net Decrease in Cash and Cash Equivalents
  1,00,000
Add: Cash and Cash Equivalents in the beginning of the period
  70,000
Cash and Cash Equivalents at the end of the period
  1,70,000

 

Fixed Assets Account
Particulars
Rs Particular Rs
To Balance b/d 6,00,000 By Bank A/c (Sale) 50,000
To Bank A/c (Purchases – Bal. Fig.) 2,50,000 By Depreciation A/c 60,000
    By Loss on Sale (Profit and Loss A/c) 40,000
    By Balance c/d 7,00,000
  8,50,000   8,50,000

 

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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 56 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 55 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 55 Chapter 5 of +2-B

Question 55 Chapter 5 of +2-B

55. From the following Balance Sheet of Mishi Ltd. as at 31st March, 2019, prepare Cash Flow Statement:

Particulars Note No.  31st March,  31st March, 
    2019 Rs 2018 Rs 
I. EQUITY AND LIABILITIES      
1. Shareholders’ Funds       
(a) Share Capital   16,00,000 12,00,000
(b) Reserves and Surplus 1 6,60,000 4,40,000
2. Non-Current Liabilities      
Long-term Borrowings (10% Debentures)   3,20,000 2,00,000
3. Current Liabilities      
(a) Short-term Borrowings (Bank Loan)   80,000 1,10,000
(b) Trade Payables   1,50,000 1,80,000
Total   28,10,000 21,30,000
II. ASSETS      
1. Non-Current Assets      
(a) Fixed Assets – Tangible  2 19,00,000 12,10,000
(b) Non-current Investments   2,70,000 2,00,000
2. Current Assets      
(a) Current Investments   1,60,000 80,000
(b) Trade Receivables   1,80,000 4,00,000
(c) Cash and Cash Equivalents 3 3,00,000 2,40,000
Total   28,10,000 21,30,000

Notes to Accounts

Particulars 31st March, 2019 ( Rs) 31st March, 2018 ( Rs)
1. Reserves and Surplus    
Securities Premium Reserve  20,000 —-
General Reserve 3,00,000 2,40,000
Surplus, i.e., Balance in Statement of Profit and Loss 3,40,000 2,00,000
  6,60,000 4,40,000
2. Fixed Assets−Tangible    
Machinery (Cost)  21,40,000 14,00,000
Less: Accumulated Depreciation 2,40,000 1,90,000
  19,00,000 12,10,000
3. Cash and Cash Equivalents    
Cash in Hand 1,40,000 1,10,000
Bank Balance 1,60,000 1,30,000
  3,00,000 2,40,000

Additional Information :
(i) During the year, Machinery costing 1,40,000 accumulated depreciation provided thereon Rs 1,10,000 was sold for Rs 20,000.
(ii) During the year, Non-current Investments costing Rs 80,000 were sold at a profit of Rs 16,000.

 

The solution of Question 55 Chapter 4 of +2-B: –


Cash Flow Statement for the year ended 31st March,2019
Particulars
Rs
I. Cash Flow from Financing Activities    
Profit as per Statement of Profit and Loss :    
Closing Balance of Profit & Loss 3,40,000  
Less: Opening Balance of Profit & Loss 2,00,000  
Provision for Tax 60,000 2,00,000
Net Profit before tax and extraordinary items   2,00,000
Items to be Added:    
Depreciation 1,60,000  
Debentures Interest 20,000  
Loss on Sale of Fixed Assets 10,000  
Items to be Deducted:    
Profit on sale of Investment 16,000 1,74,000
Operating Profit before Working Capital Adjustments   3,74,000
Less: Increase in Current Assets    
Trade Payables 30,000  
Add: Decrease in Current Assets    
Trade Receivables 2,20,000 1,90,000
Cash Generated from Operations   2,56,000
Less: Tax Paid (WN 3)   62,500
Net Cash Flow from Operating Activities   5,64,000
II. Cash Flow from Financing Activities    
Sale of Fixed Assets 20,000  
Sale of Non-Current Investment 96,000  
Purchase of non-current investment 1,50,000  
Purchase of Fixed Assets 8,80,00 9,14,000
Net Cash Used in Investing Activities   9,14,000
III: Cash Flow from Financing Activities    
Proceeds from Issue of Equity Shares 4,00,000  
Proceeds from Issue of issue of Debentures 1,20,000  
Security Premium Reserve 20,000  
Repayment of Bank Loan 30,000  
Interest Paid 20,000 4,90,000
Net Cash Flow from Financing Activities   4,90,000
IV. Net Decrease in Cash and Cash Equivalents
  1,40,000
Add: Cash and Cash Equivalents in the beginning of the period
  3,20,000
Cash and Cash Equivalents at the end of the period
  4,60,000

