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Question 49 Chapter 5 of +2-B
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Table of Contents
49. From the following Balance Sheet of JY Ltd. as at 31st March 2017, prepare a Cash Flow Statement:
| JY Ltd. | |||
| Balance Sheet as at 31st March, 2017 | |||
| Particulars | Note No. | 31st March, 2017 Rs | 31st March, 2016 Rs |
| I. EQUITY AND LIABILITIES | |||
| 1. Shareholders’ Funds | |||
| (a) Share Capital | 5,00,000 | 5,00,000 | |
| (b) Reserves and Surplus | 1 | 1,00,000 | -25,000 |
| 2. Non-Current Liabilities | |||
| Long-term Borrowings | 2 | 2,50,000 | 1,50,000 |
| 3. Current Liabilities | |||
| (a) Short-term Borrowings | 3 | 1,50,000 | 1,00,000 |
| (b) Short-term Provisions | 4 | 1,25,000 | 75,000 |
| Total | 11,25,000 | 8,00,000 | |
| II. ASSETS | |||
| 1. Non-Current Assets | |||
| Fixed Assets-Tangible | 5 | 6,00,000 | 4,50,000 |
| 2. Current Assets | |||
| (a) Trade Receivables | 2,75,000 | 2,25,000 | |
| (b) Cash and Cash Equivalents | 50,000 | 25,000 | |
| (c) Short-term Loans and Advances | 2,00,000 | 1,00,000 | |
| Total | 11,25,000 | 8,00,000 | |
Notes to Accounts
| Particulars | 31st March, 2017( Rs) | 31st March,2016 ( Rs) |
| 1. Reserves and Surplus | ||
| Surplus, i.e., Balance in Statement of Profit and Loss | 1,00,000 | -25,000 |
| 1,00,000 | -25,000 | |
| 2. Long-term Borrowings | ||
| 10% Debentures | 2,50,000 | 1,50,000 |
| 2,50,000 | 1,50,000 | |
| 3. Short-term Borrowings | ||
| Bank Overdraft | 1,50,000 | 1,00,000 |
| 1,50,000 | 1,00,000 | |
| 4. Short-term Provisions | ||
| Provision for Tax | 1,25,000 | 75,000 |
| 1,25,000 | 75,000 | |
| 5. Tangible Assets | ||
| Machinery | 7,37,500 | 5,25,000 |
| Accumulated Depreciation | (1,37,500) | -75,000 |
| 6,00,000 | 4,50,000 |
Note: Proposed Dividend for the years ended 31st March, 2016 and 2017 are Rs 50,000 and Rs 75,000 respectively.
Additional Information: Rs 1,00,000, 10% Debentures were issued on 31st March, 2017
The solution of Question 49 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 | 1,00,000 | |
| Less: Opening Balance of Profit & Loss | (25,000) | 1,25,000 |
| Profit Before Taxation | 1,25,000 | |
| Proposed Dividend | 50,000 | 1,75,000 |
| Net Profit before tax and extraordinary items | 3,00,000 | |
| Items to be Added: | ||
| Depreciation | 62,500 | |
| Interest paid on 10% debentures | 15,000 | 77,500 |
| Net Profit before Working Capital changes | 3,77,500 | |
| Less: Increase in Current Assets | ||
| Trade Receivables | 50,000 | 50,000 |
| Cash Generated from Operations | 3,27,500 | |
| Less: Tax Paid | 75,000 | |
| Net Cash Flow from Operating Activities | 2,52,500 | |
| II. Cash Flow from Financing Activities | ||
| Purchase of Machinery | 2,12,500 | |
| Short term loans and advances given | 1,00,000 | 3,12,500 |
| Net Cash Used in Investing Activities | 3,12,500 | |
| III: Cash Flow from Financing Activities | ||
| Proceeds from issue of 10% debentures | 1,00,000 | |
| Increase in the Bank Overdraft | 50,000 | |
| Interest paid on debentures | 15,000 | |
| Proposed Dividend paid | 50,000 | 85,000 |
| Net Cash Flow from Financing Activities | 85,000 | |
| IV. Net Decrease in Cash and Cash Equivalents | 25,000 | |
| Add: Cash and Cash Equivalents in the beginning of the period | 25,000 | |
| Cash and Cash Equivalents at the end of the period | 50,000 | |
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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)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
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
