Question 45 Chapter 15 of Class 12 Part – 2 – 2024
PREPARING OF CASH FLOW STATEMENT (WITHOUT ADJUSTMENT)
45. (CFS from Operating Investing & Financing Activities) From the following Balance Sheets of Rajan Ltd., prepare a Cash Flow Statement :
| Particulars | Note No. | 31st March,2018 | 31st March, 2017 |
| I. Equity and Liabilities | |||
| Shareholders Fund : | |||
| Share Capital | 1,40,000 | 1,20,000 | |
| Reserves and surplus | |||
| General Reserve | 12,000 | 8,000 | |
| Balance in Statement of Profit and Loss | 6,200 | 7,200 | |
| Preliminary Expenses | -2,800 | -4,000 | |
| Current Liabilities | |||
| Bills Payables | 21,200 | 14,000 | |
| Outstanding Expenses | 15,200 | 14,400 | |
| Provisions | |||
| Provision for Tax | 20,200 | 11,200 | |
| Total | 2,12,000 | 1,70,800 | |
| II. Assets | |||
| Non –Current Assets | |||
| Tangible Assets | |||
| Building | 96,400 | 76,000 | |
| Investments | 14,000 | 4,000 | |
| Intangible Assets : | |||
| Goodwill | 16,000 | 20,000 | |
| Current Assets | |||
| Inventories | 31,200 | 34,000 | |
| Debtors | 43,200 | 30,000 | |
| Cash and cash equivalents : | |||
| Cash | 11,200 | 6,800 | |
| 2,12,000 | 1,70,800 |
Prepare a Cash Flow Statement.
The solution of Question 45 Chapter 15 of Class 12 Part – 2 – 2024: –
| Cash Flow Statement |
||
| Particulars |
Rs |
|
| (A) Cash Flow from Operating Activities | ||
| Loss as per Balance | 1,000 | |
| Adjustment Non-Operating or Non-Cash items | ||
| Add: Transfer to Reserve | 4,000 | |
| Preliminary expenses are written off | 1,200 | |
| Provision for tax | 20,200 | |
| Goodwill wrote off | 4,000 | 29,400 |
| Cash operating Profit before Working Capital adj. | 28,400 | |
| Add: Decrease in Current Assets | ||
| Inventories | 7,200 | |
| Add: Increase in Current Liabilities | ||
| Bills Payable | 800 | |
| Outstanding expenses | 2,800 | |
| Less: Increase in Current Assets | ||
| Debtors | 13,200 | |
| Less: Payment of Tax (31.3.2017 | 11,200 | 14,800 |
| Cash flow from Operating Activities | 14,800 |
|
| (B) Cash flows from Investing Activities | ||
| Outflow of Cash | ||
| Purchase of Building | 20,400 | |
| Purchase of Investments | 10,000 | 30,400 |
| Net cash used in investing Activities | 30,400 |
|
| (C) Cash flows from Financing Activities | ||
| Share Capital Issued | 20,000 | |
| Net cash flow from financing activities | 20,000 |
|
| Total Cash flow (A + B + C) | 4,400 | |
| Opening Balance Cash | 6,800 | |
| Closing Balance Cash | 11,200 | |