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Question 58 Chapter 8 -Unimax Publication Class 12 Part 2 – 2021

Question 58 Chapter 8 -Unimax Publication Class 12 Part 2 - 2021
Question 58 Chapter 8 -Unimax Publication Class 12 Part 2 - 2021

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Question 58 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021

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58 From the following information, prepare a Cash Flow Statement:

BALANCE SHEETS AS AT…….

Particulars31.3.202231.3.2021
I. Equity and liabilities  
(1) Shareholders’ funds4,10,0003,00,000
Reserve & surplus1,00,00060,000
(2) non-current liabilities
10% loan75,000
(3) Current liabilities  
(a) Bank overdraft35,00037,000
(b) Trade payable1,50,0001,00,000
(c) Short term provision  
(Provision for tax)15,0008,000
 7,10,0005,80,000
II. Assets  
(1) Non-current assets5,00,0004,50,000
Less: accumulated Dep.60,00050,000
 4,40,0004,00,000
(2) Current assets  
(a) Current investments (short term)40,00030,000
(b) Inventories1,10,00060,000
(c) Trade receivable1,07,00085,000
(d) Cash and cash equivalents13,0005,000
 7,10,0005,80,000

 

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Additional Information: (1) Contingent liability 31.3.22 31.3.21
Proposed dividend 35000 25,000
(2) Loan was repaid on 31st April 2020

The solution of Question 58 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31st MARCH . 2022

Particulars
I. cash flow from operating activities  
Net profit before tax (note 1)80,000 
Adjustments for non-cash and non-operating items:  
Add: depreciation on plant & machinery10,000 
Operating profit before working capital changes90,000 
Add: trade payable50,000 
Less: inventory(50,000) 
Trade receivable22,000 
Payment of tax(8,000) 
Net cash flow from operating activities 60,000
B. cash flow from investing activities  
Purchase of plant & machinery(50,000) 
Net cash used in investing activities (50,000)
C. cash flow from financing activities  
Issue of share capital1,10,000 
Repayment of loan(75,000) 
Repayment of short-term borrowing(2,000) 
Payment of proposed dividend (previous year)(25,000) 
Net cash used in financing activities 8,000
Net increase in cash and cash equivalents 18,000
Add cash and cash equivalents in the beg of the period 35,000
Cash and cash equivalents attend of year 53,000

Working Notes:

Calculations of net profit before tax
Reserve & surplus 31 march 20221,00,000
Lens reserve & surplus 31 march 202160,000
 40,000
Add proposed dividend for previous year25,000
Provisions for tax made during the current year15,000
Net profit before tax80,000

 

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Unimax Publication – Accountancy PSEB Class 12 – Volume I – Solution

Unimax Publication – Accountancy PSEB (Class 12) – Part – II – Solution

Check out T.S. Grewal +2 Book 2023@ Official Website of Sultan Chand Publication

 

 

 

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