Question 59 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 59 Chapter 5 of +2-B

Table of Contents

59. Prepare Cash Flow Statement from the following:

I. Revenue from Operations Net Sales	36,00,000
II. Expenses;
Purchases of Stock-in-Trade	28,16,000
Change in Inventories of Stock-in-Trade	-65,000
Finance Costs	15,000
Depreciation and Amortisation Expenses	80,000
Other Expenses	5,34,000
Total	33,80,000
III. Profit before Tax I − II	2,20,000
IV. Less: Provision for Tax	40,000
V. Profit after Tax III − IV	1,80,000

		2019 Rs	2018 Rs
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital		6,00,000	5,00,000
(b) Reserves and Surplus	1	3,00,000	1,20,000
2. Non-Current Liabilities
Long-term Loan		1,20,000	1,50,000
3. Current Liabilities
(a) Short-term Borrowings: Bank Overdraft		13,000	—-
(b) Trade Payables (Creditors)		2,85,000	2,38,000
(c) Short-term Provision: Provision form Tax		44,000	30,000
Total		13,62,000	10,38,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets		6,20,000	4,00,,000
2. Current Assets
(a) a Short-term Investments (Marketable Security)		34,000	20,000
(b) Inventories		3,28,000	2,63,000
(c) Trade Receivables		3,48,000	3,10,000
(d) Cash and Cash Equivalents	2	32,000	45,000
Total		13,62,000	10,38,000

Notes to Accounts

Particulars	Note No.	31st March,	31st March,
		2019 Rs	2018 Rs
1. Reserves and Surplus
Surplus, i.e., Balance in Statement of Profit and Loss		3,00,000	1,20,000
		3,00,000	1,20,000
2. Cash and Cash Equivalents	1
Cash in Hand		32,000	17,000
Cash at Bank		——	28,000
		32,000	45,000

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 & Loss	3,00,000
Less: Opening Balance of Profit & Loss	1,20,000
Provision for Tax	40,000	2,20,000
Net Profit before tax and extraordinary items		2,20,000
Items to be Added:
Finance Cost	15,000
Depreciation and Amortisation Expenses	80,000	95,000
Operating Profit before Working Capital Adjustments		3,15,000
Less: Increase in Current Assets
Inventories	65,000
Trade Receivables	38,000	1,03,000
Add: Increase in Current Liabilities
Trade Payables	47,000	56,000
Cash Generated from Operations		26,000
Less: Tax Paid (WN 3)		35,000
Net Cash Flow from Operating Activities		2,33,000
II. Cash Flow from Financing Activities
Purchase of Fixed Assets (WN1)		3,00,000
Net Cash Used in Investing Activities		3,00,000
III: Cash Flow from Financing Activities
Proceeds from Issue of Equity Shares	1,00,000
Bank Overdraft	13,000
Redemption of Long-Term Loan	30,000
Interest	15,000	68,000
Net Cash Flow from Financing Activities		68,000
IV. Net Decrease in Cash and Cash Equivalents		1,000
Add: Cash and Cash Equivalents in the beginning of the period		66,000
Cash and Cash Equivalents at the end of the period		67,000

Provision for Taxation Account
Particulars	Rs	Particular	Rs
To Bank A/c (Tax Paid) (Bal. Fig.)	26,000	By Balance b/d	30,000
To Balance c/d	44,000	By Profit and Loss A/c	40,000
	70,000		70,000