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Question 55 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 55 Chapter 5 of +2-B
Question No.55 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution

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Question 55 Chapter 5 of +2-B

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55. From the following Balance Sheet of Mishi Ltd. as at 31st March, 2019, prepare Cash Flow Statement:

ParticularsNote No. 31st March, 31st March, 
  2019 Rs2018 Rs 
I. EQUITY AND LIABILITIES   
1. Shareholders’ Funds    
(a) Share Capital 16,00,00012,00,000
(b) Reserves and Surplus16,60,0004,40,000
2. Non-Current Liabilities   
Long-term Borrowings (10% Debentures) 3,20,0002,00,000
3. Current Liabilities   
(a) Short-term Borrowings (Bank Loan) 80,0001,10,000
(b) Trade Payables 1,50,0001,80,000
Total 28,10,00021,30,000
II. ASSETS   
1. Non-Current Assets   
(a) Fixed Assets – Tangible 219,00,00012,10,000
(b) Non-current Investments 2,70,0002,00,000
2. Current Assets   
(a) Current Investments 1,60,00080,000
(b) Trade Receivables 1,80,0004,00,000
(c) Cash and Cash Equivalents33,00,0002,40,000
Total 28,10,00021,30,000

Notes to Accounts

Particulars31st March, 2019 ( Rs)31st March, 2018 ( Rs)
1. Reserves and Surplus  
Securities Premium Reserve 20,000—-
General Reserve3,00,0002,40,000
Surplus, i.e., Balance in Statement of Profit and Loss3,40,0002,00,000
 6,60,0004,40,000
2. Fixed Assets−Tangible  
Machinery (Cost) 21,40,00014,00,000
Less: Accumulated Depreciation2,40,0001,90,000
 19,00,00012,10,000
3. Cash and Cash Equivalents  
Cash in Hand1,40,0001,10,000
Bank Balance1,60,0001,30,000
 3,00,0002,40,000

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 & Loss3,40,000 
Less: Opening Balance of Profit & Loss2,00,000 
Provision for Tax60,0002,00,000
Net Profit before tax and extraordinary items 2,00,000
Items to be Added:  
Depreciation1,60,000 
Debentures Interest20,000 
Loss on Sale of Fixed Assets10,000 
Items to be Deducted:  
Profit on sale of Investment16,0001,74,000
Operating Profit before Working Capital Adjustments 3,74,000
Less: Increase in Current Assets  
Trade Payables30,000 
Add: Decrease in Current Assets  
Trade Receivables2,20,0001,90,000
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 Assets20,000 
Sale of Non-Current Investment96,000 
Purchase of non-current investment1,50,000 
Purchase of Fixed Assets8,80,009,14,000
Net Cash Used in Investing Activities 9,14,000
III: Cash Flow from Financing Activities  
Proceeds from Issue of Equity Shares4,00,000 
Proceeds from Issue of issue of Debentures1,20,000 
Security Premium Reserve20,000 
Repayment of Bank Loan30,000 
Interest Paid20,0004,90,000
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

 

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Fixed Assets Account
Particulars
RsParticularRs
To Balance b/d14,00,000By Depreciation A/c1,10,000
To Bank A/c (Purchases – Bal. Fig.)8,80,000By Bank (Sales)20,000
  By Loss on Sale (Profit and Loss A/c)10,000
  By Balance c/d21,40,000
 22,80,000 22,80,000

 

Accumulated Depreciation Account
Particulars
RsParticularRs
To Fixed Assets A/c1,10,000By Balance b/d1,90,000
  By Profit and Loss A/c (Dep. charged during the year- Bal. Fig.)1,60,000
To Balance c/d2,40,000  
 3,50,000 3,50,000

 

Fixed Assets Account
Particulars
RsParticularRs
To Balance b/d2,00,000By Bank A/c (Sale)96,000
To Profit on Sale (Profit and Loss A/c)16,000  
To Bank A/c (Purchases – Bal. Fig.)1,50,000By Balance c/d2,70,000
 3,66,000 3,66,000

 

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