Question 51 Chapter 5 of +2-B – USHA Publication 12 Class

Question 51 Chapter 5 of +2-B

Question 51 Chapter 5 of +2-B

PREPARING OF CASH FLOW STATEMENT (WITHOUT ADJUSTMENT)

51. (CFS Showing Operating, Investing & Financing Activities) Following is the balance sheet of Thermal Power Ltd.

Particulars Note No. 31st March,2018 31st March,2018
I. Equity and Liabilities      
 Shareholders Fund :       
(a) Share Capital    12,00,000 11,00,000
(b) Reserves and Surplus  1 3,00,000 2,00,000
2. Non-current Liabilities      
Long-term Borrowings    2,40,000 1,70,000
3. Current Liabilities       
(a) Trade Payables    1,79,000 2,04,000
(b) Short-term Provisions   50,000 77,000
Total   19,69,000 17,51,000
II. Assets       
1. Non-Current Assets :       
(i) Fixed Assets       
(a) Tangible  2 10,70,000 8,50,000
(b) Intangible  3 40,000 1,12,000
2. Current Assets       
(a) Current Investments    2,40,000 1,50,000
(b) Inventories    1,29,000 1,21,000
(c) Trade Receivables    1,70,000 1,43,000
(d) Cash and Cash Equivalents    3,20,000 3,75,000
Total    19,69,000 17,51,000

Notes to Accounts

Particulars  2017-18 ₹ 2016-17 ₹
1. Reserves and Surplus     
Surplus (Balance in Statement of Profit and Loss)  3,00,000 2,00,000
2. Tangible Assets     
Machinery  12,70,000 10,00,000
(-) Accumulated Depreciation  (2,00,000) (1,50,000)
  10,70,000 8,50,000
3. Intangible Assets     
Goodwill  40,000 1,12,000

Additional Information
During the year a piece of machinery, costing ₹ 24,000 on which accumulated depreciation was ₹ 16,000 was sold for ₹ 6,000
Prepare cash flow statement.

The solution of Question 51 Chapter 5 of +2-B: – 

Cash Flow Statement of Hitesh Ltd.
Particulars
Rs
(A) Cash Flow from Operating Activities    
Net Profit before tax 1,00,000  
Adjustments of Non cash or Non-Operating Items :    
Add: Goodwill written off 72,000  
Depreciation on Machinery 66,000  
Loss on sale of Machinery 2,000 2,40,000
Cash operating Profit before Working Capital adj.   2,40,000
Less: Increase in current Assets:    
Inventories 27,000  
Trade Receivable 8,000  
Less: Decrease in current Liabilities:    
Trade Payable 25,000  
Short Term Provisions 27,000 87,000
Cash used in Operating Activities   1,53,000
(B) Cash flows from Investing Activities    
Outflow of Cash    
Sale of Machinery 6,000  
Outflow of Cash    
Purchase of Machinery 2,94,000 2,88,000
Net cash used in investing Activities   2,88,000
(C) Cash flows from Financing Activities    
Inflow of Cash    
Share Capital Issued 1,00,000  
Borrowing Raised 70,000 1,70,000
Net cash flow from financing activities   1,70,000
Net decrease in cash & Cash equivalents (A + B + C)   35,000
Add: Cash equivalent in the beginning of year 3,75,000  
Current Investments 1,50,000 5,25,000
Cash equivalent at the end of year   5,60,000

Working Note

Plant and Machinery Account
Particulars
Amount ₹
Particulars
Amount ₹
To Balance b/d 10,00,000 By Depreciation
50,000
    By Bank A/c – Sale 6,000
    By Profit & Loss A/c – Loss on sale 2,000
To Bank –Purchase (Bal. fig.) 2,94,000 By Balance c/d 12,70,000
  12,94,000   12,94,000
Accumulated Depreciation Account
Particulars
Amount ₹
Particulars
Amount ₹
To Machinery A/c 16,000 By Depreciation
1,50,000
To Balance c/d 2,00,000 By Profit & Loss A/c – (Bal. fig.) 66,000
  2,16,000   2,16,000

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

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