Question 60 Chapter 5 of +2-B – USHA Publication 12 Class

Question 60 Chapter 5 of +2-B
Q-60- CH-5 Book 2 - Usha Publisher +2 Book 2019 - Solution

Question 60 Chapter 5 of +2-B

60. (Cash Flow Statement Showing Operating, Investing & Financing Activities) The Balance sheet of R. Ltd. is as follows

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
Reserves and Surplus      
General Reserve      
Balance in Statement of Profit and Loss   75,000 50,000
Non-current Liabilities      
Long-term Borrowings :      
Loan from Associate company      
Loan from Bank      
Current Liabilities       
Trade Payable   50,000 40,000
Total    3,55,000 2,65,000
II. Assets       
 Non-Current Assets :      
Tangible Assets      
Land      
Building      
Machinery   1,05,000 1,00,000
Current Assets :       
Inventories    70,000 50,000
Trade Receivable    1,25,000 65,000
Cash   75,000 50,000
Total     5,75,000 3,75,000

During the year ₹ 26,000 was paid as a dividend for the previous year. The provision for depreciation against machinery as of 1-4-2017 was ₹ 27,000 and on 1-4-2018 ₹ 36,000. You are required to prepare the cash flow statement.

The solution of Question 61 Chapter 5 of +2-B: – 

Cash Flow Statement for the year ended 31st March 2018
Particulars
Rs
(A) Cash Flow from Operating Activities    
Net Profit before Tax and Extraordinary Items*   1,000
Adjustment of non-Cash & Non-Operating Items    
Add: Dividend Paid 26,000  
Depreciation on Machinery 9,000 35,000
Cash operating Profit before Working Capital adj.   36,000
Add: Increase in Current Liabilities:    
Trade Payable 5,000  
Add: Decrease in current Assets:    
Inventories 3,000  
Add : Decrease in current Assets:    
Trade Receivables 3,400 4,600
Cash flow from Operating Activities   40,600
(B) Cash flows from Investing Activities    
Outflow of Cash    
Purchase of land 10,000  
Purchase of Building 5,000  
Purchase of Machinery 15,000 30,000
Net cash used in investing Activities   30,000
(C) Cash flows from Financing Activities    
Inflow of Cash    
Loan from Associate company 20,000  
Outflow of Cash    
Repayment of Bank loan 6,000  
Dividend Paid 26,000 12,000
Net cash flow from financing activities   12,000
Net Increase in Cash & Cash Equivalents (A + B + C)   1,400
Add: Cash & Cash equivalents in the beginning   5,000
Cash & Cash equivalents at the end   3,600

 

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

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statement

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