Question 54 Chapter 5 of +2-B – USHA Publication 12 Class

Question 54 Chapter 5 of +2-B
Q-54- CH-5 Book 2 - Usha Publisher +2 Book 2019 - Solution


Question 54 Chapter 5 of +2-B


54. (CFS Showing Operating, Investing & Financing Activities) From the following balance sheet and additional information of Good Wood Co. Ltd., you are required to prepare the Cash flow statement as per AS-3 (Revised).

ParticularsNote No.31st March,201731st March,2018
I. Equity and Liabilities   
 Shareholders Fund :    
(a) Share Capital 30,00045,000
(b) Reserves and Surplus  7,00018,500
2. Current Liabilities   
Trade Payable110,50013,500
Total 47,50077,000
II. Assets    
1. Non-Current Assets :    
(i) Fixed Assets 20,00049,000
2. Current Assets   
(a) Inventories (Stock) 9,0009,000
(b) Trade Receivables (Debtors) 12,00010,000
(c) Cash and Cash Equivalents (Cash)  6,5009,000
Total  47,50077,000

Notes to Accounts

Particulars 2017-18 ₹2016-17 ₹
1. Trade Payable  
Creditors 8,0009,500
Bills Payable 2,5004,000

Additional Information
(i) Income tax paid during the year 4,500.
(ii) Interim Dividend paid during the year was 12% per annum on the opening balance of share capital

The solution of Question 54 Chapter 5 of +2-B: – 

Cash Flow Statement
(A) Cash Flow from Operating Activities  
Net Profit before Tax and Extraordinary Items* 19,600
Cash operating Profit before Working Capital adj. 19,600
Add: Increase in current Liabilities:  
Bills payable1,500 
Add: Decrease in current Assets:  
Trade Receivable2,0005,000
Less: Tax Paid 4,500
Cash flow from Operating Activities 20,100
(B) Cash flows from Investing Activities  
Outflow of Cash  
Purchase of Fixed Assets  
Cash used in Investing Activities 29,000
Net cash used in investing Activities 29,000
(C) Cash flows from Financing Activities  
Inflow of Cash  
Issue of Equity Shares15,000 
Outflow of Cash  
Interim Dividend Paid3,60011,400
Net cash flow from financing activities 11,400
Net decrease in cash & Cash equivalents (A + B + C) 2,500
Add: Cash equivalent at the beginning of the year 6,500
Cash equivalent at the end of year 9,000


Working Note

Net Profit before Tax and Extraordinary Items
Amount ₹
Net Profit of the Current Year11,500
Add: Interim Dividend Paid3,600
Provision of Tax4,500

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

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



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