Question 35 Chapter 5 of +2-B – USHA Publication 12 Class

Question 35 Chapter 5 of +2-B
Q-35- CH-5 Book 2 - Usha Publisher +2 Book 2019 - Solution

Question 35 Chapter 5 of +2-B

Indirect Method

35. (Cash Flow from Operating Activities) From the following balance sheet of Enclotek Ltd. as on 31-3-2017 and 31-3-2018 and the additional information provided. Calculate the cash flow from operating activities.

Balance Sheet of AB LTD.
Particulars Figures as at the end of the current reporting period Figures as at the end of the previous reporting period
I. Equity and Liabilities    
 Shareholders Fund :     
Equity Share Capital 4,50,000 4,50,000
5% Preference share capital 2,00,000 3,00,000
Reserves and surplus    
Statement of Profit and Loss  2,00,000 (1,00,000)
General Reserve 1,50,000 1,20,000
Preliminary Expenses -5,000 -25,000
Non-Current Liabilities    
Long-term borrowings :    
8% Debentures 3,00,000 2,00,000
Current Liabilities    
Trade Payables 1,10,000 1,08,000
Output IGST 10,000 2,000
Total 14,15,000 10,55,000
II. Assets    
Non –Current Assets    
Tangible Assets    
Fixed Assets (Net)  8,60,000 6,20,000
Investments  1,25,000 80,000
Intangible Assets :     
Goodwill  10,000 15,000
Current Assets     
Inventories  4,20,000 3,40,000
Total  14,15,000 10,55,000

 

The solution of Question 35 Chapter 5 of +2-B: – 


Cash Flow from Operating Activities
Particulars
Rs
Net Profit as per Statement of Profit & Loss   3,00,000
Add: Goodwill Written off 5,000  
Transfer to General Reserve 30,000  
Preliminary expenses are written off 20,000  
Depreciation on fixed assets 60,000  
Premium on redemption of shares 5,000  
Interest on debentures* 18,000  
Preference Dividend paid 15,000  
Proposed equity dividend 36,000 1,89,000
Cash operating profit before the change in working capital   4,89,000
Add: Increase in Current Liabilities    
Sundry Creditors 2,000  
Output IGST 8,000 10,000
    4,99,000
Less: Increase in Current Assets    
Inventories   80,000
Cash Flow from Operating activities   4,19,000

Working Note
1. Interest on Debenture 80,000

Amount Rate of interest Month Interest Value
₹ 2,00,000 8% 12 Months ₹ 16,000
₹ 1,00,000 8% 3 Months ₹ 2,000
      ₹ 8,000

 


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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statement

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