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Question 40 Chapter 5 of +2-B
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Table of Contents
Cash Flow from Financing Activities
40. From the following Balance Sheet of Young India Ltd., prepare Cash Flow Statement:
| Particulars | 31st March 2019 Rs | 31st March 2018 Rs |
| I. EQUITY AND LIABILITIES | ||
| 1. Shareholders’ Funds | ||
| (a) Share Capital | 2,50,000 | 2,00,000 |
| (b) Reserves and Surplus: Surplus, i.e., Balance in Statement of Profit and Loss | 1,83,000 | 82,000 |
| 2. Non-Current Liabilities | ||
| Long-term Borrowings: | ||
| 15% Debentures | 80,000 | 50,000 |
| 3. Current Liabilities | ||
| (a) Trade Payables | 1,50,000 | 1,10,000 |
| (b) Other Current Liabilities | 12,000 | 20,000 |
| Total | 6,75,000 | 4,62,000 |
| II. ASSETS | ||
| 1. Non-Current Assets | ||
| (a) Fixed Assets (Tangible) | 2,74,000 | 1,17,000 |
| (b) Non-Current Investments | 68,000 | 55,000 |
| 2. Current Assets | ||
| (a) Inventories | 2,06,000 | 1,50,000 |
| (b) Trade Receivables | 32,000 | 70,000 |
| (c) Cash and Cash Equivalents | 95,000 | 700,000 |
| Total | 6,75,000 | 4,62,000 |
The solution of Question 39 Chapter 4 of +2-B: –
Cash Flow From for the year ended 31st March, 2019 | ||
| Particulars | Rs | |
| I. Cash Flow from Financing Activities | ||
| Profit as per Statement of Profit and Loss | ||
| Closing Balance of Profit & Loss | 1,83,000 | |
| Less: Opening Balance of Profit & Loss | 82,000 | 1,01,000 |
| Profit Before Tax and extraordinary Items | 1,01,000 | |
| Items to be Added: | ||
| Interest on Debentures | 7,500 | 7,500 |
| Operating Profit before Working Capital Adjustments | 1,08,500 | |
| Less: Increase in Current Assets | ||
| Inventories | 56,000 | |
| Add: Increase in Current Liabilities | ||
| Trade Payables | 40,000 | |
| Less: Decrease in Current Liabilities | ||
| Other Current Liabilities | 8,000 | |
| Add: Decrease in Current Assets | ||
| Trade Receivables | 38,000 | 1,22,500 |
| Cash Generated from Operations | 1,22,500 | |
| Less: Taxes Paid | … | |
| Cash Flow from Operating Activities | 1,22,500 | |
| II. Cash Flow from Financing Activities | ||
| Purchase of Fixed Assets | 1,57,000 | |
| Purchase of Investments | 13,000 | 1,70,000 |
| Net Cash Used in Investing Activities | 1,70,000 | |
| III: Cash Flow from Financing Activities | ||
| Proceeds from Issue of Equity Share Capital | 50,000 | |
| Proceeds from Issue of 15% Debentures | 30,000 | |
| Less: Interest on Debentures | 7,500 | 72,500 |
| Net Cash Flow from Financing Activities | 72,500 | |
| IV. Net Increase or Decrease in Cash and Cash Equivalents | 25,000 | |
| Add: Cash and Cash Equivalent in the beginning of the period | 70,000 | |
| Cash and Cash Equivalents at the end of the period | 1,70,000 | |
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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)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
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