 

Fixed Assets Account
Particulars
Rs Particular Rs
To Balance b/d 14,00,000 By Depreciation A/c 1,10,000
To Bank A/c (Purchases – Bal. Fig.) 8,80,000 By Bank (Sales) 20,000
    By Loss on Sale (Profit and Loss A/c) 10,000
    By Balance c/d 21,40,000
  22,80,000   22,80,000

 

Accumulated Depreciation Account
Particulars
Rs Particular Rs
To Fixed Assets A/c 1,10,000 By Balance b/d 1,90,000
    By Profit and Loss A/c (Dep. charged during the year- Bal. Fig.) 1,60,000
To Balance c/d 2,40,000    
  3,50,000   3,50,000

 

Fixed Assets Account
Particulars
Rs Particular Rs
To Balance b/d 2,00,000 By Bank A/c (Sale) 96,000
To Profit on Sale (Profit and Loss A/c) 16,000    
To Bank A/c (Purchases – Bal. Fig.) 1,50,000 By Balance c/d 2,70,000
  3,66,000   3,66,000

 

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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 55 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 54 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 54 Chapter 5 of +2-B

Question 54 Chapter 5 of +2-B

54. From the following Balance Sheet of SRS Ltd. and the additional information as on 31st March, 2016, prepare a Cash Flow Statement:

SRS Ltd.
Particulars Note No.  31st March, 2016 Rs 31st March, 2015 Rs 
I. EQUITY AND LIABILITIES      
1. Shareholders’ Funds       
(a) Share Capital   4,50,000 3,50,000
(b) Reserves and Surplus 1 1,25,000 50,000
2. Non-Current Liabilities      
Long-term Borrowings 2 2,25,000 1,75,000
2. Current Liabilities      
(a) Short-term Borrowings 3 75,000 37,500
(b) Short -term Provisions 4 1,00,000 62,500
Total   9,75,000 6,75,000
II. ASSETS      
1. Non-Current Assets      
Fixed Assets :       
(i) Tangible Assets 5 7,32,500 4,52,500
(ii) Intangible Assets: Goodwill 6 50,000 75,000
(b) Non-current Investments   75,000 50,000
2. Current Assets      
(a) Current Investments   20,000 35,000
(b) Inventories 7 61,000 36,000
(c) Cash and Cash Equivalents   36,500 26,500
Total   9,75,000 6,75,000

Notes to Accounts

Particulars 31st March, 2016 ( Rs) 31st March, 2015 ( Rs)
1. Reserves and Surplus    
Surplus, i.e., Balance in Statement of Profit and Loss 1,25,000 50,000
  1,25,000 50,000
2. Short-term Borrowings :    
Cash and Cash Equivalents 2,25,000 1,75,000
  2,25,000 1,75,000
3. Short-term Borrowings    
Bank Overdraft 75,000 37,500
  75,000 37,500
4. Short-term Provisions    
Provision for Tax 1,00,000 62,500
  1,00,000 62,500
5. Tangible Assets    
Machinery 8,37,500 5,22,500
Accumulated Depreciation (1,05,000) -70,000
  7,32,500 4,52,500
6. Intangible Assets    
Goodwill 50,000 75,000
  50,000 75,000
7. Inventories    
Stock-in-Trade 61,000 36,000
  61,000 36,000

Additional Information:
i Rs 50,000, 12% Debentures were issued on 31st March, 2016.
ii During the year, a piece of machinery costing Rs 40,000, on which accumulated depreciation was Rs 20,000, was sold at a loss of Rs 5,000.

