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

Question 47 Chapter 5 of +2-B

Question 47 Chapter 5 of +2-B

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)

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

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