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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

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Question 63 Chapter 5 of +2-B

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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 ₹
Creditors 2,00,000 2,20,000 Building  1,75,000 3,00,000
Mrs. X’s Loan 1,25,000 Land 2,00,000 2,50,000
Bank Loan 2,00,000 2,50,000 Machinery 4,00,000 2,75,000
Capital 6,25,000 7,65,000 Stock 1,75,000 1,25,000
      Debtors 1,50,000 2,50,000
      Cash 50,000 35,000
  11,50,000 12,35,000   11,50,000 12,35,000

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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
Particulars
Rs
(A) Cash Flow from Operating Activities    
Net Profit before Tax and Extraordinary Items*   2,25,000
Adjustment of non-Cash & Non-Operating Items    
Add: Depreciation 90,000  
Loss on sale of machinery 10,000 1,00,000
Cash operating Profit before Working Capital adj.   3,25,000
Add: Decrease in current Assets:    
Stock 50,000  
Add: Increase in current Liabilities:    
Creditors 20,000  
Less : Increase in current Assets:    
Debtors 1,00,000 30,000
Cash flow from Operating Activities   2,95,000
(B) Cash flows from Investing Activities    
Inflow of Cash    
Sale of Machinery 25,000  
Outflow of Cash    
Purchase of Land 50,000  
Purchase of Building 1,25,000 1,50,000
Net cash used in investing Activities   1,50,000
(C) Cash flows from Financing Activities    
Inflow of Cash    
Loan from Bank 50,000  
Outflow of Cash    
Repayment of Mrs. X’s Loan 1,25,000  
Drawings 25,000 1,50,000
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

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Plant Account
Particulars
Amount ₹
Particulars
Amount ₹
To Balance b/d 5,25,000 By Depreciation 15,000
    By Cash A/c – Sale 25,000
    By Profit & Loss A/c – Loss 10,000
    By Balance c/d 4,75,000
  5,25,000   5,25,000
Provision for Depreciation Account
Particulars
Amount ₹
Particulars
Amount ₹
To Machinery A/c 15,000 By Balance b/d 1,25,000
To Balance c/d 2,00,000    
    By Profit & Loss A/c – (Bal. fig.) 90,000
  2,15,000   2,15,000

 

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

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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