Question 49 Chapter 15 of Class 12 Part – 2 – 2024
PREPARING OF CASH FLOW STATEMENT (WITH ADJUSTMENT)
49. (CFS Showing Operating, Investing & Financing Activities) From the following Balance Sheets, prepare a Cash Flow Statement :
| Particulars | Note No. | 31st March,2018 | 31st March,2017 |
| I. Equity and Liabilities | |||
| Shareholders Fund : | |||
| Equity Share Capital | 2,00,000 | 1,50,000 | |
| 12% Preference Share Capital | 50,000 | 75,000 | |
| Reserves and surplus | |||
| General Reserve | 35,000 | 20,000 | |
| Balance in Statement of Profit and Loss | 24,000 | 15,000 | |
| III. Current Liabilities | |||
| Trade Payable | 49,500 | 37,500 | |
| 3,58,500 | 2,97,500 | ||
| II. Assets | |||
| Non-Current Assets : | |||
| Tangible Assets | |||
| Building | 60,000 | 80,000 | |
| Plant | 1,00,000 | 40,000 | |
| Intangible Assets : | |||
| Goodwill | 20,000 | 36,000 | |
| Current Assets | |||
| Inventories | 15,000 | 10,000 | |
| Trade Receivable | 1,54,500 | 1,19,000 | |
| Cash and Cash Equivalents | |||
| Cash in hand | 9,000 | 12,500 | |
| 3,58,000 | 2,97,500 |
Prepare a Cash Flow Statement.
The solution of Question 49 Chapter 15 of Class 12 Part – 2 – 2024: –
| Cash Flow Statement |
||
| Particulars |
Rs |
|
| (A) Cash Flow from Operating Activities | ||
| Net Profit before taxation | ||
| Profit as per the statement | 9,000 | |
| Add: Transfer to General Reserve | 15,000 | 24,000 |
| Adjustments of Non-cash or Non-Operating Items : | ||
| Add: Depreciation on Plant | 10,000 | |
| Depreciation on Building | 60,000 | |
| Goodwill amortize | 16,000 | 86,000 |
| Cash operating Profit before Working Capital adj. | 1,10,000 | |
| Add: Increase in Current Liabilities | ||
| Trade Payable | 12,000 | |
| Less: Increase in Current Assets | ||
| Trade Receivable | 35,500 | |
| Inventories | 5,000 | 28,500 |
| Cash used in Operating Activities | 81,500 |
|
| (B) Cash flows from Investing Activities | ||
| Outflow of Cash | ||
| Purchase of Building* | 40,000 | |
| Purchase of Plant** | 70,000 | 1,10,000 |
| Net cash used in investing Activities | 1,10,000 |
|
| (C) Cash flows from Financing Activities | ||
| Inflow of Cash | ||
| Share Capital Issued | 50,000 | |
| Outflow of Cash | ||
| Redemption of 10% Preference Shares | 25,000 | 25,000 |
| Net cash flow from financing activities | 25,000 |
|
| Net decrease in cash & Cash equivalents (A + B + C) | 3,500 | |
| Add: cash equivalent in the beginning of year | 12,500 | |
| Cash equivalent at the end of year | 9,000 | |
Working Note
| Building Account * |
|||
| Particulars |
Amount ₹ |
Particulars |
Amount ₹ |
| To Balance b/d | 80,000 |
By Depreciation |
60,000 |
| To Bank –Purchase (Bal. fig.) | 40,000 | By Balance c/d | 60,000 |
| 1,20,000 | 1,20,000 | ||
| Plant Account * |
|||
| Particulars |
Amount ₹ |
Particulars |
Amount ₹ |
| To Balance b/d | 40,000 |
By Depreciation |
10,000 |
| To Bank –Purchase (Bal. fig.) | 70,000 | By Balance c/d | 1,00,000 |
| 1,10,000 | 1,10,000 | ||