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.

ParticularsNote No.31st March,201731st March,2018
I. Equity and Liabilities   
 Shareholders Fund :    
Share Capital 2,00,0002,00,000
Reserves and Surplus   
Balance in Statement of Profit and Loss 90,00050,000
Non-Current Liabilities    
Bank Loan 10,000
Current Liabilities    
Trade Payable 24,00015,000
Outstanding Expenses  1,0005,000
Provisions    
Provisions Provision for Taxation  25,00020,000
Total  3,40,0003,00,000
II. Assets    
 Non-Current Assets :   
Current Assets :  2,00,0002,00,000
Inventories    
Trade Receivable  90,00050,000
Cash and Cash Equivalents – Cash   
Bank 10,000
Total   3,40,0003,00,000

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 Charged20,000 
Provision for Taxation20,00040,000
Cash operating Profit before Working Capital adj. 80,000
Add: Increase in Current Liabilities:  
Trade Payable9,000 
Add: Decrease in current Assets:  
Inventories10,00019,000
Less: Decrease in current Liabilities: 99,000
Outstanding Expenses4,000 
Less: Increase in current Assets:  
Trade Receivables10,00014,000
  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 Loan10,000 
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/d2,35,000By Depreciation
20,000
To Bank –Purchase (Bal. fig.)60,000By Balance c/d2,75,000
 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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