Question 41 Chapter 5 of +2-B
Table of Contents
Cash Flow from Financing Activities
41. Following is the Balance Sheet of Fine Products Ltd. as at 31st March, 2019:
| Particulars | Note No. | 31st March 2019 Rs | 31st March 2018 Rs |
| I. EQUITY AND LIABILITIES | |||
| 1. Shareholders’ Funds | |||
| (a) Share Capital | 3,50,000 | 3,00,000 | |
| (b) Reserves and Surplus | 1 | 57,000 | 38,000 |
| 3. Current Liabilities | |||
| (a) Trade Payables | 53,000 | 35,000 | |
| (b) Other Current Liabilities | 6,000 | 8,000 | |
| (c) Short-term Provisions | 2 | 32,000 | 28,000 |
| Total | 4,98,000 | 4,09,000 | |
| II. ASSETS | |||
| 1. Non-Current Assets | |||
| (a) Fixed Assets : | |||
| Tangible Assets | 3 | 2,48,000 | 2,00,000 |
| Intangible Assets (Goodwill) | 40,000 | 50,000 | |
| (b) Non-Current Investments | 35,000 | 10,000 | |
| 2. Current Assets | |||
| (a) Inventories | 39,000 | 57,000 | |
| (b) Trade Receivables | 1,08,000 | 75,000 | |
| (c) Cash and Bank Balance | 28,000 | 17,000 | |
| Total | 4,98,000 | 4,09,000 |
Notes to Accounts
| Particulars | 31st March, | 31st March, 2018 (Rs) |
| 2019 (Rs) | ||
| 1. Reserves and Surplus | ||
| General Reserve | 30,000 | 20,000 |
| Surplus, i.e., Balance in Statement of Profit and Loss | 27,000 | 18,000 |
| 57,000 | 38,000 | |
| 2. Short-term Provisions | ||
| Provision for Tax | 32,000 | 28,000 |
| 3. Tangible Fixed Assets | ||
| Land and Building | 57,000 | 1,10,000 |
| Plant and Machinery | 1,91,000 | 90,000 |
| 2,48,000 | 2,00,000 |
Note: Proposed dividends on equity for the years ended 31st March, 2018 and 2019 are Rs 39,000 and Rs 45,000 respectively.
You are required to prepare Cash Flow Statement for the year ended 31st March, 2019.
The solution of Question 41 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 : | 9,000 | |
| Profit Before Tax and extraordinary Items | 9,000 | |
| Items to be Added: | ||
| General Reserve | 10,000 | |
| Goodwill | 10,000 | |
| Provision for Taxation | 32,000 | |
| Proposed Dividend | 39,000 | 1,00,000 |
| Operating Profit before Working Capital Adjustments | 1,00,000 | |
| Less: Increase in Current Assets | ||
| Trade Receivables | 33,000 | |
| Less: Decrease in Current Liabilities | ||
| Other Current Liabilities | 2,000 | |
| Add: Decrease in Current Assets | ||
| Inventories | 18,000 | |
| Add: Increase in Current Liabilities | ||
| Trade Payables | 18,000 | 1,000 |
| Cash Generated from Operations | 1,01,000 | |
| Less: Taxes Paid | 28,000 | |
| Cash Flow from Operating Activities | 73,000 | |
| II. Cash Flow from Financing Activities | ||
| Sale of Land & Building | 53,000 | |
| Purchase of Non-Current Investments | 25,000 | |
| Purchase of Plant & Machinery | 1,01,000 | 73,000 |
| Net Cash Used in Investing Activities | 73,000 | |
| III: Cash Flow from Financing Activities | ||
| Proceeds from Issue of Share Capita | 50,000 | |
| Dividend Paid | 39,000 | 11,000 |
| Net Cash Flow from Financing Activities | 11,000 | |
| IV. Net Increase or Decrease in Cash and Cash Equivalents |
11,000 | |
| Add: Cash and Cash Equivalent in the beginning of the period |
17,000 |
|
| Cash and Cash Equivalents at the end of the period |
28,000 | |
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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
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