Question 41 Chapter 8 -Unimax Publication Class 12 Part 2 – 2021

Question 41 Chapter 8 -Unimax Publication Class 12 Part 2 - 2021
Question 41 Chapter 8 -Unimax Publication Class 12 Part 2 - 2021

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

Unimax Publication – Accountancy PSEB (Class 12) – Part – II – Solution

Check out T.S. Grewal +2 Book 2023@ Official Website of Sultan Chand Publication

 

 

 

Advertisement

error: Content is protected !!