Question 49 Chapter 5 of +2-B

Question 49 Chapter 5 of +2-B

PREPARING OF CASH FLOW STATEMENT (WITHOUT ADJUSTMENT)

49. (CFS Showing Operating, Investing & Financing Activities) From the following Balance Sheets, prepare a Cash Flow Statement :

ParticularsNote No.31st March,201831st March,2018
I. Equity and Liabilities   
 Shareholders Fund :    
Equity Share Capital 2,00,0001,50,000
12% Preference Share Capital 50,00075,000
Reserves and surplus    
General Reserve  35,00020,000
Balance in Statement of Profit and Loss  24,00015,000
III. Current Liabilities    
Trade Payable  49,50037,500
  3,58,5002,97,500
II. Assets    
Non-Current Assets :    
Tangible Assets    
Building  60,00080,000
Plant  1,00,00040,000
Intangible Assets :    
Goodwill  20,00036,000
Current Assets    
Inventories  15,00010,000
Trade Receivable  1,54,5001,19,000
Cash and Cash Equivalents    
Cash in hand  9,00012,500
  3,58,0002,97,500

Prepare a Cash Flow Statement.

The solution of Question 49 Chapter 5 of +2-B: – 

Cash Flow Statement of Hitesh Ltd.
Particulars
Rs
(A) Cash Flow from Operating Activities  
Net Profit before taxation  
Profit as per the statement9,000 
Add: Transfer to General Reserve15,00024,000
Adjustments of Non-cash or Non-Operating Items :  
Add: Depreciation on Plant10,000 
Depreciation on Building60,000 
Goodwill amortize16,00086,000
Cash operating Profit before Working Capital adj. 1,10,000
Add: Increase in Current Liabilities  
Trade Payable12,000 
Less: Increase in Current Assets  
Trade Receivable35,500 
Inventories5,00028,500
Cash used in Operating Activities 81,500
(B) Cash flows from Investing Activities  
Outflow of Cash  
Purchase of Building*40,000 
Purchase of Plant**70,0001,10,000
Net cash used in investing Activities 1,10,000
(C) Cash flows from Financing Activities  
Inflow of Cash  
Share Capital Issued50,000 
Outflow of Cash  
Redemption of 10% Preference Shares25,00025,000
Net cash flow from financing activities 25,000
Net decrease in cash & Cash equivalents (A + B + C) 3,500
Add: cash equivalent in the beginning of year 12,500
Cash equivalent at the end of year 9,000

Working Note

Building Amount *
Particulars
Amount ₹
Particulars
Amount ₹
To Balance b/d80,000
By Depreciation
60,000
To Bank –Purchase (Bal. fig.)40,000By Balance c/d60,000
 1,20,000 1,20,000

 

Plant Amount *
Particulars
Amount ₹
Particulars
Amount ₹
To Balance b/d40,000
By Depreciation
10,000
To Bank –Purchase (Bal. fig.)70,000By Balance c/d1,00,000
 1,10,000 1,10,000


Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 49 Chapter 5 of +2-B  - USHA Publication 12 Class
T.S. Grewal’s Analysis of Financial Statement

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