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

Question 51 Chapter 5 of +2-B
Question No.51 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution

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Question 51 Chapter 5 of +2-B

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

ParticularsNote No. 31st March, 2018 Rs31st March, 2017 Rs 
I. EQUITY AND LIABILITIES   
1. Shareholders’ Funds    
(a) Share Capital 13,50,00013,50,000
(b) Reserves and Surplus111,34,00010,68,000
2. Non-Current Liabilities   
Long-term Borrowings: 10% Mortgage Loan 8,10,000—–
3. Current Liabilities   
(a) Trade Payables 4,02,0005,04,000
(b) Short-term Provisions:   
Provision for Tax 30,0002,25,000
Total 37,26,00031,47,000
II. ASSETS   
1. Non-Current Assets   
(a) Fixed Assets-Tangible  9,60,00012,00,000
(b) Non-Current Investments 1,80,0001,50,000
2. Current Assets   
(a) Current Investments 21,00017,000
(b) Inventories 6,30,0007,20,000
(c) Trade Receivables 13,65,0006,30,000
(d) Cash and Cash Equivalents 5,70,0004,30,000
Total 37,26,00031,47,000

Notes to Accounts

Particulars31st March,31st March,
 2018 ( Rs)2017 ( Rs)
1. Reserves and Surplus  
General Reserve 9,30,0009,00,000
Surplus, i.e., Balance in Statement of Profit and Loss2,04,0001,68,000
 11,34,00010,68,000

Additional Information:

  1. Investments costing Rs 24,000 were sold during the year for Rs 25,5000.
  2. Provision for Tax made during the year was Rs 27,000.
  3. 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.
  4. The Interim Dividend paid during the year amounted to Rs 1,20,000.You are required to prepare Cash Flow Statement.

 

The solution of Question 51 Chapter 4 of +2-B: –


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 & Loss2,04,000 
Less: Opening Balance of Profit & Loss1,68,000 
Transfer to General Reserve30,000 
Interim Dividend1,20,000 
Provision for Taxation27,0002,13,000
Net Profit before tax and extraordinary items 2,13,000
Add: Depreciation (WN 1)2,10,000 
Less: Profit on Sale of Investments1,500 
Less: Profit on Sale of Fixed Assets6,0004,15,000
Operating Profit before Working Capital Adjustments 4,15,000
Less: Increase in Current Assets  
Trade Receivables7,35,00020,000
Less: Decrease in Current Liabilities 2,20,000
Trade Payables1,02,000 
Add: Decrease in Current Assets  
Inventories90,000 
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 Investments25,500 
Sale of Fixed Assets36,000 
Purchase of Investments (WN 2)54,0007,500
Net Cash Used in Investing Activities 7,500
III: Cash Flow from Financing Activities  
Proceeds from Issue of 10% Mortgage Loan8,10,000 
Interim Dividend Paid1,20,0006,90,000
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

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Fixed Assets Account
Particulars
RsParticularRs
To Balance b/d12,00,000By Depreciation A/c2,10,000
To Profit on Sale of Machinery (Profit &
Loss A/c)
6,000By Bank (Sales)36,000
  By Balance c/d9,60,000
 12,06,000 12,06,000

 

Investments Account
Particulars
RsParticularRs
To Balance b/d1,50,000By Bank (Sale)25,500
To Profit on Sale of Machinery (Profit &
Loss A/c)
1,500  
To Bank A/c (Bal. Fig. – Purchase)54,000By Balance c/d1,80,000
 2,05,000 2,05,000

 

Provision for Taxation Account
Particulars
RsParticularRs
To Bank A/c (Tax Paid- Bal. Fig.)2,22,000By Balance b/d2,25,000
  By Profit and Loss A/c27,000
To Balance c/d30,000  
 2,52,000 2,52,000

 

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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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