Question 55 Chapter 5 of +2-B
Table of Contents
55. From the following Balance Sheet of Mishi Ltd. as at 31st March, 2019, prepare Cash Flow Statement:
| Particulars | Note No. | 31st March, | 31st March, |
| 2019 Rs | 2018 Rs | ||
| I. EQUITY AND LIABILITIES | |||
| 1. Shareholders’ Funds | |||
| (a) Share Capital | 16,00,000 | 12,00,000 | |
| (b) Reserves and Surplus | 1 | 6,60,000 | 4,40,000 |
| 2. Non-Current Liabilities | |||
| Long-term Borrowings (10% Debentures) | 3,20,000 | 2,00,000 | |
| 3. Current Liabilities | |||
| (a) Short-term Borrowings (Bank Loan) | 80,000 | 1,10,000 | |
| (b) Trade Payables | 1,50,000 | 1,80,000 | |
| Total | 28,10,000 | 21,30,000 | |
| II. ASSETS | |||
| 1. Non-Current Assets | |||
| (a) Fixed Assets – Tangible | 2 | 19,00,000 | 12,10,000 |
| (b) Non-current Investments | 2,70,000 | 2,00,000 | |
| 2. Current Assets | |||
| (a) Current Investments | 1,60,000 | 80,000 | |
| (b) Trade Receivables | 1,80,000 | 4,00,000 | |
| (c) Cash and Cash Equivalents | 3 | 3,00,000 | 2,40,000 |
| Total | 28,10,000 | 21,30,000 |
Notes to Accounts
| Particulars | 31st March, 2019 ( Rs) | 31st March, 2018 ( Rs) |
| 1. Reserves and Surplus | ||
| Securities Premium Reserve | 20,000 | —- |
| General Reserve | 3,00,000 | 2,40,000 |
| Surplus, i.e., Balance in Statement of Profit and Loss | 3,40,000 | 2,00,000 |
| 6,60,000 | 4,40,000 | |
| 2. Fixed Assets−Tangible | ||
| Machinery (Cost) | 21,40,000 | 14,00,000 |
| Less: Accumulated Depreciation | 2,40,000 | 1,90,000 |
| 19,00,000 | 12,10,000 | |
| 3. Cash and Cash Equivalents | ||
| Cash in Hand | 1,40,000 | 1,10,000 |
| Bank Balance | 1,60,000 | 1,30,000 |
| 3,00,000 | 2,40,000 |
Additional Information :
(i) During the year, Machinery costing 1,40,000 accumulated depreciation provided thereon Rs 1,10,000 was sold for Rs 20,000.
(ii) During the year, Non-current Investments costing Rs 80,000 were sold at a profit of Rs 16,000.
The solution of Question 55 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 | 3,40,000 | |
| Less: Opening Balance of Profit & Loss | 2,00,000 | |
| Provision for Tax | 60,000 | 2,00,000 |
| Net Profit before tax and extraordinary items | 2,00,000 | |
| Items to be Added: | ||
| Depreciation | 1,60,000 | |
| Debentures Interest | 20,000 | |
| Loss on Sale of Fixed Assets | 10,000 | |
| Items to be Deducted: | ||
| Profit on sale of Investment | 16,000 | 1,74,000 |
| Operating Profit before Working Capital Adjustments | 3,74,000 | |
| Less: Increase in Current Assets | ||
| Trade Payables | 30,000 | |
| Add: Decrease in Current Assets | ||
| Trade Receivables | 2,20,000 | 1,90,000 |
| Cash Generated from Operations | 2,56,000 | |
| Less: Tax Paid (WN 3) | 62,500 | |
| Net Cash Flow from Operating Activities | 5,64,000 | |
| II. Cash Flow from Financing Activities | ||
| Sale of Fixed Assets | 20,000 | |
| Sale of Non-Current Investment | 96,000 | |
| Purchase of non-current investment | 1,50,000 | |
| Purchase of Fixed Assets | 8,80,00 | 9,14,000 |
| Net Cash Used in Investing Activities | 9,14,000 | |
| III: Cash Flow from Financing Activities | ||
| Proceeds from Issue of Equity Shares | 4,00,000 | |
| Proceeds from Issue of issue of Debentures | 1,20,000 | |
| Security Premium Reserve | 20,000 | |
| Repayment of Bank Loan | 30,000 | |
| Interest Paid | 20,000 | 4,90,000 |
| Net Cash Flow from Financing Activities | 4,90,000 | |
| IV. Net Decrease in Cash and Cash Equivalents |
1,40,000 | |
| Add: Cash and Cash Equivalents in the beginning of the period |
3,20,000 |
|
| Cash and Cash Equivalents at the end of the period |
4,60,000 | |
| Fixed Assets Account | |||
| Particulars |
Rs | Particular | Rs |
| To Balance b/d | 14,00,000 | By Depreciation A/c | 1,10,000 |
| To Bank A/c (Purchases – Bal. Fig.) | 8,80,000 | By Bank (Sales) | 20,000 |
| By Loss on Sale (Profit and Loss A/c) | 10,000 | ||
| By Balance c/d | 21,40,000 | ||
| 22,80,000 | 22,80,000 | ||
| Accumulated Depreciation Account | |||
| Particulars |
Rs | Particular | Rs |
| To Fixed Assets A/c | 1,10,000 | By Balance b/d | 1,90,000 |
| By Profit and Loss A/c (Dep. charged during the year- Bal. Fig.) | 1,60,000 | ||
| To Balance c/d | 2,40,000 | ||
| 3,50,000 | 3,50,000 | ||
| Fixed Assets Account | |||
| Particulars |
Rs | Particular | Rs |
| To Balance b/d | 2,00,000 | By Bank A/c (Sale) | 96,000 |
| To Profit on Sale (Profit and Loss A/c) | 16,000 | ||
| To Bank A/c (Purchases – Bal. Fig.) | 1,50,000 | By Balance c/d | 2,70,000 |
| 3,66,000 | 3,66,000 | ||
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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)
- 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)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
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
