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


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

ParticularsNote No.31st March,201731st March,2018
I. Equity and Liabilities   
 Shareholders Fund :    
Equity Share Capital 2,00,0001,50,000
Reserves and Surplus   
Balance in Statement of Profit and Loss 75,00050,000
Current Liabilities    
Trade Payable 50,00040,000
Provisions for Taxation  30,00025,000
Total  3,55,0002,65,000
II. Assets    
 Non-Current Assets :   
Tangible Assets   
Fixed Assets 1,05,0001,00,000
Current Assets :    
Inventories  75,00050,000
Trade Receivable  75,00065,000
Cash in hand 1,00,00050,000
Total   3,55,0002,65,000

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
(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 Tax30,000 
Interim Dividend Paid5,00035,000
Cash operating Profit before Working Capital adj. 60,000
Add: Increase in current Liabilities:  
Trade Payable10,000 
Less : Increase in current Assets:  
Trade Receivables10,00025,000
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 Capital50,000 
Outflow of Cash  
Interim Dividend paid5,00045,000
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
Amount ₹
Amount ₹
To Balance b/d1,00,000  
To Bank –Purchase (Bal. fig.)5,.000By Balance c/d1,05,000
 1,05,000 1,05,000


Provision for Tax
Amount ₹
Amount ₹
To Balance b/d25,000By Balance b/d25,000
To Bank –Purchase (Bal. fig.)30,000By 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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