Question 58 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 58 Chapter 5 of +2-B

Question 58 Chapter 5 of +2-B

58. From the following Balance Sheet of Samta Ltd., as at 31st March, 2019, prepare Cash Flow Statement:

Particulars Note No.  31st March, 2019 Rs 31st March, 2018 Rs 
I. EQUITY AND LIABILITIES      
1. Shareholders’ Funds       
(a) Share Capital 1 7,50,000 7,50,000
(b) Reserves and Surplus 2 3,10,000 -20,000
2. Non-Current Liabilities      
Long-term Borrowings (8% Debentures)   2,60,000 1,50,000
3. Current Liabilities      
(a) Short-term Borrowings  (8% Bank Loan)   40,000 50,000
(b) Trade Payables   1,20,000 1,10,000
(c)  Short-term Provisions 3 50,000 40,000
Total   15,30,000 10,80,000
II. ASSETS      
1. Non-Current Assets      
(a) Fixed Assets    8,60,000 6,20,000
(i) Tangible Assets (Net)   15,000 40,000
(ii) Intangible Assets (Goodwill)   1,25,000 80,000
(b) Non-Current Investments      
2. Current Assets      
(a) Current Investments   5,000 15,000
(b) Inventories   1,95,000 1,00,000
(c) Trade Receivables   2,00,000 2,00,000
(d) Cash and Cash Equivalents   1,30,000 25,000
Total   15,30,000 10,80,000

Notes to Accounts

Particulars 31st March, 2019 ( Rs) 31st March, 2018 ( Rs)
1. Share Capital    
Equity Share Capital 5,50,000 4,50,000
10% Preference Share Capital 2,00,000 3,00,000
  7,50,000 7,50,000
2. Reserves and Surplus    
Securities Premium Reserve 10,000 —-
General Reserve  1,50,000 1,20,000
Surplus i.e., Balance in Statement of Profit and Loss 1,50,000 (1,40,000)
  3,10,000 -20,000
3. Short-term Provisions    
Provision for Tax 50,000 40,000
  50,000 40,000

 

Additional Information :
(i) During the year a piece of machinery costing Rs 60,000 on which depreciation charged was 20,000 was sold at 50% of its book value. Depreciation provided on tangible Assets Rs 60,000;
(ii) Income tax Rs 45,000 was provided;
(iii) Additional Debentures were issued at par on 1st October, 2018 and Bank Loan was repaid on the same date;
(iv) At the end of the year Preference Shares were redeemed at a premium of 5%.

 

 

The solution of Question 58 Chapter 4 of +2-B: –


Cash Flow Statement for the year ended 31st March,2019
Particulars
Rs
I. Cash Flow from Financing Activities    
Profit as per Statement of Profit and Loss :    
Closing Balance of Profit & Loss 1,50,000  
Less: Opening Balance of Profit & Loss 1,40,000  
Provision for Tax 45,000  
General Reserve 30,000 3,65,000
Net Profit before tax and extraordinary items   3,65,000
Items to be Added:    
Depreciation on Fixed Assets 60,000  
Loss on sale of Fixed Assets 20,000  
Interest on Debentures 16,400  
Interest on Bank Loan 3,600  
Premium on Redemption of Preference Shares 5,000  
Goodwill written off 25,000 1,30,000
Operating Profit before Working Capital Adjustments   4,95,000
Less: Increase in Current Assets    
Inventories 95,000  
Add: Increase in Current Liabilities    
Trade Payables 10,000 85,000
Cash Generated from Operations   4,10,000
Less: Tax Paid (WN 3)   35,000
Net Cash Flow from Operating Activities   3,75,000
II. Cash Flow from Financing Activities    
Sale of Fixed Assets 20,000  
Purchase of Fixed Assets (WN) 3,40,000  
Purchase of Investment 45,000 3,65,000
Net Cash Used in Investing Activities   3,65,000
III: Cash Flow from Financing Activities    
Proceeds from Issue of Equity Shares 1,00,000  
Proceeds from Issue of Debentures 1,10,000  
Interest on Debentures Paid 16,400  
Redemption of Preference Share Capital 1,00,000  
Premium on Redemption of Preference Share Capital 5,000  
Security Premium Reserve 10,000  
Repayment of Bank Loan 10,000  
Interest on Bank Loan Paid 3,600 85,000
Net Cash Flow from Financing Activities   85,000
IV. Net Decrease in Cash and Cash Equivalents
  95,000
Add: Cash and Cash Equivalents in the beginning of the period
  40,000
Cash and Cash Equivalents at the end of the period
  1,35,000

 

Fixed Assets Account
Particulars
Rs Particular Rs
To Balance b/d 6,20,000 By Bank A/c (Sale) 20,000
To Bank A/c (Purchases – Bal. Fig.) 3,40,000 By Depreciation A/c 60,000
    By Loss on Sale (Profit and Loss A/c) 20,000
    By Balance c/d 8,60,000
  9,60,000   9,60,000

 

Provision for Taxation Account
Particulars
Rs Particular Rs
To Bank A/c (Tax Paid) (Bal. Fig.) 35,000 By Balance b/d 40,000
To Balance c/d 50,000 By Profit and Loss A/c 45,000
  85,000   85,000


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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 58 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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