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:

 

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 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 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 used in 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

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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