Question 53 Chapter 5 of +2-B – USHA Publication 12 Class

Question 53 Chapter 5 of +2-B

Question 53 Chapter 5 of +2-B

PREPARING OF CASH FLOW STATEMENT (WITHOUT ADJUSTMENT)

53. (CFS Showing Operating, Investing & Financing Activities) Prepare cash flow statement from the following balance sheet as on March 31, 2018:

 

ParticularsNote No.31st March,201831st March,2017
I. Equity and Liabilities   
 Shareholders Fund :    
Share Capital  6,00,0005,00,000
Reserves and Surplus    
General Reserve 25,00010,000
Balance in Statement of Profit and Loss 1,20,00080,000
2. Non-current Liabilities   
Long-term Borrowings   
10% Debentures 30,00080,000
Current Liabilities   
Trade Payable 25,00030,000
Total 8,00,0007,00,000
II. Assets    
1. Non-Current Assets :    
Tangible Assets :   
Land and Buildings 3,50,0002,75,000
Machinery 3,45,0002,90,000
Intangible Assets   
Goodwill 5,00025,000
2. Current Assets    
Inventories 45,00085,000
Trade Receivables  25,00010,000
Cash 30,00015,000
Total  8,00,0007,00,000

Adjustment :
Depreciation provided on machinery during the year 12,000.
New shares were issued on 31st March 2018
10% Debentures were redeemed on 31st March 2018.

The solution of Question 53 Chapter 5 of +2-B: – 

Cash Flow Statement of Hitesh Ltd.
Particulars
Rs
(A) Cash Flow from Operating Activities  
Net Profit as per the statement 40,000
Adjustments of Non-cash or Non-Operating Items :  
Add: General reserve15,000 
Goodwill wrote off20,000 
Depreciation on Machinery12,000 
Interest on Debentures8,00055,000
Cash operating Profit before Working Capital adj. 95,000
Add: Decrease in current Assets:  
Inventories40,000 
Less: Decrease in Current Liabilities:  
Trade Payable5,000 
Less: Increase in current Assets:  
Trade Receivable15,00020,000
Cash used in Operating Activities 1,15,000
(B) Cash flows from Investing Activities  
Outflow of Cash  
Purchase of Land & Building75,000 
Purchase of Machinery67,0001,42,000
Net cash used in investing Activities 1,42,000
(C) Cash flows from Financing Activities  
Inflow of Cash  
Issue of Equity Shares1,00,000 
Outflow of Cash  
Redemption of Debentures50,000 
Interest Paid on Debentures8,00042,000 
Net cash flow from financing activities 42,000
Net decrease in cash & Cash equivalents (A + B + C) 15,000
Add: Cash equivalent at the beginning of the year 15,000
Cash equivalent at the end of year 30,000

Working Note

Fixed Assets Account
Particulars
Amount ₹
Particulars
Amount ₹
To Balance b/d2,90,000By Depreciation
12,000
To Bank –Purchase (Bal. fig.)67,000By Balance c/d3,45,000
 3,57,000 3,57,000

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

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