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Question 64 Chapter 5 of +2-B
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Table of Contents
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 |
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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 |
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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 |
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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