Question 63 Chapter 5 of +2-B – USHA Publication 12 Class

Question 63 Chapter 5 of +2-B
Q-63- CH-5 Book 2 - Usha Publisher +2 Book 2019 - Solution


Question 63 Chapter 5 of +2-B


63. (CFS of a Sole Trader) The Balance Sheets of X and Y on 31st March were as follows :

Balance Sheets
Liabilities 2017 ₹2018 ₹Assets 2017 ₹2018 ₹
Creditors2,00,0002,20,000Building 1,75,0003,00,000
Mrs. X’s Loan1,25,000Land2,00,0002,50,000
Bank Loan2,00,0002,50,000Machinery4,00,0002,75,000
 11,50,00012,35,000 11,50,00012,35,000

During the year a machine costing ₹ 50,000 (accumulated depreciation ₹ 15,000) was sold for ₹ 25,000. The provision for depreciation against machinery as on 31st March 2017 and 31st March 2018 was ₹ 1,25,000 and ₹ 2,00,00 respectively.
Net Profit for the year amounted to ₹ 2,25,000. You are required to prepare cash flow statement.

The solution of Question 63 Chapter 5 of +2-B: – 

Cash Flow Statement for the year ended 31st March 2018
(A) Cash Flow from Operating Activities  
Net Profit before Tax and Extraordinary Items* 2,25,000
Adjustment of non-Cash & Non-Operating Items  
Add: Depreciation90,000 
Loss on sale of machinery10,0001,00,000
Cash operating Profit before Working Capital adj. 3,25,000
Add: Decrease in current Assets:  
Add: Increase in current Liabilities:  
Less : Increase in current Assets:  
Cash flow from Operating Activities 2,95,000
(B) Cash flows from Investing Activities  
Inflow of Cash  
Sale of Machinery25,000 
Outflow of Cash  
Purchase of Land50,000 
Purchase of Building1,25,0001,50,000
Net cash used in investing Activities 1,50,000
(C) Cash flows from Financing Activities  
Inflow of Cash  
Loan from Bank50,000 
Outflow of Cash  
Repayment of Mrs. X’s Loan1,25,000 
Net cash used in financing activities 1,50,000
Net Increase in Cash & Cash Equivalents (A + B + C) 15,000
Add: Cash & Cash equivalents in the beginning 50,000
Cash & Cash equivalents at the end 35,000


Plant Account
Amount ₹
Amount ₹
To Balance b/d5,25,000By Depreciation15,000
  By Cash A/c – Sale25,000
  By Profit & Loss A/c – Loss10,000
  By Balance c/d4,75,000
 5,25,000 5,25,000
Provision for Depreciation Account
Amount ₹
Amount ₹
To Machinery A/c15,000By Balance b/d1,25,000
To Balance c/d2,00,000  
  By Profit & Loss A/c – (Bal. fig.)90,000
 2,15,000 2,15,000



Provision for Taxation Account
Amount ₹
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

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statement


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