Question 57 Chapter 5 of +2-B – USHA Publication 12 Class

Question 57 Chapter 5 of +2-B

Question 57 Chapter 5 of +2-B

PREPARING OF CASH FLOW STATEMENT (WITHOUT ADJUSTMENT)

57. (CFS Showing Operating, Investing & Financing Activities) From the following information prepare cash flow statement.

Particulars Note No. 31st March,2017 31st March,2018
I. Equity and Liabilities      
 Shareholders Fund :       
Share Capital   2,00,000 2,00,000
Reserves and Surplus      
Balance in Statement of Profit and Loss   90,000 50,000
Non-Current Liabilities       
Bank Loan   10,000
Current Liabilities       
Trade Payable   24,000 15,000
Outstanding Expenses    1,000 5,000
Provisions       
Provisions Provision for Taxation    25,000 20,000
Total    3,40,000 3,00,000
II. Assets       
 Non-Current Assets :      
Current Assets :    2,00,000 2,00,000
Inventories       
Trade Receivable    90,000 50,000
Cash and Cash Equivalents – Cash      
Bank   10,000
Total     3,40,000 3,00,000

Net profit for the year 2017-18 after providing ₹ 20,000 as depreciation was ₹ 60,000. During 2017-18, Company declared an equity dividend of @10% and paid ₹ 15,000 as income tax.

The solution of Question 57 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*   40,000
Adjustment of non-Cash & Non-Operating Items    
Add: Depreciation Charged 20,000  
Provision for Taxation 20,000 40,000
Cash operating Profit before Working Capital adj.   80,000
Add: Increase in Current Liabilities:    
Trade Payable 9,000  
Add: Decrease in current Assets:    
Inventories 10,000 19,000
Less: Decrease in current Liabilities:   99,000
Outstanding Expenses 4,000  
Less: Increase in current Assets:    
Trade Receivables 10,000 14,000
    85,000
Less: Tax Paid   15,000
Cash used in Operating Activities   70,00
(B) Cash flows from Investing Activities    
Inflow of Cash    
Purchase of Non-current Assets* 60,000  
Net cash used in investing Activities   60,000
(C) Cash flows from Financing Activities
   
Outflow of Cash    
Repayment of Bank Loan 10,000  
Net cash flow from financing activities   10,000
Net Increase in Cash & Cash Equivalents (A + B + C)   Nil
Add: Cash & Cash equivalents in the beginning   30,000
Cash & Cash equivalents at the end   30,000

Working Note

Fixed Assets Account
Particulars
Amount ₹
Particulars
Amount ₹
To Balance b/d 2,35,000 By Depreciation
20,000
To Bank –Purchase (Bal. fig.) 60,000 By Balance c/d 2,75,000
  2,95,000   2,95,000

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

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