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Question 50 Chapter 5 of +2-B
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PREPARING OF CASH FLOW STATEMENT (WITH ADJUSTMENT)
50. (CFS Showing Operating, Investing & Financing Activities/Proposed Dividend) The balance sheets of Kewal Ltd. were as follows :
| Particulars | Note No. | 31st March 2018 | 31st March 2018 |
| I. Equity and Liabilities | |||
| Shareholders Fund : | |||
| Equity Share Capital | 2,00,000 | 1,50,000 | |
| Reserves and surplus | |||
| Balance in Statement of Profit and Loss | 24,000 | 15,000 | |
| 3,58,500 | 2,97,500 | ||
| II. Assets | |||
| Non-Current Assets : | |||
| Tangible Assets | |||
| Plant & Machinery | 1,00,000 | 40,000 | |
| Current Assets | |||
| Inventories | |||
| Cash and Cash Equivalents-Cash |
Additional Information:
(a) 50,000 depreciation has been charged on plant and machinery during the year 2017-18.
(b) A piece of machinery costing 12,000 (book value 5,000) was sold at 60% profit on book value.
(c) Proposed Dividend 31.3.2018 31.3.2017
50,000 40,000
Prepare Cash Flow Statement.
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The solution of Question 50 Chapter 5 of +2-B: –
| Cash Flow Statement | ||
| Particulars | Rs | |
| (A) Cash Flow from Operating Activities | ||
| Net Profit before taxation | ||
| Profit as per the statement | 1,10,000 | |
| Add: Proposed dividend | 40,000 | 1,50,000 |
| Adjustments of Non-cash or Non-Operating Items : | ||
| Add: Depreciation on Plant and Machinery | 50,000 | |
| Less: Non-Operating Income | ||
| Profit on Sale of Machinery | 3,000 | 47,000 |
| Cash operating Profit before Working Capital adj. | 1,97,000 | |
| Less: Increase in current Assets: | ||
| Inventories | 25,000 | 25,000 |
| Cash used in Operating Activities | 1,72,000 | |
| (B) Cash flows from Investing Activities | ||
| Outflow of Cash | ||
| Sale of Plant and Machinery | 8,000 | |
| Outflow of Cash | ||
| Purchase of Plant and Machinery | 3,55,000 | 3,47,000 |
| Net cash used in investing Activities | 3,47,000 | |
| (C) Cash flows from Financing Activities | ||
| Inflow of Cash | ||
| Share Capital Issued | 3,00,000 | |
| Outflow of Cash | ||
| Proposed dividend paid | 40,000 | 2,60,000 |
| Net cash flow from financing activities | 2,60,000 | |
| Net decrease in cash & Cash equivalents (A + B + C) | 85,000 | |
| Add: cash equivalent at the beginning of the year | 3,15,000 | |
| Cash equivalent at the end of year | 4,00,000 | |
Working Note
| Plant and Machinery Account | |||
| Particulars | Amount ₹ | Particulars | Amount ₹ |
| To Balance b/d | 5,00,000 | By Depreciation | 50,000 |
| To Statement of Profit & Loss – Profit | 3,000 | By Bank A/c – Sale | 8,000 |
| To Bank –Purchase (Bal. fig.) | 3,55,000 | By Balance c/d | 8,00,000 |
| 8,58,000 | 8,58,000 | ||
End of Solution
Check Out the Solution of all questions of this chapter:
The solution to all questions of Chapter No. 15 – Cash Flow Statement Class 12 Usha Publication – 2024 is shown as follows, click on the image of the question to get the solution.
Question 03 Chapter 5 of +2-B – USHA Publication 12 Class
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Question 10 Chapter 5 of +2-B – USHA Publication 12 Class
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Question 19 Chapter 5 of +2-B – USHA Publication 12 Class
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Question 25 Chapter 5 of +2-B – USHA Publication 12 Class
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Question 31 Chapter 5 of +2-B – USHA Publication 12 Class
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Question 37 Chapter 5 of +2-B – USHA Publication 12 Class
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Question 44 Chapter 5 of +2-B – USHA Publication 12 Class
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Question 50 Chapter 5 of +2-B – USHA Publication 12 Class
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Question 56 Chapter 5 of +2-B – USHA Publication 12 Class
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Question 63 Chapter 5 of +2-B – USHA Publication 12 Class
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Chapter-Wise Solution of Usha Publication Accountancy – Part 2 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 2 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 8 – Company Accounts (Share Capital)
Chapter No. 9 – Company Accounts (Issue of Debentures)
Chapter No. 10 – Company Accounts (Redemption of Debentures)
Chapter No. 11 – Financial Statements of a Company
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Chapter No. 12 – Financial Statement Analysis
Chapter No. 13 – Tools of Financial Statement Analysis- Comparative and Common Size
Chapter No. 14 – Accounting Ratios
Chapter No. 15 – Cash Flow Statement
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 2 Class 12 by Unimax Publication
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Issue of Debentures
- Chapter No. 3 – Redemption of Debentures
- Chapter No. 4 – Financial Statements of a Company (Balance Sheet Only)
- Chapter No. 5 -Financial Statement Analysis
- Chapter No. 6 – Tools/Methods of Financial Analysis
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
Check out Part 1 of both books.
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1. Accountancy – Part 1 Class 12 – Session 2024-25 By Usha Publication
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2. Advanced Accountancy Part 1 Class 12 by Unimax Publication