Question 60 Chapter 5 of +2-B

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 :

ParticularsNote No.31st March,201731st March,2018
I. Equity and Liabilities   
 Shareholders Fund :    
Equity Share Capital 2,00,0001,50,000
Reserves and Surplus   
General Reserve   
Balance in Statement of Profit and Loss 75,00050,000
Non-current Liabilities   
Long-term Borrowings :   
Loan from Associate company   
Loan from Bank   
Current Liabilities    
Trade Payable 50,00040,000
Total  3,55,0002,65,000
II. Assets    
 Non-Current Assets :   
Tangible Assets   
Machinery 1,05,0001,00,000
Current Assets :    
Inventories  70,00050,000
Trade Receivable  1,25,00065,000
Cash 75,00050,000
Total   5,75,0003,75,000

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 60 Chapter 5 of +2-B: – 

Cash Flow Statement for the year ended 31st March 2016
(A) Cash Flow from Operating Activities  
Net Profit before Tax and Extraordinary Items* 1,000
Adjustment of non-Cash & Non-Operating Items  
Add: Dividend Paid26,000 
Depreciation on Machinery9,00035,000
Cash operating Profit before Working Capital adj. 36,000
Add: Increase in Current Liabilities:  
Trade Payable5,000 
Add: Decrease in current Assets:  
Add : Decrease in current Assets:  
Trade Receivables3,4004,600
Cash used in Operating Activities 40,600
(B) Cash flows from Investing Activities  
Outflow of Cash  
Purchase of land10,000 
Purchase of Building5,000 
Purchase of Machinery15,00030,000
Net cash used in investing Activities 30,000
(C) Cash flows from Financing Activities  
Inflow of Cash  
Loan from Associate company20,000 
Outflow of Cash  
Repayment of Bank loan6,000 
Dividend Paid26,00012,000
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

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

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