Question 56 Chapter 15 of Class 12 Part – 2 – 2024

Question 56 Chapter 15 of Class 12 Part – 2 – 2024

56. (CFS Showing Operating, Investing & Financing Activities) From the following balance sheet of Vijay Ltd as at 31s, March, 2017 and 2018 prepare the cash flow statement.

Particulars	Note No.	31st March 2017	31st March 2018
I. Equity and Liabilities
Shareholders Fund :
Share Capital		7,50,000	10,00,000
Reserves and Surplus	1	–	1,50,000
2. Current Liabilities
Current Liabilities		1,50,000	2,00,000
Short-term Provisions (Provision for Tax)		50,000	1,00,000
Total		9,50,000	14,50,000
II. Assets
1. Non-Current Assets :
(i) Fixed Assets		6,00,000	9,00,000
2. Current Assets		3,50,000	5,50,000
Total		9,50,000	14,50,000

Notes to Accounts

Particulars	2017-18 ₹	2016-17 ₹
1. Reserves and Surplus
Statement of Profit and Loss	–	1,50,000
	–	1,50,000

Additional Information
(i) During the year 50,000 depreciation was charged on fixed assets.
(ii) A piece of machinery included in fixed assets costing 10,000, on which depreciation

The solution of Question 56 Chapter 15 of Class 12 Part – 2 – 2024: –

Cash Flow Statement for the year ended 31st March 2018
Particulars		Rs
(A) Cash Flow from Operating Activities
Net Profit before Tax and Extraordinary Items*		2,50,000
Adjustment of non-Cash & Non-Operating Items
Add: Depreciation on Fixed Assets	50,000
Add: Decrease in current Assets:	1,000	51,000
Cash operating Profit before Working Capital adj.		3,01,000
Add: Increase in current Liabilities:	50,000
Less: Increase in current Assets:	2,00,000	1,50,000
		1,50,000
Less: Tax Paid		50,000
Cash flow from Operating Activities		151,000
(B) Cash flows from Investing Activities
Inflow of Cash
Sale of Fixed Assets	5,000
Outflow of Cash
Purchase of Fixed Assets*	3,56,000	3,51,000
Net cash used in investing Activities		3,51,000
(C) Cash flows from Financing Activities
Inflow of Cash
Issue of Equity Shares	2,50,000
Net cash flow from financing activities		2,50,000
Net Increase in Cash & Cash Equivalents (A + B + C)		Nil

Working Note

Fixed Assets Account
Particulars	Amount ₹	Particulars	Amount ₹
To Balance b/d	6,00,000	By Depreciation	50,000
		By Bank A/c –Sale	5,000
		By Profit & Loss – Loss on Sale	1,000
To Bank –Purchase (Bal. fig.)	3,56,000	By Balance c/d	9,00,000
	9,56,000		9,56,000

Fixed Assets Account
Particulars	Amount ₹
Balance as per Statement of Profit and Loss	1,50,000
Add: Provision for Tax	1,00,000
	2,50,000

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