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. :

ParticularsNote No.Figures for the current reporting periodFigures for the previous reporting period
I. Equity and Liabilities   
 Shareholders Fund :    
Share Capital 1,25,0001,00,000
Reserves and surplus   
Surplus (Profit and Loss Balance)  35,00025,000
Non-Current Liabilities   
Long-term borrowings :   
10% Debentures 40,00050,000
Current Liabilities   
Creditors 30,00020,000
Bills Payables 50,00010,000
Outstanding Expenses 10,00012,500
Total 2,90,0002,17,500
II. Assets   
Non –Current Assets   
Tangible Assets   
Land end Building 1,40,0001,00,000 
Machinery  65,00050,000 
Intangible Assets :    
Goodwill 1,0005,000 
Current Assets    
Inventories 25,00035,000 
Trade Receivable 20,00010,000 
Input IGST 6,0002,000 
Input CGST 12,0004,000 
Input SGST 12,0004,000 
Cash and cash equivalents :    
Cash 9,0007,500 
Total 2,90,0002,17,500 

 

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 Reserve10,000 
Goodwill Written off4,000 
Interest on debentures5,000 
Cash operating Profit before Working Capital adj.19,000 
Add: Decrease in Current Assets  
Inventories10,000 
Add: Increase in Current Liabilities  
Creditors10,000 
Bills Payable40,000 
Less: Increase in Current Assets  
Trade Receivable30,000 
Input IGST4,000 
Input CGST8,000 
Input SGST8,000 
Less: Decrease in Current Liabilities  
Outstanding Expenses2,50046,500
Cash used in Operating Activities 46,500
(B) Cash flows from Investing Activities  
Outflow of Cash  
Purchase of Land & Building40,000 
Purchase of Machinery15,00055,000
Net cash used in investing Activities 55,000
(C) Cash flows from Financing Activities  
Inflow of Cash  
Issue of share capital25,000 
Outflow of Cash  
Redemption of Debenture10,000 
Interest on Debentures (10% of 50,000)5,00010,000
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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