Question 55 Chapter 5 of +2-B

Question 55 Chapter 5 of +2-B

PREPARING OF CASH FLOW STATEMENT (WITHOUT ADJUSTMENT)

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.

ParticularsNote No.31st March 201731st March 2018
I. Equity and Liabilities   
 Shareholders Fund :    
(a) Share Capital 4,00,0007,00,000
(b) Reserves and Surplus (Balance in statement of profit and loss)  50,0003,20,000
2. Non-current Liabilities    
Long-term Borrowings (9% debentures)  2,00,0004,00,000
3. Current Liabilities    
(a) Trade Payables (Creditors)  1,10,0001,50,000
(b) Other Current Liabilities (Expenses) 10,00020,000
Total  6,70,0009,50,000
II. Assets    
1. Non-Current Assets :    
(a) Fixed Assets  3,00,0005,00,000
(b) Non —current Investments 2,00,0001,40,000
2. Current Assets    
(a) Inventories (Stock) 50,0001,00,000
(b) Trade Receivables (Debtors) 1,00,0001,70,000
(c) Cash and Cash Equivalents 20,00040,000
Total  6,70,0009,50,000

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 Assets1,40,000 
Interest on Debentures 6% on ₹ 2,00,00018,0001,58,000
Operating Loss before change in Working Capital 1,12,000
Add: Increase in Current Liabilities:  
Creditors40,000 
Outstanding Expenses10,00050,000
Less: Increase in current Assets:  
Inventories50,000 
Debtors70,0001,20,000
Cash used in Operating Activities 1,82,000
(B) Cash flows from Investing Activities  
Inflow of Cash  
Sale of Fixed Assets30,000 
Sale of Investment60,000 
Outflow of Cash  
Purchase of Fixed Assets  
Cash used in Investing Activities3,70,000 
Net cash used in investing Activities 2,80,000
(C) Cash flows from Financing Activities  
Inflow of Cash  
Issue of Equity Shares3,00,000 
Issue of 9% Debentures2,00,000 
Outflow of Cash  
Interest paid on Debentures18,0004,82,000
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

Working Note

Fixed Assets Account
Particulars
Amount ₹
Particulars
Amount ₹
To Balance b/d3,00,0000By Depreciation
1,40,000
  By Bank A/c –Sale30,000
To Bank –Purchase (Bal. fig.)3,70,000By Balance c/d5,00,000
 6,70,000 6,70,000

 

Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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  - USHA Publication 12 Class
T.S. Grewal’s Analysis of Financial Statement

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