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

Question 59 Chapter 5 of +2-B
Question No.59 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution


Question 59 Chapter 5 of +2-B


59. Prepare Cash Flow Statement from the following:

I. Revenue from Operations Net Sales36,00,000
II. Expenses; 
Purchases of Stock-in-Trade28,16,000
Change in Inventories of Stock-in-Trade-65,000
Finance Costs15,000
Depreciation and Amortisation Expenses80,000
Other Expenses5,34,000
III. Profit before Tax I − II2,20,000
IV. Less: Provision for Tax40,000
V. Profit after Tax III − IV 1,80,000


  2019 Rs 2018 Rs 
1. Shareholders’ Funds    
(a) Share Capital 6,00,0005,00,000
(b) Reserves and Surplus13,00,0001,20,000
2. Non-Current Liabilities   
Long-term Loan  1,20,0001,50,000
3. Current Liabilities   
(a) Short-term Borrowings: Bank Overdraft 13,000—-
(b) Trade Payables (Creditors) 2,85,0002,38,000
(c) Short-term Provision: Provision form Tax 44,00030,000
Total 13,62,00010,38,000
1. Non-Current Assets   
(a) Fixed Assets 6,20,0004,00,,000
2. Current Assets   
(a) a Short-term Investments (Marketable Security) 34,00020,000
(b) Inventories 3,28,0002,63,000
(c) Trade Receivables 3,48,0003,10,000
(d) Cash and Cash Equivalents232,00045,000
Total 13,62,00010,38,000

Notes to Accounts

ParticularsNote No. 31st March, 31st March,
  2019 Rs 2018 Rs 
1. Reserves and Surplus   
Surplus, i.e., Balance in Statement of Profit and Loss 3,00,0001,20,000
2. Cash and Cash Equivalents1  
Cash in Hand 32,00017,000
Cash at Bank ——28,000




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

Cash Flow Statement for the year ended 31st March,2019
I. Cash Flow from Financing Activities  
Profit as per Statement of Profit and Loss :  
Closing Balance of Profit & Loss3,00,000 
Less: Opening Balance of Profit & Loss1,20,000 
Provision for Tax40,0002,20,000
Net Profit before tax and extraordinary items 2,20,000
Items to be Added:  
Finance Cost15,000 
Depreciation and Amortisation Expenses80,00095,000
Operating Profit before Working Capital Adjustments 3,15,000
Less: Increase in Current Assets  
Trade Receivables38,0001,03,000
Add: Increase in Current Liabilities  
Trade Payables47,00056,000
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 Shares1,00,000 
Bank Overdraft13,000 
Redemption of Long-Term Loan30,000 
Net Cash Flow from Financing Activities 68,000
IV. Net Decrease in Cash and Cash Equivalents
Add: Cash and Cash Equivalents in the beginning of the period
Cash and Cash Equivalents at the end of the period


Fixed Assets Account
To Balance b/d4,00,000By Depreciation A/c80,000
To Bank A/c (Purchases – Bal. Fig.)3,00,000By Balance c/d6,20,000
 7,00,000 7,00,000


Provision for Taxation Account
To Bank A/c (Tax Paid) (Bal. Fig.)26,000By Balance b/d30,000
To Balance c/d44,000By Profit and Loss A/c40,000
 70,000 70,000

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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)

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)

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



Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements


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