Question 45:
Following is the Balance sheet of X Ltd. as at 31st March, 2018;
BALANCE SHEET OF X LTD. as at 31st March, 2018
|
Particulars |
Note No. |
31st March, 2018 (`) |
31st March, 2017 (`) |
|
I. EQUITY AND LIABILITIES 1. Shareholders’ Funds (a) Share Capital (b) Reserves and
Surplus 2. Non-Current Liabilities Long-term
Borrowings 3. Current Liabilities (a) Short-term
Borrowings (b) Short-term
Provisions |
1 2 3 4 |
19,00,000 6,00,000 5,00,000 1,70,000 2,00,000 |
17,00,000 3,00,000 4,00,000 1,75,000 1,65,000 |
|
Total |
|
33,70,000 |
27,40,000 |
|
ASSETS 1. Non-Current Assets (a) Fixed Assets: (i) Tangible
Assets (ii) Intangible
Assets (b) Non-current
Investments 2. Current Assets (a) Current
Investments (b) Inventories (c) Cash and Cash
Equivalents |
5 6 |
24,00,000 2,00,000 3,00,000 1,40,000 2,60,000 70,000 |
19,00,000 3,00,000 2,00,000 1,70,000 1,30,000 40,000 |
|
Total |
|
33,70,000 |
27,40,000 |
Notes to Accounts
|
Particulars |
31st March, 2018 (`) |
31st March, 2017 (`) |
Surplus, i.e.,
Balance in Statement of Profit and Loss |
6,00,000 |
3,00,000 |
|
|
6,00,000 |
3,00,000 |
|
2, Long-term
Borrowings 12% Debentures |
5,00,000 |
4,00,000 |
|
|
5,00,000 |
4,00,000 |
|
3.Short-term
Borrowings Bank Overdraft |
1,70,000 |
1,75,000 |
|
|
1,70,000 |
1,75,000 |
|
Å, Short-term
Provisions Provision for Tax |
2,00,000 |
1,65,000 |
|
|
2,00,000 |
1,65,000 |
|
5. Tangible Assets
Machinery Less: Accumulated
Depreciation |
26,00,000 (2,00,000) |
20,00,000 (1,00,000) |
|
|
24,00,000 |
19,000,000 |
|
6. Intangible
Assets Goodwill |
2,00,000 |
3,00,000 |
|
|
2,00,000 |
3,00,000 |
Additional
Information:
(i) ` 1,00,000, 12% Debentures were issued on 1st April, 2017.
(ii) During the year, a piece of machinery costing ` 80,000 on which accumulated depreciation was ` 40,000 was sold at a gain of `10,000.
Prepare a Cash Flow Statement. (CBSE 2019C)
Answer:
|
Cash Flow Statement |
||
|
Particulars |
Detail |
` |
|
I.
Cash flow from operating activities Net profit as per
Statement of profit and loss (6,00,000-3,00,000) Add: Provision for Tax |
|
3,00,000 2,00,000 |
|
Net profit before
tax and extraordinary items Add: Depreciation on Machinery Goodwill amortised Interest on debentures |
1,40,000 1,00,000 60,000 |
5,00,000 , 3,00,000 |
|
Less: Gain on Sale of machinery |
|
8,00,000 (10,000) |
|
Operating Profit
Before Working Capital Changes Less: Inventories |
|
7,90,000 (1,30,000) |
|
Cash Generated from
operation |
|
6,60,000 |
|
Less: Tax paid |
|
(1,65,000) |
|
Cash flow from
operating activities |
|
4,95,000 |
|
II.
Cash flow from Investing activities Proceeds From sale of Machinery Payments for the purchase of Machinery Payments for the purchase of Current Investment |
|
50,000 (6,80,000) (1,00,000) |
|
Cash Used in
Investing activities |
|
(7,30,000) |
|
III.
