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

Question 53 Chapter 5 of +2-B
Question No.53 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution


Question 53 Chapter 5 of +2-B


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

ParticularsNote No. 31st March, 2018 Rs31st March, 2017 Rs 
1. Shareholders’ Funds    
(a) Share Capital 15,00,0002,00,000
(b) Reserves and Surplus12,50,00080,500
2. Non-Current Liabilities   
Long-term Borrowings 2,00,0001,25,000
2. Current Liabilities   
(a) Short-term Borrowings: Bank Loan212,00010,000
(b) Trade Payables 15,00083,000
(c) Short-term Provisions: Provision for Tax318,00011,000
Total 19,95,00017,39,000
1. Non-Current Assets   
Fixed Assets :    
(i) Tangible Assets418,60,00016,10,000
(ii) Intangible Assets: Goodwill 50,00030,000
2. Current Assets   
(a) Current Investments 8,0005,000
(b) Inventories 37,00059,000
(b) Trade Receivables 26,00023,000
(c) Cash and Cash Equivalents 14,00012,000
Total 19,95,00017,39,000

Notes to Accounts

Particulars31st March, 2014 ( Rs)31st March, 2013 ( Rs)
1. Reserves and Surplus  
Surplus, i.e., Balance in Statement of Profit and Loss2,50,0001,10,000
2. 2. Short-term Borrowings :  
Bank Overdraft12,00010,000
3. Short-term Provisions  
Provision for Tax18,00011,000
4. Tangible Assets :  
Less: Accumulated Depreciation(1,40,000)-90,000
5. Intangible Assets  

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
I. Cash Flow from Financing Activities  
Profit as per Statement of Profit and Loss :  
Closing Balance of Profit & Loss2,50,000 
Less: Opening Balance of Profit & Loss1,10,000 
Provision for Tax23,0001,63,000
Net Profit before tax and extraordinary items 1,63,000
Items to be Added:  
Depreciation on Machinery90,000 
Loss on Sale of Fixed Assets8,00098,000
Operating Profit before Working Capital Adjustments 2,61,000
Less: Increase in Current Assets  
Trade Receivables3,000 
Less: Decrease in Current Liabilities  
Trade Payables68,000 
Add: Decrease in Current Assets  
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 Assets2,000 
Purchase of Patents20,000 
Purchase of Fixed Assets3,50,0003,68,000
Net Cash Used in Investing Activities 3,68,000
III: Cash Flow from Financing Activities  
Proceeds from Issue of Equity Shares1,00,000 
Proceeds from Long term Borrowings75,000 
Raise of Bank Overdraft2,0001,77,000
Net Cash Flow from Financing Activities 1,77,000
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/d17,00,000By Depreciation A/c2,000
To Bank A/c (Purchases – Bal. Fig.)3,50,000By Bank (Sales)40,000
  By Loss on Sale (Profit and Loss A/c)8,000
  By Balance c/d20,00,000
 20,50,000 20,50,000


Accumulated Depreciation Account
To Fixed Assets A/c40,000By Balance b/d90,000
  By Profit and Loss A/c (Dep. charged during the year- Bal. Fig.)90,000
To Balance c/d1,40,000  
 1,80,000 1,80,000


Provision for Taxation Account
To Bank A/c (Tax Paid- Bal. Fig.)16,000By Balance b/d11,000
  By Profit and Loss A/c23,000
To Balance c/d18,000  
 34,000 34,000


Thanks, Please Like and share with your friends  

Comment if you have any question.

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


error: Content is protected !!