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

Question 50 Chapter 5 of +2-B
Question No.50 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution


Question 50 Chapter 5 of +2-B


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

ParticularsNote No. 31st March, 2013 Rs31st March, 2012 Rs 
1. Shareholders’ Funds    
(a) Share Capital 6,00,0005,00,000
(b) Reserves and Surplus14,00,0002,00,000
2. Current Liabilities   
Trade Payables 2,80,0001,80,000
Total 12,80,0008,80,000
1. Non-Current Assets   
Fixed Assets:    
Plant and Machinery 5,00,0003,00,000
2. Current Assets   
(a) Inventories 1,00,0001,50,000
(b) Trade Receivables 6,00,0004,00,000
(c) Cash and Cash Equivalents 80,00030,000
Total 12,80,0008,80,000

Notes to Accounts

Particulars31st March,31st March,
 2013 ( Rs)2012 ( Rs)
1. Reserves and Surplus  
Surplus, i.e., Balance in Statement of Profit and Loss4,00,0002,00,000

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
I. Cash Flow from Financing Activities  
Profit as per Statement of Profit and Loss :  
Closing Balance of Profit & Loss4,00,000 
Less: Opening Balance of Profit & Loss2,00,0002,00,000
Net Profit before tax and extraordinary items 2,00,000
Items to be Added:  
Items to be Deducted:  
Profit on Sale of Machinery10,00020,000
Net Profit before Working Capital changes 2,20,000
Add: Increase in Current Liabilities  
Trade Payables1,00,000 
Add: Decrease in Current Assets  
Less: Increase in Current Assets  
Trade Receivables2,00,000 
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 Machinery60,000 
Short term loans and advances given2,80,0002,20,000
Net Cash Used in Investing Activities 2,20,000
III: Cash Flow from Financing Activities  
Issue of Share Capital1,00,0001,00,000
Net Cash Flow from Financing Activities 1,00,000
IV. Net Decrease in Cash and Cash Equivalents
Add: Cash and Cash Equivalents in the beginning of the period
Cash and Cash Equivalents at the end of the period



Plant and Machinery Account
To Balance b/d3,00,000By Depreciation A/c1,20,000
To Profit on Sale of Machinery (Profit &
Loss A/c)
10,000By Bank (Sales)60,000
To Bank A/c (Bal. Fig. – Purchase)2,80,000By Balance c/d5,00,000
 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)

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)

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


Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements


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