Cash flow from Financing
activities Proceeds from Issue of Shares Proceeds from Issue of Debenture Decrease in Bank Overdraft Payment of Interest on Debenture |
|
2,00,000 1,00,000 (5,000) (60,000) |
|
Cash used in
Financing activities |
|
2,35,000 |
|
Net Decrease in
Cash and cash equivalents Add: Opening
Cash and Cash Equivalents |
|
Nil 2,10,000 |
|
Closing Cash and
Cash Equivalents |
|
2,10,000 |
Working notes:
|
Dr.
|
Fixed
Assets A/c |
Cr. |
|
|
Particulars |
` |
Particulars |
` |
|
To Balance B/d To P&L a/c (Gain on sale) To Bank a/c (Purchase) |
20,00,000 40,000 6,80,000 |
By Provision for Dep. a/c By Bank a/c (sale) By Balance C/d |
40,000 50,000 26,00,000 |
|
|
26,90,000 |
|
26,90,000 |
Space
|
Dr.
|
Provision
for Depreciation A/c |
Cr. |
|
|
Particulars |
` |
Particulars |
` |
|
To Machinery a/c To Balance C/d |
40,000 2,00,000 |
By Balance B/d By P&L a/c (Dep. provided during the year) |
1,00,000 1,40,000 |
|
|
2,40,000 |
|
2,40,000 |
Question 46:
Following was the Balance Sheet of M.M.
Ltd. as at 31st March, 2023:
|
Particulars |
Note
No. |
31
march 2023(`) |
31
march 2022(`) |
|
I. EQUITY AND LIABILITIES |
|
|
|
|
1. Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
5,00,000 |
4,00,000 |
|
(b) Reserves and Surplus |
1 |
2,00,000 |
(50,000) |
|
2. Non-Current Liabilities |
|
|
|
|
Long-term Borrowings |
2 |
4,50,000 |
5,00,000 |
|
3. Current Liabilities |
|
|
|
|
(a) Short-term Borrowings |
3 |
1,50,000 |
50,000 |
|
(b) Short-term Provisions |
4 |
70,000 |
90,000 |
|
Total |
|
13,70,000 |
9,90,000 |
|
II. ASSETS |
|
|
|
|
1. Non-Current Assets |
|
|
|
|
(a) Fixed Assets: |
|
|
|
|
(i) Tangible Assets |
5 |
10,03,000 |
7,20,000 |
|
(ii) Intangible Assets |
6 |
20,000 |
30,000 |
|
(b) Non-Current Investments |
|
1,00,000 |
75,000 |
|
2. Current Assets |
|
|
|
|
(a) Current Investments |
|
50,000 |
60,000 |
|
(b) Inventories |
7 |
1,07,000 |
45,000 |
|
(c) Cash and Cash Equivalents |
|
90,000 |
60,000 |
|
Total |
|
13,70,000 |
9,90,000 |
|
|
|
|
|
Notes to Accounts
|
Particular |
31st
March 2023 (`) |
31st
March 2022 (`) |
|
|
1. |
Reserves and Surplus |
|
|
|
|
Surplus, i.e., Balance in Statement of Profit and
Loss |
2,00,000 |
(50,000) |
|
|
|
2,00,000 |
(50,000) |
|
2. |
Long-term Borrowings |
|
|
|
|
12% Debentures |
4,50,000 |
5,00,000 |
|
|
|
4,50,000 |
5,00,000 |
|
3. |
Short-term Borrowings |
|
|
|
|
Bank Overdraft |
1,50,000 |
50,000 |
|
|
|
1,50,000 |
50,000 |
|
4. |
Short-term Provisions |
|
|
|
|
Provision for Tax |
70,000 |
90,000 |
|
|
|
70,000 |
90,000 |
|
5. |
Tangible Assets |
|
|
|
|
Machinery |
12,03,000 |
8,21,000 |
|
|
Less: Accumulated Depreciation |
(2,00,000) |
(1,01,000) |
|
|
|
10,03,000 |
7,20,000 |
|
6. |
Intangible Assets |
|
|
|
|
Goodwill |
20,000 |
30,000 |
|
|
|
20,000 |
30,000 |
|
7. |
Inventories |
|
|
|
|
Stock-in-Trade |
1,07,000 |
45,000 |
|
|
|
1,07,000 |
45,000 |
|
|
|
|
|
Additional Information:
1. 12% Debentures were redeemed on 31st March, 2023.
2. Tax `
70,000 was paid during the year.
Prepare Cash Flow Statement.
