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

Question 58 Chapter 5 of +2-B
Question No.58 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution

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Question 58 Chapter 5 of +2-B

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

ParticularsNote No. 31st March, 2019 Rs31st March, 2018 Rs 
I. EQUITY AND LIABILITIES   
1. Shareholders’ Funds    
(a) Share Capital17,50,0007,50,000
(b) Reserves and Surplus23,10,000-20,000
2. Non-Current Liabilities   
Long-term Borrowings (8% Debentures) 2,60,0001,50,000
3. Current Liabilities   
(a) Short-term Borrowings  (8% Bank Loan) 40,00050,000
(b) Trade Payables 1,20,0001,10,000
(c)  Short-term Provisions350,00040,000
Total 15,30,00010,80,000
II. ASSETS   
1. Non-Current Assets   
(a) Fixed Assets  8,60,0006,20,000
(i) Tangible Assets (Net) 15,00040,000
(ii) Intangible Assets (Goodwill) 1,25,00080,000
(b) Non-Current Investments   
2. Current Assets   
(a) Current Investments 5,00015,000
(b) Inventories 1,95,0001,00,000
(c) Trade Receivables 2,00,0002,00,000
(d) Cash and Cash Equivalents 1,30,00025,000
Total 15,30,00010,80,000

Notes to Accounts

Particulars31st March, 2019 ( Rs)31st March, 2018 ( Rs)
1. Share Capital  
Equity Share Capital5,50,0004,50,000
10% Preference Share Capital2,00,0003,00,000
 7,50,0007,50,000
2. Reserves and Surplus  
Securities Premium Reserve10,000—-
General Reserve 1,50,0001,20,000
Surplus i.e., Balance in Statement of Profit and Loss1,50,000(1,40,000)
 3,10,000-20,000
3. Short-term Provisions  
Provision for Tax50,00040,000
 50,00040,000

 

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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 & Loss1,50,000 
Less: Opening Balance of Profit & Loss1,40,000 
Provision for Tax45,000 
General Reserve30,0003,65,000
Net Profit before tax and extraordinary items 3,65,000
Items to be Added:  
Depreciation on Fixed Assets60,000 
Loss on sale of Fixed Assets20,000 
Interest on Debentures16,400 
Interest on Bank Loan3,600 
Premium on Redemption of Preference Shares5,000 
Goodwill written off25,0001,30,000
Operating Profit before Working Capital Adjustments 4,95,000
Less: Increase in Current Assets  
Inventories95,000 
Add: Increase in Current Liabilities  
Trade Payables10,00085,000
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 Assets20,000 
Purchase of Fixed Assets (WN)3,40,000 
Purchase of Investment45,0003,65,000
Net Cash Used in Investing Activities 3,65,000
III: Cash Flow from Financing Activities  
Proceeds from Issue of Equity Shares1,00,000 
Proceeds from Issue of Debentures1,10,000 
Interest on Debentures Paid16,400 
Redemption of Preference Share Capital1,00,000 
Premium on Redemption of Preference Share Capital5,000 
Security Premium Reserve10,000 
Repayment of Bank Loan10,000 
Interest on Bank Loan Paid3,60085,000
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
RsParticularRs
To Balance b/d6,20,000By Bank A/c (Sale)20,000
To Bank A/c (Purchases – Bal. Fig.)3,40,000By Depreciation A/c60,000
  By Loss on Sale (Profit and Loss A/c)20,000
  By Balance c/d8,60,000
 9,60,000 9,60,000

 

Provision for Taxation Account
Particulars
RsParticularRs
To Bank A/c (Tax Paid) (Bal. Fig.)35,000By Balance b/d40,000
To Balance c/d50,000By Profit and Loss A/c45,000
 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)

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)

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 Statements

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