Question 43 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021
Table of Contents
43.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) | 8,50,000 | 4,60,000 |
| (b)Reserves and surplus (note2) | 1,70,000 | 2,40,000 |
| (2) Non- Current Liabilities (10% Debentures) | 1,80,000 | 2,00,000 |
| (3) Current Liabilities | – | – |
| Total | 12,00,000 | 9,00,000 |
| B. Assets | ||
| (1) Non-Current Assets | ||
| Tangible Fixed Assets | 7,00,000 | 5,00,000 |
| (2) Current Assets | ||
| Inventories | 2,50,000 | 2,10,000 |
| Trade Receivables | 1,90,000 | 1,40,000 |
| Cash &Cash Equivalents | 60,000 | 50,000 |
| Total | 12,00,000 | 9,00,000 |
NOTE 1: SHARE CAPITAL
| Particulars | 31.3.2022 ₹ | 31.3.2021 ₹ |
| Equity Share Capital | 7,50,000 | 4,00,000 |
| 8% Pref. Share Capital | 1,00,000 | 60,000 |
| 8,50,000 | 4,60,000 |
NOTE 2: RESERVES AND SURPLUS
| Particulars | 31.3.2022 ₹ | 31.3.2021 ₹ |
| General Reserve | 50,000 | 70,000 |
| Statement of Profit and Loss A/c | 1,20,000 | 1,70,000 |
| 1,70,000 | 2,40,000 |
Additional Information: During the year a machine costing 70,000(Depreciation provided thereon 10,000) was sold for 50,000, Dividend paid 80,000. Depreciation provided during the year 20,000.
The solution of Question 43 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 | 10,000 | |
| B. Adjustment for Non-Cash and Non-Operating items: | ||
| Interest on Debentures (2,00,000 x10/100) | 20,000 | |
| 8% Dividend on Pref. Share | 4,800 | |
| Loss on Sale of Machinery | 10,000 | |
| Depreciation | 20,000 | |
| C. Operating profit before working capital changes (A+B) | 64,800 | |
| D. Changes in Current Assets &Current Liabilities | ||
| Increase in Inventories | (40,000) | |
| Increase in Trade Receivables | (50,000) | (90,000) |
| E. Net Cash inflow from Operating Activities before Tax | (25,200) | |
| Less. Income taxes paid | – | |
| F. Net Cash used in Operating Activities | (30,000) | |
| 2.Cash Flows from Investing Activities: | ||
| Sale of Fixed Assets | 50,000 | |
| Purchase of Fixed Assets | (280,000) | |
| Net cash used in from Investing Activities | (2,30,000) | |
| 3.Cash Flow from Financing Activities: | ||
| 8% Dividend on Pref. Share | (4,800) | |
| Issue of Equity Share Capital | 3,50,000 | |
| Issue of Preference Shares | 40,000 | |
| Redemption of Debentures | (20,000) | |
| Interest paid on Debentures | (20,000) | |
| Dividend paid | (80,000) | |
| Net Cash Inflow from Financing Activities | 2,65,200 | |
| Net Cash inflow in cash and cash Equivalents (1+2+3) | 10,000 | |
| 5. cash and cash Equivalents at the Beginning of period | 50,000 | |
| 5.Cash and Cash Equivalents at end of Period (4+5) | 60,000 |
Working Notes:
| 1.Calculation of net profit before tax | ₹ |
| Closing Balance of profit &loss A/c | 1,20,000 |
| Less: Opening Balance of P&L A/c | (1,70,000) |
| Add: Dividend paid | 80,000 |
| Less: Transfer from Reserve (50,000 -70,000) | (20,000) |
| Net profit before tax | 10,000 |
2.FIXED ASSETS ACCCOUNT
| Particulars | ₹ | Particulars | ₹ |
| TO Balance b/d | 5,00,000 | By Bank A/c (Sale) | |
| To Bank A/c (Purchase) (b. f) | 2,80,000 | By P& L A/c (Loss) | |
| BY Depreciation A/c | |||
| By Balance c/d | |||
| 7,80,000 | 7,80,000 |
3. Assumption: Debentures redeemed at the end of year.
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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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