 

The solution of Question 54 Chapter 4 of +2-B: –


Cash Flow Statement for the year ended 31st March,2019
Particulars
Rs
I. Cash Flow from Financing Activities    
Profit as per Statement of Profit and Loss :    
Closing Balance of Profit & Loss 1,25,000  
Less: Opening Balance of Profit & Loss 50,000  
Provision for Tax 1,00,000 1,75,000
Net Profit before tax and extraordinary items   1,75,000
Items to be Added:    
Goodwill written off 25,000  
Debentures Interest 21,000  
Depreciation (WN 2) 55,000  
Loss on Sale of Machinery 5,000 1,06,000
Operating Profit before Working Capital Adjustments   2,81,000
Less: Increase in Current Assets    
Inventories 25,000  
Cash Generated from Operations   2,56,000
Less: Tax Paid (WN 3)   62,500
Net Cash Flow from Operating Activities   1,93,500
II. Cash Flow from Financing Activities    
Sale of machinery 15,000  
Purchase of machinery (WN 1) 3,55,000  
Purchase of non-current investment 25,000 3,65,000
Net Cash Used in Investing Activities   3,65,000
III: Cash Flow from Financing Activities    
Proceeds from Issue of Equity Shares 1,00,000  
Increase in Bank Overdraft 37,500  
Interest on Debentures paid 21,000  
Proceeds from Issue of Debentures 50,000 1,66,500
Net Cash Flow from Financing Activities   1,66,500
IV. Net Decrease in Cash and Cash Equivalents
  (5,000)
Add: Cash and Cash Equivalents in the beginning of the period
  61,500
Cash and Cash Equivalents at the end of the period
  56,500

 

Machinery Account
Particulars
Rs Particular Rs
To Balance b/d 5,22,500 By Depreciation A/c 20,000
To Bank A/c (Purchases – Bal. Fig.) 3,55,000 By Bank (Sales) 15,000
    By Loss on Sale (Profit and Loss A/c) 5,000
    By Balance c/d 8,37,500
  8,77,500   8,77,500

 

Accumulated Depreciation Account
Particulars
Rs Particular Rs
To Machinery A/c 20,000 By Balance b/d 70,000
    By Profit and Loss A/c (Dep. charged during the year- Bal. Fig.) 55,000
To Balance c/d 1,05,000    
  1,25,000   1,25,000

 

 

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Comment if you have any question.

Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 54 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 53 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 53 Chapter 5 of +2-B

Question 53 Chapter 5 of +2-B

53. From the following Balance Sheet of Akash Ltd. as at 31st March 2014:

Particulars Note No.  31st March, 2018 Rs 31st March, 2017 Rs 
I. EQUITY AND LIABILITIES      
1. Shareholders’ Funds       
(a) Share Capital   15,00,000 2,00,000
(b) Reserves and Surplus 1 2,50,000 80,500
2. Non-Current Liabilities      
Long-term Borrowings   2,00,000 1,25,000
2. Current Liabilities      
(a) Short-term Borrowings: Bank Loan 2 12,000 10,000
(b) Trade Payables   15,000 83,000
(c) Short-term Provisions: Provision for Tax 3 18,000 11,000
Total   19,95,000 17,39,000
II. ASSETS      
1. Non-Current Assets      
Fixed Assets :       
(i) Tangible Assets 4 18,60,000 16,10,000
(ii) Intangible Assets: Goodwill   50,000 30,000
2. Current Assets      
(a) Current Investments   8,000 5,000
(b) Inventories   37,000 59,000
(b) Trade Receivables   26,000 23,000
(c) Cash and Cash Equivalents   14,000 12,000
Total   19,95,000 17,39,000

Notes to Accounts

Particulars 31st March, 2014 ( Rs) 31st March, 2013 ( Rs)
1. Reserves and Surplus    
Surplus, i.e., Balance in Statement of Profit and Loss 2,50,000 1,10,000
  2,50,000 1,10,000
2. 2. Short-term Borrowings :    
Bank Overdraft 12,000 10,000
  12,000 10,000
3. Short-term Provisions    
Provision for Tax 18,000 11,000
  18,000 11,000
4. Tangible Assets :    
Machinery 20,00,000 17,00,000
Less: Accumulated Depreciation (1,40,000) -90,000
  18,60,000 16,10,000
5. Intangible Assets    
Patents 50,000 30,000

Additional Information:
i Tax paid during the year amounted to 16,000.
ii machine with a net book value of 10,000 Accumulated Depreciation Rs  40,000 was sold for 2,000.
Prepare Cash Flow Statement..