Answer:
|
|
Cash Flow Statement for
the year ended 31st March, 2023 |
||||
|
|
Particulars |
(`) |
(`) |
||
|
I |
Cash
Flow from Operating Activities |
|
|
||
|
|
A. Net
Profit before Tax and Extraordinary items* |
|
2,50,000 |
||
|
|
Adjustments for Non-cash and
Non-operating items |
|
|
||
|
|
B. Add:
Items to be Added |
|
|
||
|
|
Depreciation |
99,000 |
|
||
|
|
Intangible
Assets Written off |
10,000 |
|
||
|
|
Interest on
Debentures (12% of 5,00,000) |
60,000 |
|
||
|
|
Provision
for Tax |
50,000 |
2,19,000 |
||
|
|
C. Less:
Items to be Deducted |
|
|
||
|
|
|
|
|
||
|
|
D. Operating
Profit before Working Capital Adjustments (A + B – C) |
|
4,69,000 |
||
|
|
E. Add: Decrease in Current Assets and Increase in
Current Liabilities |
|
|
||
|
|
F. Less: Increase in Current Assets and Decrease in Current
Liabilities |
|
|
||
|
|
Inventories |
62,000 |
(62,000) |
||
|
|
Cash Generated from Operations (D + E – F) |
|
4,07,000 |
||
|
|
Less: Income Tax Paid (Net of Refund) |
70,000 |
(70,000) |
||
|
|
Net Cash Flows from (or used in) Operating
Activities |
|
3,37,000 |
||
|
|
|
|
|
|
|
|
II |
Cash
Flow from Investing Activities |
|
|
||
|
|
Purchase of
Fixed Assets (12,03,000 – 8,21,000) |
(3,82,000) |
|
||
|
|
Purchase of
Non-Current Investments |
(25,000) |
|
||
|
|
Net Cash Flows from (or used in) Investing
Activities |
|
(4,07,000) |
||
|
|
|
|
|
||
|
III |
Cash
Flow from Financing Activities |
|
|
||
|
|
Proceeds
from Issue of Share Capital |
1,00,000 |
|
||
|
|
Redemption
of Debentures |
(50,000) |
|
||
|
|
Interest
Paid on Debentures |
(60,000) |
|
||
|
|
Increase in
Bank Overdraft |
1,00,000 |
|
||
|
|
Net Cash Flow from Financing Activities |
|
90,000 |
||
|
|
|
|
|
|
|
|
IV |
Net
Increase or Decrease in Cash and Cash Equivalents (I + II + III) |
|
20,000 |
||
|
|
|
Add:
Cash and Cash Equivalent in the beginning of the period |
|
1,20,000 |
|
|
|
|
(Includes
Current Investments of ` 60,000) |
|
|
|
|
|
Cash
and Cash Equivalents at the end of the period |
|
1,40,000 |
||
|
|
(Includes
Current Investments of ` 50,000) |
|
|
||
|
|
|
|
|
|
|
|
Provision
for Tax Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
Amount (`) |
Particulars |
Amount (`) |
|
Bank A/c |
70,000 |
Balance b/d |
90,000 |
|
Balance c/d |
70,000 |
Statement of Profit and Loss |
50,000 |
|
|
1,40,000 |
|
1,40,000 |
|
|
|
|
|
Question 47:
From the
following Balance Sheet of Gopal Ltd. and the additional information as at 31st
March. 2019.
Prepare a
Cash Flow Statement when Cash Flows from Financing Activities is ` 2,32,000;
|
Particulars |
Note No. |
31st March, 2019 (`) |
31st March, 2018 (`) |
|
I. EQUITY AND
LIABILITIES |
|
|
|
|
1. Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
|
10,00,000 |
8,00,000 |
|
(b) Reserves and Surplus |
1 |
4,00,000 |
(1,00,000) |
|
2. Non-Current
Liabilities |
|
|
|
|
Long-term Borrowings |
2 |
9,00,000 |
9,00,000 |
|
3. Current
Liabilities |
|
|
|
|
(a Short-term Borrowings |
3 |
2,40,000 |
1,00,000 |
|
(b) Short-term Provisions |
4 |
2,00,000 |
1,75,000 |
|
Total |
|
27,40,000 |
18,75,000 |
|
|
|
|
|
|
Il. ASSETS |
|
|
|
|
1. Non-Current
Assets |
