Question 41 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021
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 |
Thanks, Please Like and share with your friends
Comment if you have any Doubts.
Advertisement-X
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
Check out T.S. Grewal +2 Book 2023@ Official Website of Sultan Chand Publication
Leave a Reply