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Question 55 Chapter 5 of +2-B
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55. (CFS Showing Operating, Investing & Financing Activities) From the following balance sheet of Sewak Ltd. as on 31st March, 2017 and 2018. Prepare cash flow statement.
Particulars | Note No. | 31st March 2017 | 31st March 2018 |
I. Equity and Liabilities | |||
Shareholders Fund : | |||
(a) Share Capital | 4,00,000 | 7,00,000 | |
(b) Reserves and Surplus (Balance in statement of profit and loss) | 50,000 | 3,20,000 | |
2. Non-current Liabilities | |||
Long-term Borrowings (9% debentures) | 2,00,000 | 4,00,000 | |
3. Current Liabilities | |||
(a) Trade Payables (Creditors) | 1,10,000 | 1,50,000 | |
(b) Other Current Liabilities (Expenses) | 10,000 | 20,000 | |
Total | 6,70,000 | 9,50,000 | |
II. Assets | |||
1. Non-Current Assets : | |||
(a) Fixed Assets | 3,00,000 | 5,00,000 | |
(b) Non —current Investments | 2,00,000 | 1,40,000 | |
2. Current Assets | |||
(a) Inventories (Stock) | 50,000 | 1,00,000 | |
(b) Trade Receivables (Debtors) | 1,00,000 | 1,70,000 | |
(c) Cash and Cash Equivalents | 20,000 | 40,000 | |
Total | 6,70,000 | 9,50,000 |
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Additional Information
Included in fixed assets was a piece of machinery costing 70,000 on which depreciation charged was 40,000 and it was sold for Z 30,000. During the year, 1,40,000 depreciation was charged on fixed assets. Prepare the cash flow statement.
The solution of Question 55 Chapter 5 of +2-B: –
Cash Flow Statement for the year ended 31st March 2016 |
||
Particulars |
Rs |
|
(A) Cash Flow from Operating Activities | ||
Net Loss as per the statement of Profit and Loss A/c | 2,70,000 | |
Adjustment of Non-cash & Non-Operating items | ||
Add: Depreciation on Fixed Assets | 1,40,000 | |
Interest on Debentures 6% on ₹ 2,00,000 | 18,000 | 1,58,000 |
Operating Loss before change in Working Capital | 1,12,000 | |
Add: Increase in Current Liabilities: | ||
Creditors | 40,000 | |
Outstanding Expenses | 10,000 | 50,000 |
Less: Increase in current Assets: | ||
Inventories | 50,000 | |
Debtors | 70,000 | 1,20,000 |
Cash used in Operating Activities | 1,82,000 |
|
(B) Cash flows from Investing Activities | ||
Inflow of Cash | ||
Sale of Fixed Assets | 30,000 | |
Sale of Investment | 60,000 | |
Outflow of Cash | ||
Purchase of Fixed Assets | ||
Cash used in Investing Activities | 3,70,000 | |
Net cash used in investing Activities | 2,80,000 |
|
(C) Cash flows from Financing Activities | ||
Inflow of Cash | ||
Issue of Equity Shares | 3,00,000 | |
Issue of 9% Debentures | 2,00,000 | |
Outflow of Cash | ||
Interest paid on Debentures | 18,000 | 4,82,000 |
Net cash flow from financing activities | 4,82,000 |
|
Net decrease in cash & Cash equivalents (A + B + C) | 20,000 | |
Add: Cash equivalent at the beginning of the year | 20,000 | |
Cash equivalent at the end of year | 40,000 |
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Working Note
Fixed Assets Account |
|||
Particulars |
Amount ₹ |
Particulars |
Amount ₹ |
To Balance b/d | 3,00,000 | By Depreciation |
1,40,000 |
By Bank A/c –Sale | 30,000 | ||
To Bank –Purchase (Bal. fig.) | 3,70,000 | By Balance c/d | 5,00,000 |
6,70,000 | 6,70,000 |
Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

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