Question 50 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 50 Chapter 5 of +2-B

Question 50 Chapter 5 of +2-B

50. Prepare Cash Flow Statement from the following Balance Sheet:

Particulars Note No.  31st March, 2013 Rs 31st March, 2012 Rs 
I. EQUITY AND LIABILITIES      
1. Shareholders’ Funds       
(a) Share Capital   6,00,000 5,00,000
(b) Reserves and Surplus 1 4,00,000 2,00,000
2. Current Liabilities      
Trade Payables   2,80,000 1,80,000
Total   12,80,000 8,80,000
II. ASSETS      
1. Non-Current Assets      
Fixed Assets:       
Plant and Machinery   5,00,000 3,00,000
2. Current Assets      
(a) Inventories   1,00,000 1,50,000
(b) Trade Receivables   6,00,000 4,00,000
(c) Cash and Cash Equivalents   80,000 30,000
Total   12,80,000 8,80,000

Notes to Accounts

Particulars 31st March, 31st March,
  2013 ( Rs) 2012 ( Rs)
1. Reserves and Surplus    
Surplus, i.e., Balance in Statement of Profit and Loss 4,00,000 2,00,000
  4,00,000 2,00,000

Additional Information:

  1. An old machinery having book value of Rs 50,000 was sold for Rs 60,000.
  2. Depreciation provided on Machinery during the year was Rs 30,000.

 

The solution of Question 50 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 4,00,000  
Less: Opening Balance of Profit & Loss 2,00,000 2,00,000
Net Profit before tax and extraordinary items   2,00,000
Items to be Added:    
Depreciation 30,000  
Items to be Deducted:    
Profit on Sale of Machinery 10,000 20,000
Net Profit before Working Capital changes   2,20,000
Add: Increase in Current Liabilities    
Trade Payables 1,00,000  
Add: Decrease in Current Assets    
Inventories 50,000  
Less: Increase in Current Assets    
Trade Receivables 2,00,000  
Cash Generated from Operations   1,70,000
Less: Tax Paid  
Net Cash Flow from Operating Activities   1,70,000
II. Cash Flow from Financing Activities    
Purchase of Machinery 60,000  
Short term loans and advances given 2,80,000 2,20,000
Net Cash Used in Investing Activities   2,20,000
III: Cash Flow from Financing Activities    
Issue of Share Capital 1,00,000 1,00,000
Net Cash Flow from Financing Activities   1,00,000
IV. Net Decrease in Cash and Cash Equivalents
  50,000
Add: Cash and Cash Equivalents in the beginning of the period
  30,000
Cash and Cash Equivalents at the end of the period
  80,000

 

Plant and Machinery Account
Particulars
Rs Particular Rs
To Balance b/d 3,00,000 By Depreciation A/c 1,20,000
To Profit on Sale of Machinery (Profit &
Loss A/c)
10,000 By Bank (Sales) 60,000
To Bank A/c (Bal. Fig. – Purchase) 2,80,000 By Balance c/d 5,00,000
  5,90,000   5,90,000

 

 

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

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