Question 59 Chapter 5 of +2-B – USHA Publication 12 Class

Question 59 Chapter 5 of +2-B
Q-59- CH-5 Book 2 - Usha Publisher +2 Book 2019 - Solution

Question 59 Chapter 5 of +2-B

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

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

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 Statement

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