Question 49 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021
49.Following are the Balance Sheets of Mr. Anil Prepare a Cash Flow Statement.
| Liabilities | 31.3.2021 | 31.3.2022 | Assets | 31.3.2022 | 31.3.2022 |
| Capital | 3,00,000 | 2,20,000 | Fixed Assets | 3,00,000 | 2,50,000 |
| Trade Payable | 1,10,000 | 1,31,000 | Inventory | 80,000 | 60,000 |
| Outstanding Expenses | – | 16,000 | Trade Receivables | 40,000 | 42,000 |
| Bank Overdraft | 10,000 | – | Bank balance | – | 15,000 |
| 4,20,000 | 3,67,000 | 4,20,000 | 3,67,000 |
Other Information:
I. There was neither any drawings nor any capital addition during the year.
II. There was neither any Purchase nor sale of fixed assets during the year.
The solution of Question 49 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31st MARCH . 2022
| Particulars | ₹ | ₹ |
| A. Cash Flow from Operating Activities | ||
| Net Loss for the year (Note1) | (80,000) | |
| Adjustment for non-cash and non -operating items. | ||
| Add: Depreciation on Assets | 50,000 | |
| Operating profit before working Capital changes | (30,000) | |
| Add: Decrease in Current Assets: | ||
| Inventory | 20,000 | |
| Increase in Current liabilities | ||
| Trade Payable | 21,000 | |
| Outstanding Expenses | 16,000 | |
| 27,000 | ||
| Less: Increase in Current Assets: | ||
| Trade Receivables | 2,000 | |
| Net Cash from Operating Activities | 25,000 | 25,000 |
| B. Cash Flow from investing Activities | Nil | |
| C. Cash Flow from Financing Activities: | ||
| Repayment of Bank Overdraft | (10,000) | |
| Net Cash used in Financing Activities | (10,000) | (10,000) |
| Net Increase in cash and cash equivalents | 15,000 | |
| Add Cash and cash equivalents in the beginning of the period | – | |
| Cash and cash equivalents at the End of the period | 15,000 |
Notes:
(1) No information is given in the question about the amount of net profit or net loss incurred during the year. As such the decrease in proprietor’s capital will be tarted as net loss:
| ₹ | |
| Opening Capital | 3,00,000 |
| Less: Closing Capital | 2,20,000 |
| Net Loss | 80,000 |
(2) Bank Overdraft will be tarted as financing activity.
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What is the cash flow statement? why do we need to prepare?
Unimax Publication – Accountancy PSEB Class 12 – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit sharing ratio among Existing Partners )
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Unimax Publication – Accountancy PSEB (Class 12) – Part – II – Solution
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Company Accounts (Issue of Debentures)
- Chapter No. 3 – Company Accounts (Redemption of Debentures)
- Chapter No. 4 – Financial Statements of a Company
- Chapter No. 5 – Financial Statement Analysis
- Chapter No. 6 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
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