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       
Particulars Note No. 31st March,2017 31st March,2018
I. Equity and Liabilities      
 Shareholders Fund :       
Equity Share Capital   4,00,000 3,00,000
8% preference share capital   1,00,000 1,50,000
Reserves and Surplus      
General Reserve   70,000 40,000
Balance in Statement of Profit and Loss   48,000 30,000
Current Liabilities       
Trade Payable   1,49,000 1,17,000
Provision for Taxation   50,000 40,000
Total    8,17,000 6,77,000
II. Assets       
 Non-Current Assets :      
Tangible Assets      
Land and Building   1,70,000 2,00,000
Plant   2,00,000 80,000
Intangible Assets      
Goodwill   90,000 1,15,000
Current Assets :       
Inventories (stock)   1,09,000 77,000
Trade Receivable    2,30,000 1,80,000
Cash at Bank   8,000 10,000
Cash in hand   10,000 15,000
Total     8,17,000 6,77,000

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 Reserve 30,000  
Proposed Dividend 42,000  
Depreciation on Plant 10,000  
Depreciation on Land & Building 20,000  
Interim Dividend 20,000  
Provision for taxation 45,000  
Goodwill written off 25,000 25,000
Cash operating Profit before Working Capital adj.   83,000
Add: Increase in current Liabilities:    
Trade Payable 32,000  
Less : Increase in current Assets:    
Inventories 32,000  
Trade Receivables 40,000  
Bills Receivables 10,000 50,000
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 Capital 2,00,000  
Outflow of Cash    
Dividend paid 42,000  
Interim Dividend Paid 20,000  
Redemption of preference shares 50,000 12,000
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/d 80,000 By Depreciation 10,000
To Bank –Purchase (Bal. fig.) 1,30,000 By Balance c/d 2,00,000
  2,10,000   2,10,000
Land & Building Account
Particulars
Amount ₹
Particulars
Amount ₹
To Balance b/d 2,00,000 By Depreciation 20,000
    By Bank – Sale 10,000
    By Balance c/d 1,70,000
  2,00,000   2,00,000

 

Provision for Taxation Account
Particulars
Amount ₹
Particulars
Amount ₹
To Bank – Payment 35,000 By Balance b/d 40,000
To Balance c/d 50,000    
    By Profit & Loss 45,000
  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

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