Question 26 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021
Table of Contents
26. from the following information, calculate the net cash flow from operating activities & financing activities:
| Particulars | 31.3.2021 ₹ | 31.3.2022 ₹ |
| Equity share capital | 20,00,000 | 30,00,000 |
| 10% preference share capital | 2,00,000 | 1,00,000 |
| Securities premium A/c | – | 1,00,000 |
| Profit and loss A/c | 4,00,000 | 8,00,000 |
| 10% debentures | 10,00,000 | 10,00,000 |
Additional information:
Preference shares were redeemed on 31st march ,2022 at premium of 5% dividend on equity shares was paid @ 8% fresh issue of equity shares was done on 1st April, 2021.
The solution of Question 26 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –
Calculation of net cashflow from operating
Activities and financing activities
| Particulars | ₹ | ₹ |
| Net profit before tax (W. note) | 6,60,000 | |
| Add: premium on redemption of preference share | 5,000 | |
| Interest on debentures | 1,00,000 | 1,05,000 |
| Cash flow from op. activities | 7,65,000 | |
| Now | ||
| Cash flow from financing activities | ||
| Issue of equity share capital | ||
| (30,00,000-20,00,000+1,00,000 (premium) | 11,00,000 | |
| Redemption of preference share | ||
| (1,00,000+5,000) | (1,05,000) | |
| interest paid on debentures | ||
| (10,00,000×10/100 | (1,00,000) | |
| dividend paid on equity share | ||
| (30,00,000×8/100) | (2,40,000) | |
| Dividend paid on preference share | ||
| (2,00,000x10x100) | (20,000) | |
| Net cash inflow from financing activities | 6,35,000 |
Working note:
Calculation of net profit before Tax
| Closing balance as per profit & loss A/c | 8,00,000 |
| Less: opening balance as per P&LA/c | (4,00,000) |
| 4,00,000 | |
| Add: dividend on preference shares | 20,000 |
| Dividend on equity shares | 2,40,000 |
| Net profit before tax | 6,60,000 |
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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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