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Question 42 Chapter 8 -Unimax Publication Class 12 Part 2 – 2021

Question 42 Chapter 8 -Unimax Publication Class 12 Part 2 - 2021
Question 42 Chapter 8 -Unimax Publication Class 12 Part 2 - 2021

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Question 42 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021

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42. From the following information, prepare a Cash Flow Statement:

BALANCE SHEETS AS AT…….

Particulars31.3.202231.3.2021
I. Equity and liabilities  
(1) Shareholders’ funds  
(a)Share Capital (Note1)1,30,00090,000
(b)Reserves and surplus (note2)85,00050,000
(2) Non- Current Liabilities  
(3) Current Liabilities   
Trade payables22,00017,400
Total2,37,0001,57,400
B. Assets  
(1) Non-Current Assets  
Tangible Fixed Assets1,66,00093,400
Other Non- Current Assets (Preliminary Exp.)1,000
(2) Current Assets  
Inventories21,00022,000
Trade Receivables39,00036,000
Cash &Cash Equivalents6,0005,000
Short-term Loans &Advances (Adv. Tax)5,000
Total2,37,0001,57,400

NOTE 1: SHARE CAPITAL

Particulars 31.3.2022 ₹31.3.2021 ₹
Equity Shares of 10 each1,30,00090,000

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NOTE 2: RESERVES AND SURPLUS

Particulars31.3.2022 ₹31.3.2021 ₹
General Reserve55,00030,000
Statement of Profit and Loss A/c30,00020,000
 85,00050,000

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:  
Depreciation20,000 
Preliminary expenses written off1,00021,000
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 Payables4,600(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/c30,000
Less: Opening Balance of P&L A/c(20,000)
Add: Transfer to Reserve25,000
Net profit before tax35,000

2.FIXED ASSETS ACCCOUNT

Particulars Particulars
TO Balance b/d93,400By Depreciation A/c20,000
To Bank A/c (Purchase) (b. f)92,600By Balance c/d1,66,000
 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

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

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

 

 

 

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