Question 42 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021
Table of Contents
42. From the following information, prepare a Cash Flow Statement:
BALANCE SHEETS AS AT…….
| Particulars | 31.3.2022 | 31.3.2021 |
| I. Equity and liabilities | ||
| (1) Shareholders’ funds | ||
| (a)Share Capital (Note1) | 1,30,000 | 90,000 |
| (b)Reserves and surplus (note2) | 85,000 | 50,000 |
| (2) Non- Current Liabilities | ||
| (3) Current Liabilities | ||
| Trade payables | 22,000 | 17,400 |
| Total | 2,37,000 | 1,57,400 |
| B. Assets | ||
| (1) Non-Current Assets | ||
| Tangible Fixed Assets | 1,66,000 | 93,400 |
| Other Non- Current Assets (Preliminary Exp.) | – | 1,000 |
| (2) Current Assets | ||
| Inventories | 21,000 | 22,000 |
| Trade Receivables | 39,000 | 36,000 |
| Cash &Cash Equivalents | 6,000 | 5,000 |
| Short-term Loans &Advances (Adv. Tax) | 5,000 | – |
| Total | 2,37,000 | 1,57,400 |
NOTE 1: SHARE CAPITAL
| Particulars | 31.3.2022 ₹ | 31.3.2021 ₹ |
| Equity Shares of 10 each | 1,30,000 | 90,000 |
NOTE 2: RESERVES AND SURPLUS
| Particulars | 31.3.2022 ₹ | 31.3.2021 ₹ |
| General Reserve | 55,000 | 30,000 |
| Statement of Profit and Loss A/c | 30,000 | 20,000 |
| 85,000 | 50,000 |
Additional Information: Depreciation charged on fixed for the year 2021-22 was 20,000. Income Tax 5,000 has been paid in advance during the year.
The solution of Question 42 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31st MARCH . 2022
| Particulars | ₹ | ₹ |
| I. cash flow from operating activities | ||
| A.net profit before tax | 35,000 | |
| B. Adjustment for Non-Cash and Non-Operating items: | ||
| Depreciation | 20,000 | |
| Preliminary expenses written off | 1,000 | 21,000 |
| C. Operating profit before working capital changes (A+B) | 56,000 | |
| D. Changes in Current Assets &Current Liabilities | ||
| Decrease in Inventories | (1,000) | |
| Increase in Trade Receivables | (3,000) | |
| Increase in Trade Payables | 4,600 | (2,600) |
| E. Net Cash inflow from Operating Activities before Tax | 58,600 | |
| Less. Income taxes paid | (5,000) | |
| F. Net Cash Inflow from Operating Activities | 53,600 | |
| 2.Cash Flows from Investing Activities: | ||
| Purchase of Fixed Assets | (92,600) | |
| Net cash used in from Investing Activities | (92,600) | |
| 3.Cash Flow from Financing Activities: | ||
| Issue of share capital | 40,000 | |
| Net Cash Inflow from Financing Activities | 40,000 | |
| Net Cash inflow in cash and cash Equivalents (1+2+3) | 1,000 | |
| 5.Net Increase in cash and cash Equivalents at the Beginning of period | 5,000 | |
| 5.Cash and Cash Equivalents at end of Period (4+5) | 6,000 |
Working Notes:
| 1.Calculation of net profit before tax | ₹ |
| Closing Balance of profit &loss A/c | 30,000 |
| Less: Opening Balance of P&L A/c | (20,000) |
| Add: Transfer to Reserve | 25,000 |
| Net profit before tax | 35,000 |
2.FIXED ASSETS ACCCOUNT
| Particulars | ₹ | Particulars | ₹ |
| TO Balance b/d | 93,400 | By Depreciation A/c | 20,000 |
| To Bank A/c (Purchase) (b. f) | 92,600 | By Balance c/d | 1,66,000 |
| 1,86,000 | 1,86,000 |
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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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