Question 46 Chapter 5 of +2-B
Table of Contents
46. Following was the Balance Sheet of M.M. Ltd. as at 31st March, 2015:
| Balance Sheet as at 31st March,2015 | |||
| Particulars | Note No. | 31st March, 2015 Rs | 31st March, 2014 Rs |
| I. EQUITY AND LIABILITIES | |||
| 1. Shareholders’ Funds | |||
| (a) Share Capital | 5,00,000 | 4,00,000 | |
| (b) Reserves and Surplus | 1 | 2,00,000 | -50,000 |
| 2. Non-Current Liabilities | |||
| Long-term Borrowings | 2 | 4,50,000 | 5,00,000 |
| 3. Current Liabilities | |||
| (a) Short-term Borrowings | 3 | 1,50,000 | 50,000 |
| (b) Short-term Provisions | 4 | 70,000 | 90,000 |
| Total | 13,70,000 | 9,90,000 | |
| II. ASSETS | |||
| 1. Non-Current Assets | |||
| Fixed Assets | |||
| (i) Tangible Assets | 5 | 10,03,000 | 7,20,000 |
| (ii) Intangible Assets | 6 | 20,000 | 30,000 |
| (b) Non-Current Investments | 1,00,000 | 75,000 | |
| 2. Current Assets | |||
| (a)Current Investments | 50,000 | 60,000 | |
| (b) Inventories | 7 | 1,07,000 | 45,000 |
| (c) Cash and Cash Equivalents | 90,000 | 60,000 | |
| Total | 13,70,000 | 9,90,000 | |
Notes to Accounts
| Particulars | 31st March, 2015 (Rs) | 31st March, 2014 (Rs) |
| 1. Reserves and Surplus | ||
| Surplus, i.e., Balance in Statement of Profit and Loss | 2,00,000 | -50,000 |
| 2,00,000 | -50,000 | |
| 2. Long-term Borrowings | ||
| 12% Debentures | 4,50,000 | 5,00,000 |
| 4,50,000 | 5,00,000 | |
| 3. Short-term Borrowings | ||
| Bank Overdraft | 1,50,000 | 50,000 |
| 1,50,000 | 50,000 | |
| 4. Short-term Provisions | ||
| Provision for Tax | 70,000 | 90,000 |
| 70,000 | 90,000 | |
| 5. Tangible Assets | ||
| Machinery | 12,03,000 | 8,21,000 |
| Less: Accumulated Depreciation | (2,00,000) | (1,01,000) |
| 10,03,000 | 7,20,000 |
Notes to Accounts :-
| Particulars | 31st March, 2015 (Rs) | 31st March, 2014 (Rs) |
| 6. Intangible Assets | ||
| Goodwill | 20,000 | 50,000 |
| 20,000 | 50,000 | |
| 7. Inventories | ||
| Stock-in-Trade | 1,07,000 | 45000 |
| 1,07,000 | 45,000 |
Additional Information:
1. 12% Debentures were redeemed on 31st March, 2015.
2. Tax 70,000 was paid during the year.
Prepare Cash Flow Statement.
The solution of Question 46 Chapter 4 of +2-B: –
Cash Flow Statement for the year ended 31st March,2015 |
||
| Particulars |
Rs |
|
| I. Cash Flow from Financing Activities | ||
| Profit as per Statement of Profit and Loss : | ||
| Closing Balance of Profit & Loss | 2,00,000 | |
| Less: Opening Balance of Profit & Loss | (50,000) | 2,50,000 |
| Profit Before Taxation | 2,50,000 | |
| Items to be Added: | ||
| Depreciation | 99,000 | |
| Intangible Assets Written off | 10,000 | |
| Interest on Debentures | 60,000 | |
| Provision for Tax | 50,000 | 2,19,000 |
| Operating Profit before Working Capital Adjustments | 4,69,000 | |
| Less: Increase in Current Assets | ||
| Inventories | 62,000 | |
| Cash Generated from Operations | 4,07,000 | |
| Less: Tax Paid | 70,000 | |
| Net Cash Flow from Operating Activities | 3,37,000 | |
| II. Cash Flow from Financing Activities | ||
| Purchase of Fixed Assets | 3,82,000 | |
| Purchase of Non-Current Investments | 25,000 | 4,07,000 |
| Net Cash Used in Investing Activities | 4,07,000 | |
| III: Cash Flow from Financing Activities | ||
| Proceeds from Issue of Shares | 1,00,000 | |
| Redemption of Debentures | 50,000 | |
| Interest Paid on Debentures | 60,000 | |
| Increase in Bank Overdraft | 1,00,000 | 90,000 |
| Net Cash Flow from Financing Activities | 90,000 | |
| IV. Net Decrease in Cash and Cash Equivalents |
20,000 | |
| Add: Cash and Cash Equivalents in the beginning of the period |
1,20,000 |
|
| Cash and Cash Equivalents at the end of the period |
1,40,000 | |
Working Notes :- I
| Provision for Tax Account |
|||
| Particulars |
Rs | Particular | Rs |
| To Bank A/c | 70,000 | By Bank A/c (Sale) | 90,000 |
| To Balance c/d | 70,000 | By Statement of Profit and Loss | 50,000 |
| 1,40,000 | 1,40,000 | ||
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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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