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

Question 46 Chapter 5 of +2-B
Question No.46 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution


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
ParticularsNote No. 31st March, 2015 Rs31st March, 2014 Rs 
1. Shareholders’ Funds    
(a) Share Capital 5,00,0004,00,000
(b) Reserves and Surplus12,00,000-50,000
2. Non-Current Liabilities   
Long-term Borrowings24,50,0005,00,000
3. Current Liabilities   
(a) Short-term Borrowings31,50,00050,000
(b) Short-term Provisions470,00090,000
Total 13,70,0009,90,000
1. Non-Current Assets   
Fixed Assets    
(i) Tangible Assets510,03,0007,20,000
(ii) Intangible Assets620,00030,000
(b) Non-Current Investments 1,00,00075,000
2. Current Assets   
(a)Current Investments 50,00060,000
(b) Inventories71,07,00045,000
(c) Cash and Cash Equivalents 90,00060,000
Total 13,70,0009,90,000

Notes to Accounts

Particulars31st March, 2015 (Rs)31st March, 2014 (Rs)
1. Reserves and Surplus  
Surplus, i.e., Balance in Statement of Profit and Loss2,00,000-50,000
2. Long-term Borrowings  
12% Debentures4,50,0005,00,000
3. Short-term Borrowings  
Bank Overdraft1,50,00050,000
4. Short-term Provisions  
Provision for Tax70,00090,000
5. Tangible Assets  
Less: Accumulated Depreciation(2,00,000)(1,01,000)

Notes to Accounts :-

Particulars31st March, 2015 (Rs)31st March, 2014 (Rs)
6. Intangible Assets  
7. Inventories  

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
I. Cash Flow from Financing Activities  
Profit as per Statement of Profit and Loss :  
Closing Balance of Profit & Loss2,00,000 
Less: Opening Balance of Profit & Loss(50,000)2,50,000
Profit Before Taxation 2,50,000
Items to be Added:  
Intangible Assets Written off10,000 
Interest on Debentures60,000 
Provision for Tax50,0002,19,000
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 Assets3,82,000 
Purchase of Non-Current Investments25,0004,07,000
Net Cash Used in Investing Activities 4,07,000
III: Cash Flow from Financing Activities  
Proceeds from Issue of Shares1,00,000 
Redemption of Debentures50,000 
Interest Paid on Debentures60,000 
Increase in Bank Overdraft1,00,00090,000
Net Cash Flow from Financing Activities 90,000
IV. Net Decrease in Cash and Cash Equivalents
Add: Cash and Cash Equivalents in the beginning of the period
Cash and Cash Equivalents at the end of the period

Working Notes :- I

Provision for Tax Account
To Bank A/c70,000By Bank A/c (Sale)90,000
To Balance c/d70,000By Statement of Profit and Loss50,000
 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)

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)

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements




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