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

Question 43 Chapter 5 of +2-B

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.
Particulars Note No.  31st March 2014 Rs 31st March 2013 Rs 
I. EQUITY AND LIABILITIES      
1. Shareholders’ Funds       
(a) Share Capital   24,00,000 22,00,000
(b) Reserves and Surplus 1 6,00,000 4,00,000
2. Non-Current Liabilities      
Long-term Borrowings   4,80,000 3,40,000
3. Current Liabilities      
(a) Trade Payables    3,58,000 4,08,000
(b) Short-term Provisions   1,00,000 1,54,000
Total   39,38,000 35,02,000
II. ASSETS      
1. Non-Current Assets      
Fixed Assets :      
(i)Tangible Assets 2 21,40,000 17,00,000
(ii) Intangible Assets 3 80,000 2,24,000
2. Current Assets      
(a) Current Investments   4,80,000 3,00,000
(b) Inventories   2,58,000 2,42,000
(c) Trade Receivables   3,40,000 2,86,000
(d) Cash and Cash Equivalents   6,40,000 7,50,000
Total   39,38,000 35,02,000

Notes to Accounts

Particulars 31st March,  31st March, 2013 (Rs)
  2014 (Rs)  
1. Reserves and Surplus    
Surplus, i.e., Balance in Statement of Profit and Loss 6,00,000 4,00,000
2. Tangible Assets    
Machinery 25,40,000 20,00,000
Less: Accumulated Depreciation 4,00,000 3,00,000
  21,40,000 17,00,000
3. Intangible Assets    
Goodwill 80,000 2,24,000
  80,000 2,24,000

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
Particulars
Rs
I. Cash Flow from Financing Activities    
Profit as per Statement of Profit and Loss :    
Closing Balance of Profit & Loss 6,00,000  
Less: Opening Balance of Profit & Loss 4,00,000 2,00,000
Profit Before Tax and extraordinary Items   2,00,000
Items to be Added:    
Amortisation of Goodwill 1,44,000  
Depreciation (WN I) 1,32,000  
Loss on Sale of Fixed Assets 4,000 2,80,000
Operating Profit before Working Capital Adjustments   4,80,000
Less: Increase in Current Assets    
Inventories 16,000  
Trade Receivables 54,000  
Less: Decrease in Current Liabilities    
Trade Payables 50,000  
Short-Term Provisions 54,000 1,74,000
Net Cash Flow from Operating Activities   3,06,000
II. Cash Flow from Financing Activities    
Sale of Machinery 12,000  
Purchase of Machinery (WN II) 5,88,000 5,76,000
Net Cash Used in Investing Activities   5,76,000
III: Cash Flow from Financing Activities    
Proceeds from Issue of Share Capital 2,00,000  
Proceeds from Long Term Borrowings 1,40,000 3,40,000
Net Cash Flow from Financing Activities   3,40,000
IV. Net Decrease in Cash and Cash Equivalents
  70,000
Add: Cash and Cash Equivalents in the beginning of the period
  10,50,000
Cash and Cash Equivalents at the end of the period
  11,20,000

 

Accumulated Depreciation Account
Particulars
Rs Particular Rs
To Machinery A/c 32,000 By Balance b/d 3,00,000
To Balance c/d 4,00,000  By Profit and Loss A/c (Dep. charged during the year) (Bal. Fig.) 1,32,000
  4,32,000   4,32,000

 

Machinery Account
Particulars
Rs Particular Rs
To Balance b/d 20,00,000 By Accumulated Depreciation A/c* 32,000
To Bank A/c (Purchase) (Bal. Fig.) 5,88,000 By Bank A/c (Sale) 12,000
    By Loss on Sale (Profit and Loss A/c) 4,000
    By Balance c/d 25,40,000
  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)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

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)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

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

2 Book 3 min 225x300 - Question 43 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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