Question 48 Chapter 5 of +2-B - T.S. Grewal 12 Class

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

Question 48 Chapter 5 of +2-B

Table of Contents

48. Following are the Balance Sheets of Krishtec Ltd. for the years ended 31st March 2012 and 2011:

Particulars	Note No.	31st March, 2012 Rs	31st March, 2011 Rs
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital		12,00,000	8,00,000
(b) Reserves and Surplus
Surplus i.e., Balance in Statement of Profit and Loss		3,50,000	4,00,000
2. Non-Current Liabilities
Long-term Borrowings		4,40,000	3,50,000

3. Current Liabilities
Trade Payables		60,000	50,000
Total		20,50,000	16,00,000
II. ASSETS
1. Non-Current Assets
Fixed Assets
Tangible Assets		12,00,000	9,00,000
2. Current Assets
(a) Inventories		2,00,000	1,00,000
(b) Trade Receivables		3,10,000	2,30,000
(c) Cash and Cash Equivalents		3,40,000	3,70,000
Total		20,50,000	16,00,000

Prepare a Cash Flow Statement after taking into account the following adjustments:

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	3,50,000
Less: Opening Balance of Profit & Loss	4,00,000	(50,000)
Profit Before Taxation		(50,000)
Items to be Added:
Depreciation	1,20,000
Interest	36,000	1,56,000
Operating Profit before Working Capital Adjustments		1,06,000
Less: Increase in Current Assets
Inventories	1,00,000
Trade Receivables	80,000
Add: Increase in Current Liabilities
Trade Payables	10,000	1,70,000
Cash Generated from Operations		64,000
Less: Tax Paid		…
Net Cash Flow from Operating Activities		64,000
II. Cash Flow from Financing Activities
Purchase of Tangible Fixed Assets (WN I)		4,20,000
Net Cash Used in Investing Activities		4,20,000
III: Cash Flow from Financing Activities
Proceeds from Issue of Shares	4,00,000
Proceeds from Long Term Borrowings	90,000
Interest Paid	36,000	4,54,000
Net Cash Flow from Financing Activities		4,54,000
IV. Net Decrease in Cash and Cash Equivalents		(30,000)
Add: Cash and Cash Equivalents in the beginning of the period		3,70,000
Cash and Cash Equivalents at the end of the period		3,40,000

Working Notes :- I

Fixed (Tangible) Assets Account
Particulars	Rs	Particular	Rs
To Balance b/d	9,00,000	By Depreciation A/c	1,20,000
To Bank A/c (Bal. Fig.)	4,20,000	By Balance c/d	12,00,000
	13,20,000		13,20,000