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

Question 59 Chapter 5 of +2-B

Question 59 Chapter 5 of +2-B

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

 

 

The solution of Question 59 Chapter 4 of +2-B: –


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

 

Fixed Assets Account
Particulars
Rs Particular Rs
To Balance b/d 4,00,000 By Depreciation A/c 80,000
To Bank A/c (Purchases – Bal. Fig.) 3,00,000 By Balance c/d 6,20,000
  7,00,000   7,00,000

 

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


Thanks, Please Like and share with your friends  

Comment if you have any question.

Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 59 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.