Question 41 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 41 Chapter 5 of +2-B

Question 41 Chapter 5 of +2-B

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)

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

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