Question 54 Chapter 15 of Class 12 Part – 2 – 2024
54. (CFS Showing Operating, Investing & Financing Activities) From the following balance sheet and additional information of Good Wood Co. Ltd., you are required to prepare the Cash flow statement as per AS-3 (Revised).
| Particulars | Note No. | 31st March,2017 | 31st March,2018 |
| I. Equity and Liabilities | |||
| Shareholders Fund : | |||
| (a) Share Capital | 30,000 | 45,000 | |
| (b) Reserves and Surplus | 7,000 | 18,500 | |
| 2. Current Liabilities | |||
| Trade Payable | 1 | 10,500 | 13,500 |
| Total | 47,500 | 77,000 | |
| II. Assets | |||
| 1. Non-Current Assets : | |||
| (i) Fixed Assets | 20,000 | 49,000 | |
| 2. Current Assets | |||
| (a) Inventories (Stock) | 9,000 | 9,000 | |
| (b) Trade Receivables (Debtors) | 12,000 | 10,000 | |
| (c) Cash and Cash Equivalents (Cash) | 6,500 | 9,000 | |
| Total | 47,500 | 77,000 |
Notes to Accounts
| Particulars | 2017-18 ₹ | 2016-17 ₹ |
| 1. Trade Payable | ||
| Creditors | 8,000 | 9,500 |
| Bills Payable | 2,500 | 4,000 |
| 10,500 | 13,500 |
Additional Information
(i) Income tax paid during the year 4,500.
(ii) Interim Dividend paid during the year was 12% per annum on the opening balance of share capital
The solution of Question 54 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* | 19,600 | |
| Cash operating Profit before Working Capital adj. | 19,600 | |
| Add: Increase in current Liabilities: | ||
| Creditors | 1,500 | |
| Bills payable | 1,500 | |
| Add: Decrease in current Assets: | ||
| Trade Receivable | 2,000 | 5,000 |
| Less: Tax Paid | 4,500 | |
| Cash flow from Operating Activities | 20,100 |
|
| (B) Cash flows from Investing Activities | ||
| Outflow of Cash | ||
| Purchase of Fixed Assets | ||
| Cash used in Investing Activities | 29,000 | |
| Net cash used in investing Activities | 29,000 |
|
| (C) Cash flows from Financing Activities | ||
| Inflow of Cash | ||
| Issue of Equity Shares | 15,000 | |
| Outflow of Cash | ||
| Interim Dividend Paid | 3,600 | 11,400 |
| Net cash flow from financing activities | 11,400 |
|
| Net decrease in cash & Cash equivalents (A + B + C) | 2,500 | |
| Add: Cash equivalent at the beginning of the year | 6,500 | |
| Cash equivalent at the end of year | 9,000 | |
Working Note
| Net Profit before Tax and Extraordinary Items |
|
| Particulars |
Amount ₹ |
| Net Profit of the Current Year | 11,500 |
| Add: Interim Dividend Paid | 3,600 |
| Provision of Tax | 4,500 |
| 19,600 | |