Question 44 Chapter 15 of Class 12 Part – 2 – 2024
PREPARING OF CASH FLOW STATEMENT (WITHOUT ADJUSTMENT)
44. (CFS Showing Operating, Investing & Financing Activities) Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheet of Hitesh Ltd. :
Particulars | Note No. | Figures for the current reporting period | Figures for the previous reporting period |
I. Equity and Liabilities | |||
Shareholders Fund : | |||
Share Capital | 1,25,000 | 1,00,000 | |
Reserves and surplus | |||
Surplus (Profit and Loss Balance) | 35,000 | 25,000 | |
Non-Current Liabilities | |||
Long-term borrowings : | |||
10% Debentures | 40,000 | 50,000 | |
Current Liabilities | |||
Creditors | 30,000 | 20,000 | |
Bills Payables | 50,000 | 10,000 | |
Outstanding Expenses | 10,000 | 12,500 | |
Total | 2,90,000 | 2,17,500 | |
II. Assets | |||
Non –Current Assets | |||
Tangible Assets | |||
Land end Building | 1,40,000 | 1,00,000 | |
Machinery | 65,000 | 50,000 | |
Intangible Assets : | |||
Goodwill | 1,000 | 5,000 | |
Current Assets | |||
Inventories | 25,000 | 35,000 | |
Trade Receivable | 20,000 | 10,000 | |
Input IGST | 6,000 | 2,000 | |
Input CGST | 12,000 | 4,000 | |
Input SGST | 12,000 | 4,000 | |
Cash and cash equivalents : | |||
Cash | 9,000 | 7,500 | |
Total | 2,90,000 | 2,17,500 |
The solution of Question 44 Chapter 15 of Class 12 Part – 2 – 2024: –
Cash Flow Statement of Hitesh Ltd. |
||
Particulars |
Rs |
|
(A) Cash Flow from Operating Activities | ||
Add: General Reserve | 10,000 | |
Goodwill Written off | 4,000 | |
Interest on debentures | 5,000 | |
Cash operating Profit before Working Capital adj. | 19,000 | |
Add: Decrease in Current Assets | ||
Inventories | 10,000 | |
Add: Increase in Current Liabilities | ||
Creditors | 10,000 | |
Bills Payable | 40,000 | |
Less: Increase in Current Assets | ||
Trade Receivable | 30,000 | |
Input IGST | 4,000 | |
Input CGST | 8,000 | |
Input SGST | 8,000 | |
Less: Decrease in Current Liabilities | ||
Outstanding Expenses | 2,500 | 46,500 |
Cash used in Operating Activities | 46,500 |
|
(B) Cash flows from Investing Activities | ||
Outflow of Cash | ||
Purchase of Land & Building | 40,000 | |
Purchase of Machinery | 15,000 | 55,000 |
Net cash used in investing Activities | 55,000 |
|
(C) Cash flows from Financing Activities | ||
Inflow of Cash | ||
Issue of share capital | 25,000 | |
Outflow of Cash | ||
Redemption of Debenture | 10,000 | |
Interest on Debentures (10% of 50,000) | 5,000 | 10,000 |
Net cash flow from financing activities | 10,000 |
|
Total Cash flow (A + B + C) | 1,500 | |
Opening Balance Cash | 7,500 | |
Closing Balance Cash | 9,000 |