Question 45 Chapter 5 of +2-B
Table of Contents
45. From the following Balance Sheet of Kumar Ltd. as at 31st March, 2019, prepare Cash Flow Statement:
| Particulars | Note No. | 31st March, | 31st March, |
| 2019 Rs | 2018 Rs | ||
| I. EQUITY AND LIABILITIES | |||
| 1. Shareholders’ Funds | |||
| (a) Share Capital | 1 | 16,00,000 | 10,40,000 |
| (b) Reserves and Surplus | 2 | 5,50,000 | 2,60,000 |
| 2. Non-Current Liabilities | |||
| Long-term Borrowings | |||
| 9% Debentures | 4,00,000 | 6,00,000 | |
| 3. Current Liabilities | |||
| (a) Trade Payables | 4,50,000 | 1,00,000 | |
| Total | 30,00,0000 | 20,00,000 | |
| II. ASSETS | |||
| 1. Non-Current Assets | |||
| Fixed Assets | 20,00,000 | 15,00,000 | |
| 2. Current Assets | |||
| (a)Inventories | 3,00,000 | 2,00,000 | |
| (b) Trade Receivables | 2,00,000 | 1,00,000 | |
| (c) Cash and Cash Equivalents | 5,00,000 | 2,00,000 | |
| Total | 30,00,000 | 20,00,000 |
Notes to Accounts
| Particulars | 31st March, | 31st March, 2018 (Rs) |
| 2019 (Rs) | ||
| 1. Share Capital | ||
| Equity Share Capital | 15,00,000 | 10,00,000 |
| 7% Preference Share Capital | 1,00,000 | 40,000 |
| 16,00,000 | 10,40,000 | |
| 2. Reserves and Surplus | ||
| General Reserve | 4,00,000 | 60,000 |
| Surplus, i.e., Balance in Statement of Profit and Loss | 1,50,000 | 2,00,000 |
| 5,50,000 | 2,60,000 |
Additional Information:
1. During a year, a machinery costing 20,000 was sold for 6,000.
2. Dividend paid during the year 50,000.
The solution of Question 45 Chapter 4 of +2-B: –
Cash Flow Statement for the year ended 31st March,2019 |
||
| Particulars |
Rs |
|
| I. Cash Flow from Financing Activities | ||
| Profit as per Statement of Profit and Loss : | ||
| Closing Balance of Profit & Loss | 1,50,000 | |
| Less: Opening Balance of Profit & Loss | 2,00,000 | (50,000) |
| Transfer to General Reserve | 3,40,000 | |
| Dividend Paid | 50,000 | 3,90,000 |
| Profit Before Taxation | 3,40,000 | |
| Items to be Added: | ||
| Interest Paid | 54,000 | |
| Loss on Sale of Machinery | 14,000 | 68,000 |
| Operating Profit before Working Capital Adjustments | 4,08,000 | |
| Less: Increase in Current Assets | ||
| Inventories | 1,00,000 | |
| Trade Receivables | 1,00,000 | |
| Add: Increase in Current Liabilities | ||
| Trade Payables | 3,50,000 | 3,50,000 |
| Cash Generated from Operations | 5,58,000 | |
| Less: Tax Paid | … | |
| Net Cash Flow from Operating Activities | 5,58,000 | |
| II. Cash Flow from Financing Activities | ||
| Sale of Machinery | 6,000 | |
| Purchase of Machinery (WN II) | 5,20,000 | 5,14,000 |
| Net Cash Used in Investing Activities | 5,14,000 | |
| III: Cash Flow from Financing Activities | ||
| Proceeds from Issue of Equity Shares | 5,00,000 | |
| Proceeds from 7% Preference Shares | 60,000 | |
| Less : Dividend Paid | 50,000 | |
| Less: Redemption of 9% Debentures | 2,00,000 | |
| Less: Interest Paid | 54,000 | 2,56,000 |
| Net Cash Flow from Financing Activities | 2,56,000 | |
| IV. Net Decrease in Cash and Cash Equivalents |
3,00,000 | |
| Add: Cash and Cash Equivalents in the beginning of the period |
2,00,000 |
|
| Cash and Cash Equivalents at the end of the period |
5,00,000 | |
| Fixed Assets Account |
|||
| Particulars |
Rs | Particular | Rs |
| To Balance b/d | 15,00,000 | By Bank A/c (Sale) | 6,000 |
| To Bank A/c (Purchase) (Bal. Fig.) | 5,20,000 | By Loss on Sale (Profit and Loss A/c ) | 14,000 |
| By Balance c/d | 20,00,000 | ||
| 20,20,000 | 20,20,000 | ||
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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)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
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
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