 

The solution of Question 53 Chapter 4 of +2-B: –


Cash Flow Statement for the year ended 31st March,2019
Particulars
Rs
I. Cash Flow from Financing Activities    
Profit as per Statement of Profit and Loss :    
Closing Balance of Profit & Loss 2,50,000  
Less: Opening Balance of Profit & Loss 1,10,000  
Provision for Tax 23,000 1,63,000
Net Profit before tax and extraordinary items   1,63,000
Items to be Added:    
Depreciation on Machinery 90,000  
Loss on Sale of Fixed Assets 8,000 98,000
Operating Profit before Working Capital Adjustments   2,61,000
Less: Increase in Current Assets    
Trade Receivables 3,000  
Less: Decrease in Current Liabilities    
Trade Payables 68,000  
Add: Decrease in Current Assets    
Inventories 22,000 49,000
Cash Generated from Operations   2,12,000
Less: Tax Paid (WN 3)   16,000
Net Cash Flow from Operating Activities   1,96,000
II. Cash Flow from Financing Activities    
Sale of Fixed Assets 2,000  
Purchase of Patents 20,000  
Purchase of Fixed Assets 3,50,000 3,68,000
Net Cash Used in Investing Activities   3,68,000
III: Cash Flow from Financing Activities    
Proceeds from Issue of Equity Shares 1,00,000  
Proceeds from Long term Borrowings 75,000  
Raise of Bank Overdraft 2,000 1,77,000
Net Cash Flow from Financing Activities   1,77,000
IV. Net Decrease in Cash and Cash Equivalents
  5,000
Add: Cash and Cash Equivalents in the beginning of the period
  17,000
Cash and Cash Equivalents at the end of the period
  22,000

 

Fixed Assets Account
Particulars
Rs Particular Rs
To Balance b/d 17,00,000 By Depreciation A/c 2,000
To Bank A/c (Purchases – Bal. Fig.) 3,50,000 By Bank (Sales) 40,000
    By Loss on Sale (Profit and Loss A/c) 8,000
    By Balance c/d 20,00,000
  20,50,000   20,50,000

 

Accumulated Depreciation Account
Particulars
Rs Particular Rs
To Fixed Assets A/c 40,000 By Balance b/d 90,000
    By Profit and Loss A/c (Dep. charged during the year- Bal. Fig.) 90,000
To Balance c/d 1,40,000    
  1,80,000   1,80,000

 

Provision for Taxation Account
Particulars
Rs Particular Rs
To Bank A/c (Tax Paid- Bal. Fig.) 16,000 By Balance b/d 11,000
    By Profit and Loss A/c 23,000
To Balance c/d 18,000    
  34,000   34,000

 

Thanks, Please Like and share with your friends  

Comment if you have any question.

Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 53 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 52 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 52 Chapter 5 of +2-B

Question 52 Chapter 5 of +2-B

52. From the following Balance Sheet, prepare Cash Flow Statement:

Particulars Note No.  31st March, 2018 Rs 31st March, 2017 Rs 
I. EQUITY AND LIABILITIES      
1. Shareholders’ Funds       
(a) Share Capital   2,50,000 2,00,000
(b) Reserves and Surplus 1 90,600 80,500
2. Current Liabilities      
(a) Short-term Borrowings: Bank Loan   —- 70,000
(b) Trade Payables   1,35,200 1,50,000
(c) Short-term Provisions: Provision for Tax   35,000 30,000
Total   5,10,800 5,30,500
II. ASSETS      
1. Non-Current Assets      
Fixed Assets :       
(i) Tangible Assets 2 3,59,000 3,50,000
(ii) Intangible Assets: Goodwill   5,000 —-
2. Current Assets      
(a)Inventories   74,000 1,00,000
(b) Trade Receivables   64,200 80,000
(c) Cash and Cash Equivalents   8,600 500
Total   5,10,800 5,30,500

