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

Question 55 Chapter 5 of +2-B

Question 55 Chapter 5 of +2-B

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)

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

2 Book 3 min 225x300 - Question 55 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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