Question 52 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 52 Chapter 5 of +2-B
Question No.52 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution


Question 52 Chapter 5 of +2-B


52. From the following Balance Sheet, prepare Cash Flow Statement:

ParticularsNote No. 31st March, 2018 Rs31st March, 2017 Rs 
1. Shareholders’ Funds    
(a) Share Capital 2,50,0002,00,000
(b) Reserves and Surplus190,60080,500
2. Current Liabilities   
(a) Short-term Borrowings: Bank Loan —-70,000
(b) Trade Payables 1,35,2001,50,000
(c) Short-term Provisions: Provision for Tax 35,00030,000
Total 5,10,8005,30,500
1. Non-Current Assets   
Fixed Assets :    
(i) Tangible Assets23,59,0003,50,000
(ii) Intangible Assets: Goodwill 5,000—-
2. Current Assets   
(a)Inventories 74,0001,00,000
(b) Trade Receivables 64,20080,000
(c) Cash and Cash Equivalents 8,600500
Total 5,10,8005,30,500

Notes to Accounts

Particulars31st March,31st March,
 2019 ( Rs)2018 ( Rs)
1. Reserves and Surplus  
General Reserve 60,00050,000
Surplus, i.e., Balance in Statement of Profit and Loss30,60030,500
2. Tangible Assets  
Land and Building 1,90,0002,00,000
Plant and Machinery1,69,0001,50,000


Additional Information:


  1. Proposed Dividend for the year ended 31st March, 2019 was Rs 25,000 and for the year ended 31st March, 2018 was Rs 14,000.
  2. Interim Dividend paid during the year was Rs 9,000.
  3. Income Tax paid during the year was Rs 28,000.
  4. Machinery was purchased during the year Rs 33,000.
  5. Depreciation to be charged on machinery Rs 14,000 and building Rs 10,000.


The solution of Question 52 Chapter 4 of +2-B: –

Cash Flow Statement for the year ended 31st March,2019
I. Cash Flow from Financing Activities  
Profit as per Statement of Profit and Loss :  
Closing Balance of Profit & Loss30,600 
Less: Opening Balance of Profit & Loss30,500 
Proposed Dividend23,000 
Transfer to General Reserve10,000 
Provision for Taxation33,00066,100
Net Profit before tax and extraordinary items 66,100
Items to be Added:  
Depreciation on Machinery14,000 
Depreciation on Building10,00024,000
Operating Profit before Working Capital Adjustments 90,100
Add: Decrease in Current Assets  
Trade Receivables15,800 
Less: Decrease in Current Liabilities  
Trade Payables14,800 
Cash Generated from Operations 1,17,100
Less: Tax Paid (WN 3) 28,000
Net Cash Flow from Operating Activities 89,1,00
II. Cash Flow from Financing Activities  
Purchase of Machinery33,000 
Purchase of Goodwill5,00038,000
Net Cash Used in Investing Activities 38,000
III: Cash Flow from Financing Activities  
Proceeds from Issue of Equity Shares50,000 
Repayment of Bank Loan70,000 
Dividend Paid23,00043,000
Net Cash Flow from Financing Activities 43,000
IV. Net Decrease in Cash and Cash Equivalents
Add: Cash and Cash Equivalents in the beginning of the period
Cash and Cash Equivalents at the end of the period


Fixed Assets Account
To Balance b/d1,50,000By Depreciation A/c14,000
To Bank A/c (Purchases – Bal. Fig.)33,000  
  By Balance c/d1,69,000
 1,83,000 1,83,000


Provision for Taxation Account
To Bank A/c (Tax Paid- Bal. Fig.)28,000By Balance b/d30,000
  By Profit and Loss A/c33,000
To Balance c/d35,000  
 63,000 63,000


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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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