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

Question 54 Chapter 5 of +2-B
Question No.54 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution


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.
ParticularsNote No. 31st March, 2016 Rs31st March, 2015 Rs 
1. Shareholders’ Funds    
(a) Share Capital 4,50,0003,50,000
(b) Reserves and Surplus11,25,00050,000
2. Non-Current Liabilities   
Long-term Borrowings22,25,0001,75,000
2. Current Liabilities   
(a) Short-term Borrowings375,00037,500
(b) Short -term Provisions41,00,00062,500
Total 9,75,0006,75,000
1. Non-Current Assets   
Fixed Assets :    
(i) Tangible Assets57,32,5004,52,500
(ii) Intangible Assets: Goodwill650,00075,000
(b) Non-current Investments 75,00050,000
2. Current Assets   
(a) Current Investments 20,00035,000
(b) Inventories761,00036,000
(c) Cash and Cash Equivalents 36,50026,500
Total 9,75,0006,75,000

Notes to Accounts

Particulars31st March, 2016 ( Rs)31st March, 2015 ( Rs)
1. Reserves and Surplus  
Surplus, i.e., Balance in Statement of Profit and Loss1,25,00050,000
2. Short-term Borrowings :  
Cash and Cash Equivalents2,25,0001,75,000
3. Short-term Borrowings  
Bank Overdraft75,00037,500
4. Short-term Provisions  
Provision for Tax1,00,00062,500
5. Tangible Assets  
Accumulated Depreciation(1,05,000)-70,000
6. Intangible Assets  
7. Inventories  

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
I. Cash Flow from Financing Activities  
Profit as per Statement of Profit and Loss :  
Closing Balance of Profit & Loss1,25,000 
Less: Opening Balance of Profit & Loss50,000 
Provision for Tax1,00,0001,75,000
Net Profit before tax and extraordinary items 1,75,000
Items to be Added:  
Goodwill written off25,000 
Debentures Interest21,000 
Depreciation (WN 2)55,000 
Loss on Sale of Machinery5,0001,06,000
Operating Profit before Working Capital Adjustments 2,81,000
Less: Increase in Current Assets  
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 machinery15,000 
Purchase of machinery (WN 1)3,55,000 
Purchase of non-current investment25,0003,65,000
Net Cash Used in Investing Activities 3,65,000
III: Cash Flow from Financing Activities  
Proceeds from Issue of Equity Shares1,00,000 
Increase in Bank Overdraft37,500 
Interest on Debentures paid21,000 
Proceeds from Issue of Debentures50,0001,66,500
Net Cash Flow from Financing Activities 1,66,500
IV. Net Decrease in Cash and Cash Equivalents
Add: Cash and Cash Equivalents in the beginning of the period
Cash and Cash Equivalents at the end of the period



Machinery Account
To Balance b/d5,22,500By Depreciation A/c20,000
To Bank A/c (Purchases – Bal. Fig.)3,55,000By Bank (Sales)15,000
  By Loss on Sale (Profit and Loss A/c)5,000
  By Balance c/d8,37,500
 8,77,500 8,77,500


Accumulated Depreciation Account
To Machinery A/c20,000By Balance b/d70,000
  By Profit and Loss A/c (Dep. charged during the year- Bal. Fig.)55,000
To Balance c/d1,05,000  
 1,25,000 1,25,000



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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)

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)

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

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements



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