Question 53 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 53 Chapter 5 of +2-B

Question 53 Chapter 5 of +2-B

53. From the following Balance Sheet of Akash Ltd. as at 31st March 2014:

Particulars Note No.  31st March, 2018 Rs 31st March, 2017 Rs 
I. EQUITY AND LIABILITIES      
1. Shareholders’ Funds       
(a) Share Capital   15,00,000 2,00,000
(b) Reserves and Surplus 1 2,50,000 80,500
2. Non-Current Liabilities      
Long-term Borrowings   2,00,000 1,25,000
2. Current Liabilities      
(a) Short-term Borrowings: Bank Loan 2 12,000 10,000
(b) Trade Payables   15,000 83,000
(c) Short-term Provisions: Provision for Tax 3 18,000 11,000
Total   19,95,000 17,39,000
II. ASSETS      
1. Non-Current Assets      
Fixed Assets :       
(i) Tangible Assets 4 18,60,000 16,10,000
(ii) Intangible Assets: Goodwill   50,000 30,000
2. Current Assets      
(a) Current Investments   8,000 5,000
(b) Inventories   37,000 59,000
(b) Trade Receivables   26,000 23,000
(c) Cash and Cash Equivalents   14,000 12,000
Total   19,95,000 17,39,000

Notes to Accounts

Particulars 31st March, 2014 ( Rs) 31st March, 2013 ( Rs)
1. Reserves and Surplus    
Surplus, i.e., Balance in Statement of Profit and Loss 2,50,000 1,10,000
  2,50,000 1,10,000
2. 2. Short-term Borrowings :    
Bank Overdraft 12,000 10,000
  12,000 10,000
3. Short-term Provisions    
Provision for Tax 18,000 11,000
  18,000 11,000
4. Tangible Assets :    
Machinery 20,00,000 17,00,000
Less: Accumulated Depreciation (1,40,000) -90,000
  18,60,000 16,10,000
5. Intangible Assets    
Patents 50,000 30,000

Additional Information:
i Tax paid during the year amounted to 16,000.
ii machine with a net book value of 10,000 Accumulated Depreciation Rs  40,000 was sold for 2,000.
Prepare Cash Flow Statement..

 

The solution of Question 53 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 2,50,000  
Less: Opening Balance of Profit & Loss 1,10,000  
Provision for Tax 23,000 1,63,000
Net Profit before tax and extraordinary items   1,63,000
Items to be Added:    
Depreciation on Machinery 90,000  
Loss on Sale of Fixed Assets 8,000 98,000
Operating Profit before Working Capital Adjustments   2,61,000
Less: Increase in Current Assets    
Trade Receivables 3,000  
Less: Decrease in Current Liabilities    
Trade Payables 68,000  
Add: Decrease in Current Assets    
Inventories 22,000 49,000
Cash Generated from Operations   2,12,000
Less: Tax Paid (WN 3)   16,000
Net Cash Flow from Operating Activities   1,96,000
II. Cash Flow from Financing Activities    
Sale of Fixed Assets 2,000  
Purchase of Patents 20,000  
Purchase of Fixed Assets 3,50,000 3,68,000
Net Cash Used in Investing Activities   3,68,000
III: Cash Flow from Financing Activities    
Proceeds from Issue of Equity Shares 1,00,000  
Proceeds from Long term Borrowings 75,000  
Raise of Bank Overdraft 2,000 1,77,000
Net Cash Flow from Financing Activities   1,77,000
IV. Net Decrease in Cash and Cash Equivalents
  5,000
Add: Cash and Cash Equivalents in the beginning of the period
  17,000
Cash and Cash Equivalents at the end of the period
  22,000

 

Fixed Assets Account
Particulars
Rs Particular Rs
To Balance b/d 17,00,000 By Depreciation A/c 2,000
To Bank A/c (Purchases – Bal. Fig.) 3,50,000 By Bank (Sales) 40,000
    By Loss on Sale (Profit and Loss A/c) 8,000
    By Balance c/d 20,00,000
  20,50,000   20,50,000

 

Accumulated Depreciation Account
Particulars
Rs Particular Rs
To Fixed Assets A/c 40,000 By Balance b/d 90,000
    By Profit and Loss A/c (Dep. charged during the year- Bal. Fig.) 90,000
To Balance c/d 1,40,000    
  1,80,000   1,80,000

 

Provision for Taxation Account
Particulars
Rs Particular Rs
To Bank A/c (Tax Paid- Bal. Fig.) 16,000 By Balance b/d 11,000
    By Profit and Loss A/c 23,000
To Balance c/d 18,000    
  34,000   34,000

 

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

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