Question 52 Chapter 15 of Class 12 Part – 2 – 2024
52. (CFS Showing Operating, Investing & Financing Activities) Balance sheet of XY Ltd. prepare a rash flow statement.
Particulars | Note No. | 31st March 2017 | 31st March 2018 |
I. Equity and Liabilities | |||
Shareholders Fund : | |||
(a) Share Capital | 1 | 4,60,000 | 8,50,000 |
(b) Reserves and Surplus | 2 | 2,40,000 | 1,70,000 |
2. Non-current Liabilities | |||
Long-term Borrowings | 2,00,000 | 1,80,000 | |
Total | 9,00,000 | 12,00,000 | |
II. Assets | |||
1. Non-Current Assets : | |||
Fixed Assets | 5,00,000 | 7,00,000 | |
2. Current Assets | |||
Inventories | 2,10,000 | 2,50,000 | |
Trade Receivables | 1,40,000 | 1,90,000 | |
Cash and Cash Equivalents | 50,000 | 60,000 | |
Total | 9,00,000 | 12,00,000 |
Notes to Accounts
Particulars | 2017-18 ₹ | 2016-17 ₹ |
1. Share Capital | ||
Equity Share Capital | 4,00,000 | 7,50,000 |
Preference Share Capital | 60,000 | 1,00,000 |
4,60,000 | 8,50,000 | |
2. Reserves and Surplus | ||
Surplus, i.e. Balance in Statement of Profit and Loss | 1,70,000 | 1,20,000 |
General Reserve | 70,000 | 50,000 |
2,40,000 | 1,70,000 |
Additional Information:- (i) During the year, machine costing ₹ 80,000 was sold for ₹ 50,000.(ii) Dividend paid ₹ 80,000
The solution of Question 52 Chapter 15 of Class 12 Part – 2 – 2024: –
Cash Flow Statement |
||
Particulars |
Rs |
|
(A) Cash Flow from Operating Activities | ||
Net Profit before Tax and Extraordinary Items* | 10,000 | |
Adjustments of Non-cash or Non-Operating Items : | ||
Add: Interest on Debentures (10% of ₹ 2,00,000) | 20,000 | |
Loss on Sale of Machinery | 30,000 | 50,000 |
Cash operating Profit before Working Capital adj. | 60,000 | |
Less: Increase in current Assets: | ||
Inventories | 40,000 | |
Trade Receivable | 50,000 | 90,000 |
Cash used in Operating Activities | 30,000 |
|
(B) Cash flows from Investing Activities | ||
Outflow of Cash | ||
Sale of Fixed Assets | 50,000 | |
Outflow of Cash | ||
Purchase of Machinery | 2,80,000 | 2,30,000 |
Net cash used in investing Activities | 2,30,000 |
|
(C) Cash flows from Financing Activities | ||
Inflow of Cash | ||
Issue of Equity Shares | 3,50,000 | |
Issue of Preference Shares | 40,000 | 3,90,000 |
Outflow of Cash | ||
Redemption of Debentures | 20,000 | |
Dividend Paid | 80,000 | |
Interest Paid on Debentures | 20,000 | 2,70,000 |
Net cash flow from financing activities | 2,70,000 |
|
Net decrease in cash & Cash equivalents (A + B + C) | 10,000 | |
Add: Cash equivalent at the beginning of the year | 50,000 | |
Cash equivalent at the end of year | 60,000 |
Working Note
Fixed Assets Account |
|||
Particulars |
Amount ₹ |
Particulars |
Amount ₹ |
To Balance b/d | 5,00,000 | By Depreciation |
50,000 |
By Profit & Loss A/c – Loss on sale | 30,000 | ||
To Bank –Purchase (Bal. fig.) | 2,80,000 | By Balance c/d | 7,00,000 |
7,80,000 | 7,80,000 |
Net Profit before Tax and Extraordinary Items |
|
Particulars |
Amount ₹ |
Net Profit of the Current Year | 50,000 |
Add: Transfer back from Reserves | 20,000 |
70,000 | |
Dividend Paid | 80,000 |
10,000 |