Question 59 Chapter 5 of +2-B

Question 59 Chapter 5 of +2-B

PREPARING OF CASH FLOW STATEMENT (WITHOUT ADJUSTMENT)

 59. (Cash Flow Statement Showing Operating, Investing & Financing Activities) Prepare cash flow statement from the following as per AS-3 (Revised)

BALANCE SHEETS    
ParticularsNote No.31st March,201731st March,2018
I. Equity and Liabilities   
 Shareholders Fund :    
Equity Share Capital 2,00,0001,50,000
10% preference share capital   
Reserves and Surplus   
Balance in Statement of Profit and Loss 75,00050,000
Current Liabilities    
Trade Payable 50,00040,000
Total  3,55,0002,65,000
II. Assets    
 Non-Current Assets :   
Tangible Assets   
Machinery 1,05,0001,00,000
Intangible Assets   
Goodwill 5,00010,000
Current Assets :    
Inventories  70,00050,000
Trade Receivable  1,25,00065,000
Cash at Bank 75,00050,000
Cash in hand 1,50,0001,00,000
Total   5,75,0003,75,000

Additional information
(i) Machinery having a book value of ₹ 20,000 was sold for ₹ 12,000
(ii) Dividend paid during the year ₹ 25,000
(iii) Depreciation provided during the year ₹ w20,000.
(iv) Preference capital was redeemed on 31.3.2018.

The solution of Question 59 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
Add: Dividend Paid 25,000
Adjustment of non-Cash & Non-Operating Items  
Less: Goodwill5,000 
Loss on sale of machinery8,000 
Depreciation on Machinery20,00033,000
Cash operating Profit before Working Capital adj. 83,000
Add: Increase in Current Liabilities:  
Trade Payable25,000 
Less: Increase in current Assets:  
Inventories20,000 
Trade Receivables60,00055,000
Cash used in Operating Activities 28,000
(B) Cash flows from Investing Activities  
Inflow of Cash  
Sale of Machinery 12,000
Outflow of Cash  
Purchase of Machinery  
Cash used in Investing Activities 90,000
Net cash used in investing Activities 78,000
(C) Cash flows from Financing Activities  
Inflow of Cash  
Issue of Share Capital2,00,000 
Outflow of Cash  
Dividend paid25,000 
Redemption of preference share capital50,0001,25,000
Net cash flow from financing activities 1,25,000
Net Increase in Cash & Cash Equivalents (A + B + C) 75,000
Add: Cash & Cash equivalents in the beginning 1,50,000
Cash & Cash equivalents at the end 2,25,000

Working Note

Fixed Assets Account
Particulars
Amount ₹
Particulars
Amount ₹
To Balance b/d1,00,000By Depreciation20,000
  By Bank – Sale12,000
  By Profit & Loss A/c – Loss on Sale8,000
To Bank –Purchase (Bal. fig.)90,000By Balance c/d1,50,000
 1,90,000 1,90,000

 

Provision for Tax
Particulars
Amount ₹
Particulars
Amount ₹
To Balance b/d25,000By Balance b/d25,000
To Bank –Purchase (Bal. fig.)30,000By 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

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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  - USHA Publication 12 Class
T.S. Grewal’s Analysis of Financial Statement

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