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Question 53 Chapter 8 -Unimax Publication Class 12 Part 2 – 2021

Question 53 Chapter 8 -Unimax Publication Class 12 Part 2 - 2021
Question 53 Chapter 8 -Unimax Publication Class 12 Part 2 - 2021

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From the following particular, prepare cash Flow Statement:

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Particulars20222021
Equity & Liabilities  
1.Shareholders’ Funds  
(a)share capital (note 1)5,00,0005,50,000
(b) reserves and surplus (note 2)1,28,00070,000
(2) non-current liabilities  
Trade payables99,00075,000
Other current liabilities (bank overdraft)23,00013,000
Short-term provisions (note 3)1,00,00082,000
Total8,50,0006,90,000
ii. assets  
(1) non-current assets  
Tangible fixed assets (net)3,70,0002,80,000
Tangible assets (goodwill)90,0001,15,000
(2) current assets  
Current investments10,00015,000
Cash & cash equivalents41,00023,000
Other current assets3,39,0002,57,000
Total8,50,0006,90,000

NOTE 1: SHARE CAPITAL

Particulars31.03.202231.03.2021
Equity Share Capital 4,00,0003,00,000
15% Preference Share Capital 1,00,0001,50,000
  5,00,0005,50,000

 

Note 2: short- term provisions

Particulars31.03.202231.03.2021
Provision for tax 1,00,00082,000
  1,00,00082,000

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Additional information: a machine costing 50,000 (depreciation provided thereon 30,000) was sold for 10,000. depreciation charged during the year was 20,000. Interim dividend paid, 20,000 paid, income-tax, 35,000 paid.

 

Particulars20222021
I. Cash Flow from Operating Activities  
A. Net Profit before tax 1,43,000
B. Adjustments for Non- Cash and Non-Operating items:  
Deprecation on Fixed Assets20,000 
Loss on Sale of Machinery10,000 
Goodwill amortized25,00055,000
C. operating profit before working capital changes 1,98,500
D. changes in current assets & current liabilities:  
Increase in trade payables24,000 
Increase in other current assets(82,000)(58,000)
E. net cash flow from operating activities before tax 1,40,500
F. less: tax paid (35,000)
G. net cash inflow from operating activities after tax 1,05,500
II. cash flow from investing activities.  
Sale of machinery 10,000
Purchase of fixed assets (1,30,000)
Net cash used in investing activities (1,20,000)
III. cash flow from financing activities:  
Increase bank overdraft 10,000
Issue of share capital (1,00,000 + 10,000) 1,10,000
Interim dividend paid on equity shares (20,000)
Redemption of preference shares (50,000)
Dividend on preference share (22,500)
Net cash used in financing activities 27,500
IV. net increase in cash and cash equivalents (I + II +III) 13,000
V. opening cash and cash equivalents (23,000 – 15,000) 38,000
VI. closing cash and cash equivalents (41,000 – 10,000) 51,000

 

Working notes:

  1. Fixed assets account
    Particulars Particulars
    To balance b/d35,000By depreciation a/c.20,000
    To bank a/c (purchase) (b. f)1,30,000By bank a/c (sale)10,000
      By P&L a/c (loss)10,000
      By balance c/d3,70,000
     4,10,000 4,10,000

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