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

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