Question 62 Chapter 5 of +2-B – USHA Publication 12 Class

Question 62 Chapter 5 of +2-B

Question 62 Chapter 5 of +2-B

PREPARING OF CASH FLOW STATEMENT (WITHOUT ADJUSTMENT)

62. (CFS Showing Operating, Investing & Financing Activities) From the following balance sheets of ABC Ltd. An the additional information given make out a statement of Cash flow.

BALANCE SHEETS    
ParticularsNote No.31st March,201731st March,2018
I. Equity and Liabilities   
 Shareholders Fund :    
Equity Share Capital 4,00,0003,00,000
8% preference share capital 1,00,0001,50,000
Reserves and Surplus   
General Reserve 70,00040,000
Balance in Statement of Profit and Loss 48,00030,000
Current Liabilities    
Trade Payable 1,49,0001,17,000
Provision for Taxation 50,00040,000
Total  8,17,0006,77,000
II. Assets    
 Non-Current Assets :   
Tangible Assets   
Land and Building 1,70,0002,00,000
Plant 2,00,00080,000
Intangible Assets   
Goodwill 90,0001,15,000
Current Assets :    
Inventories (stock) 1,09,00077,000
Trade Receivable  2,30,0001,80,000
Cash at Bank 8,00010,000
Cash in hand 10,00015,000
Total   8,17,0006,77,000

Additional information (1) Depreciation provided during 2017-18 : Plant ₹ 10,000, Land and building ₹ 20,000.
(2) An interim dividend of ₹ 20,000 has been paid during 2017-18.
(3) Income tax paid during the year ₹ 35,000.
(4) Proposed dividend 31-3-2018 31-3-2017
50,000 42,000

The solution of Question 62 Chapter 5 of +2-B: – 

Cash Flow Statement for the year ended 31st March 2016
Particulars
Rs
(A) Cash Flow from Operating Activities  
Net Profit before Tax and Extraordinary Items* 18,000
Adjustment of non-Cash & Non-Operating Items  
Add: Transfer to General Reserve30,000 
Proposed Dividend42,000 
Depreciation on Plant10,000 
Depreciation on Land & Building20,000 
Interim Dividend20,000 
Provision for taxation45,000 
Goodwill written off25,00025,000
Cash operating Profit before Working Capital adj. 83,000
Add: Increase in current Liabilities:  
Trade Payable32,000 
Less : Increase in current Assets:  
Inventories32,000 
Trade Receivables40,000 
Bills Receivables10,00050,000
Less: Income Tax Paid 30,000
Cash used in Operating Activities 1,25,000
(B) Cash flows from Investing Activities  
Inflow of Cash  
Sale of Land & Building 10,000
Outflow of Cash  
Purchase of Plant 1,30,000
Cash used in Investing Activities  
Net cash used in investing Activities 1,20,000
(C) Cash flows from Financing Activities  
Inflow of Cash  
Issue of Share Capital2,00,000 
Outflow of Cash  
Dividend paid42,000 
Interim Dividend Paid20,000 
Redemption of preference shares50,00012,000
Net cash flow from financing activities 12,000
Net Increase in Cash & Cash Equivalents (A + B + C) 7,000
Add: Cash & Cash equivalents in the beginning 25,000
Cash & Cash equivalents at the end 18,000

 

Plant Account
Particulars
Amount ₹
Particulars
Amount ₹
To Balance b/d80,000By Depreciation10,000
To Bank –Purchase (Bal. fig.)
1,30,000By Balance c/d2,00,000
 2,10,000 2,10,000
Land & Building Account
Particulars
Amount ₹
Particulars
Amount ₹
To Balance b/d2,00,000By Depreciation20,000
  By Bank – Sale10,000
  By Balance c/d1,70,000
 2,00,000 2,00,000

 

Provision for Taxation Account
Particulars
Amount ₹
Particulars
Amount ₹
To Bank – Payment35,000By Balance b/d40,000
To Balance c/d50,000  
  By Profit & Loss45,000
 85,000 85,000

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 62 Chapter 5 of +2-B  - USHA Publication 12 Class
T.S. Grewal’s Analysis of Financial Statement

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