Question 47 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 47 Chapter 5 of +2-B
Question No.47 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution


Question 47 Chapter 5 of +2-B


47. The Balance Sheet of Virendra Paper Ltd. as at 31st March, 2019 is given below:

ParticularsNote No. 31st March, 2019 Rs31st March, 2018 Rs 
1. Shareholders’ Funds    
(a) Share Capital 7,20,0006,00,000
(b) Reserves and Surplus   
Surplus i.e., Balance in Statement of Profit and Loss 4,80,0003,75,000
2. Non-Current Liabilities   
Long-term Borrowings 4,50,0005,00,000
10% Debentures 2,70,0004,50,000
3. Current Liabilities   
(a) Short-term Borrowings 1,20,00090,000
Total 15,90,00015,15,000
1. Non-Current Assets   
Fixed Assets (Tangible)17,50,0007,20,000
2. Current Assets   
(a)Inventories 3,60,0004,20,000
(b) Trade Receivables 3,00,0002,25,000
(c) Cash and Cash Equivalents 1,80,0001,50,000
Total 15,90,00015,15,000

Notes to Accounts

Particulars  31st March, 31st March, 2018 (Rs)
   2019 (Rs) 
1. Fixed Assets (Tangible)    
Land  2,40,0003,00,000
 31st March, 2019 (Rs)31st March,  
  2018  (Rs)  
Plant and Machinery7,50,0006,00,000  
Less: Accumulated Depreciation2,40,0001,80,000  

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
I. Cash Flow from Financing Activities  
Profit as per Statement of Profit and Loss :  
Closing Balance of Profit & Loss4,80,000 
Less: Opening Balance of Profit & Loss3,75,000 
Add : Interim Dividend75,0001,80,000
Profit Before Taxation 1,80,000
Items to be Added:  
Interest Paid on Debentures27,000 
Operating Profit before Working Capital Adjustments 2,67,000
Less: : Increase in Current Assets  
Trade Receivables75,000 
Add: Increase in Current Liabilities  
Trade Payables30,000 
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 Land60,000 
Purchase of Machinery1,50,00090,000
Net Cash Used in Investing Activities 90,000
III: Cash Flow from Financing Activities  
Proceeds from Issue of Share Capital1,20,000 
Redemption of 10% Debentures1,80,000 
Interim Dividend Paid75,000 
Interest Paid on Debentures27,0001,62,000
Net Cash Flow from Financing Activities 1,62,000
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



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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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