Question 41 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021
Table of Contents
41. Following are the Balance Sheets of MDH Ltd .as on 31st December 2021 and 2022.
BALANCE SHEETS AS ON DECEMBER 2021 AND 2022
| Particulars | 2021 | 2022 |
| I. Equity and liabilities | ||
| Share Capital | 1,80,000 | 2,20,000 |
| General Reserve | 15,000 | 20,000 |
| Profit and Loss A/c | 9,000 | 13,000 |
| Debentures | 1,00,000 | 80,000 |
| Creditors | 30,000 | 45,000 |
| Outstanding Wages | 6,000 | 7,000 |
| Total | 3,40,000 | 3,85,000 |
| Assets | ||
| Machinery | ||
| (at cost) | 3,00,000 | 4,00,000 |
| Less : | ||
| Depreciation | (1,20,000) | (1,60,000) |
| 1,80,000 | 2,40,000 | |
| Building | 1,20,000 | 1,00,000 |
| Goodwill | 9,000 | 6,000 |
| Stock | 12,000 | 14,000 |
| Debtors | 8,000 | 12,000 |
| Cash | 11,000 | 13,000 |
| Total | 3,40,000 | 3,85,000 |
Additional Information:
(a)Depreciation provided during the year was 60,000.
(b)A piece of machinery costing 70,000 sold at 20% loss on book value.
Prepare Cash Flow Statement as per AS-3(Revised).
The solution of Question 41 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –
MDH LTD. CASH FLOW STATEMENT
FOR THE YEAR ENDED 31st DEC. 2022
| Particulars | ₹ | ₹ | |
| (A)cash flow from operating activities | |||
| Net Profit as per Balance Sheet | 4,000 | ||
| Add: Transfer to General Reserve | 5,000 | ||
| Profit (before tax) | 9,000 | ||
| Add: Non-Cash items | |||
| Depreciation on Machinery | 60,000 | ||
| Depreciation on Building | 20,000 | ||
| Loss on sale of machinery | 10,000 | ||
| Goodwill written off | 3,000 | 93,000 | 93,000 |
| Operating Profit before Working Capital Charges | 1,02,000 | ||
| Add: Increase in Current Liabilities | |||
| Creditors | 15,000 | ||
| Outstanding wages | 1,000 | 16,000 | 16,000 |
| 1,18,000 | |||
| Add: Increase in Current Assets | |||
| Stock | (2,000) | ||
| Debtors | (4,000) | (6,000) | (6,000) |
| Cash from Operating Activities | 1,12,000 | ||
| (b)Cash Flow from Investing Activities | |||
| Purchase of Machinery | (1,70,000) | ||
| Sale of Machinery | 40,000 | ||
| Cash used in Investing Activities | (1,30,000) | ||
| (c)Cash Flow from Financing Activities | |||
| Issue of Share Capital | 40,000 | ||
| Redemption of Debentures | (20,000) | ||
| Cash from Financing Activities | 20,000 | ||
| Net Increase in cash and cash Equivalents | 2,000 | ||
| Opening cash balance | 11,000 | ||
| Closing cash balance | 13,000 | ||
Working Notes:
MACHINERY A/C
| Particulars | ₹ | Particulars | ₹ |
| To balance b/d | 3,00,000 | By Dep. A/c | 20,000 |
| To bank A/c | 1,70,000 | By P& L A/c (Loss on sale) | 10,000 |
| (Purchase of machinery) | By Bank A/c (sale) | 40,000 | |
| By Balance c/d | 4,00,000 | ||
| 4,70,000 | 4,70,000 |
DEPRECIATION A/C
| Particulars | ₹ | Particulars | ₹ |
| To Machinery A/c | 20,000 | By Balance b/d | 1,20,000 |
| (Dep on machinery sold) [B.F] | By P&L A/c Dep.) | 60,000 | |
| To balance c/d | 1,60,000 | ||
| 1,80,000 | 1,80,000 |
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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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