Question 43 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 43 Chapter 5 of +2-B
Question No.43 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution


Question 43 Chapter 5 of +2-B


43. Following are the Balance Sheets of Solar Power Ltd. as at 31st March, 2014 and 2013:

BALANCE SHEET of Solar Power Ltd.
ParticularsNote No. 31st March 2014 Rs31st March 2013 Rs 
1. Shareholders’ Funds    
(a) Share Capital 24,00,00022,00,000
(b) Reserves and Surplus16,00,0004,00,000
2. Non-Current Liabilities   
Long-term Borrowings 4,80,0003,40,000
3. Current Liabilities   
(a) Trade Payables  3,58,0004,08,000
(b) Short-term Provisions 1,00,0001,54,000
Total 39,38,00035,02,000
1. Non-Current Assets   
Fixed Assets :   
(i)Tangible Assets221,40,00017,00,000
(ii) Intangible Assets380,0002,24,000
2. Current Assets   
(a) Current Investments 4,80,0003,00,000
(b) Inventories 2,58,0002,42,000
(c) Trade Receivables 3,40,0002,86,000
(d) Cash and Cash Equivalents 6,40,0007,50,000
Total 39,38,00035,02,000

Notes to Accounts

Particulars31st March, 31st March, 2013 (Rs)
 2014 (Rs) 
1. Reserves and Surplus  
Surplus, i.e., Balance in Statement of Profit and Loss6,00,0004,00,000
2. Tangible Assets  
Less: Accumulated Depreciation4,00,0003,00,000
3. Intangible Assets  

Additional Information:
During the year, a piece of machinery costing 48,000 on which accumulated depreciation was Rs 32,000. was sold for Rs 12,000.
Prepare Cash Flow Statement.



The solution of Question 43 Chapter 4 of +2-B: –

Cash Flow Statement for the year ended 31st March,2013
I. Cash Flow from Financing Activities  
Profit as per Statement of Profit and Loss :  
Closing Balance of Profit & Loss6,00,000 
Less: Opening Balance of Profit & Loss4,00,0002,00,000
Profit Before Tax and extraordinary Items 2,00,000
Items to be Added:  
Amortisation of Goodwill1,44,000 
Depreciation (WN I)1,32,000 
Loss on Sale of Fixed Assets4,0002,80,000
Operating Profit before Working Capital Adjustments 4,80,000
Less: Increase in Current Assets  
Trade Receivables54,000 
Less: Decrease in Current Liabilities  
Trade Payables50,000 
Short-Term Provisions54,0001,74,000
Net Cash Flow from Operating Activities 3,06,000
II. Cash Flow from Financing Activities  
Sale of Machinery12,000 
Purchase of Machinery (WN II)5,88,0005,76,000
Net Cash Used in Investing Activities 5,76,000
III: Cash Flow from Financing Activities  
Proceeds from Issue of Share Capital2,00,000 
Proceeds from Long Term Borrowings1,40,0003,40,000
Net Cash Flow from Financing Activities 3,40,000
IV. Net Decrease in Cash and Cash Equivalents
Add: Cash and Cash Equivalents in the beginning of the period
Cash and Cash Equivalents at the end of the period


Accumulated Depreciation Account
To Machinery A/c32,000By Balance b/d3,00,000
To Balance c/d4,00,000 By Profit and Loss A/c (Dep. charged during the year) (Bal. Fig.)1,32,000
 4,32,000 4,32,000


Machinery Account
To Balance b/d20,00,000By Accumulated Depreciation A/c*32,000
To Bank A/c (Purchase) (Bal. Fig.)5,88,000By Bank A/c (Sale)12,000
  By Loss on Sale (Profit and Loss A/c)4,000
  By Balance c/d25,40,000
 25,88,000 25,88,000

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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication


Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements



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