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Question 54 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021

Question 54 Chapter 8 -Unimax Publication Class 12 Part 2 - 2021
Question 54 Chapter 8 -Unimax Publication Class 12 Part 2 - 2021

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Question 54 Chapter 8 – Unimax

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54. From the following particular, prepare cash Flow Statement:

Particulars2021202120222022
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 assets7,80,000 9,75,000 
Less: accumulated depreciation3,00,0004,80,0002,40,0007,35,000
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: –

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Orange Ltd. cash flow statement

ParticularsRs.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 charges1,65,000 
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 machinery45,000 
Purchase of equipment(4,00,000) 
Cash used in investing activities (3,55,000)
(C) Cash flow from financing activities  
Int. on debentures20,000 
Issue of share capital2,00,000 
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)
1,40,000By balance b/d3,00,000
To balance b/d2,40,000By profit % loss a/c
(dep. charged) (B.F)
80,000
 3,80,000 3,80,000

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