Question 54 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 54 Chapter 5 of +2-B

Question 54 Chapter 5 of +2-B

54. From the following Balance Sheet of SRS Ltd. and the additional information as on 31st March, 2016, prepare a Cash Flow Statement:

SRS Ltd.
Particulars Note No.  31st March, 2016 Rs 31st March, 2015 Rs 
I. EQUITY AND LIABILITIES      
1. Shareholders’ Funds       
(a) Share Capital   4,50,000 3,50,000
(b) Reserves and Surplus 1 1,25,000 50,000
2. Non-Current Liabilities      
Long-term Borrowings 2 2,25,000 1,75,000
2. Current Liabilities      
(a) Short-term Borrowings 3 75,000 37,500
(b) Short -term Provisions 4 1,00,000 62,500
Total   9,75,000 6,75,000
II. ASSETS      
1. Non-Current Assets      
Fixed Assets :       
(i) Tangible Assets 5 7,32,500 4,52,500
(ii) Intangible Assets: Goodwill 6 50,000 75,000
(b) Non-current Investments   75,000 50,000
2. Current Assets      
(a) Current Investments   20,000 35,000
(b) Inventories 7 61,000 36,000
(c) Cash and Cash Equivalents   36,500 26,500
Total   9,75,000 6,75,000

Notes to Accounts

Particulars 31st March, 2016 ( Rs) 31st March, 2015 ( Rs)
1. Reserves and Surplus    
Surplus, i.e., Balance in Statement of Profit and Loss 1,25,000 50,000
  1,25,000 50,000
2. Short-term Borrowings :    
Cash and Cash Equivalents 2,25,000 1,75,000
  2,25,000 1,75,000
3. Short-term Borrowings    
Bank Overdraft 75,000 37,500
  75,000 37,500
4. Short-term Provisions    
Provision for Tax 1,00,000 62,500
  1,00,000 62,500
5. Tangible Assets    
Machinery 8,37,500 5,22,500
Accumulated Depreciation (1,05,000) -70,000
  7,32,500 4,52,500
6. Intangible Assets    
Goodwill 50,000 75,000
  50,000 75,000
7. Inventories    
Stock-in-Trade 61,000 36,000
  61,000 36,000

Additional Information:
i Rs 50,000, 12% Debentures were issued on 31st March, 2016.
ii During the year, a piece of machinery costing Rs 40,000, on which accumulated depreciation was Rs 20,000, was sold at a loss of Rs 5,000.

 

The solution of Question 54 Chapter 4 of +2-B: –


Cash Flow Statement for the year ended 31st March,2019
Particulars
Rs
I. Cash Flow from Financing Activities    
Profit as per Statement of Profit and Loss :    
Closing Balance of Profit & Loss 1,25,000  
Less: Opening Balance of Profit & Loss 50,000  
Provision for Tax 1,00,000 1,75,000
Net Profit before tax and extraordinary items   1,75,000
Items to be Added:    
Goodwill written off 25,000  
Debentures Interest 21,000  
Depreciation (WN 2) 55,000  
Loss on Sale of Machinery 5,000 1,06,000
Operating Profit before Working Capital Adjustments   2,81,000
Less: Increase in Current Assets    
Inventories 25,000  
Cash Generated from Operations   2,56,000
Less: Tax Paid (WN 3)   62,500
Net Cash Flow from Operating Activities   1,93,500
II. Cash Flow from Financing Activities    
Sale of machinery 15,000  
Purchase of machinery (WN 1) 3,55,000  
Purchase of non-current investment 25,000 3,65,000
Net Cash Used in Investing Activities   3,65,000
III: Cash Flow from Financing Activities    
Proceeds from Issue of Equity Shares 1,00,000  
Increase in Bank Overdraft 37,500  
Interest on Debentures paid 21,000  
Proceeds from Issue of Debentures 50,000 1,66,500
Net Cash Flow from Financing Activities   1,66,500
IV. Net Decrease in Cash and Cash Equivalents
  (5,000)
Add: Cash and Cash Equivalents in the beginning of the period
  61,500
Cash and Cash Equivalents at the end of the period
  56,500

 

Machinery Account
Particulars
Rs Particular Rs
To Balance b/d 5,22,500 By Depreciation A/c 20,000
To Bank A/c (Purchases – Bal. Fig.) 3,55,000 By Bank (Sales) 15,000
    By Loss on Sale (Profit and Loss A/c) 5,000
    By Balance c/d 8,37,500
  8,77,500   8,77,500

 

Accumulated Depreciation Account
Particulars
Rs Particular Rs
To Machinery A/c 20,000 By Balance b/d 70,000
    By Profit and Loss A/c (Dep. charged during the year- Bal. Fig.) 55,000
To Balance c/d 1,05,000    
  1,25,000   1,25,000

 

 

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)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

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)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 54 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.