|
|
|
|
(a) Property, Plant and Equipment (Fixed Assets): |
|
|
|
|
(i) Tangible Assets |
5 |
20,00,000 |
14,42,000 |
|
(ii) Intangible Assets |
6 |
46,000 |
58,000 |
|
(b) Non-current Investments |
|
1,00,000 |
45,000 |
|
2. Current Assets |
|
|
|
|
(a) Current Investments |
|
2,00,000 |
1,20,000 |
|
(b) Inventories |
7 |
2,14,000 |
90,000 |
|
(c) Cash and Cash Equivalents |
|
1,80,000 |
1,20,000 |
|
Total |
|
27,40,000 |
18,75,000 |
Notes to Accounts
|
Particulars |
31st March, 2019 (`) |
31st March, 2018 (`) |
|
1. Reserves and
Surplus |
|
|
|
Surplus, i.e., Balance in Statement of Profit and
Loss |
4,00,000 |
(1,00,000) |
|
2. Long-term
Borrowings |
|
|
|
12% Debentures |
9,00,000 |
9,00,000 |
|
3. Short-term
Borrowings |
|
|
|
Bank Overdraft |
240,000 |
1,00,000 |
|
4. Short-term
Provisions |
|
|
|
Provision for Tax |
2,00,000 |
1,75,000 |
|
5. Tangible Assets |
|
|
|
Machinery |
24,00,000 |
16,42,000 |
|
Less: Accumulated Depreciation |
(4,00,000) |
(2,00,000) |
|
|
20,00,000 |
14,42,000 |
|
6. Intangible
Assets |
|
|
|
Goodwill |
46,000 |
58,000 |
|
7. Inventories |
|
|
|
Stock-in-Trade |
2,14,000 |
90,000 |
Additional
Information: Tax ` 1,50,000 was paid during the year. (CBSE 2020).
Answer:
|
Sheet of
Gopal Ltd Cash Flow Statement as at 31st March. 2019 |
|||
|
Particulars |
Detail |
` |
|
|
I. Cash Flow From Operating Activity |
|
|
|
|
Surplus, i.e.,
Balance in Statement of Profit and Loss |
|
5,00,000 |
|
|
Add: |
Provision for Tax |
|
1,75,000 |
|
|
|
|
|
|
Add: |
Depreciation on
machinery |
2,00,000 |
|
|
|
Goodwill Amortised |
12,000 |
|
|
|
Interest on
Debenture |
1,08,000 |
3,20,000 |
|
Operating Profit
Before Working Capital Changes |
|
9,95,000 |
|
|
Add: |
Increase in Liabilities and Decrease in Assets |
|
|
|
|
Inventories |
|
1,24,000 |
|
Cash Generated From
Operation |
|
8,71,000 |
|
|
Less: |
Tax Paid |
|
1,50,000 |
|
Cash Flow From Operating Activity |
|
7,21,000 |
|
|
|
|
|
|
|
II. |
Cash Flow From Investing Activity |
|
|
|
|
Payment for
purchase of Machinery |
|
(7,58,000) |
|
|
Payment for
purchase of Investing |
|
(55,000) |
|
Cash Flow From Investing Activity |
|
(8,13,000) |
|
|
|
|
|
|
|
III. |
Cash Flow From Financing Activity |
|
|
|
|
Issue of shares |
2,00,000 |
|
|
|
Increase in Bank
Over draft |
1,40,000 |
3,40,000 |
|
|
Payment of Interest
on Debenture |
|
(1,08,000) |
|
Cash Flow From Financing Activity |
|
2,32,000 |
|
|
IV. |
Net increase in Cash and Cash Equivalents |
|
1,40,000 |
|
|
(7,21,000+(8,13,000)+2,32,000) |
|
|
|
Add: |
Opening Cash and
Cash Equivalents |
|
2,40,000 |
|
|
Closing Cash and Cash Equivalents |
|
3,80,000 |
Working Notes:
|
Dr. |
Provision
for Tax A/c |
Cr. |
|
|
Particulars |
` |
Particulars |
` |
|
To Bank A/c To Balance C/d |
1,50,000 2,00,000 |
By Balance B/d By P&L a/c (Tax provided during the year) |
1,75,000 1,75,000 |
|
|
3,50,000 |
|
3,50,000 |
Question 48:
From the following Balance Sheet of JY Ltd. as at 31st March
2017, prepare a Cash Flow Statement:
|
BALANCE
SHEET |
|||
|
Particular |
Note No. |
31st March, 2017 (₹) |
31st March, 2016 (₹) |
|
I. EQUITY AND
LIABILITIES |
|||
|
1.
