Question 65 Chapter 15 of Class 12 Part – 2 – 2024
65. (CFS Showing Operating, Investing & Financing Activities) From the following details relating to the accounts of Grow More Ltd., prepare Cash flow statement.
| BALANCE SHEETS |
| Particulars |
Note No. |
31st March,2018 |
31st March,2017 |
| I. Equity and Liabilities |
|
|
|
| Shareholders Fund : |
|
|
|
| Share Capital |
|
10,00,000 |
8,00,000 |
| Reserves and Surplus |
|
|
|
| Reserve |
|
2,00,000 |
1,50,000 |
| Balance in Statement of Profit and Loss |
|
1,00,000 |
60,000 |
| Non-Current Liabilities |
|
|
|
| Long-term Borrowings : |
|
|
|
| 10% Debentures |
|
2,00,000 |
— |
| Current Liabilities |
|
|
|
| Trade Payable |
|
9,00,000 |
9,20,000 |
| Provision |
|
|
|
| Provision for Taxation |
|
1,00,000 |
70,000 |
| Total |
|
25,00,000 |
20,00,000 |
| II. Assets |
|
|
|
| Non-Current Assets : |
|
|
|
| Tangible Assets |
|
|
|
| Land & Building |
|
6,00,000 |
4,00,000 |
| Plant & Machinery |
|
7,00,000 |
5,00,000 |
| Investments |
|
1,00,000 |
— |
| Current Assets : |
|
|
|
| Inventories |
|
4,00,000 |
2,00,000 |
| Trade Receivable |
|
5,00,000 |
7,00,000 |
| Cash in hand/ Bank |
|
2,00,000 |
2,00,000 |
| Total |
|
25,00,000 |
20,00,000 |
Additional Information :
Depreciation @ 25% was charged on the opening value of the Plant and Machinery.
During the year one old machine costing ₹ 50,000(WDV ₹ 20,000) was sold for ₹ 35,000.
₹ 50,000 was paid towards Income tax during the year
10% Debentures were issued on 31st March 2018
Building under construction was not subject to any depreciation.
Proposed Dividend 31–3–2018 31–3–2017
2,00,000 1,00,000
Prepare Cash Flow Statement by indirect method.
The solution of Question 65 Chapter 15 of Class 12 Part – 2 – 2024: –
Cash Flow Statement for the year ended 31st March 2016
|
Particulars
|
Rs
|
| (A) Cash Flow from Operating Activities |
|
|
| Net Profit as per Balance sheet |
|
40,000 |
| Add: Provision for Taxation |
80,000 |
|
| Adjustment of non-Cash & Non-Operating Items |
|
|
| Add: Transfer to reserve |
50,000 |
|
| Proposed Dividend |
1,00,000 |
|
| Depreciation |
1,25,000 |
|
| Less: Profit on Sale of Machine |
15,000 |
3,40,000 |
| Cash operating Profit before Working Capital adj. |
|
3,80,000 |
| Add: Decrease in current assets: |
|
|
| Trade Receivables |
2,00,000 |
|
| Less : Increase in current Assets: |
|
|
| Inventories |
2,00,000 |
|
| Less: Decrease in Current Liabilities |
|
|
| Trade Payables |
1,20,000 |
1,20,000 |
| Less: Income Tax Paid |
|
50,000 |
| Cash flow from Operating Activities |
|
3,10,000
|
| (B) Cash flows from Investing Activities |
|
|
| Inflow of Cash |
|
|
| Sale of Plant & Machinery |
35,000 |
|
| Outflow of Cash |
|
|
| Purchase of Plant & Machinery |
3,45,000 |
|
| Purchase of Land & Building |
2,00,000 |
|
| Purchase of Investment |
1,00,000 |
6,10,000 |
| Net cash used in investing Activities |
|
6,10,000
|
| (C) Cash flows from Financing Activities |
|
|
| Inflow of Cash |
|
|
| Issue of Share Capital |
2,00,000 |
|
| Issue of Debentures |
2,00,000 |
|
| Outflow of Cash |
|
|
| Dividend Paid |
1,00,000 |
3,00,000 |
| Net cash flow from financing activities |
|
3,00,000
|
| Net Increase in Cash & Cash Equivalents (A + B + C) |
|
Nil |
| Add: Cash & Cash equivalents in the beginning |
|
2,00,000 |
| Cash & Cash equivalents at the end |
|
2,00.000 |
Plant & Machinery Account
|
Particulars
|
Amount ₹
|
Particulars
|
Amount ₹
|
| To Balance b/d |
5,00,000 |
By Depreciation |
1,25,000 |
| To Statement of Profit & Loss |
15,000 |
By Cash – Sale |
35,000 |
| To Bank –Purchase (Bal. fig.) |
3,45,000 |
By Balance c/d |
7,00,000 |
|
8,60,000 |
|
8,60,000 |
Provision for Depreciation Account
|
Particulars
|
Amount ₹
|
Particulars
|
Amount ₹
|
| To Bank – Payment of Tax |
50,000 |
By Balance b/d |
70,000 |
| To Balance c/d |
1,00,000 |
|
|
|
|
By Profit & Loss A/c – (Bal. fig.) |
80,000 |
|
1,50,000 |
|
1,50,000 |
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