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Question 56 Chapter 5 of +2-B
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Table of Contents
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 2018 | ||
| 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 flow from 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 | |
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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
- 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
