Question 53 Chapter 5 of +2-B
Table of Contents
53. (CFS Showing Operating, Investing & Financing Activities) Prepare cash flow statement from the following balance sheet as on March 31, 2018:
| Particulars | Note No. | 31st March,2018 | 31st March,2017 |
| I. Equity and Liabilities | |||
| Shareholders Fund : | |||
| Share Capital | 6,00,000 | 5,00,000 | |
| Reserves and Surplus | |||
| General Reserve | 25,000 | 10,000 | |
| Balance in Statement of Profit and Loss | 1,20,000 | 80,000 | |
| 2. Non-current Liabilities | |||
| Long-term Borrowings | |||
| 10% Debentures | 30,000 | 80,000 | |
| Current Liabilities | |||
| Trade Payable | 25,000 | 30,000 | |
| Total | 8,00,000 | 7,00,000 | |
| II. Assets | |||
| 1. Non-Current Assets : | |||
| Tangible Assets : | |||
| Land and Buildings | 3,50,000 | 2,75,000 | |
| Machinery | 3,45,000 | 2,90,000 | |
| Intangible Assets | |||
| Goodwill | 5,000 | 25,000 | |
| 2. Current Assets | |||
| Inventories | 45,000 | 85,000 | |
| Trade Receivables | 25,000 | 10,000 | |
| Cash | 30,000 | 15,000 | |
| Total | 8,00,000 | 7,00,000 |
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 |
||
| 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 reserve | 15,000 | |
| Goodwill wrote off | 20,000 | |
| Depreciation on Machinery | 12,000 | |
| Interest on Debentures | 8,000 | 55,000 |
| Cash operating Profit before Working Capital adj. | 95,000 | |
| Add: Decrease in current Assets: | ||
| Inventories | 40,000 | |
| Less: Decrease in Current Liabilities: | ||
| Trade Payable | 5,000 | |
| Less: Increase in current Assets: | ||
| Trade Receivable | 15,000 | 20,000 |
| Cash flow from Operating Activities | 1,15,000 |
|
| (B) Cash flows from Investing Activities | ||
| Outflow of Cash | ||
| Purchase of Land & Building | 75,000 | |
| Purchase of Machinery | 67,000 | 1,42,000 |
| Net cash used in investing Activities | 1,42,000 |
|
| (C) Cash flows from Financing Activities | ||
| Inflow of Cash | ||
| Issue of Equity Shares | 1,00,000 | |
| Outflow of Cash | ||
| Redemption of Debentures | 50,000 | |
| Interest Paid on Debentures | 8,000 | 42,000 |
| 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/d | 2,90,000 | By Depreciation |
12,000 |
| To Bank –Purchase (Bal. fig.) | 67,000 | By Balance c/d | 3,45,000 |
| 3,57,000 | 3,57,000 | ||
Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
