Question 48 Chapter 8 -Unimax Publication Class 12 Part 2

Question 48 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021

Table of Contents

The solution of Question 48 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –

Unimax Publication – Accountancy PSEB Class 12 – Volume I – Solution

Unimax Publication – Accountancy PSEB (Class 12) – Part – II – Solution

48. From the following particulars of Mr. Ram (a Proprietor), prepare a cash Flow Statement as per AS-3, (Revised).

BALANCE SHEETS

Liabilities	31.3.2021	31.3.2022	Assets	31.3.2022	31.3.2022
Creditors	30,000	42,000	Cash at Bank	4,000	5,000
Mr. X’s Loan	5,000	20,000	Debtors	35,000	40,000
Bank Loan	20,000	10,000	Stock	20,000	25,000
Capital	1,50,000	1,60,000	Land	25,000	36,000
Depreciation Provision	10,000	15,000	Building	50,000	55,000
			Machinery	81,000	86,000
	2,15,000	2,47,000		2,15,000	2,47,000

Additional Information:
During the year 2021 Mr. Ram had drawn 21,000 for domestic use and a part of the machine costing 10,000 (accumulated depreciation thereon 8,000) was sold for 5,000.

The solution of Question 48 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –

CASH FLOW STATEMENT (INDIRECT METHOD)
FOR THE YEAR ENDED 31.3.2022(AS-3(REVISED)

Particulars		₹	₹
(A)cash flow from operating activities
Net Profit before tax and extraordinary items		31,000
Adjustment for:
Depreciation on Machine		13,000
Gain on Sale of Machine		(3,000)
Operating profit before working Capital changes		41,000
Add: Increase in Current Liabilities:
Creditors		12,000
		53,000
Less: Increase in Current Assets:
Debtors	₹ 5,000
Stock	₹ 5,000	(10,000)
Net Cash from Operating Activities		43,000	43,000
B. Cash Flow from investing Activities
Purchase of Land		(11,000)
Purchase of Machinery		(15,000)
Purchase of Building		(5,000)
Sale of Machine		5,000
Net Cash used in investing Activities		(26,000)	(26,000)
C. Cash Flow from Financing Activities:
Funds from Raising Loan from Mr. X		15,000
Repayment of Bank Loan		(10,000)
Drawings of X		(21,000)
Net Cash used in Financing Activities		(16,000)	(16,000)
Net Increase in cash and cash equivalents			1,000
Cash and cash equivalents at the beginning of the period			4,000
Cash and cash equivalents at the End of the period			5,000

Working Notes:

CAPITAL ACCCOUNT

Particulars	₹	Particulars	₹
To Bank A/c	21,000	By Balance c/d	1,50,000
To Balance C/d	1,60,000	By Profit and Loss, A/c	31,000
	1,81,000		1,81,000
		By Balance b/d	1,60,000

MACHINERY ACCCOUNT

Particulars	₹	Particulars	₹
To Balance b/d	81,000	By Provision for Depreciation A/c	8,000
To Gain on Sale of Machinery	3,000	By Bank A/c (Sale)	5,000
To Bank A/c (b/f) (Purchase)	15,000	By Balance c/d	86,000
	99,000		99,000

PROVISION FOR DEPRECIATION ACCCOUNT

Particulars	₹	Particulars	₹
To Machinery A/c	8,000	By Depreciation b/d	10,000
Bank Balance c/d	15,000	By Depreciation A/c	13,000
		(Depreciation during the year)
	23,000		23,000
		By Balance b/d	15,000

Alternatively, Machinery Account and Machinery Sold Account can be Clubbed Together.

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MACHINERY ACCCOUNT

Particulars	₹	Particulars	₹
To Balance b/d	81,000	By Machinery Sold A/c	10,000
To Bank A/c (Purchase)	15,000	By Balance c/d	86,000
	96,000		96,000
To Balance b/d	86,000

PROVISION FOR DEPRECIATION ACCCOUNT

Particulars	₹	Particulars	₹
To Machinery A/c	8,000	By Balance b/d	10,000
Bank Balance c/d	15,000	By Depreciation A/c	13,000
		(Depreciation during the year)
	23,000		23,000
		By Balance b/d	15,000

MACHINERY ACCCOUNT

Particulars	₹	Particulars	₹
To Machinery A/c	10,000	By Provision for Depreciation A/c	8,000
To Gain on Sale of Machinery	3,000	By Bank A/c	5,000
	13,000		13,000