Question 51 Chapter 15 of Class 12 Part – 2 – 2024
51. (CFS Showing Operating, Investing & Financing Activities) Following is the balance sheet of Thermal Power Ltd.
| Particulars | Note No. | 2017-18 ₹ | 2016-17 ₹ |
| I. Equity and Liabilities | |||
| Shareholders Fund : | |||
| (a) Share Capital | 12,00,000 | 11,00,000 | |
| (b) Reserves and Surplus | 1 | 3,00,000 | 2,00,000 |
| 2. Non-current Liabilities | |||
| Long-term Borrowings | 2,40,000 | 1,70,000 | |
| 3. Current Liabilities | |||
| (a) Trade Payables | 1,79,000 | 2,04,000 | |
| (b) Short-term Provisions | 50,000 | 77,000 | |
| Total | 19,69,000 | 17,51,000 | |
| II. Assets | |||
| 1. Non-Current Assets : | |||
| (i) Fixed Assets | |||
| (a) Tangible | 2 | 10,70,000 | 8,50,000 |
| (b) Intangible | 3 | 40,000 | 1,12,000 |
| 2. Current Assets | |||
| (a) Current Investments | 2,40,000 | 1,50,000 | |
| (b) Inventories | 1,29,000 | 1,21,000 | |
| (c) Trade Receivables | 1,70,000 | 1,43,000 | |
| (d) Cash and Cash Equivalents | 3,20,000 | 3,75,000 | |
| Total | 19,69,000 | 17,51,000 |
Notes to Accounts
| Particulars | 2017-18 ₹ | 2016-17 ₹ |
| 1. Reserves and Surplus | ||
| Surplus (Balance in Statement of Profit and Loss) | 3,00,000 | 2,00,000 |
| 2. Tangible Assets | ||
| Machinery | 12,70,000 | 10,00,000 |
| (-) Accumulated Depreciation | (2,00,000) | (1,50,000) |
| 10,70,000 | 8,50,000 | |
| 3. Intangible Assets | ||
| Goodwill | 40,000 | 1,12,000 |
Additional Information
During the year a piece of machinery, costing ₹ 24,000 on which accumulated depreciation was ₹ 16,000 was sold for ₹ 6,000
Prepare cash flow statement.
The solution of Question 51 Chapter 15 of Class 12 Part – 2 – 2024: –
| Cash Flow Statement |
||
| Particulars |
Rs |
|
| (A) Cash Flow from Operating Activities | ||
| Net Profit before tax | 1,00,000 | |
| Adjustments of Non cash or Non-Operating Items : | ||
| Add: Goodwill written off | 72,000 | |
| Depreciation on Machinery | 66,000 | |
| Loss on sale of Machinery | 2,000 | 2,40,000 |
| Cash operating Profit before Working Capital adj. | 2,40,000 | |
| Less: Increase in current Assets: | ||
| Inventories | 8,000 | |
| Trade Receivable | 27,000 | |
| Less: Decrease in current Liabilities: | ||
| Trade Payable | 25,000 | |
| Short Term Provisions | 27,000 | 87,000 |
| Cash flow from Operating Activities | 1,53,000 |
|
| (B) Cash flows from Investing Activities | ||
| Outflow of Cash | ||
| Sale of Machinery | 6,000 | |
| Outflow of Cash | ||
| Purchase of Machinery | 2,94,000 | 2,88,000 |
| Net cash flow from investing Activities | 2,88,000 |
|
| (C) Cash flows from Financing Activities | ||
| Inflow of Cash | ||
| Share Capital Issued | 1,00,000 | |
| Borrowing Raised | 70,000 | 1,70,000 |
| Net cash flow from financing activities | 1,70,000 |
|
| Net decrease in cash & Cash equivalents (A + B + C) | 35,000 | |
| Add: Cash equivalent in the beginning of year | 3,75,000 | |
| Current Investments | 1,50,000 | 5,25,000 |
| Cash equivalent at the end of year | 5,60,000 | |
Working Note
| Plant and Machinery Account |
|||
| Particulars |
Amount ₹ |
Particulars |
Amount ₹ |
| To Balance b/d | 10,00,000 | By Depreciation |
50,000 |
| By Bank A/c – Sale | 6,000 | ||
| By Profit & Loss A/c – Loss on sale | 2,000 | ||
| To Bank –Purchase (Bal. fig.) | 2,94,000 | By Balance c/d | 12,70,000 |
| 12,94,000 | 12,94,000 | ||
| Accumulated Depreciation Account |
|||
| Particulars |
Amount ₹ |
Particulars |
Amount ₹ |
| To Machinery A/c | 16,000 | By Depreciation |
1,50,000 |
| To Balance c/d | 2,00,000 | By Profit & Loss A/c – (Bal. fig.) | 66,000 |
| 2,16,000 | 2,16,000 | ||