Question 45 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021
Table of Contents
45. From the following balance sheet of Shri Ltd., prepare Cash flow statement as per AS-3(Revises).
BALANCE SHEET
| Particulars | 31.3.2022 | 31.3.2021 |
| I. Equity and liabilities | ||
| (1) Shareholders’ funds | ||
| (a)Share Capital (Note1) | 8,50,000 | 4,60,000 |
| (b)Reserves and surplus (note2) | 1,70,000 | 2,40,000 |
| (2) Non- Current Liabilities (10% Debentures) | 1,80,000 | 2,00,000 |
| (3) Current Liabilities | – | – |
| Total | 12,00,000 | 9,00,000 |
| B. Assets | ||
| (1) Non-Current Assets | ||
| Tangible Fixed Assets | 7,00,000 | 5,00,000 |
| (2) Current Assets | ||
| Inventories | 2,50,000 | 2,10,000 |
| Trade Receivables | 1,90,000 | 1,40,000 |
| Cash &Cash Equivalents | 60,000 | 50,000 |
| Total | 12,00,000 | 9,00,000 |
NOTE 1: SHARE CAPITAL
| Particulars | 31.3.2022 ₹ | 31.3.2021 ₹ |
| Equity Share Capital | 7,50,000 | 4,00,000 |
| 8% Pref. Share Capital | 1,00,000 | 60,000 |
| 8,50,000 | 4,60,000 |
NOTE 2: RESERVES AND SURPLUS
| Particulars | 31.3.2022 ₹ | 31.3.2021 ₹ |
| General Reserve | 50,000 | 70,000 |
| Statement of Profit and Loss A/c | 1,20,000 | 1,70,000 |
| 1,70,000 | 2,40,000 |
Additional Information: During the year a machine costing 70,000(Depreciation provided thereon 10,000) was sold for 50,000, Dividend paid 80,000. Depreciation provided during the year 20,000.
The solution of Question 45 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31st MARCH . 2022
| Particulars | ₹ | ₹ |
| I. cash flow from operating activities | ||
| A.net profit before tax | 10,000 | |
| B. Adjustment for Non-Cash and Non-Operating items: | ||
| Interest on Debentures (2,00,000 x10/100) | 20,000 | |
| 8% Dividend on Pref. Share | 4,800 | |
| Loss on Sale of Machinery | 10,000 | |
| Depreciation | 20,000 | |
| C. Operating profit before working capital changes (A+B) | 64,800 | |
| D. Changes in Current Assets &Current Liabilities | ||
| Increase in Inventories | (40,000) | |
| Increase in Trade Receivables | (50,000) | (90,000) |
| E. Net Cash inflow from Operating Activities before Tax | (25,200) | |
| Less. Income taxes paid | – | |
| F. Net Cash used in Operating Activities | (30,000) | |
| 2.Cash Flows from Investing Activities: | ||
| Sale of Fixed Assets | 50,000 | |
| Purchase of Fixed Assets | (280,000) | |
| Net cash used in from Investing Activities | (2,30,000) | |
| 3.Cash Flow from Financing Activities: | ||
| 8% Dividend on Pref. Share | (4,800) | |
| Issue of Equity Share Capital | 3,50,000 | |
| Issue of Preference Shares | 40,000 | |
| Redemption of Debentures | (20,000) | |
| Interest paid on Debentures | (20,000) | |
| Dividend paid | (80,000) | |
| Net Cash Inflow from Financing Activities | 2,65,200 | |
| Net Cash inflow in cash and cash Equivalents (1+2+3) | 10,000 | |
| 5. cash and cash Equivalents at the Beginning of period | 50,000 | |
| 6.Cash and Cash Equivalents at end of Period (4+5) | 60,000 |
Working Notes:
| 1.Calculation of net profit before tax | ₹ |
| Closing Balance of profit &loss A/c | 1,20,000 |
| Less: Opening Balance of P&L A/c | (1,70,000) |
| Add: Dividend paid | 80,000 |
| Less: Transfer from Reserve (50,000 -70,000) | (20,000) |
| Net profit before tax | 10,000 |
2.FIXED ASSETS ACCCOUNT
| Particulars | ₹ | Particulars | ₹ |
| TO Balance b/d | 5,00,000 | By Bank A/c (Sale) | 50,000 |
| To Bank A/c (Purchase) (b. f) | 2,80,000 | By P& L A/c (Loss) | 10,000 |
| BY Depreciation A/c | 20,000 | ||
| By Balance c/d | 700,000 | ||
| 7,80,000 | 7,80,000 |
3. Assumption: Debentures redeemed at the end of year.
Thanks, Please Like and share with your friends
Comment if you have any Doubts.
What is the cash flow statement? why do we need to prepare?
Unimax Publication – Accountancy PSEB Class 12 – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit sharing ratio among Existing Partners )
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Unimax Publication – Accountancy PSEB (Class 12) – Part – II – Solution
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Company Accounts (Issue of Debentures)
- Chapter No. 3 – Company Accounts (Redemption of Debentures)
- Chapter No. 4 – Financial Statements of a Company
- Chapter No. 5 – Financial Statement Analysis
- Chapter No. 6 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2023@ Official Website of Sultan Chand Publication
