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