Question 56 Chapter 5 of +2-B – USHA Publication 12 Class

Question 56 Chapter 5 of +2-B

Question 56 Chapter 5 of +2-B

PREPARING OF CASH FLOW STATEMENT (WITHOUT ADJUSTMENT)

56. (CFS Showing Operating, Investing & Financing Activities) From the following balance sheet of Vijay Ltd as at 31s, March, 2017 and 2018 prepare the cash flow statement.

Particulars Note No. 31st March 2017 31st March 2018
I. Equity and Liabilities      
 Shareholders Fund :       
Share Capital   7,50,000 10,00,000
Reserves and Surplus 1 1,50,000
2. Current Liabilities      
Current Liabilities   1,50,000 2,00,000
Short-term Provisions (Provision for Tax)    50,000 1,00,000
Total   9,50,000 14,50,000
II. Assets       
1. Non-Current Assets :       
(i) Fixed Assets   6,00,000 9,00,000
2. Current Assets   3,50,000 5,50,000
Total    9,50,000 14,50,000

Notes to Accounts

Particulars  2017-18 ₹ 2016-17 ₹
1. Reserves and Surplus     
Statement of Profit and Loss   1,50,000
  1,50,000

Additional Information
(i) During the year 50,000 depreciation was charged on fixed assets.
(ii) A piece of machinery included in fixed assets costing 10,000, on which depreciation

The solution of Question 56 Chapter 5 of +2-B: – 

Cash Flow Statement for the year ended 31st March 2016
Particulars
Rs
(A) Cash Flow from Operating Activities    
Net Profit before Tax and Extraordinary Items*   2,50,000
Adjustment of non-Cash & Non-Operating Items    
Add: Depreciation on Fixed Assets 50,000  
Add: Decrease in current Assets: 1,000 51,000
Cash operating Profit before Working Capital adj.   3,01,000
Add: Increase in current Liabilities: 50,000  
Less: Increase in current Assets: 2,00,000 1,50,000
    1,50,000
Less: Tax Paid   50,000
Cash used in Operating Activities   151,000
(B) Cash flows from Investing Activities    
Inflow of Cash    
Sale of Fixed Assets 5,000  
Outflow of Cash    
Purchase of Fixed Assets* 3,56,000 3,51,000
Net cash used in investing Activities   3,51,000
(C) Cash flows from Financing Activities
   
Inflow of Cash    
Issue of Equity Shares 2,50,000  
Net cash flow from financing activities   2,50,000
Net Increase in Cash & Cash Equivalents (A + B + C)   Nil

Working Note

Fixed Assets Account
Particulars
Amount ₹
Particulars
Amount ₹
To Balance b/d 6,00,000 By Depreciation
50,000
    By Bank A/c –Sale 5,000
    By Profit & Loss – Loss on Sale 1,000
To Bank –Purchase (Bal. fig.) 3,56,000 By Balance c/d 9,00,000
  9,56,000   9,56,000
Fixed Assets Account
Particulars
Amount ₹
Balance as per Statement of Profit and Loss 1,50,000
Add: Provision for Tax 1,00,000
  2,50,000

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 56 Chapter 5 of +2-B  - USHA Publication 12 Class
T.S. Grewal’s Analysis of Financial Statement

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