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Question 38 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021
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Table of Contents
38. from the following details of balance sheets of M/s V.S electronic Ltd. as 31.12.2022 and 2022 prepare a cash flow statement:
| Particulars | 2021 | 2022 |
| Equity & liabilities | ||
| Equity share capital | 1,00,000 | 1,50,000 |
| 9% redeemable preference | ||
| Share capital | 50,000 | 40,000 |
| 12% debentures | 51,000 | 69,000 |
| General reserve | 30,000 | 20,000 |
| P & L A/c | 50,000 | 70,000 |
| 12 % public deposits | 80,000 | 1,20,000 |
| Creditors | 8,000 | 10,000 |
| Bills payable | 6,000 | 4,000 |
| Outstanding expenses | 3,000 | 1,000 |
| Total | 3,78,000 | 4,84,000 |
| Assets | ||
| Goodwill | 10,000 | 5,000 |
| Building | 1,50,000 | 2,20,000 |
| Plant | 80,000 | 1,00,000 |
| Stock | 60,000 | 75,000 |
| Debtors | 20,000 | 17,000 |
| Bills receivable | 8,000 | 9,000 |
| Accrued income | 10,000 | 6,000 |
| Prepare expenses | – | 2,000 |
| Cash | 40,000 | 50,000 |
| Total | 3,78,000 | 4,84,000 |
The solution of Question 38 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –
M/S. V. S Electronics LTD.
Cash flow statement
For the year ended 31st Dec. 2022
| ₹ | ₹ | ||
| (A)cash flow from operating activities | |||
| Net profit as per profit and loss A/c | 20,000 | ||
| Less: transfer from general reserve | (10,000) | (10,000) | |
| Net profit before tax | 10,000 | ||
| Interest on public deposit | 9600 | ||
| Add: goodwill written off | 5,000 | ||
| Interest on debentures | 6120 | ||
| Dividend on 9% pref. share | 4500 | 25,220 | |
| Operating profit before working capital charges | 35,220 | ||
| Add: increase in current liabilities | |||
| Creditors | 2,000 | ||
| Decrease in current assets | |||
| Debtors | 3,000 | ||
| Accrued income | 4,000 | 9,000 | 9,000 |
| 44,220 | |||
| Less: decrease in current liabilities | |||
| Bills payable | (2,000) | ||
| Outstanding expenses | (2,000) | ||
| Increase in current assets | |||
| Stock | (15,000) | ||
| Bills receivable | (1,000) | ||
| Prepaid expenses | (2,000) | (22,000) | (22,000) |
| Cash flow from operating activities | 22,220 | ||
| (B)cash flow from investing activities | |||
| Purchase of building | (70,000) | ||
| Purchase of plant | (20,000) | (90,000) | |
| Net cash used in investing activities | |||
| (C)cash flow from financing activities | |||
| 9% dividend on pref. share | (4,500) | ||
| Interest on debentures | (6,120) | ||
| Cash proceeds from issue of share capital | 50,000 | ||
| Interest on public deposit | (9600) | ||
| Cash proceeds from issue of 12% public debentures | 18,000 | ||
| Cash proceeds from issue of 12% public deposit | 40,000 | ||
| Redemption of 9% redemption preference shares | (10,000) | ||
| Net cash flow from financing activities | 77,780 | ||
| Net increase in cash and cash equivalents | 10,000 | ||
| Opening cash balance | 40,000 | ||
| Closing cash balance | 50,000 | ||
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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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