Question 36 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 36 Chapter 5 of +2-B

Question 36 Chapter 5 of +2-B

Cash Flow from Financing Activities

36. From the following information, calculation Cash Flow from Operating Activities and Investing Activities:

Particulars 31st March, 2018 Rs 31st March, 2019 Rs 
Surplus, i.e., Balance in Statement of Profit and Loss 50,000 40,000
Provision for Tax 12,000 10,000
Trade Payables 35,000 30,000
Current Assets (Trade Receivables and Inventories) 10,000
Fixed Assets (Tangible)    
Accumulated Depreciation    

\Additional Information:

  1. A machine having book value of 1,00,000 Depreciation provided thereon Rs 1,62,500 was sold at a loss of Rs 20,000.
  2. Tax paid during the year Rs 75,000.

 

The solution of Question 36 Chapter 4 of +2-B: –

 


Cash Flow From for the year ended 31st March, 2019
Particulars
Rs
I. Cash Flow from Financing Activities    
Net Profit as per Statement of Profit & Loss 7,50,000  
Add: Provision for Tax 75,000  
Net Profit before Tax and Extraordinary Items   8,25,000
Items to be Added    
Add: Depreciation charged during the year 5,000  
Add: Loss on Sale of Machine 10,000  
Net Profit before working Capital changes   10,45,000
Add: Increase in Current Liabilities 2,75,000  
Add: Increase in Trade Payables 1,50,000  
Net Profit before Tax   11,70,000
Less: Tax Paid during the year   75,000
Net Cash Flow from Financing Activities   10,95,000
II. Cash flow from Investing Activities
   
Sale of Machine 80,000  
Less: Purchase of Fixed Asset 4,67,500  
Cash used in Investing Activities
  3,87,5000

 

Machinery Account
Particulars
Rs Particular Rs
To Balance b/d 21,25,000 By Accumulated Depreciation A/c* 1,62,500
To Bank A/c (Purchase) (Bal. Fig.) 4,67,500 By Bank A/c (Sale) 80,000
    By Loss on Sale (Profit and Loss A/c) 20,000
    By Balance c/d 23,30,000
  25,92,500   25,92,500

 

Accumulated Depreciation Account*
Particulars
Rs Particular Rs
To Machinery A/c (Bal. Fig.) 1,62,500 By Balance b/d 10,62,500
To Balance c/d 11,00,000  By Profit and Loss A/c (Dep. charged during the year) 2,00,000
  12,62,500   12,62,500


Thanks, Please Like and share with your friends  

Comment if you have any question.

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

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

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

2 Book 3 min 225x300 - Question 36 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.