Question 45 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 45 Chapter 5 of +2-B

Question 45 Chapter 5 of +2-B

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

Thanks, Please Like and share with your friends  

Comment if you have any question.

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

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.