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12th | Cash Flow Statement | Question No. 33 To 36 | Ts Grewal Solution 2023-2024

Question 33:

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

Particulars

31st March,
2023

(`)

31st March,
2022

(`)

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:

Jalco Ltd. provided the following information, calculate Net Cash Flow from Financing Activities:

Particular

31st March,

2023 (`)

31st March,

2022  (`)

Equity Share Capital

12,00,000

10,00,000

12% Debentures

2,00,000

1,00,000

Additional Information:
1.Interest paid on debentures  ` 19,000.
2. Dividend paid in the year  ` 50,000.
3. During the year, Jalco  Ltd. issued bonus shares in the ratio of 5 : 1 by captialising reserve.

Answer:

Cash Flow from Financing Activities

 

Particulars

 (`)

 (`)

 

Proceeds from Issue of 12% Debentures

1,00,000

 

 

Interest Paid

(19,000)

 

 

Dividend Paid

(50,000)

 

 

Net Cash Flows from Financing Activities

 

31,000

 

Note: Amount of Equity Share Capital has been increased due to the issue of Bonus Shares which does not involve any flow of cash. Therefore, it is not considered in the Financing Activities.

 

Question 35:

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

Particulars

31st March,

2023

(`)

31st March,

2022

(`)

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, 2023.
2. Interim dividend on Equity Shares was paid @ 15%.
3. Preference Shares were redeemed on 31st March, 2023 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, 2023.

Answer:

Cash Flow from Financing Activities

for the year ended March 31, 2023
 

 

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

 

 

 

 

 

Cash Flow from Investing and Financing Activities

Question 36:

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

Particulars

31st March

2023

(`)

31st March

2022

(`)

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, 2023

 

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

 

 

 

 

 

 

Ts Grewal Solution 2023-2024

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Class 12 / Volume – II

Chapter 4 – Cash Flow Statement

Question No. 1 To 4

Question No. 5 To 8

Question No. 9 To 12

Question No. 13 To 16

Question No. 17 To 20

Question No. 21 To 24

Question No. 25 To 28

Question No. 29 To 32

Question No. 33 To 36

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Question No. 41 To 44

Question No. 45 To 48

Question No. 49 To 52

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