Question 47 Chapter 5 of +2-B
Table of Contents
47. The Balance Sheet of Virendra Paper Ltd. as at 31st March, 2019 is given below:
Particulars | Note No. | 31st March, 2019 Rs | 31st March, 2018 Rs |
I. EQUITY AND LIABILITIES | |||
1. Shareholders’ Funds | |||
(a) Share Capital | 7,20,000 | 6,00,000 | |
(b) Reserves and Surplus | |||
Surplus i.e., Balance in Statement of Profit and Loss | 4,80,000 | 3,75,000 | |
2. Non-Current Liabilities | |||
Long-term Borrowings | 4,50,000 | 5,00,000 | |
10% Debentures | 2,70,000 | 4,50,000 | |
3. Current Liabilities | |||
(a) Short-term Borrowings | 1,20,000 | 90,000 | |
Total | 15,90,000 | 15,15,000 | |
II. ASSETS | |||
1. Non-Current Assets | |||
Fixed Assets (Tangible) | 1 | 7,50,000 | 7,20,000 |
2. Current Assets | |||
(a)Inventories | 3,60,000 | 4,20,000 | |
(b) Trade Receivables | 3,00,000 | 2,25,000 | |
(c) Cash and Cash Equivalents | 1,80,000 | 1,50,000 | |
Total | 15,90,000 | 15,15,000 |
Notes to Accounts
Particulars | 31st March, | 31st March, 2018 (Rs) | ||
2019 (Rs) | ||||
1. Fixed Assets (Tangible) | ||||
Land | 2,40,000 | 3,00,000 | ||
31st March, 2019 (Rs) | 31st March, | |||
2018 (Rs) | ||||
Plant and Machinery | 7,50,000 | 6,00,000 | ||
Less: Accumulated Depreciation | 2,40,000 | 1,80,000 | ||
5,10,000 | 4,20,000 | 5,10,000 | 4,20,000 | |
7,50,000 | 7,20,000 |
Additional Information:
1. Interim Dividend of 75,000 has been paid during the year.
2. Debenture Interest paid during the year 27,000.
You are required to prepare Cash Flow Statement.
The solution of Question 47 Chapter 4 of +2-B: –
Cash Flow Statement for the year ended 31st March,2019 |
||
Particulars |
Rs |
|
I. Cash Flow from Financing Activities | ||
Profit as per Statement of Profit and Loss : | ||
Closing Balance of Profit & Loss | 4,80,000 | |
Less: Opening Balance of Profit & Loss | 3,75,000 | |
Add : Interim Dividend | 75,000 | 1,80,000 |
Profit Before Taxation | 1,80,000 | |
Items to be Added: | ||
Interest Paid on Debentures | 27,000 | |
Depreciation | 60,000 | 87,000 |
Operating Profit before Working Capital Adjustments | 2,67,000 | |
Less: : Increase in Current Assets | ||
Trade Receivables | 75,000 | |
Add: Increase in Current Liabilities | ||
Trade Payables | 30,000 | |
Inventories | 60,000 | |
Cash Generated from Operations | 2,82,000 | |
Less: Tax Paid | … | |
Net Cash Flow from Operating Activities | 2,82,000 | |
II. Cash Flow from Financing Activities | ||
Sale of Land | 60,000 | |
Purchase of Machinery | 1,50,000 | 90,000 |
Net Cash Used in Investing Activities | 90,000 | |
III: Cash Flow from Financing Activities | ||
Proceeds from Issue of Share Capital | 1,20,000 | |
Redemption of 10% Debentures | 1,80,000 | |
Interim Dividend Paid | 75,000 | |
Interest Paid on Debentures | 27,000 | 1,62,000 |
Net Cash Flow from Financing Activities | 1,62,000 | |
IV. Net Decrease in Cash and Cash Equivalents |
30,000 | |
Add: Cash and Cash Equivalents in the beginning of the period |
1,50,000 |
|
Cash and Cash Equivalents at the end of the period |
1,80,000 |
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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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