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Question 58 Chapter 5 of +2-B
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Table of Contents
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 Flow from 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 |
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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
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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