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Question 45 Chapter 8 -Unimax Publication Class 12 Part 2 – 2021

Question 45 Chapter 8 -Unimax Publication Class 12 Part 2 - 2021
Question 45 Chapter 8 -Unimax Publication Class 12 Part 2 - 2021

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Question 45 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021

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45. From the following balance sheet of Shri Ltd., prepare Cash flow statement as per AS-3(Revises).

BALANCE SHEET

Particulars31.3.202231.3.2021
I. Equity and liabilities  
(1) Shareholders’ funds  
(a)Share Capital (Note1)8,50,0004,60,000
(b)Reserves and surplus (note2)1,70,0002,40,000
(2) Non- Current Liabilities (10% Debentures)1,80,0002,00,000
(3) Current Liabilities 
Total12,00,0009,00,000
B. Assets  
(1) Non-Current Assets  
Tangible Fixed Assets7,00,0005,00,000
(2) Current Assets  
Inventories2,50,0002,10,000
Trade Receivables1,90,0001,40,000
Cash &Cash Equivalents60,00050,000
Total12,00,0009,00,000

NOTE 1: SHARE CAPITAL

Particulars31.3.2022 ₹31.3.2021 ₹
Equity Share Capital7,50,0004,00,000
8% Pref. Share Capital1,00,00060,000
 8,50,0004,60,000

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NOTE 2: RESERVES AND SURPLUS

Particulars31.3.2022 ₹31.3.2021 ₹
General Reserve50,00070,000
Statement of Profit and Loss A/c1,20,0001,70,000
 1,70,0002,40,000

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/c1,20,000
Less: Opening Balance of P&L A/c(1,70,000)
Add: Dividend paid80,000
Less: Transfer from Reserve (50,000 -70,000)(20,000)
Net profit before tax10,000

2.FIXED ASSETS ACCCOUNT

ParticularsParticulars
TO Balance b/d5,00,000By Bank A/c (Sale)50,000
To Bank A/c (Purchase) (b. f)2,80,000By P& L A/c (Loss)10,000
  BY Depreciation A/c20,000
  By Balance c/d700,000
 7,80,000 7,80,000

3. Assumption: Debentures redeemed at the end of year.

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Unimax Publication – Accountancy PSEB Class 12 – Volume I – Solution

Unimax Publication – Accountancy PSEB (Class 12) – Part – II – Solution

Check out T.S. Grewal +2 Book 2023@ Official Website of Sultan Chand Publication

 

 

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