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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
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

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