Question 44 Chapter 5 of +2-B – USHA Publication 12 Class

Question 44 Chapter 5 of +2-B

Question 44 Chapter 5 of +2-B

PREPARING OF CASH FLOW STATEMENT (WITHOUT ADJUSTMENT)

 44. (CFS Showing Operating, Investing & Financing Activities) Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheet of Hitesh Ltd. :

Particulars Note No. Figures for the current reporting period Figures for the previous reporting period
I. Equity and Liabilities      
 Shareholders Fund :       
Share Capital   1,25,000 1,00,000
Reserves and surplus      
Surplus (Profit and Loss Balance)    35,000 25,000
Non-Current Liabilities      
Long-term borrowings :      
10% Debentures   40,000 50,000
Current Liabilities      
Creditors   30,000 20,000
Bills Payables   50,000 10,000
Outstanding Expenses   10,000 12,500
Total   2,90,000 2,17,500
II. Assets      
Non –Current Assets      
Tangible Assets      
Land end Building  1,40,000 1,00,000  
Machinery   65,000 50,000  
Intangible Assets :       
Goodwill  1,000 5,000  
Current Assets       
Inventories  25,000 35,000  
Trade Receivable  20,000 10,000  
Input IGST  6,000 2,000  
Input CGST  12,000 4,000  
Input SGST  12,000 4,000  
Cash and cash equivalents :       
Cash  9,000 7,500  
Total  2,90,000 2,17,500  

 

The solution of Question 44 Chapter 5 of +2-B: – 

Cash Flow Statement of Hitesh Ltd.
Particulars
Rs
(A) Cash Flow from Operating Activities    
Add: General Reserve 10,000  
Goodwill Written off 4,000  
Interest on debentures 5,000  
Cash operating Profit before Working Capital adj. 19,000  
Add: Decrease in Current Assets    
Inventories 10,000  
Add: Increase in Current Liabilities    
Creditors 10,000  
Bills Payable 40,000  
Less: Increase in Current Assets    
Trade Receivable 30,000  
Input IGST 4,000  
Input CGST 8,000  
Input SGST 8,000  
Less: Decrease in Current Liabilities    
Outstanding Expenses 2,500 46,500
Cash used in Operating Activities   46,500
(B) Cash flows from Investing Activities    
Outflow of Cash    
Purchase of Land & Building 40,000  
Purchase of Machinery 15,000 55,000
Net cash used in investing Activities   55,000
(C) Cash flows from Financing Activities    
Inflow of Cash    
Issue of share capital 25,000  
Outflow of Cash    
Redemption of Debenture 10,000  
Interest on Debentures (10% of 50,000) 5,000 10,000
Net cash flow from financing activities   10,000
Total Cash flow (A + B + C)   1,500
Opening Balance Cash   7,500
Closing Balance Cash   9,000




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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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  - USHA Publication 12 Class
T.S. Grewal’s Analysis of Financial Statement

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