Question 46 Chapter 15 of Class 12 Part – 2 – 2024
PREPARING OF CASH FLOW STATEMENT (WITHOUT ADJUSTMENT)
46. (CFS from Operating, Investing & Financing Activities) From the following particulars of Vandana Ltd. Prepare cash flow statement.
| Particulars | Note No. | 31st March,2018 | 31st March, 2017 | ||
| I. Equity and Liabilities | |||||
| Shareholders Fund : | |||||
| Share Capital | 1,50,000 | 1,00,000 | |||
| 10% Preference share capital | 25,000 | 50,000 | |||
| Reserves and surplus | |||||
| Balance in Statement of Profit and Loss | 1,00,000 | 50,000 | |||
| Current Liabilities | |||||
| Trade Payable | 1,00,000 | 75,000 | |||
| Total | 3,75,000 | 2,75,000 | |||
| II. Assets | |||||
| Non – Current Assets | |||||
| Fixed Assets (Net) | 1,50,000 | 1,00,000 | |||
| 10% Investments | 1,50,000 | 1,25,000 | |||
| Current Assets | 31-03-18 | 31-03-17 | |||
| Trade Receivable | 40,000 | 20,000 | |||
| Less provision for doubtful debts | 15,000 | 10,000 | 25,000 | 10,000 | |
| Cash in hand | 50,000 | 40,000 | |||
| Total | 3,75,000 | 2,75,000 |
Prepare a Cash Flow Statement.
The solution of Question 46 Chapter 15 of Class 12 Part – 2 – 2024: –
| Cash Flow Statement |
||
| Particulars |
Rs |
|
| (A) Cash Flow from Operating Activities | ||
| Net Profit as per balance sheet | 50,000 | |
| Adjustment Non-Operating or Non-Cash items | ||
| Less: Non-Operating Incomes | ||
| Interest on investment @ 10% on 1,25,000 | 12,500 | |
| Cash operating Profit before Working Capital adj. | 37,500 | |
| Add: Increase in Current Liabilities | ||
| Tarde Payable | 25,000 | |
| Provision for doubtful debts | 25,000 | |
| Less: Increase in Current Assets | ||
| Trade receivable | 20,000 | 10,000 |
| Cash flow from Operating Activities | 47,500 |
|
| (B) Cash flows from Investing Activities | ||
| Outflow of Cash | ||
| Purchase of Fixed Assets | 50,000 | |
| Purchase of Investments | 25,000 | |
| Inflow of Cash | ||
| Interest received on investments | 12,500 | 62,500 |
| Net cash used in investing Activities | 62,500 |
|
| (C) Cash flows from Financing Activities | ||
| Inflow of Cash | ||
| Issue of equity Share Capital | 50,000 | |
| Outflow of Cash | ||
| Redemption of 10% Preference Shares | 25,000 | 25,000 |
| Net cash flow from financing activities | 25,000 |
|
| Total Cash flow (A + B + C) | 10,000 | |
| Opening Balance Cash | 40,000 | |
| Closing Balance Cash | 50,000 | |