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

Question 52 Chapter 5 of +2-B

Table of Contents

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

Particulars	Note No.	31st March, 2018 Rs	31st March, 2017 Rs
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital		2,50,000	2,00,000
(b) Reserves and Surplus	1	90,600	80,500
2. Current Liabilities
(a) Short-term Borrowings: Bank Loan		—-	70,000
(b) Trade Payables		1,35,200	1,50,000
(c) Short-term Provisions: Provision for Tax		35,000	30,000
Total		5,10,800	5,30,500
II. ASSETS
1. Non-Current Assets
Fixed Assets :
(i) Tangible Assets	2	3,59,000	3,50,000
(ii) Intangible Assets: Goodwill		5,000	—-
2. Current Assets
(a)Inventories		74,000	1,00,000
(b) Trade Receivables		64,200	80,000
(c) Cash and Cash Equivalents		8,600	500
Total		5,10,800	5,30,500

Notes to Accounts

Particulars	31st March,	31st March,
	2019 ( Rs)	2018 ( Rs)
1. Reserves and Surplus
General Reserve	60,000	50,000
Surplus, i.e., Balance in Statement of Profit and Loss	30,600	30,500
	90,600	80,500
2. Tangible Assets
Land and Building	1,90,000	2,00,000
Plant and Machinery	1,69,000	1,50,000
	3,59,000	3,50,000

Additional Information:

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.
Interim Dividend paid during the year was Rs 9,000.
Income Tax paid during the year was Rs 28,000.
Machinery was purchased during the year Rs 33,000.
Depreciation to be charged on machinery Rs 14,000 and building Rs 10,000.

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	30,600
Less: Opening Balance of Profit & Loss	30,500
Proposed Dividend	23,000
Transfer to General Reserve	10,000
Provision for Taxation	33,000	66,100
Net Profit before tax and extraordinary items		66,100
Items to be Added:
Depreciation on Machinery	14,000
Depreciation on Building	10,000	24,000
Operating Profit before Working Capital Adjustments		90,100
Add: Decrease in Current Assets
Inventories	26,000
Trade Receivables	15,800
Less: Decrease in Current Liabilities
Trade Payables	14,800
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 Machinery	33,000
Purchase of Goodwill	5,000	38,000
Net Cash Used in Investing Activities		38,000
III: Cash Flow from Financing Activities
Proceeds from Issue of Equity Shares	50,000
Repayment of Bank Loan	70,000
Dividend Paid	23,000	43,000
Net Cash Flow from Financing Activities		43,000
IV. Net Decrease in Cash and Cash Equivalents		8,100
Add: Cash and Cash Equivalents in the beginning of the period		500
Cash and Cash Equivalents at the end of the period		8,600

Provision for Taxation Account
Particulars	Rs	Particular	Rs
To Bank A/c (Tax Paid- Bal. Fig.)	28,000	By Balance b/d	30,000
		By Profit and Loss A/c	33,000
To Balance c/d	35,000
	63,000		63,000