Notes to Accounts

Particulars 31st March, 31st March,
  2019 ( Rs) 2018 ( Rs)
1. Reserves and Surplus    
General Reserve  60,000 50,000
Surplus, i.e., Balance in Statement of Profit and Loss 30,600 30,500
  90,600 80,500
2. Tangible Assets    
Land and Building  1,90,000 2,00,000
Plant and Machinery 1,69,000 1,50,000
  3,59,000 3,50,000

 

Additional Information:

  1. Proposed Dividend for the year ended 31st March, 2019 was Rs 25,000 and for the year ended 31st March, 2018 was Rs 14,000.
  2. Interim Dividend paid during the year was Rs 9,000.
  3. Income Tax paid during the year was Rs 28,000.
  4. Machinery was purchased during the year Rs 33,000.
  5. Depreciation to be charged on machinery Rs 14,000 and building Rs 10,000.

 

The solution of Question 52 Chapter 4 of +2-B: –


Cash Flow Statement for the year ended 31st March,2019
Particulars
Rs
I. Cash Flow from Financing Activities    
Profit as per Statement of Profit and Loss :    
Closing Balance of Profit & Loss 30,600  
Less: Opening Balance of Profit & Loss 30,500  
Proposed Dividend 23,000  
Transfer to General Reserve 10,000  
Provision for Taxation 33,000 66,100
Net Profit before tax and extraordinary items   66,100
Items to be Added:    
Depreciation on Machinery 14,000  
Depreciation on Building 10,000 24,000
Operating Profit before Working Capital Adjustments   90,100
Add: Decrease in Current Assets    
Inventories 26,000  
Trade Receivables 15,800  
Less: Decrease in Current Liabilities    
Trade Payables 14,800  
Cash Generated from Operations   1,17,100
Less: Tax Paid (WN 3)   28,000
Net Cash Flow from Operating Activities   89,1,00
II. Cash Flow from Financing Activities    
Purchase of Machinery 33,000  
Purchase of Goodwill 5,000 38,000
Net Cash Used in Investing Activities   38,000
III: Cash Flow from Financing Activities    
Proceeds from Issue of Equity Shares 50,000  
Repayment of Bank Loan 70,000  
Dividend Paid 23,000 43,000
Net Cash Flow from Financing Activities   43,000
IV. Net Decrease in Cash and Cash Equivalents
  8,100
Add: Cash and Cash Equivalents in the beginning of the period
  500
Cash and Cash Equivalents at the end of the period
  8,600

 

Fixed Assets Account
Particulars
Rs Particular Rs
To Balance b/d 1,50,000 By Depreciation A/c 14,000
To Bank A/c (Purchases – Bal. Fig.) 33,000    
    By Balance c/d 1,69,000
  1,83,000   1,83,000

 

Provision for Taxation Account
Particulars
Rs Particular Rs
To Bank A/c (Tax Paid- Bal. Fig.) 28,000 By Balance b/d 30,000
    By Profit and Loss A/c 33,000
To Balance c/d 35,000    
  63,000   63,000

 

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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 52 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 51 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 51 Chapter 5 of +2-B

Question 51 Chapter 5 of +2-B

51. Following is the summarised Balance Sheet of Philips India Ltd. as at 31st March 2018:

Particulars Note No.  31st March, 2018 Rs 31st March, 2017 Rs 
I. EQUITY AND LIABILITIES      
1. Shareholders’ Funds       
(a) Share Capital   13,50,000 13,50,000
(b) Reserves and Surplus 1 11,34,000 10,68,000
2. Non-Current Liabilities      
Long-term Borrowings: 10% Mortgage Loan   8,10,000 —–
3. Current Liabilities      
(a) Trade Payables   4,02,000 5,04,000
(b) Short-term Provisions:      
Provision for Tax   30,000 2,25,000
Total   37,26,000 31,47,000
II. ASSETS      
1. Non-Current Assets      
(a) Fixed Assets-Tangible    9,60,000 12,00,000
(b) Non-Current Investments   1,80,000 1,50,000
2. Current Assets      
(a) Current Investments   21,000 17,000
(b) Inventories   6,30,000 7,20,000
(c) Trade Receivables   13,65,000 6,30,000
(d) Cash and Cash Equivalents   5,70,000 4,30,000
Total   37,26,000 31,47,000

