Question 51 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 51 Chapter 5 of +2-B

Table of Contents

51. Following is the summarised Balance Sheet of Philips India Ltd. as at 31st March 2018:

Particulars	Note No.	31st March, 2018 Rs	31st March, 2017 Rs
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital		13,50,000	13,50,000
(b) Reserves and Surplus	1	11,34,000	10,68,000
2. Non-Current Liabilities
Long-term Borrowings: 10% Mortgage Loan		8,10,000	—–
3. Current Liabilities
(a) Trade Payables		4,02,000	5,04,000
(b) Short-term Provisions:
Provision for Tax		30,000	2,25,000
Total		37,26,000	31,47,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets-Tangible		9,60,000	12,00,000
(b) Non-Current Investments		1,80,000	1,50,000
2. Current Assets
(a) Current Investments		21,000	17,000
(b) Inventories		6,30,000	7,20,000
(c) Trade Receivables		13,65,000	6,30,000
(d) Cash and Cash Equivalents		5,70,000	4,30,000
Total		37,26,000	31,47,000

Notes to Accounts

Particulars	31st March,	31st March,
	2018 ( Rs)	2017 ( Rs)
1. Reserves and Surplus
General Reserve	9,30,000	9,00,000
Surplus, i.e., Balance in Statement of Profit and Loss	2,04,000	1,68,000
	11,34,000	10,68,000

Additional Information:

Investments costing Rs 24,000 were sold during the year for Rs 25,5000.
Provision for Tax made during the year was Rs 27,000.
During the year, a part of the Fixed Assets costing 30,000 was sold for Rs 36,000. The profits were included in the Statement of Profit and Loss.
The Interim Dividend paid during the year amounted to Rs 1,20,000.You are required to prepare Cash Flow Statement.

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	2,04,000
Less: Opening Balance of Profit & Loss	1,68,000
Transfer to General Reserve	30,000
Interim Dividend	1,20,000
Provision for Taxation	27,000	2,13,000
Net Profit before tax and extraordinary items		2,13,000
Add: Depreciation (WN 1)	2,10,000
Less: Profit on Sale of Investments	1,500
Less: Profit on Sale of Fixed Assets	6,000	4,15,000
Operating Profit before Working Capital Adjustments		4,15,000
Less: Increase in Current Assets
Trade Receivables	7,35,000	20,000
Less: Decrease in Current Liabilities		2,20,000
Trade Payables	1,02,000
Add: Decrease in Current Assets
Inventories	90,000
Cash Generated from Operations		3,31,500
Less: Tax Paid (WN 3)		2,22,000
Net Cash Flow from Operating Activities		5,53,500
II. Cash Flow from Financing Activities
Sale of Investments	25,500
Sale of Fixed Assets	36,000
Purchase of Investments (WN 2)	54,000	7,500
Net Cash Used in Investing Activities		7,500
III: Cash Flow from Financing Activities
Proceeds from Issue of 10% Mortgage Loan	8,10,000
Interim Dividend Paid	1,20,000	6,90,000
Net Cash Flow from Financing Activities		6,90,000
IV. Net Decrease in Cash and Cash Equivalents		1,44,000
Add: Cash and Cash Equivalents in the beginning of the period		4,47,000
Cash and Cash Equivalents at the end of the period		5,91,000

Fixed Assets Account
Particulars	Rs	Particular	Rs
To Balance b/d	12,00,000	By Depreciation A/c	2,10,000
To Profit on Sale of Machinery (Profit & Loss A/c)	6,000	By Bank (Sales)	36,000
		By Balance c/d	9,60,000
	12,06,000		12,06,000

Investments Account
Particulars	Rs	Particular	Rs
To Balance b/d	1,50,000	By Bank (Sale)	25,500
To Profit on Sale of Machinery (Profit & Loss A/c)	1,500
To Bank A/c (Bal. Fig. – Purchase)	54,000	By Balance c/d	1,80,000
	2,05,000		2,05,000

Provision for Taxation Account
Particulars	Rs	Particular	Rs
To Bank A/c (Tax Paid- Bal. Fig.)	2,22,000	By Balance b/d	2,25,000
		By Profit and Loss A/c	27,000
To Balance c/d	30,000
	2,52,000		2,52,000