Question 58 Chapter 5 of +2-B – USHA Publication 12 Class

Question 58 Chapter 5 of +2-B

Question 58 Chapter 5 of +2-B

PREPARING OF CASH FLOW STATEMENT (WITHOUT ADJUSTMENT)

58. (CFS Showing Operating, Investing & Financing Activities) Prepare cash flow .4 statement from the following as per AS-3 (Revised)

BALANCE SHEETS       
Particulars Note No. 31st March,2017 31st March,2018
I. Equity and Liabilities      
 Shareholders Fund :       
Equity Share Capital   2,00,000 1,50,000
Reserves and Surplus      
Balance in Statement of Profit and Loss   75,000 50,000
Current Liabilities       
Trade Payable   50,000 40,000
Provisions for Taxation    30,000 25,000
Total    3,55,000 2,65,000
II. Assets       
 Non-Current Assets :      
Tangible Assets      
Fixed Assets   1,05,000 1,00,000
Current Assets :       
Inventories    75,000 50,000
Trade Receivable    75,000 65,000
Cash in hand   1,00,000 50,000
Total     3,55,000 2,65,000

Additional information:
(i) Dividend of ₹ 5,000 paid during the year
(ii) Income tax ₹ 25,000 was paid during the year

The solution of Question 58 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*   25,000
Adjustment of non-Cash & Non-Operating Items    
Add: Provision for Tax 30,000  
Interim Dividend Paid 5,000 35,000
Cash operating Profit before Working Capital adj.   60,000
Add: Increase in current Liabilities:    
Trade Payable 10,000  
Less : Increase in current Assets:    
Inventories 25,00  
Trade Receivables 10,000 25,000
    35,000
Less: Tax Paid   25,000
Cash used in Operating Activities   10,000
(B) Cash flows from Investing Activities    
Inflow of Cash    
Purchase of Fixed Assets* 5,000  
Net cash used in investing Activities   5,000
(C) Cash flows from Financing Activities    
Inflow of Cash    
Share Capital 50,000  
Outflow of Cash    
Interim Dividend paid 5,000 45,000
Net cash flow from financing activities   45,000
Net Increase in Cash & Cash Equivalents (A + B + C)   50,000
Add: Cash & Cash equivalents in the beginning   50,000
Cash & Cash equivalents at the end   1,00,000

Working Note

Fixed Assets Account
Particulars
Amount ₹
Particulars
Amount ₹
To Balance b/d 1,00,000    
To Bank –Purchase (Bal. fig.) 5,.000 By Balance c/d 1,05,000
  1,05,000   1,05,000

 

Provision for Tax
Particulars
Amount ₹
Particulars
Amount ₹
To Balance b/d 25,000 By Balance b/d 25,000
To Bank –Purchase (Bal. fig.) 30,000 By Profit & Loss – Provision (Bal. fig.) 30,000
  55,000   55,000

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

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