Question 60 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 60 Chapter 5 of +2-B

Question 60 Chapter 5 of +2-B

60. From the following Balance Sheet as at 31st March, 2019 and Statement of Profit and Loss for the year ended 31st March, 2019 of RSB Ltd. and additional information, prepare Cash Flow Statement:

Particulars Note No.  31st March, 2019 Rs 31st March,2018 Rs 
I. EQUITY AND LIABILITIES      
1. Shareholders’ Funds       
(a) Share Capital   6,00,000 5,00,000
(b) Reserves and Surplus 1 3,00,000 1,20,000
2. Non-Current Liabilities      
Long-term Borrowings (5% Debentures)   1,20,000 1,50,000
3. Current Liabilities      
(a) Trade Payables   13,000 —-
(b) Other Current Liabilities 2 2,85,000 2,38,000
(c) Short-term Provisions (Provision for Tax)   44,000 30,000
Total   13,62,000 10,38,000
II. ASSETS      
1. Non-Current Assets      
(a) Fixed Assets- Tangible 3 6,20,000 4,00,,000
(b) Non-current Investments      
2. Current Assets      
(a) Current Investments   34,000 20,000
(b) Inventories   3,28,000 2,63,000
(c) Trade Receivables   3,48,000 3,10,000
(d) Cash and Cash Equivalents 2 32,000 45,000
Total   13,62,000 10,38,000

 

STATEMENT OF PROFIT AND LOSS
For the year ended 31st March,2019
Particulars Note No.  31st March,  31st March, 
    2019 Rs  2018 Rs 
I. Revenue from Operations Net Sales 4 40,00,000 35,00,000
II. Other Income 5 35,000 30,000
III. Total Revenue I + II   40,35,000 35,30,000
IV. Expenses;      
Purchases of Stock-in-Trade   27,00,000 24,70,000
Change in Inventories of Stock-in-Trade 6 1,00,000 50,000
Finance Costs   27,500 20,000
Depreciation   40,000 45,000
Other Expenses   22,500 20,000
Total   28,90,000 26,05,000
III. Profit before Tax III− IV   11,45,000 9,25,000
VI. Less: Tax   3,45,000 2,25,000
V. Profit after Tax (V − VI)    8,00,000 7,00,000

Notes to Accounts

Particulars 31st March,  2019 Rs 31st March,2018 Rs 
1. Reserves and Surplus    
Debenture Redemption Reserve 1,00,000 1,00,000
Surplus, i.e., Balance in Statement of Profit and Loss 8,50,000 2,00,000
  9,50,000 3,00,000
2. Other Current Liabilities    
Interest on Debentures 35,000 20,000
Outstanding Expenses 4,000 5,000
  39,000 25,000
3. Fixed Assets–Tangible    
Cost 8,90,000 9,90,000
Less: Accumulated Depreciation 2,05,000 2,45,000
  6,85,000 7,45,000
4. Revenue from Operations    
Sales 42,00,000 35,75,000
Less: Sales Return 2,00,000 75,000
  40,00,000 35,00,000
5. Other Income    
Interest on Deposits 15,000 12,500
Dividend on Investments 10,000 17,500
Gain Profit on Sale of Fixed Assets 10,000 —-
  35,000 30,000
Particulars 31st March,  31st March,
  2019 Rs  2018 Rs 
6. Change in Inventories of Stock-in-Trade    
Opening Stock 2,00,000 2,50,000
Less: Closing Stock 1,00,000 2,00,000
  1,00,000 50,000

 

 

The solution of Question 60 Chapter 4 of +2-B: –


Cash Flow Statement for the year ended 31st March,2019
Particulars
Rs
I. Cash Flow from Financing Activities    
Profit as per Statement of Profit and Loss : 8,00,000  
Provision for Tax 3,45,000 11,45,000
Net Profit before tax and extraordinary items   11,45,000
Items to be Added:    
Finance Cost 27,500  
Depreciation and Amortisation Expenses 40,000 95,000
Items to be Deducted:    
Interest on Deposits 15,000  
Dividend received on Investments 10,000  
Gain on sale of fixed asset 10,000 35,000
Net Profit before working capital changes   11,77,500
Add : Increase in Current Liabilities    
Trade Payables 20,000  
Add : Decrease in Current Assets    
Inventories 1,00,000  
Less: Decrease in Current Liabilities    
Outstanding expenses 1,000  
Add: Increase in Current Liabilities    
Trade Receivable 2,50,000 10,46,500
Cash Generated from Operations   10,46,500
Less: Tax Paid (WN 3)   3,10,000
Net Cash Flow from Operating Activities   7,36,500
II. Cash Flow from Financing Activities    
Sale of Fixed Asset (WN 1(b)) 30,000  
Purchase of Investments 5,00,000  
Dividend received on Investments 10,000  
Interest Received on deposits 15,000  
Net Cash Used in Investing Activities   4,45,000
III: Cash Flow from Financing Activities    
Proceeds from Issue of shares 2,50,000  
Proceeds from Issue of debentures 5,00,000  
Redemption of debentures (WN 2) 2,00,000  
Finance Cost paid 12,500  
Interim Dividend paid 1,00,000  
Proposed Dividend Paid 50,000 3,87,500
Net Cash Flow from Financing Activities   3,87,500
IV. Net Decrease in Cash and Cash Equivalents
  6,79,000
Add: Cash and Cash Equivalents in the beginning of the period
  1,95,000
Cash and Cash Equivalents at the end of the period
  8,74,000

 

Accumulated Depreciation Account
Particulars
Rs Particular Rs
To Fixed Asset A/c (On Sale of
machinery)
80,000 By Balance b/d 2,45,000
To Balance c/d 2,05,000 By Profit and Loss A/c 40,000
  2,85,000   2,85,000

 

Accumulated Depreciation Account
Particulars
Rs Particular Rs
To Balance b/d 9,90,000 By Accumulated Depreciation A/c 80,000
To Statement of Profit & Loss A/c 10,000 By Bank A/c (Sale of Machine) (Bal. Fig.) 30,000
    By Balance c/d 8,90,000
  10,00,000   10,00,000

 

5% Debentures Account
Particulars
Rs Particular Rs
To Bank A/c (Redemption Bal. Fig.) 2,00,000 By Balance b/d 2,45,000
To Balance c/d 2,05,000 By Bank A/c (Issue of Debentures) 40,000
  2,85,000   2,85,000

 

Provision for Tax Account
Particulars
Rs Particular Rs
To Bank A/c- Tax Paid 3,10,000 By Balance b/d 2,25,000
To Balance c/d 2,60,000 By Profit and Loss A/c 3,45,000
  5,70,000   5,70,000


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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)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

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)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

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

2 Book 3 min 225x300 - Question 60 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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