Notes to Accounts

Particulars 31st March, 31st March,
  2018 ( Rs) 2017 ( Rs)
1. Reserves and Surplus    
General Reserve  9,30,000 9,00,000
Surplus, i.e., Balance in Statement of Profit and Loss 2,04,000 1,68,000
  11,34,000 10,68,000

Additional Information:

  1. Investments costing Rs 24,000 were sold during the year for Rs 25,5000.
  2. Provision for Tax made during the year was Rs 27,000.
  3. During the year, a part of the Fixed Assets costing 30,000 was sold for Rs 36,000. The profits were included in the Statement of Profit and Loss.
  4. The Interim Dividend paid during the year amounted to Rs 1,20,000.You are required to prepare Cash Flow Statement.

 

The solution of Question 51 Chapter 4 of +2-B: –


Cash Flow Statement for the year ended 31st March,2019
Particulars
Rs
I. Cash Flow from Financing Activities    
Profit as per Statement of Profit and Loss :    
Closing Balance of Profit & Loss 2,04,000  
Less: Opening Balance of Profit & Loss 1,68,000  
Transfer to General Reserve 30,000  
Interim Dividend 1,20,000  
Provision for Taxation 27,000 2,13,000
Net Profit before tax and extraordinary items   2,13,000
Add: Depreciation (WN 1) 2,10,000  
Less: Profit on Sale of Investments 1,500  
Less: Profit on Sale of Fixed Assets 6,000 4,15,000
Operating Profit before Working Capital Adjustments   4,15,000
Less: Increase in Current Assets    
Trade Receivables 7,35,000 20,000
Less: Decrease in Current Liabilities   2,20,000
Trade Payables 1,02,000  
Add: Decrease in Current Assets    
Inventories 90,000  
Cash Generated from Operations   3,31,500
Less: Tax Paid (WN 3)   2,22,000
Net Cash Flow from Operating Activities   5,53,500
II. Cash Flow from Financing Activities    
Sale of Investments 25,500  
Sale of Fixed Assets 36,000  
Purchase of Investments (WN 2) 54,000 7,500
Net Cash Used in Investing Activities   7,500
III: Cash Flow from Financing Activities    
Proceeds from Issue of 10% Mortgage Loan 8,10,000  
Interim Dividend Paid 1,20,000 6,90,000
Net Cash Flow from Financing Activities   6,90,000
IV. Net Decrease in Cash and Cash Equivalents
  1,44,000
Add: Cash and Cash Equivalents in the beginning of the period
  4,47,000
Cash and Cash Equivalents at the end of the period
  5,91,000

 

Fixed Assets Account
Particulars
Rs Particular Rs
To Balance b/d 12,00,000 By Depreciation A/c 2,10,000
To Profit on Sale of Machinery (Profit &
Loss A/c)
6,000 By Bank (Sales) 36,000
    By Balance c/d 9,60,000
  12,06,000   12,06,000

 

Investments Account
Particulars
Rs Particular Rs
To Balance b/d 1,50,000 By Bank (Sale) 25,500
To Profit on Sale of Machinery (Profit &
Loss A/c)
1,500    
To Bank A/c (Bal. Fig. – Purchase) 54,000 By Balance c/d 1,80,000
  2,05,000   2,05,000

 

Provision for Taxation Account
Particulars
Rs Particular Rs
To Bank A/c (Tax Paid- Bal. Fig.) 2,22,000 By Balance b/d 2,25,000
    By Profit and Loss A/c 27,000
To Balance c/d 30,000    
  2,52,000   2,52,000

 

Thanks, Please Like and share with your friends  

Comment if you have any question.

Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 51 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements