Question 41
Prepare a Cash Flow Statement on
the basis of the information given in the Balance Sheet of Libra Ltd. as at
31st March, 2021 and 31st March 2022:
|
Particulars |
Note
No. |
31st
March, 2022 (`) |
31st
March, 2021 (`) |
|
I. EQUITY AND LIABILITIES |
|
|
|
|
1. Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
8,00,000 |
6,00,000 |
|
(b) Reserves and Surplus |
1 |
4,00,000 |
3,00,000 |
|
2. Non-Current Liabilities |
|
|
|
|
Long-term Borrowings |
|
1,00,000 |
1,50,000 |
|
3. Current Liabilities |
|
|
|
|
(a) Trade Payables |
|
40,000 |
48,000 |
|
Total |
|
13,40,000 |
10,98,000 |
|
II. ASSETS |
|
|
|
|
1, Non-Current Assets |
|
|
|
|
(a) Fixed Assets: |
|
|
|
|
Tangible Assets |
|
8,50,000 |
5,60,000 |
|
(b) Non-Current Investments |
|
2,32,000 |
1,60,000 |
|
2. Current Assets |
|
|
|
|
(a) Current Investments |
|
50,000 |
1,34,000 |
|
(b) Inventories |
|
76,000 |
82,000 |
|
(c) Trade Receivables |
|
38,000 |
92,000 |
|
(d) Cash and Cash Equivalents |
|
94,000 |
70,000 |
|
Total |
|
13,40,000 |
10,98,000 |
|
|
|
|
|
Notes to Accounts
|
Particulars |
31st
March, 2021 (`) |
31st
March, 2022 (`) |
|
I. Reserves and Surplus |
|
|
|
Surplus, i.e., Balance in Statement of Profit and Loss |
4,00,000 |
3,00,000 |
|
|
|
|
Answer:
|
|
Cash
Flow Statement for
the year ended March 31, 2022 |
||
|
|
Particulars |
Details (`) |
(`) |
|
A |
Cash from Operating Activities |
|
|
|
|
Net Profit |
|
1,00,000 |
|
|
Operating Profit Before Working
Capital Changes |
|
1,00,000 |
|
|
Add: Decrease in Current Assets |
|
|
|
|
Inventories |
6,000 |
|
|
|
Trade Receivables |
54,000 |
|
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
Trade Payables |
(8,000) |
52,000 |
|
|
|
|
|
|
|
Cash Generated from Operations |
|
1,52,000 |
|
|
Less: Tax Paid |
|
- |
|
|
Net Cash Flow from
Operating Activities |
|
1,52,000 |
|
|
|
|
|
|
B |
Cash From Investing
Activities |
|
|
|
|
Purchase of Tangible Assets |
(2,90,000) |
|
|
|
Purchase on Non Current
Investment |
(72,000) |
|
|
|
|
|
|
|
|
Net Cash Used in
Investing Activities |
|
(3,62,000) |
|
|
|
|
|
|
C |
Cash From Financing
Activities |
|
|
|
|
Issue of Share Capital |
2,00,000 |
|
|
|
Long Term Borrowings |
(50,000) |
|
|
|
|
|
|
|
|
Net Cash Flow from
Financing Activities |
|
1,50,000 |
|
|
|
|
|
|
D |
Net Decrease in Cash and Cash
Equivalents |
|
(60,000) |
|
|
Add: Cash and Cash Equivalents in the
beginning of the period (70,000 + 1,34,000) |
|
2,04,000 |
|
|
Cash and Cash Equivalents
at the end of the period (94,000 + 50,000) |
|
1,44,000 |
|
|
|
|
|
|
|
|
|
|
Question 42 Balance Sheet of Varun Ltd as at
31st March, 2022 is as s follows:
|
Particulars |
Note No. |
31st March, 2022 (`) |
31st March, 2021 (`) |
|
I. EQUITY AND
LIABILITIES 1. Shareholders’
Funds (a) Share Capital (b) Reserves and
Surplus: Surplus, i.e.,
Balance in Statement of Profit and Loss 2. Non-Current
Liabilities Long-term
Borrowings 3. Current
Liabilities Trade Payables |
|
2,00,000 98,000 90,000 82,000 |
2,00,000 96,000 60,000 72000 |
|
Total |
|
4,70,000 |
4,28,000 |
|
li. ASSETS 1. Non-Current
Assets Fixed Assets
(Tangible) 2. Current Assets (a) Inventories (b) Trade
Receivables (c) Cash and Cash
Equivalents |
|
3,42,000 44,000 76,800 7,200 |
3,00,000 50,000 70,000 8,000 |
|
Total |
|
4,70,000 |
428,000 |
Notes to Accounts
|
Particulars |
|
|
31st March, 2022 (`) |
31st March, 2021 (`) |
Loan from Z
Ltd. Loan from Bank |
|
|
40,000 50,000 |
------ 60,000 |
|
|
|
|
90,000 |
60,000 |
|
2. Fixed Assets (Tangible) (i) Land (ii) Building (iii) Machinery Less: Accumulated
Depreciation |
31-03-2021 2,44,000 72,000 |
31-03-2020 2,14,000 54,000 |
60,000 1,10,000 1,72,000 |
40,000 1,00,000 1,60,000 |
|
|
|
|
3,42,000 |
3,00,000 |
Additional Information: During the year ` 52,000 were paid as interim dividend.
