Question 50 Chapter 8 -Unimax Publication Class 12 Part 2 – 2021
Table of Contents
Balance Sheets of A as on 1.1.22 and 31.12.22 were as follows:
| Liabilities | 1.1.22 | 31.12.22 | Assets | 1.1.22 | 31.12.22 |
| Creditors | 40,000 | 44,000 | Cash | 10,000 | 7,000 |
| Mr. X’s Loan | 25,000 | – | Debtors | 30,000 | 50,000 |
| Bank Loan | 40,000 | 50,000 | Stock | 40,000 | 25,000 |
| Capital | 1,25,000 | 1,53,000 | Machinery | 80,000 | 55,000 |
| Land and Building | 70,000 | 1,10,000 | |||
| 2,30,000 | 2,47,000 | 2,30,000 | 2,47,000 |
During the year a machine costing 10,000 (accumulated depreciation 3,000) was sold for 5,000. Depreciation provided during the year was 18,000. Drawings during the year were17,000. You are required to prepare cash Flow Statement.
The solution of Question 50 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31st DEC,2022
| Particulars | ₹ | ₹ | |
| A. Cash Flow from Operating Activities | |||
| Net Profit | 45,000 | ||
| Add: Depreciation | 18,000 | ||
| Loss on Sale Machinery | 2,000 | 20,000 | |
| 65,000 | |||
| Add: Increase in Current liabilities | |||
| Creditors | 4,000 | ||
| Decrease in Current Assets | 15,000 | 19,000 | 19,000 |
| Stock | 84,000 | ||
| Less: Increase in Current Assets | |||
| Debtors | (20,000) | (20,000) | |
| Purchase of Land and building | 64,000 | ||
| Cash Flow from Operating Activities | |||
| B. Cash Flow from investing Activities | |||
| Purchase of Land and Buildings | (40,000) | ||
| Sale of Machinery | 5,000 | ||
| Cash used in Investing Activities | (35,000) | ||
| C. Cash Flow from Financing Activities: | |||
| Repayment of Mrs. A’s Loan | (25,000) | ||
| Raising of Bank loan | 10,000 | ||
| Drawings | (17,000) | ||
| Cash used in Financing Activities | (32,000) | ||
| Net Decrease in cash and cash equivalents | (3,000) | ||
| Opening Cash Balance | 10,000 | ||
| Closing cash balance | 7,000 | ||
Working Notes:
CAPITAL A/C
| Particulars | ₹ | Particulars | ₹ |
| To Drawings | 17,000 | To Balance b/d | 1,25,000 |
| To balance c/d | 1,53,000 | By Net Profit (b.f.) | 45,000 |
| 1,70,000 | 1,70,000 |
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Comment if you have any Doubts.
What is the cash flow statement? why do we need to prepare?
Unimax Publication – Accountancy PSEB Class 12 – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit sharing ratio among Existing Partners )
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Unimax Publication – Accountancy PSEB (Class 12) – Part – II – Solution
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Company Accounts (Issue of Debentures)
- Chapter No. 3 – Company Accounts (Redemption of Debentures)
- Chapter No. 4 – Financial Statements of a Company
- Chapter No. 5 – Financial Statement Analysis
- Chapter No. 6 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
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