Question 59 Chapter 5 of +2-B
Table of Contents
59. (Cash Flow Statement Showing Operating, Investing & Financing Activities) Prepare cash flow statement from the following as per AS-3 (Revised)
| BALANCE SHEETS | |||
| Particulars | Note No. | 31st March,2017 | 31st March,2018 |
| I. Equity and Liabilities | |||
| Shareholders Fund : | |||
| Equity Share Capital | 2,00,000 | 1,50,000 | |
| 10% preference share capital | |||
| Reserves and Surplus | |||
| Balance in Statement of Profit and Loss | 75,000 | 50,000 | |
| Current Liabilities | |||
| Trade Payable | 50,000 | 40,000 | |
| Total | 3,55,000 | 2,65,000 | |
| II. Assets | |||
| Non-Current Assets : | |||
| Tangible Assets | |||
| Machinery | 1,05,000 | 1,00,000 | |
| Intangible Assets | |||
| Goodwill | 5,000 | 10,000 | |
| Current Assets : | |||
| Inventories | 70,000 | 50,000 | |
| Trade Receivable | 1,25,000 | 65,000 | |
| Cash at Bank | 75,000 | 50,000 | |
| Cash in hand | 1,50,000 | 1,00,000 | |
| Total | 5,75,000 | 3,75,000 |
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: Goodwill | 5,000 | |
| Loss on sale of machinery | 8,000 | |
| Depreciation on Machinery | 20,000 | 33,000 |
| Cash operating Profit before Working Capital adj. | 83,000 | |
| Add: Increase in Current Liabilities: | ||
| Trade Payable | 25,000 | |
| Less: Increase in current Assets: | ||
| Inventories | 20,000 | |
| Trade Receivables | 60,000 | 55,000 |
| Cash flow from 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 Capital | 2,00,000 | |
| Outflow of Cash | ||
| Dividend paid | 25,000 | |
| Redemption of preference share capital | 50,000 | 1,25,000 |
| 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
| Machinery Account |
|||
| Particulars |
Amount ₹ |
Particulars |
Amount ₹ |
| To Balance b/d | 1,00,000 | By Depreciation | 20,000 |
| By Bank – Sale | 12,000 | ||
| By Profit & Loss A/c – Loss on Sale | 8,000 | ||
| To Bank –Purchase (Bal. fig.) | 90,000 | By Balance c/d | 1,50,000 |
| 1,90,000 | 1,90,000 | ||
Usha Publication – Accountancy PSEB (Class 12) – Volume I – SolutionAlso, Check out the solved question of previous Chapters: –
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
