Question 60 Chapter 15 of Class 12 Part – 2 – 2024
60. (Cash Flow Statement Showing Operating, Investing & Financing Activities) The Balance sheet of R. Ltd. is as follows
BALANCE SHEETS | |||
Particulars | Note No. | 31st March,2018 | 31st March,2017 |
I. Equity and Liabilities | |||
Shareholders Fund : | |||
Equity Share Capital | 50,000 | 50,000 | |
Reserves and Surplus | |||
General Reserve | 50,000 | 50,000 | |
Balance in Statement of Profit and Loss | 49,000 | 48,000 | |
Non-current Liabilities | |||
Long-term Borrowings : | |||
Loan from Associate company | 20,000 | ||
Loan from Bank | 25,000 | 31,000 | |
Current Liabilities | |||
Trade Payable | 41,000 | 36,000 | |
Total | 2,35,000 | 2,15,000 | |
II. Assets | |||
Non-Current Assets : | |||
Tangible Assets | |||
Land | 30,000 | 20,000 | |
Building | 55,000 | 50,000 | |
Machinery | 86,000 | 80,000 | |
Current Assets : | |||
Inventories | 22,000 | 25,000 | |
Trade Receivable | 38,400 | 35,000 | |
Cash | 3,600 | 5,000 | |
Total | 2,35,000 | 2,15,000 |
During the year ₹ 26,000 was paid as a dividend for the previous year. The provision for depreciation against machinery as of 1-4-2017 was ₹ 27,000 and on 1-4-2018 ₹ 36,000. You are required to prepare the cash flow statement.
The solution of Question 60 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* | 1,000 | |
Adjustment of non-Cash & Non-Operating Items | ||
Add: Dividend Paid | 26,000 | |
Depreciation on Machinery | 9,000 | 35,000 |
Cash operating Profit before Working Capital adj. | 36,000 | |
Add: Increase in Current Liabilities: | ||
Trade Payable | 5,000 | |
Add: Decrease in current Assets: | ||
Inventories | 3,000 | |
Add : Decrease in current Assets: | ||
Trade Receivables | 3,400 | 4,600 |
Cash flow from Operating Activities | 40,600 |
|
(B) Cash flows from Investing Activities | ||
Outflow of Cash | ||
Purchase of land | 10,000 | |
Purchase of Building | 5,000 | |
Purchase of Machinery | 15,000 | 30,000 |
Net cash used in investing Activities | 30,000 |
|
(C) Cash flows from Financing Activities | ||
Inflow of Cash | ||
Loan from Associate company | 20,000 | |
Outflow of Cash | ||
Repayment of Bank loan | 6,000 | |
Dividend Paid | 26,000 | 12,000 |
Net cash flow from financing activities | 12,000 |
|
Net Increase in Cash & Cash Equivalents (A + B + C) | 1,400 | |
Add: Cash & Cash equivalents in the beginning | 5,000 | |
Cash & Cash equivalents at the end | 3,600 |