Prepare Cash Flow Statement.
Answer:
|
Cash Flow Statement |
||
|
Particulars |
Detail |
` |
|
I.
Cash flow from operating activities Net profit as per
Statement of profit and loss (98,000-96,000) Add: Interim Dividend |
52000 |
2,000 52000 |
|
Net profit before tax and extraordinary items Add: Depreciation on
Machinery |
|
54,000 , 18,000 |
|
Operating Profit Before Working Capital Changes Add: Trade Payable
(82,000-72,000) Inventories
(50,000-44,000) |
10,000 6,000 |
72,000 16000 |
|
|
|
88,000 |
|
Less: Current Assets
(76,800-70,000) |
|
(6,800) |
|
Cash Generated from operation |
|
81,200 |
|
Less: Tax paid |
|
-------- |
|
Cash flow from operating activities |
|
81,200 |
|
II.
Cash flow from Investing activities Payments
for the purchase of Land Payments
for the purchase of Building Payments
for the purchase of Machinery |
|
(20,000) (10,000) (30,000) |
|
Cash Used in Investing activities |
|
(60,000) |
|
III.
Cash flow from Financing
activities Proceeds from loan from Z Ltd. Repayment of Bank loan Payment of Interim dividend |
(10,000) (52,000) |
40,000 (62,000) |
|
Cash used in Financing activities |
|
(22,000) |
|
Net Decrease in Cash and cash equivalents [81,200+(60,000)+ (22,000)] Add: Opening Cash and Cash Equivalents |
|
(800) 8,000 |
|
Closing Cash and Cash Equivalents |
|
7,200 |
Working notes:
|
Dr. |
Fixed Assets A/c |
Cr. |
|
|
Particulars |
` |
Particulars |
` |
|
To Balance B/d To Bank a/c (Purchase) |
2,14,000 40,000 |
By Balance C/d |
2,44,000 |
|
|
5,12,000 |
|
5,12,000 |
Space
|
Dr. |
Provision
for Depreciation A/c |
Cr. |
|
|
Particulars |
` |
Particulars |
` |
|
To Balance C/d |
72,000 |
By Balance B/d By P&L a/c (Dep. provided during the year) |
54,000 18,000 |
|
|
72,000 |
|
72,000 |
Question 43:
Following are the Balance Sheets of
Solar Power Ltd. as at 31st March, 2022and 2021:
|
Solar
Power Ltd. |
|||
|
BALANCE
SHEET |
|||
|
Particulars |
Note
No. |
31st
March, 2022 (`) |
31st
March, 2021 (`) |
|
I. EQUITY AND LIABILITIES |
|
|
|
|
1. Shareholders' Funds |
|
|
|
|
(a) Share
Capital |
|
24,00,000 |
22,00,000 |
|
(b) Reserves and Surplus |
1 |
6,00,000 |
4,00,000 |
|
2. Non-Current Liabilities |
|
|
|
|
Long-term Borrowings |
|
4,80,000 |
3,40,000 |
|
3. Current Liabilities |
|
|
|
|
(a) Trade Payables |
|
3,58,000 |
4,08,000 |
|
(b) Short-term Provisions |
|
1,00,000 |
1,54,000 |
|
Total |
|
39,38,000 |
35,02,000 |
|
II. ASSETS |
|
|
|
|
1. Non-Current Assets |
|
|
|
|
Fixed Assets: |
|
|
|
|
(i) Tangible Assets |
2 |
21,40,000 |
17,00,000 |
|
(ii) Intangible Assets |
3 |
80,000 |
2,24,000 |
|
2. Current Assets |
|
|
|
|
(a) Current Investments |
|
4,80,000 |
3,00,000 |
|
(b) Inventories |
|
2,58,000 |
2,42,000 |
|
(c) Trade Receivables |
|
3,40,000 |
2,86,000 |
|
(d) Cash and Cash Equivalents |
|
6,40,000 |
7,50,000 |
|
Total |
|
39,38,000 |
35,02,000 |
|
|
|
|
|
Notes to Accounts
|
|
||
|
Particulars |
31st
March, 2022 (`) |
31st
March, 2021 (`) |
|
1. Revenue and Surplus Surplus, i.e., Balance in Statement of Profit and
Loss |
6,00,000 |
4,00,000 |
|
2. Tangible Assets |
|
|
|
Machinery |
25,40,000 |
20,00,000 |
|
Less: Accumulated Depreciation |
(4,00,000) |
(3,00,000) |
|
|
21,40,000 |
17,00,000 |
|
3. Intangible Assets |
|
|
|
Goodwill |
80,000 |
2,24,000 |
|
|
|
|
Additional Information:
During
the year, a piece of machinery costing `48,000 on which accumulated
depreciation was `
32,000. was sold for `
12,000.
Prepare Cash Flow Statement.
Answer:
|
|
Cash Flow Statement for
the year ended March 31, 2022 |
|
||||||||||
|
|
Particulars |
Amount (`) |
Amount (`) |
|
||||||||
|
A |
Cash
Flow from Operating Activities |
|
|
|
||||||||
|
|
Profit as
per Statement of Profit and Loss |
2,00,000 |
|
|
||||||||
|
|
Profit Before Taxation |
|
2,00,000 |
|
||||||||
|
|
Items
to be Added: |
|
|
|
||||||||
|
|
Amortisation of Goodwill |
1,44,000 |
|
|
||||||||
|
|
Depreciation |
1,32,000 |
|
|
||||||||
|
|
Loss on
Sale of Fixed Assets |
4,000 |
2,80,000 |
|
||||||||
|
|
Operating
Profit before Working Capital Adjustments |
|
4,80,000 |
|
||||||||
|
|
Less: Increase in Current Assets |
|
|
|
||||||||
|
|
|
Inventories |
16,000 |
|
|
|||||||
|
|
|
Trade Receivables |
54,000 |
|
|
|||||||
|
|
Less: Decrease in Current Liabilities |
|
|
|
||||||||
|
|
Trade
Payables |
50,000 |
|
|
||||||||
|
|
Short-Term
Provisions |
54,000 |
1,74,000 |
|
||||||||
|
|
Net
Cash Generated from Operating Activities |
|
3,06,000 |
|
||||||||
|
|
|
|
|
|
|
|||||||
|
B |
Cash
Flow from Investing Activities |
|
|
|
||||||||
|
|
|
Sale of
Machinery |
12,000 |
|
|
|||||||
|
|
|
Purchase of Machinery |
(5,88,000) |
|
|
|||||||
|
|
Net
Cash Used in Investing Activities |
|
(5,76,000) |
|
||||||||
|
|
|
|
|
|
||||||||
|
C |
Cash
Flow from Financing Activities |
|
|
|
||||||||
|
|
Proceeds from Issue of Share
Capital |
2,00,000 |
|
|
||||||||
|
|
Proceeds from Long Term
Borrowings |
1,40,000 |
|
|
||||||||
|
|
Net
Cash Flow from Financing Activities |
|
3,40,000 |
|
||||||||
|
|
|
|
|
|
|
|||||||
|
D |
Net
Increase or Decrease in Cash and Cash Equivalents |
|
70,000 |
|
||||||||
|
|
|
Add:
Cash and Cash Equivalent in the beginning of the Period |
|
10,50,000 |
|
|||||||
|
|
Cash
and Cash Equivalents at the end of the period |
|
11,20,000 |
|
||||||||
|
|
|
|
|
|
||||||||
|
Machinery
Account |
|
||||||||||||
|
Dr. |
Cr. |
|
|||||||||||
|
Particulars |
(`) |
Particulars |
(`) |
|
|||||||||
|
Balance b/d |
20,00,000 |
Bank A/c (Sale) |
12,000 |
|
|||||||||
|
Bank A/c (Purchase-
Bal. Fig.) |
5,88,000 |
Depreciation on Part of Machinery |
32,000 |
|
|||||||||
|
|
|
Profit and Loss A/c (Loss on Sale) |
4,000 |
|
|||||||||
|
|
|
Balance c/d |
25,40,000 |
|
|||||||||
|
|
25,88,000 |
|
25,88,000 |
|
|||||||||
|
|
|
|
|
|
|||||||||
|
Accumulated
Depreciation Account |
|||||||||||||
|
Dr. |
Cr. |
||||||||||||
|
Particulars |
(`) |
Particulars |
(`) |
||||||||||
|
Machinery A/c |
32,000 |
Balance b/d |
3,00,000 |
||||||||||
|
Balance c/d |
4,00,000 |
Profit and Loss A/c (Dep.
charged during the year- Bal. Fig.) |
1,32,000 |
||||||||||
|
|
4,32,000 |
|
4,32,000 |
||||||||||
|
|
|
|
|
||||||||||
Question 44:
Following is the Balance Sheet of
Fine Products Ltd. as at 31st March, 2022:
|
Particulars |
Note
No. |
31st
March, 2022 (`) |
31st
March, 2021 (`) |
|
I. EQUITY AND LIABILITIES |
|
|
|
|
1. Shareholders' Funds |
|
|
|
|
(a) Share Capital: Equity Share Capital |
|
3,50,000 |
3,00,000 |
|
(b) Reserves and Surplus |
1 |
57,000 |
38,000 |
|
2. Current Liabilities |
|
|
|
|
(a) Trade Payables |
|
53,000 |
35,000 |
|
(b) Other Current Liabilities |
|
6,000 |
8,000 |
|
(c) Short-term Provisions |
2 |
32,000 |
28,000 |
|
Total |
|
4,98,000 |
4,09,000 |
|
II. ASSETS |
|
|
|
|
1. Non-Current Assets |
|
|
|
|
(a) Fixed Assets: |
|
|
|
|
(i) Tangible Assets |
3 |
2,48,000 |
2,00,000 |
|
(ii) Intangible Assets (Goodwill) |
|
40,000 |
50,000 |
|
(b) Non-Current Investments |
|
35,000 |
10,000 |
|
2. Current Assets |
|
|
|
|
(a) Inventories |
|
39,000 |
57,000 |
|
(b) Trade Receivables |
|
1,08,000 |
75,000 |
|
(c) Cash and Bank Balance |
|
28,000 |
17,000 |
|
Total |
|
4,98,000 |
4,09,000 |
|
|
|
|
|
Notes to Accounts
|
Particulars |
31st
March, 2022 (`) |
31st
March, 2021 (`) |
|
1. Reserves and Surplus |
|
|
|
General Reserve |
30,000 |
20,000 |
|
Surplus, i.e., Balance in Statement of Profit and
Loss |
27,000 |
18,000 |
|
|
57,000 |
38,000 |
|
2. Short-term Provisions |
|
|
|
Provision for Tax |
32,000 |
28,000 |
|
3. Tangible Fixed Assets |
|
|
|
Land and Building |
57,000 |
1,10,000 |
|
Plant and Machinery |
1,91,000 |
90,000 |
|
|
2,48,000 |
2,00,000 |
|
|
|
|
Note: Proposed
dividends on equity for the years ended 31st March, 2021 and 2022 are ` 39,000 and ` 45,000 respectively.
You are required to prepare Cash Flow Statement for the year
ended 31st March, 2022.
Answer:
|
Cash Flow Statement for
the year ended March 31, 2022 |
||||
|
|
Particulars |
(`) |
(`) |
|
|
A |
Cash Flow from Operating Activities |
|
|
|
|
|
Profit as per Statement of Profit and Loss |
|
9,000 |
|
|
|
Items to be Added: |
|
|
|
|
|
General Reserve |
10,000 |
|
|
|
|
Goodwill |
10,000 |
|
|
|
|
Provision for Taxation |
32,000 |
|
|
|
|
Proposed Dividend |
39,000 |
1,00,000 |
|
|
|
Operating
Profit before Working Capital Adjustments |
|
1,00,000 |
|
|
|
Less: Increase in Current Assets |
|
|
|
|
|
|
Trade Receivables |
(33,000) |
|
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
|
Other Current Liabilities |
(2,000) |
|
|
|
|
Add: Decrease in Current Assets |
|
|
|
|
|
Inventories |
18,000 |
|
|
|
|
Add: Increase in Current Liabilities |
|
|
|
|
|
Trade Payables |
18,000 |
1,000 |
|
|
|
Cash
Generated from Operations |
|
1,01,000 |
|
|
|
Less: Tax Paid |
|
(28,000) |
|
|
|
Net
Cash Flows from Operating Activities |
|
73,000 |
|
|
|
|
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
|
|
Purchase of Non-Current Investments |
|
(25,000) |
|
|
|
Purchase of Plant & Machinery |
|
(1,01,000) |
|
|
|
Sale of Land & Building |
|
53,000 |
|
|
|
Net
Cash Used in Investing Activities |
|
(73,000) |
|
|
|
|
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
|
|
Dividend Paid |
|
(39,000) |
|
|
|
Proceeds from Issue of Share Capital |
|
50,000 |
|
|
|
Net
Cash Flow from Financing Activities |
|
11,000 |
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
11,000 |
|
|
|
Add: Cash and Cash Equivalent in the
beginning of the period |
|
17,000 |
|
|
|
Cash and Cash Equivalents at the end of the period |
|
28,000 |
|
|
|
|
|
|
|
Note: Proposed Dividend treatment is as per
AS-4 (Revised).
Click below for more Questions
Ts Grewal Solution 2022-2023
Class 12 / Volume – 3
Chapter 5 – Cash Flow Statements
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
Question No. 37 To 40
Question No. 41 To 44
Question No. 45 To 48
Question No. 49 To 52
Question No. 53 To 56
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12th TS Grewal’s Accountancy Solutions