Question 50 Chapter 5 of +2-B – USHA Publication 12 Class

Question 50 Chapter 5 of +2-B

Question 50 Chapter 5 of +2-B

PREPARING OF CASH FLOW STATEMENT (WITHOUT ADJUSTMENT)

50. (CFS Showing Operating, Investing & Financing Activities/Proposed Dividend) The balance sheets of Kewal Ltd. were as follows :

ParticularsNote No.31st March 201831st March 2018
I. Equity and Liabilities   
 Shareholders Fund :    
Equity Share Capital 2,00,0001,50,000
Reserves and surplus    
Balance in Statement of Profit and Loss  24,00015,000
  3,58,5002,97,500
II. Assets    
Non-Current Assets :    
Tangible Assets    
Plant & Machinery 1,00,00040,000
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.

The solution of Question 50 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 statement1,10,000 
Add: Proposed dividend40,0001,50,000
Adjustments of Non-cash or Non-Operating Items :  
Add: Depreciation on Plant and Machinery50,000 
Less: Non-Operating Income  
Profit on Sale of Machinery3,00047,000
Cash operating Profit before Working Capital adj. 1,97,000
Less: Increase in current Assets:  
Inventories25,00025,000
Cash used in Operating Activities 1,72,000
(B) Cash flows from Investing Activities  
Outflow of Cash  
Sale of Plant and Machinery8,000 
Outflow of Cash  
Purchase of Plant and Machinery3,55,0003,47,000
Net cash used in investing Activities
 3,47,000
(C) Cash flows from Financing Activities  
Inflow of Cash  
Share Capital Issued3,00,000 
Outflow of Cash  
Proposed dividend paid40,0002,60,000
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/d5,00,000By Depreciation
50,000
To Statement of Profit & Loss
– Profit
3,000By Bank A/c – Sale8,000
To Bank –Purchase (Bal. fig.)3,55,000By Balance c/d8,00,000
 8,58,000 8,58,000

 

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

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