Question 52 Chapter 15 of Class 12 Part – 2 – 2024

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

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