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

Question 56 Chapter 5 of +2-B
Q-56- CH-5 Book 2 - Usha Publisher +2 Book 2019 - Solution


Question 56 Chapter 5 of +2-B


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.

ParticularsNote No.31st March 201731st March 2018
I. Equity and Liabilities   
 Shareholders Fund :    
Share Capital 7,50,00010,00,000
Reserves and Surplus11,50,000
2. Current Liabilities   
Current Liabilities 1,50,0002,00,000
Short-term Provisions (Provision for Tax)  50,0001,00,000
Total 9,50,00014,50,000
II. Assets    
1. Non-Current Assets :    
(i) Fixed Assets 6,00,0009,00,000
2. Current Assets 3,50,0005,50,000
Total  9,50,00014,50,000

Notes to Accounts

Particulars 2017-18 ₹2016-17 ₹
1. Reserves and Surplus   
Statement of Profit and Loss  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 2018
(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 Assets50,000 
Add: Decrease in current Assets:1,00051,000
Cash operating Profit before Working Capital adj. 3,01,000
Add: Increase in current Liabilities:50,000 
Less: Increase in current Assets:2,00,0001,50,000
Less: Tax Paid 50,000
Cash flow from Operating Activities 151,000
(B) Cash flows from Investing Activities  
Inflow of Cash  
Sale of Fixed Assets5,000 
Outflow of Cash  
Purchase of Fixed Assets*3,56,0003,51,000
Net cash used in investing Activities 3,51,000
(C) Cash flows from Financing Activities  
Inflow of Cash  
Issue of Equity Shares2,50,000 
Net cash flow from financing activities 2,50,000
Net Increase in Cash & Cash Equivalents (A + B + C) Nil

Working Note


Fixed Assets Account
Amount ₹
Amount ₹
To Balance b/d6,00,000By Depreciation
  By Bank A/c –Sale5,000
  By Profit & Loss – Loss on Sale1,000
To Bank –Purchase (Bal. fig.)3,56,000By Balance c/d9,00,000
 9,56,000 9,56,000
Fixed Assets Account
Amount ₹
Balance as per Statement of Profit and Loss1,50,000
Add: Provision for Tax1,00,000

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

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statement


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