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

Question 51 Chapter 5 of +2-B
Q-51- CH-5 Book 2 - Usha Publisher +2 Book 2019 - Solution


Question 51 Chapter 5 of +2-B


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

ParticularsNote No.31st March,201831st March,2018
I. Equity and Liabilities   
 Shareholders Fund :    
(a) Share Capital  12,00,00011,00,000
(b) Reserves and Surplus 13,00,0002,00,000
2. Non-current Liabilities   
Long-term Borrowings  2,40,0001,70,000
3. Current Liabilities    
(a) Trade Payables  1,79,0002,04,000
(b) Short-term Provisions 50,00077,000
Total 19,69,00017,51,000
II. Assets    
1. Non-Current Assets :    
(i) Fixed Assets    
(a) Tangible 210,70,0008,50,000
(b) Intangible 340,0001,12,000
2. Current Assets    
(a) Current Investments  2,40,0001,50,000
(b) Inventories  1,29,0001,21,000
(c) Trade Receivables  1,70,0001,43,000
(d) Cash and Cash Equivalents  3,20,0003,75,000
Total  19,69,00017,51,000

Notes to Accounts

Particulars 2017-18 ₹2016-17 ₹
1. Reserves and Surplus   
Surplus (Balance in Statement of Profit and Loss) 3,00,0002,00,000
2. Tangible Assets   
Machinery 12,70,00010,00,000
(-) Accumulated Depreciation (2,00,000)(1,50,000)
3. Intangible Assets   
Goodwill 40,0001,12,000

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
(A) Cash Flow from Operating Activities  
Net Profit before tax1,00,000 
Adjustments of Non cash or Non-Operating Items :  
Add: Goodwill written off72,000 
Depreciation on Machinery66,000 
Loss on sale of Machinery2,0002,40,000
Cash operating Profit before Working Capital adj. 2,40,000
Less: Increase in current Assets:  
Trade Receivable27,000 
Less: Decrease in current Liabilities:  
Trade Payable25,000 
Short Term Provisions27,00087,000
Cash flow from Operating Activities 1,53,000
(B) Cash flows from Investing Activities  
Outflow of Cash  
Sale of Machinery6,000 
Outflow of Cash  
Purchase of Machinery2,94,0002,88,000
Net cash flow from investing Activities 2,88,000
(C) Cash flows from Financing Activities  
Inflow of Cash  
Share Capital Issued1,00,000 
Borrowing Raised70,0001,70,000
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 year3,75,000 
Current Investments1,50,0005,25,000
Cash equivalent at the end of year 5,60,000


Working Note

Plant and Machinery Account
Amount ₹
Amount ₹
To Balance b/d10,00,000By Depreciation
  By Bank A/c – Sale6,000
  By Profit & Loss A/c – Loss on sale2,000
To Bank –Purchase (Bal. fig.)2,94,000By Balance c/d12,70,000
 12,94,000 12,94,000
Accumulated Depreciation Account
Amount ₹
Amount ₹
To Machinery A/c16,000By Depreciation
To Balance c/d2,00,000By 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

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statement



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