Question 44 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 44 Chapter 5 of +2-B

Question 44 Chapter 5 of +2-B

44. Following is the Balance Sheet of Mevanca Limited as at 31st March, 2017:

Mevanca Limited 
BALANCE SHEET As at 31st March,2017 
Particulars Note No.  31st March 2017 Rs 31st March 2016 Rs 
I. EQUITY AND LIABILITIES      
1. Shareholders’ Funds       
(a) Share Capital   3,00,000 1,00,000
(b) Reserves and Surplus 1 25,000 1,20,000
2. Non-Current Liabilities      
Long-term Borrowings 2 80,000 60,000
3. Current Liabilities      
(a) Trade Payables    6,000 20,000
(b) Short-term Provisions 3 68,000 70,000
Total   4,79,000 3,70,000
II. ASSETS      
1. Non-Current Assets      
Fixed Assets :      
(i)Tangible Assets 4 3,36,000 1,92,000
2. Current Assets      
(a) Current Investments   67,000 60,000
(b) Inventories   51,000 65,000
(c) Trade Receivables   25,000 49,000
(d) Cash and Cash Equivalents   4,000
Total   4,79,000 3,70,000

Notes to Accounts

Particulars 31st March,  31st March, 2016 (Rs)
  2017 (Rs)  
1. Reserves and Surplus    
Surplus, i.e., Balance in Statement of Profit and Loss 25,000 1,20,000
2. Long-term Borrowings    
10% Long-term Loan 80,000 60,000
     
3. Short-term Provisions    
Provision for Tax 68,000 70,000
     
4. Fixed Assets 3,84,000 2,15,000
Machinery -48,000 -23,000
Accumulated Depreciation 3,36,000 1,92,000

Additional Information:
(i) Additional loan was taken on 1st July, 2016.
(ii) Tax of 53,000 was paid during the year.
Prepare Cash Flow Statement.

 

The solution of Question 44 Chapter 4 of +2-B: –


Cash Flow Statement for the year ended 31st March,2013
Particulars
Rs
I. Cash Flow from Financing Activities    
Net Loss as per Statement of Profit and Loss (95,000)  
Add: Provision for Tax 51,000 44,000
Net loss before Tax and Extraordinary Items   (44,000)
Items to be Added:    
Depreciation charged during the year 25,000  
Interest paid on loan (WN I) 7,500  
Net Loss before Working Capital Changes   (11,500)
Less: Decrease in Current Liabilities    
Trade Payables 14,000  
Less: Increase in Current Assets    
Inventories 7,000  
Add: Decrease in Current Assets    
Trade Receivables 14,000  
Other Current Assets 4,000 (14,500)
Net Loss before Tax   (14,500)
Add: Tax paid   53,000
Net Cash Flow from Operating Activities   67,500
II. Cash Flow from Financing Activities    
Purchase of Machinery (WN II)   1,69,000
Net Cash Used in Investing Activities   1,69,000
III: Cash Flow from Financing Activities    
Proceeds from Issue of Shares 2,00,000  
Proceeds from additional loan taken 20,000  
Less: Interest paid on long-term loan 7,500 2,12,500
Net Cash Flow from Financing Activities   2,12,500
IV. Net Decrease in Cash and Cash Equivalents
  (24,000)
Add: Cash and Cash Equivalents in the beginning of the period
  49,000
Cash and Cash Equivalents at the end of the period
  25,000

Working Note

Provision for Tax A/c
Particulars
Rs Particular Rs
To Cash A/c 32,000 By Balance b/d 70,000
To Balance c/d 68,000  By Profit and Loss A/c (Dep. charged during the year) (Bal. Fig.) 51,000
  1,21,000   1,21,000

 

Interest on Loan Rs 20,000 Calculated from 1st July, 2016

Interest on Loan
= 10%        
* Interest on Bank Loan = Rs 20,000 10% X 9
12
  = Rs 1,500        

 

 

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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 44 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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