Question 19 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021
19.from the following information, calculate the net cash flow from operating activities:
Balance sheets as at….
| Particulars | 31.3.2022 ₹ | 31.3.2021 ₹ |
| I. Equity and liabilities | ||
| (1) Shareholders’ funds | ||
| (a) Share capital (note1) | 35,000 | 30,000 |
| (B) Reserves and surplus (note2) | 22,000 | 3,500 |
| (2) Non-current liabilities (10%debentures) | 25,000 | 21,000 |
| (3) Current liabilities (trade payable) | 12,500 | 8,500 |
| Total | 94,500 | 63,000 |
| ii. Assets | ||
| (1) Non-cash assets | ||
| Tangible fixed assets (gross) | 54,000 | 41,000 |
| Provision for depreciation | (13,000) | (9,000) |
| Intangible assets (goodwill) | 8,000 | 10,000 |
| 10% non-current investments | 8,000 | 3,000 |
| (2) Current assets | ||
| Inventories | 24,500 | 6,000 |
| Cash & cash equivalents | 13,000 | 12,000 |
| Total | 94,500 | 63,000 |
Note 1: share capital
| Particulars | 31.03.2022 (₹) | 31.03.2021 (₹) |
| Equity shares of each | 35,000 | 30,000 |
Note 2: Reserves and surplus
| Particulars | 31.3.2022 (₹) | 31.3.2021 (₹) |
| General reserve | 15,000 | 9,500 |
| Profit and loss A/c | 7,000 | (6,000) |
| 22,000 | 3,500 |
Additional information: debentures were issued 31st march 2022 investments were made on 31st arch, 2022.
The solution of Question 19 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –
Calculation of cash from operating activities
for the year ended 31st march ,2022
| ₹ | ₹ | |
| Net profit before tax (note1) | 18,500 | |
| Adjustment for non-cash and non- operating items: | ||
| add: payment of interest on long-team borrowing | ||
| (debentures) (10%on 21,000) | 2,100 | |
| Depreciation (13,000-9,000) | 4,000 | |
| Goodwill written off | 2,000 | 8,100 |
| 26,600 | ||
| Less: interest on non-current investments | 300 | |
| Operating profit before working capital changes | 26,300 | |
| Add: increase in current liabilities | ||
| Trade payable | 4,000 | |
| 30,300 | ||
| Less: increase in current assets: | ||
| Inventory | (18,500) | |
| Net current flow from operating activities | 11,800 |
Notes: (i) calculation of net profit before tax:
| Net profit during current year (7,000+6,000) | = | 13,000 |
| Add: transfer to general reserve | = | 5,500 |
| 18,500 |
Negative balance of profit & loss amounting to 6,000 appearing in the balance sheet on 31.3.2021 represents an amount of loss. In the current year, after covering this loss 6,000 the profit & loss shows a profit of 7,000. It means that net profit during the current year must have been 7,000+6,000=13,000
Cash flow from investing activities
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What is the cash flow statement? why do we need to prepare?
Unimax Publication – Accountancy PSEB Class 12 – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit sharing ratio among Existing Partners )
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Unimax Publication – Accountancy PSEB (Class 12) – Part – II – Solution
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Company Accounts (Issue of Debentures)
- Chapter No. 3 – Company Accounts (Redemption of Debentures)
- Chapter No. 4 – Financial Statements of a Company
- Chapter No. 5 – Financial Statement Analysis
- Chapter No. 6 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
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