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Question 60 Chapter 8 -Unimax Publication Class 12 Part 2 – 2021

Question 60 Chapter 8 -Unimax Publication Class 12 Part 2 - 2021
Question 60 Chapter 8 -Unimax Publication Class 12 Part 2 - 2021

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Question 60 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021

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60 From the following information, prepare a Cash Flow Statement:

BALANCE SHEETS AS AT…….

Particulars31.3.202231.3.2021
I. Equity and liabilities  
(1) Shareholders’ funds  
Equity share capital1,50,0002,00,000
9% preference share capital1,10,00050,000
Reserve and surplus50,000 
Non-current liabilities  
8% debentures80,0001,00,000
Current liabilities  
Trade payable30,00085,000
Total4,20,0005,35,000
II. Assets  
Non-current assets  
Fixed assets3,25,0003,25,000
Investments20,00045,000
Discount on issue of equity shares10,0007500
Current assets  
Inventories50,0001,37,000
Cash and cash equivalents15,00020,000
Total4,20,0005,35,000
   

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 : –

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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 Reserve50,00050,000
Adjustments for  
Dividend on pref. share9,900 
(+) discount on issue of equity shares written off2,500 
Depreciation25,000 
Loss on sale of machine7,500 
Interest on debentures8,00052,900
Operating profit before working capital 93,000
(+) Increase in current liabilities  
Trade payable55,00055,000
(-) 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 machine7,500 
Cash used in investing activities (57,500)
C. Cash flow from financing activities  
Dividend on pref. share(9,900) 
Issue of share capital50,000 
Redemption of preference shares capital(60,000) 
Issue of 8% debentures20,000 
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

 

 

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Unimax Publication – Accountancy PSEB Class 12 – Volume I – Solution

Unimax Publication – Accountancy PSEB (Class 12) – Part – II – Solution

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