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

Question 52 Chapter 5 of +2-B

Question 52 Chapter 5 of +2-B

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:

  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
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

 

Fixed Assets Account
Particulars
Rs Particular Rs
To Balance b/d 1,50,000 By Depreciation A/c 14,000
To Bank A/c (Purchases – Bal. Fig.) 33,000    
    By Balance c/d 1,69,000
  1,83,000   1,83,000

 

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

 

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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 52 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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