Question 34 Chapter 8 -Unimax Publication Class 12 Part 2 – 2021

Question 34 Chapter 8 -Unimax Publication Class 12 Part 2 - 2021
Question 34 Chapter 8 -Unimax Publication Class 12 Part 2 - 2021

Question 34 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021

34. prepare cash flow statement on the basis of following information given in the balance sheets of P.S. Ltd.

Particulars 2021 2022
I. Equity and liabilities    
(1) Shareholders’ funds    
(a) Share capital  2,00,000 2,50,000
(B) Reserves and surplus     
General reserves 50,000 70,000
Non-current liabilities    
(I)long term borrowing    
12% debentures 1,00,000 80,000
Current liabilities    
(I)creditors
40,000 60,000
(II)bill payables 20,000 1,00,000
(III)outstanding expenses 25,000 25,000
Total 4,35,000 5,80,000
Assets    
Non-current assets    
Fixed assets    
(I)tangible    
(a)land & building 2,00,000 2,80,000
(b)machinery 1,00,000 1,30,000
(II)intangible    
(a)goodwill 10,000 2,000
Current assets    
(I)debtors 40,000 60,000
(II)stock 70,000 90,000
(iii)cash 15,000 18,000
Total 4,35,000 5,80,000

The solution of Question 34 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –

 P.S LTD.
Cash flow statement
For the year ended 31st Dec. 2022

 
(A)cash flow from operating activities      
Net profit as per general reserve (70,000-50,000)   20,0000  
Add: goodwill written off   8,000  
Interest on debentures   12,000  
Operating Profit before working capital charges     40,000
Add: Increase in current liabilities      
Creditors 20,000    
Bills payable  80,000 1,00,000 1,00,000
      1,40,000
Less: decrease in current      
Outstanding expenses  (5,000)    
Increase in current assets      
Debtors  (20,000)    
Stack (20,000) (45,000) (45,000)
Cash flow from operating activities     95,000
(B) cash flow from investing activities      
Purchase of land and building   (80,000)  
Purchase of machinery   (30,000)  
Cash used in investing activities     (1,10,000)
(C) cash flow from financing activities      
Issue of share capital
  50,000  
Redemption of debentures   (20,000)  
Payable of interest on debentures   (12,000)  
Cash flow from financing     18,000
Net increase in cash and cash equivalents     3,000
Opening cash balance     15,000
Closing cash balance     18,000

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Unimax Publication – Accountancy PSEB Class 12 – Volume I – Solution

Unimax Publication – Accountancy PSEB (Class 12) – Part – II – Solution

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