Question 40 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 40 Chapter 5 of +2-B

Question 40 Chapter 5 of +2-B

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)

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 40 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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