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 ₹ |
| 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 | ||
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 | |
| 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 | ||
End of Solution
Check Out the Solution of all questions of this chapter:
The solution to all questions of Chapter No. 15 – Cash Flow Statement Class 12 Usha Publication – 2024 is shown as follows, click on the image of the question to get the solution.
Question 03 Chapter 5 of +2-B – USHA Publication 12 Class
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Question 18 Chapter 5 of +2-B – USHA Publication 12 Class
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Question 27 Chapter 5 of +2-B – USHA Publication 12 Class
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Question 37 Chapter 5 of +2-B – USHA Publication 12 Class
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Question 48 Chapter 5 of +2-B – USHA Publication 12 Class
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Question 58 Chapter 5 of +2-B – USHA Publication 12 Class
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Chapter-Wise Solution of Usha Publication Accountancy – Part 2 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 2 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 8 – Company Accounts (Share Capital)
Chapter No. 9 – Company Accounts (Issue of Debentures)
Chapter No. 10 – Company Accounts (Redemption of Debentures)
Chapter No. 11 – Financial Statements of a Company
Chapter No. 12 – Financial Statement Analysis
Chapter No. 13 – Tools of Financial Statement Analysis- Comparative and Common Size
Chapter No. 14 – Accounting Ratios
Chapter No. 15 – Cash Flow Statement
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- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Issue of Debentures
- Chapter No. 3 – Redemption of Debentures
- Chapter No. 4 – Financial Statements of a Company (Balance Sheet Only)
- Chapter No. 5 -Financial Statement Analysis
- Chapter No. 6 – Tools/Methods of Financial Analysis
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
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1. Accountancy – Part 1 Class 12 – Session 2024-25 By Usha Publication
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