Question 47 Chapter 5 of +2-B - USHA Publication 12 Class

Question 47 Chapter 5 of +2-B

Table of Contents

47. (CFS Showing Operating, Investing & Financing Activities/Proposed Dividend) From the following particular prepare cash flow statement.

Particulars	Note No.	31st March,2018	31st March, 2017
I. Equity and Liabilities
Shareholders Fund :
Equity Share Capital		1,50,000	1,00,000
Reserves and surplus
Balance in Statement of Profit and Loss		1,00,000	75,000
Current Liabilities
Short-Term Borrowings :
Bank overdraft		25,000	15,000
Provision
Provision for Taxation		15,000	10,000
Total		2,90,000	2,00,000
Assets
Non-current Assets
Tangible Assets
Fixed assets		1,00,000	1,00,000
Less: accumulated depreciation		-25,000	-20,000
Current Assets
Stock		70,000	30,000
Trade Receivable		85,000	45,000
Cash at bank		30,000	25,000
Cash in hand		30,000	20,000
Total		2,90,0000	2,00,000

Additional Information	Current Year	Previous Year
Proposed Dividend	15,000	10,000

The solution of Question 47 Chapter 5 of +2-B: –

Cash Flow Statement
Particulars		Rs
(A) Cash Flow from Operating Activities
Closing balance of Profit and Loss	1,00,000
Less: Opening balance of Profit and Loss	75,000
Net profit of the year after appropriation	25,000
Add: Provision for Taxation	10,000
Add: Proposed dividend (previous year)	10,000
Net profit before Taxation and extra-ordinary items	50,000
Adjustment for Non-cash and Non-operating
Add: deprecation	5,000
Cash operating Profit before Working Capital adj.	55,000
Less: Increase in current Assets:
Trade Receivable	40,000
Stock	40,000
Less: Tax Paid	10,000
Cash used in Operating Activities		(35,000)
(B) Cash flows from Investing Activities
Net cash used in investing Activities		Nil
(C) Cash flows from Financing Activities
Inflow of Cash
Share Capital Issued	50,000
Bank overdraft	10,000
Outflow of Cash
Dividend paid	10,000	50,000
Net cash flow from financing activities		50,000
Total Cash flow (A + B + C)		15,000
Opening Balance Cash		30000
Closing Balance Cash		35000