Question 60 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021
Table of Contents
60 From the following information, prepare a Cash Flow Statement:
BALANCE SHEETS AS AT…….
| Particulars | 31.3.2022 | 31.3.2021 |
| I. Equity and liabilities | ||
| (1) Shareholders’ funds | ||
| Equity share capital | 1,50,000 | 2,00,000 |
| 9% preference share capital | 1,10,000 | 50,000 |
| Reserve and surplus | 50,000 | |
| Non-current liabilities | ||
| 8% debentures | 80,000 | 1,00,000 |
| Current liabilities | ||
| Trade payable | 30,000 | 85,000 |
| Total | 4,20,000 | 5,35,000 |
| II. Assets | ||
| Non-current assets | ||
| Fixed assets | 3,25,000 | 3,25,000 |
| Investments | 20,000 | 45,000 |
| Discount on issue of equity shares | 10,000 | 7500 |
| Current assets | ||
| Inventories | 50,000 | 1,37,000 |
| Cash and cash equivalents | 15,000 | 20,000 |
| Total | 4,20,000 | 5,35,000 |
Additional Information: (1) During the year 2021-22, a part of the machine costing 40,000 (accumulated depreciation thereon 25,000) was sold for 7500.
(2) Depreciation charged during the year 2021-22 was 25,000.
(3) 8% debentures were issued on 1st April, 2021.
The solution of Question 60 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31st MARCH . 2022
| Particulars | ₹ | ₹ |
| A. Cash flow from operating activities | ||
| Net profit/loss during the year | ||
| (+) Transfer to Reserve | 50,000 | 50,000 |
| Adjustments for | ||
| Dividend on pref. share | 9,900 | |
| (+) discount on issue of equity shares written off | 2,500 | |
| Depreciation | 25,000 | |
| Loss on sale of machine | 7,500 | |
| Interest on debentures | 8,000 | 52,900 |
| Operating profit before working capital | 93,000 | |
| (+) Increase in current liabilities | ||
| Trade payable | 55,000 | 55,000 |
| (-) Increase in current assets | ||
| Inventories | (87,500) | (87,500) |
| Cash from operating activities | 70,400 | |
| B. Cash flow from investing activities | ||
| Purchase on fixed assets | (40,000) | |
| Purchase of investments | (25,000) | |
| Sale of machine | 7,500 | |
| Cash used in investing activities | (57,500) | |
| C. Cash flow from financing activities | ||
| Dividend on pref. share | (9,900) | |
| Issue of share capital | 50,000 | |
| Redemption of preference shares capital | (60,000) | |
| Issue of 8% debentures | 20,000 | |
| Interest paid on debentures | (8,000) | |
| Cash from financing activities | (7,900) | |
| Net increase in cash and cash equivalents | 5,000 | |
| Cash and cash equivalents at the beginning of the period | 15,000 | |
| Cash and cash equivalents at the end of the period | 20,000 |
Thanks, Please Like and share with your friends
Comment if you have any Doubts.
What is the cash flow statement? why do we need to prepare?
Advertisement-X
Unimax Publication – Accountancy PSEB Class 12 – Volume I – Solution
- 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 (Change in Profit sharing ratio among Existing Partners )
- 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)
Unimax Publication – Accountancy PSEB (Class 12) – Part – II – Solution
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Company Accounts (Issue of Debentures)
- Chapter No. 3 – Company Accounts (Redemption of Debentures)
- Chapter No. 4 – Financial Statements of a Company
- Chapter No. 5 – Financial Statement Analysis
- Chapter No. 6 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2023@ Official Website of Sultan Chand Publication
