Advertisement

Question 64 Chapter 5 of +2-B – USHA Publication 12 Class

Question 64 Chapter 5 of +2-B
Q-64- CH-5 Book 2 - Usha Publisher +2 Book 2019 - Solution

Advertisement

Question 64 Chapter 5 of +2-B

Advertisement

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

Advertisement-Y

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

Advertisement-X

 

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

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

Advertisement

Advertisement

error: Content is protected !!