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 :

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.

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 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

 

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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