Question 54 Chapter 8 – Unimax
54. From the following particular, prepare cash Flow Statement:
| Particulars | 2021 | 2021 | 2022 | 2022 |
| Equity and liabilities | ||||
| Equity share capital | 3,00,000 | 5,00,000 | ||
| Reserves and surpluses | 1,18,000 | 3,74,000 | ||
| 10% debentures | 2,00,000 | 1,00,000 | ||
| Debenture’s redemption premium | 20,000 | 10,000 | ||
| Account payable | 38,000 | 32,000 | ||
| Outstanding expenses | 14,000 | 9,000 | ||
| Total | 6,90,000 | 10,25,000 | ||
| Assets | ||||
| Fixed assets | 7,80,000 | 9,75,000 | ||
| Less: accumulated depreciation | 3,00,000 | 4,80,000 | 2,40,000 | 7,35,000 |
| Stock in hand | 78,000 | 93,000 | ||
| Account receivable | 85,000 | 1,02,000 | ||
| Cash in hand | 47,000 | 95,000 |
Additional information:
(I) Cash dividends paid 45,000.
(ii) Equipment’s purchased for cash 4,00,000.
(iii) Old machinery was sold for 45,000 at a loss of 20,000.
(iv) Equity share capital was issued for cash at par.
(v) Debentures were redeemed at a premium of 10%.
The solution of Question 54 Chapter 8 – Unimax Publication Class 12 Part 2-2021: –
Orange Ltd. cash flow statement
| Particulars | Rs. | Rs. |
| (A) Cash flow from operating activities | ||
| Net profit as per reserves and surpluses | 2,56,000 | |
| Add: non-cash expenses | ||
| Loss on sale of machine 20,000 | ||
| Int. on debentures 20,000 | ||
| Accumulated depreciation 80,000 | ||
| Dividend 45,000 | ||
| Operating profit before working capital charges | 1,65,000 | |
| Less: increase in current assets | ||
| Stock (15,000) | ||
| Account receivable (17,000) | ||
| Decrease in current liabilities | ||
| Account payable (6,000) | ||
| Outstanding expenses (5000) | (43000) | (43000) |
| Cash provided by operating activities | 3,78,000 | |
| (B) Cash flow from investing activities | ||
| Sale of machinery | 45,000 | |
| Purchase of equipment | (4,00,000) | |
| Cash used in investing activities | (3,55,000) | |
| (C) Cash flow from financing activities | ||
| Int. on debentures | 20,000 | |
| Issue of share capital | 2,00,000 | |
| Payment on dividend | (45,000) | |
| Redemption of debentures | (1,10,000) | |
| Cash flow from financing activities | 25,000 | |
| Net increase in cash & cash equivalents | 48,000 | |
| Opening cash balance | 47,000 | |
| Closing cash balance | 95,000 |
Working notes:
Fixed assets A/C
| Particulars | ₹ | Particulars | ₹ |
| To fixed assets a/c (dep. on machinery sold) |
1,40,000 | By balance b/d | 3,00,000 |
| To balance b/d | 2,40,000 | By profit % loss a/c (dep. charged) (B.F) |
80,000 |
| 3,80,000 | 3,80,000 |