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

Question 48 Chapter 5 of +2-B

Question 48 Chapter 5 of +2-B

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:

  1. The company paid Interest Rs 36,000 on its long-term borrowings.
  2. Depreciation charged on tangible fixed assets was Rs 1,20,000

 

The solution of Question 48 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 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

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

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