Question 64 Chapter 5 of +2-B
64. (CFS from Operating, Investing & Financing Activities) From the following information prepare Cash flow statement.
| BALANCE SHEETS | |||
| Particulars | Note No. | 31st March,2018 | 31st March,2017 |
| I. Equity and Liabilities | |||
| Shareholders Fund : | |||
| Share Capital | 4,00,000 | 3,00,000 | |
| Reserves and Surplus | |||
| Balance in Statement of Profit and Loss | 1,50,000 | 1,10,000 | |
| Preliminary expenses | -10,000 | -12,000 | |
| Non-Current Liabilities | |||
| Long-term Borrowings : | |||
| 8% Debentures | 1,00,000 | 1,50,000 | |
| Current Liabilities | |||
| Trade Payable | 70,000 | 90,000 | |
| Provision for Taxation | 80,000 | 80,000 | |
| Total | 7,90,000 | 7,18,000 | |
| II. Assets | |||
| Non-Current Assets : | |||
| Tangible Assets | |||
| Machinery | 4,30,000 | 2,98,000 | |
| Investments | 60,000 | 1,00,000 | |
| Intangible Assets | |||
| Goodwill | 90,000 | 1,00,000 | |
| Current Assets : | |||
| Inventories | 80,000 | 50,000 | |
| Trade Receivable | 1,10,000 | 1,60,000 | |
| Cash at Bank | 20,000 | 10,000 | |
| Total | 7,90,000 | 7,18,000 |
During the year (i) investment were sold at a profit of ₹ 10,000 (ii) Debenture were redeemed on 31st March, 2018 at 10% premium (iii) ₹ 75,000 was paid as income – tax (iv) Depreciation charged amounted to ₹ 70,000.
The solution of Question 64 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* | 40,000 | |
| Add: Provision for Taxation | 75,000 | |
| Adjustment of non-Cash & Non-Operating Items | ||
| Add: Preliminary expenses | 30,000 | |
| Interest on Debentures | 42,000 | |
| Goodwill | 10,000 | |
| Depreciation | 20,000 | |
| Premium on redemption of debentures | 20,000 | |
| Less: Profit on Sale of Investments | 10,000 | 25,000 |
| Cash operating Profit before Working Capital adj. | 83,000 | |
| Add: Decrease in current assets: | ||
| Trade Receivables | 50,000 | |
| Less: Increase in current Assets: | ||
| Inventories | 20,000 | |
| Less: Decrease in Current Liabilities | ||
| Trade Payables | 30,000 | |
| Less: Income Tax Paid | 75,000 | |
| Cash flow from Operating Activities | 1,29,000 |
|
| (B) Cash flows from Investing Activities | ||
| Inflow of Cash | ||
| Sale of Investment | 50,000 | |
| Outflow of Cash | ||
| Purchase of Machinery | 2,02,000 | |
| Net cash used in investing Activities | 1,52,000 |
|
| (C) Cash flows from Financing Activities | ||
| Inflow of Cash | ||
| Issue of Share Capital | 1,00,000 | |
| Outflow of Cash | ||
| Redemption of Debentures at 10% Premium | 55,000 | |
| Interest on debentures | 12,000 | 33,000 |
| Net cash flow from financing activities | 33,000 |
|
| Net Increase in Cash & Cash Equivalents (A + B + C) | 10,000 | |
| Add: Cash & Cash equivalents in the beginning | 10,000 | |
| Cash & Cash equivalents at the end | 20,000 | |
| Machinery Account |
|||
| Particulars |
Amount ₹ |
Particulars |
Amount ₹ |
| To Balance b/d | 2,98,000 | By Depreciation | 70,000 |
| To Bank –Purchase (Bal. fig.) | 2,02,000 | By Balance c/d | 4,30,000 |
| 5,00,000 | 5,00,000 | ||
| investment Account |
|||
| Particulars |
Amount ₹ |
Particulars |
Amount ₹ |
| To Balance b/d | 1,00,000 | By Bank – Sale (Bal. fig.) | 50,000 |
| To Statement of Profit & Loss – Profit on sale |
10,000 | By Balance c/d | 60,000 |
| 1,10,000 | 1,10,000 | ||
| Provision for Taxation Account |
|||
| Particulars |
Amount ₹ |
Particulars |
Amount ₹ |
| To Machinery A/c | 75,000 | By Balance b/d | 80,000 |
| To Balance c/d | 80,000 | ||
| By Profit & Loss A/c – (Bal. fig.) | 75,000 | ||
| 1,55,000 | 1,55,00 | ||
End of Solution
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Question 03 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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