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

Question 51 Chapter 5 of +2-B

Question 51 Chapter 5 of +2-B

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:

  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 & 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

 

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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)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

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)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 51 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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