Question 45 Chapter 5 of +2-B

Question 45 Chapter 5 of +2-B


45. (CFS from Operating Investing & Financing Activities) From the following Balance Sheets of Rajan Ltd., prepare a Cash Flow Statement :

ParticularsNote No.31st March,201831st March, 2017
I. Equity and Liabilities   
 Shareholders Fund :    
Share Capital 1,40,0001,20,000
Reserves and surplus   
General Reserve  12,0008,000
Balance in Statement of Profit and Loss  6,2007,200
Preliminary Expenses  -2,800-4,000
Current Liabilities   
Bills Payables 21,20014,000
Outstanding Expenses 15,20014,400
Provision for Tax   20,20011,200
Total 2,12,0001,70,800
II. Assets   
Non –Current Assets   
Tangible Assets   
Building  96,40076,000
Investments    14,0004,000
Intangible Assets :    
Goodwill  16,00020,000
Current Assets    
Inventories  31,20034,000
Debtors  43,20030,000
Cash and cash equivalents :    
Cash  11,2006,800

Prepare a Cash Flow Statement.

The solution of Question 45 Chapter 5 of +2-B: – 

Cash Flow Statement of Hitesh Ltd.
(A) Cash Flow from Operating Activities  
Loss as per Balance 1,000
Adjustment Non-Operating or Non-Cash items  
Add: Transfer to Reserve4,000 
Preliminary expenses are written off1,200 
Provision for tax20,200 
Goodwill wrote off4,00029,400
Cash operating Profit before Working Capital adj. 28,400
Add: Decrease in Current Assets  
Add: Increase in Current Liabilities  
Bills Payable800 
Outstanding expenses2,800 
Less: Increase in Current Assets  
Less: Payment of Tax (31.3.201711,20014,800
Cash used in Operating Activities 14,800
(B) Cash flows from Investing Activities  
Outflow of Cash  
 Purchase of Building20,400 
 Purchase of Investments10,00030,400
Net cash used in investing Activities 30,400
(C) Cash flows from Financing Activities  
Share Capital Issued20,000 
Net cash flow from financing activities 20,000
Total Cash flow (A + B + C) 4,400
Opening Balance Cash 6,800
Closing Balance Cash 11,200

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

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