12th | Cash Flow Statement | Question No. 33 To 36 | Ts Grewal Solution 2022-2023

Question 33:

From the following information, calculate Cash Flow from Financing Activities:

Particulars	31^st March, 2022 (`)	31^st March, 2021 (`)
Equity Share Capital	10,00,000	9,00,000
Securities Premium Reserve	2,60,000	2,50,000
12% Debentures	1,00,000	1,50,000

Additional Information: Interest paid on debentures ` 18,000.

Answer:

Cash Flow from Financing Activities
	Particulars	(`)	(`)
	Proceeds from Issue of Equity Shares	1,10,000
	Redemption of 12% Debentures	(50,000)
	Interest Paid	(18,000)
	Net Cash Flows from Financing Activities		42,000

Question 34:

From the following extracts of Balance Sheet of Exe Ltd., calculate Cash Flow from Financing Activities:

Particulars	31^st March, 2022 (`)	31^st March, 2021 (`)
Equity Share Capital	5,25,000	4,00,000
10% Preference Share Capital	4,00,000	5,50,000
Securities Premium Reserve	2,25,000	1,00,000
12% Debentures	4,00,000	3,00,000

Additional Information:
1. Equity Shares were issued on 31st March, 2022.
2. Interim dividend on Equity Shares was paid @ 15%.
3. Preference Shares were redeemed on 31st March, 2022 at a premium of 5%. Premium paid was debited to Statement of Profit and Loss.
4. 12% Debentures of face value ` 1,00,000 were issued on 31st March, 2022.

Answer:

Cash Flow from Financing Activities for the year ended March 31, 2022
	Particulars	(`)	(`)
	Issue of Shares	1,25,000
	Transfer to Securities Premium Reserve	1,25,000
	Issue of Debentures	1,00,000
	Premium on redemption of Preference Shares (5% of 1,50,000)	(7,500)
	Interim Dividend Paid(15% of 4,00,000)	(60,000)
	Redemption of Preference Share Capital	(1,50,000)
	Interest on Debentures (12% of 3,00,000)	(36,000)
	Interest on Preference Share Capital	(55,000)
	Net Cash Flow from Financing Activities		41,500

Question 35:

From the following information, calculate Cash Flow from Investing and Financing Activities:

Particulars	31^st March 2022 (`)	31^st March 2021 (`)
Machinery (At cost)	50,000	40,000
Accumulated Depreciation	12,000	10,000
Capital	35,000	30,000
Bank Loan	...	10,000

During the year, a machine costing ` 10,000 was sold at a loss of ` 2,000. Depreciation on machinery charged during the year amounted to ` 6,000.

Answer:

Cash Flow Statement for the year ended March 31, 2022
	Particulars	(`)	(`)
	Cash Flow from Investing Activities
	Purchase of Machinery	(20,000)
	Sale of Machine	4,000
	Net Cash from (used in) Investing Activities		(16,000)

	Cash Flow from Financing Activities
	Proceeds from Issue of Equity Shares	5,000
	Repayment of Bank Loan	(10,000)
	Net Cash from (used in) Financing Activities		(5,000)

Working Notes:

Machinery Account
Dr.		Cr.
Particulars	(`)	Particulars	(`)
Balance b/d	40,000	Accumulated Depreciation A/c	4,000
Bank A/c (Purchase- Bal. Fig.)	20,000	Bank A/c (Sale)	4,000
		Profit and Loss A/c (Loss on Sale)	2,000
		Balance c/d	50,000
	60,000		60,000

Accumulated Depreciation Account
Dr.		Cr.
Particulars	(`)	Particulars	(`)
To Machinery A/c (Bal. Fig.)	4,000	Balance b/d	10,000
Balance c/d	12,000	By Profit and Loss A/c (Dep. charged during the year)	6,000
	16,000		16,000

Question 36:

From the following information, calculation Cash Flow from Operating Activities and Investing Activities:

Particular	31st, March, 2021, (`)	31st, March, 2022, (`)
Surplus, i.e., Balance in Statement of Profit and Loss	2,50,000	10,00,000
Provision for Tax	75,000	75,000
Trade Payables	1,00,000	3,75,000
Current Assets (Trade Receivables and Inventories)	11,50,000	13,00,000
Fixed Assets (Tangible)	21,25,000	23,30,000
Accumulated Depreciation	10,62,500	11,00,000

Additional Information:
1. A machine having book value of ` 1,00,000 (Depreciation provided thereon ` 1,62,500) was sold at a loss of ` 20,000.
2. Tax paid during the year ` 75,000.

Answer:

Cash flow Statement
for the year ended 31^st March, 2022
Particulars	(`)	(`)
A. Cash Flow from Operating Activities
Net Profit as per Statement of Profit & Loss	7,50,000
Add: Provision for Tax made	75,000
Net Profit before Tax and Extraordinary Items	8,25,000
Add: Depreciation charged during the year	2,00,000
Add: Loss on Sale of Machine	20,000
Net Profit before working Capital changes	10,45,000
Add: Increase in Trade Payables	2,75,000
Less: Increase in Current Assets	(1,50,000)
Net Profit before Tax	11,70,000
Less: Tax Paid during the year	75,000
Cash Flow from Operating Activities		10,95,000
B. Cash flow from Investing Activities
Purchase of Fixed Asset	(4,67,500)
Sale of Machine	80,000
Cash used in Investing Activities		3,87,500

Dr.	Accumulated Depreciation A/c						Cr.
Date		Particulars	(`)	Date	Particulars	(`)
2022				2018
March 31		To Fixed Asset A/c (Depreciation on Mach. Sold)	1,62,500	April 01	By Balance b/d	10,62,500
March 31		To balance c/d	11,00,000		By Statement of Profit & Loss A/c (Bal. Fig.)	2,00,000

			12,62,500			12,62,500

Dr.	Fixed Assets A/c						Cr.
Date		Particulars	(`)	Date	Particulars	(`)
2021				2019
April 01		To balance b/d	21,25,000	March 31	By Accumulated Depreciation A/c	1,62,500
2022				March 31	By Statement of Profit & Loss A/c- Loss	20,000
				March 31	By Bank A/c (1,00,000 – 20,000)	80,000
March 31		To Cash/Bank A/c	4,67,500	March 31	By balance c/d	23,30,000

			25,92,500			25,92,500