Question 46 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 46 Chapter 5 of +2-B

Question 46 Chapter 5 of +2-B

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)

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

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