Question 52 Chapter 5 of +2-B

Question 52 Chapter 5 of +2-B

PREPARING OF CASH FLOW STATEMENT (WITHOUT ADJUSTMENT)

52. (CFS Showing Operating, Investing & Financing Activities) Balance sheet of XY Ltd. prepare a rash flow statement.

ParticularsNote No.31st March 201731st March 2018
I. Equity and Liabilities   
 Shareholders Fund :    
(a) Share Capital 14,60,0008,50,000
(b) Reserves and Surplus 22,40,0001,70,000
2. Non-current Liabilities   
Long-term Borrowings  2,00,0001,80,000
Total 9,00,00012,00,000
II. Assets    
1. Non-Current Assets :    
Fixed Assets  5,00,0007,00,000
2. Current Assets    
Inventories  2,10,0002,50,000
Trade Receivables  1,40,0001,90,000
Cash and Cash Equivalents  50,00060,000
Total  9,00,00012,00,000

Notes to Accounts

Particulars 2017-18 ₹2016-17 ₹
1. Share Capital   
Equity Share Capital4,00,0007,50,000
Preference Share Capital60,0001,00,000
 4,60,0008,50,000
2. Reserves and Surplus   
Surplus, i.e. Balance in Statement of Profit and Loss  1,70,0001,20,000
General Reserve 70,00050,000
 2,40,0001,70,000

Additional Information (i) During the year, machine costing ₹ 80,000 was sold for ₹ 50,000.(ii) Dividend paid ₹ 80,000

The solution of Question 52 Chapter 5 of +2-B: – 

Cash Flow Statement of Hitesh Ltd.
Particulars
Rs
(A) Cash Flow from Operating Activities  
Net Profit before Tax and Extraordinary Items* 10,000
Adjustments of Non-cash or Non-Operating Items :  
Add: Interest on Debentures (10% of ₹ 2,00,000)20,000 
Loss on Sale of Machinery30,00050,000
Cash operating Profit before Working Capital adj. 60,000
Less: Increase in current Assets:  
Inventories40,000 
Trade Receivable50,00090,000
Cash used in Operating Activities 30,000
(B) Cash flows from Investing Activities  
Outflow of Cash  
Sale of Fixed Assets50,000 
Outflow of Cash  
Purchase of Machinery2,80,0002,30,000
Net cash used in investing Activities 2,30,000
(C) Cash flows from Financing Activities  
Inflow of Cash  
Issue of Equity Shares3,50,000 
Issue of Preference Shares40,0003,90,000
Outflow of Cash  
Redemption of Debentures20,000 
Dividend Paid80,000 
Interest Paid on Debentures20,0002,70,000
Net cash flow from financing activities 2,70,000
Net decrease in cash & Cash equivalents (A + B + C) 10,000
Add: Cash equivalent at the beginning of the year 50,000
Cash equivalent at the end of year 60,000

Working Note

Fixed Assets Account
Particulars
Amount ₹
Particulars
Amount ₹
To Balance b/d5,00,000By Depreciation
50,000
  By Profit & Loss A/c – Loss on sale30,000
To Bank –Purchase (Bal. fig.)2,80,000By Balance c/d7,00,000
 7,80,000 7,80,000
Net Profit before Tax and Extraordinary Items
Particulars
Amount ₹
Net Profit of the Current Year50,000
Add: Transfer back from Reserves20,000
 70,000
Dividend Paid80,000
 10,000

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

2 Book 3 min 225x300 - Question 52 Chapter 5 of +2-B  - USHA Publication 12 Class
T.S. Grewal’s Analysis of Financial Statement

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