Shareholders' Funds |
|||
|
(a) Share Capital |
5,00,000 |
5,00,000 |
|
|
(b) Reserves and
Surplus |
1 |
1,00,000 |
(25,000) |
|
2. Non-Current
Liabilities |
|||
|
Long-term
Borrowings |
2 |
2,50,000 |
1,50,000 |
|
3. Current
Liabilities |
|||
|
(a) Short-term
Borrowings |
3 |
1,50,000 |
1,10,000 |
|
(b) Short-term
Provisions |
4 |
1,25,000 |
75,000 |
|
Total |
11,25,000 |
8,00,000 |
|
|
II. ASSETS |
|||
|
1. Non-Current
Assets |
|||
|
Fixed Assets
Tangible |
5 |
6,00,000 |
4,50,000 |
|
2. Current
Assets |
|||
|
(a) Trade
Receivables |
2,75,000 |
2,25,000 |
|
|
(b) Cash and Cash
Equivalents |
50,000 |
25,000 |
|
|
(c) Short-term
Loans and Advances |
2,00,000 |
1,00,000 |
|
|
Total |
11,25,000 |
8,00,000 |
|
Notes to Accounts
|
Particular |
31st March, 2017 (₹) |
31st March, 2016 (₹) |
|
|
1. |
Reserves and
Surplus |
||
|
Surplus, i.e.,
Balance in Statement of Profit and Loss |
1,00,000 |
(25,000) |
|
|
1,00,000 |
(25,000) |
||
|
2. |
Long-term
Borrowings |
||
|
10% Debentures |
2,50,000 |
1,50,000 |
|
|
2,50,000 |
1,50,000 |
||
|
3. |
Short-term
Borrowings |
||
|
Bank Overdraft |
1,50,000 |
1,00,000 |
|
|
1,50,000 |
1,00,000 |
||
|
4. |
Short-term
Provisions |
||
|
Provision for Tax |
1,25,000 |
75,000 |
|
|
1,25,000 |
75,000 |
||
|
5. |
Tangible Assets |
||
|
Machinery |
7,37,500 |
5,25,000 |
|
|
Accumulated
Depreciation |
(1,37,500) |
(75,000) |
|
|
6,00,000 |
4,50,000 |
||
Note: Proposed Dividend for the years ended 31st March, 2016
and 2017 are `. 50,000 and `.
75,000 respectively.
Additional Information: `. 1,00,000, 10% Debentures
were issued on 31st March, 2017.
Answer:
|
Cash
flow Statement |
||
|
for
the year ended 31st March, 2017 |
||
|
Particulars |
Amount |
Amount |
|
A. Cash Flow from Operating Activities |
|
|
|
Closing Balance of Surplus i.e. Statement of Profit and
Loss |
1,00,000 |
|
|
Less: Opening Balance of Surplus i.e.
Statement of Profit and Loss |
(25,000) |
|
|
|
1,25,000 |
|
|
Add: Provision for Tax made |
1,25,000 |
|
|
Proposed Dividend paid as on 31st March, 2016 |
50,000 |
|
|
Net Profit before tax and extraordinary items |
3,00,000 |
|
|
Add: Depreciation charged during the
year |
62,500 |
|
|
Interest paid on 10% debentures |
15,000 |
|
|
Net Profit before Working Capital changes |
3,77,500 |
|
|
Less: Increase in Trade Receivables |
(50,000) |
|
|
Net Profit before tax |
3,27,500 |
|
|
Less: Tax Paid during the year |
75,000 |
|
|
Cash flow from Operating Activities |
|
2,52,500 |
|
B. Cash flow from Investing Activities |
|
|
|
Purchase of Machinery |
(2,12,500) |
|
|
Short term loans and advances given |
(1,00,000) |
|
|
Cash used in Investing Activities |
|
(3,12,500) |
|
C. Cash flow from Financing activities |
|
|
|
Proceeds from issue of 10% debentures |
1,00,000 |
|
|
Increase in the Bank Overdraft |
50,000 |
|
|
Interest paid on debentures |
(15,000) |
|
|
Proposed Dividend paid |
(50,000) |
|
|
Cash flow from financing activities |
|
85,000 |
|
Net Increase in Cash and Cash Equivalents |
|
25,000 |
|
Add: Cash and Cash Equivalents at the
beginning of the year |
|
25,000 |
|
Cash and Cash Equivalents at the end of the year |
|
50,000 |
|
|
|
|
Note: Proposed Dividend Treatment is as per AS-4.
Ts Grewal Solution 2023-2024
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Class 12 / Volume – II
Chapter 4 – Cash Flow Statement