commercemine

12th | Cash Flow Statement | Question No. 49 To 52 | Ts Grewal Solution 2023-2024

Question 49:

From the following Balance Sheet of Mishi Ltd. as at 31st March, 2023, prepare Cash Flow Statement:

Particulars ulars

Note No.

31st March, 2023

(`)

31st March, 2022

(`)

I. EQUITY AND LIABILITIES

 

 

 

1. Shareholders' Funds

 

 

 

(a) Share Capital

 

16,00,000

12,00,000

(b) Reserves and Surplus

1

6,60,000

4,40,000

2. Non-Current Liabilities

 

 

 

  Long-term Borrowings (10% Debentures)

 

3,20,000

2,00,000

3. Current Liabilities

 

 

 

(a) Short-term Borrowing (Bank Loan)

 

80,000

1,10,000

(b) Trade Payables

 

1,50,000

1,80,000

Total 

 

28,10,000

21,30,000

II. ASSETS

 

 

 

1. Non-Current Assets

 

 

 

 (a) Fixed Assets−Tangible

2

19,00,000

12,10,000

 (b) Non-Current Investments

 

2,70,000

2,00,000

2. Current Assets

 

 

 

  (a) Current Investments

 

1,60,000

80,000

  (b) Trade Receivables

 

1,80,000

4,00,000

  (c) Cash and Cash Equivalents

3

3,00,000

2,40,000

Total

 

28,10,000

21,30,000

 

 

 

 

  

Notes to Accounts :

Particulars

31st March,

2023

(`)

31st March,

2022

(`)

1. Reserves and Surplus :

 

 

Securities Premium Reserve

20,000

...

General Reserve

3,00,000

2,40,000

Surplus i.e., Balance in the Statement of Profit and Loss

3,40,000

2,00,000

 

6,60,000

4,40,000

2. Fixed Assets−Tangible

 

 

Machinery (Cost)

21,40,000

14,00,000

Less: Accumulated Depreciation

2,40,000

1,90,000

 

19,00,000

12,10,000

 

 

 

3. Cash and Cash Equivalents

 

 

Cash in Hand

1,40,000

1,10,000

Bank Balance

1,60,000

1,30,000

 

3,00,000

2,40,000

 

 

 

 

Additional Information :
(i) During the year, Machinery costing  ` 1,40,000 (accumulated depreciation provided thereon  ` 1,10,000) was sold for  ` 20,000.
(ii) During the year, Non-current Investments costing  ` 80,000 were sold at a profit of  ` 16,000.

Answer:

 

Cash Flow Statement 

for the year ended March 31, 2023

 

Particulars

Amount

(`)

Amount

(`)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

1,40,000

 

 

General Reserve

60,000

 

 

Profit Before Taxation

 

2,00,000

 

Items to be Added:

 

 

 

Depreciation

1,60,000

 

 

Debentures Interest

20,000

 

 

Loss on Sale of Fixed Assets

10,000

 

 

Items to be Deducted:

 

 

 

Profit on sale of Investment

(16,000)

1,74,000

 

Operating Profit before Working Capital Adjustments

 

3,74,000

 

Less: Decrease in Current Liabilities

 

 

 

 Trade Payables

(30,000)

 

 

Add: Decrease in Current Assets

 

 

 

  Trade Receivables

2,20,000

1,90,000

 

Cash Generated from Operations

 

5,64,000

 

Less: Tax Paid

 

-

 

Net Cash Flows from Operating Activities

 

5,64,000

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Sale of Fixed Assets

20,000

 

 

 

Sale of Non-Current Investment

96,000

 

 

 

Purchase of Non-Current Investment

(1,50,000)

 

 

 

Purchase of Fixed Assets

(8,80,000)

 

 

Net Cash Used in Investing Activities

 

(9,14,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

 Proceeds from Issue of Share Capital

 4,00,000

 

 

Proceeds from Issue of issue of Debentures

1,20,000

 

 

Security Premium Reserve

20,000

 

 

Repayment of Bank Loan

(30,000)

 

 

Interest Paid

(20,000)

 

 

Net Cash Flow from Financing Activities

 

4,90,000

 

 

 

 

 

D

Net Increase Decrease in Cash and Cash Equivalents

 

1,40,000

 

 

Add: Cash and Cash Equivalent in the beginning of the period (1,10,000+1,30,000+80,000)

 

3,20,000

 

Cash and Cash Equivalents at the end of the period (1,40,000+1,60,000+1,60,000)

 

4,60,000

 

 

 

 

 

 

 

 

 

 

 

Working Notes:

WN1:

Fixed Assets Account

Dr.

Cr.

Particulars

Amount

(`)

Particulars

Amount

(`)

Balance b/d

14,00,000

Bank A/c (Sale)

20,000

Bank A/c (Purchase- Bal. Fig.)

8,80,000

Accumulated Depreciation

1,10,000

 

 

Profit and Loss A/c (Loss on Sale)

10,000

 

 

Balance c/d

21,40,000

 

22,80,000

 

22,80,000

 

 

 

 

 

WN2:

Accumulated Depreciation Account

Dr.

Cr.

Particulars

Amount

(`)

Particulars

Amount

(`)

Fixed Assets A/c

1,10,000

Balance b/d

1,90,000

Balance c/d

2,40,000

Profit and Loss A/c (Dep. charged during the year- Bal. Fig.)

1,60,000

 

3,50,000

 

3,50,000

 

 

 

 

 

WN3:

Non-Current Investment Account

Dr.

Cr.

Particulars

Amount

(`)

Particulars

Amount

(`)

Balance b/d

2,00,000

Bank A/c (Sale) (80,000+16,000)

96,000

Profit and Loss A/c (Profit on Sale)

16,000

Balance c/d

2,70,000

Bank A/c (Purchase- Bal. Fig.)

1,50,000

 

 

 

 

 

 

 

3,66,000

 

3,66,000

 

 

 

 

 

 

Question 50:

Following is the Balance Sheet of Sonal Ltd.;

 

Particulars

Note No.

31st March, 2023

(`)

31st March, 2022

(`)

I. EQUITY AND LIABILITIES

 

 

 

1. Shareholders' Funds

 

 

 

  (a) Share Capital

6,00,000

5,50,000

  (b) Reserves and Surplus:

2

1,28,000

70,000

3. Current Liabilities

 

 

 

 (a)  Trade Payables

 

1,22,000

88,000

 (b) Short-term Provisions

3

50,000

40,000

 

 

 

 

Total

 

9,00,000

7,48,000

II. ASSETS

 

 

 

1. Non-Current Assets

 

 

 

  Fixed Assets

(i)                 Tangible Assets (Net)

(ii)               Intangible Assets (Goodwill)

 

 

3,70,000

90,000

 

2,80,000

1,15,000

2. Current Assets

 

 

(a)    Current Investment

 

10,000

15,000

(b) Inventories

 

1,82,000

1,00,000

(c) Trade Receivables

 

1,57,000

1,57,000

(d) Cash and Cash Equivalents

 

91,000

81,000

Total

 

9,00,000

7,48,000

 

Notes to Accounts;

Particular

31st March 2023

(`)

31st March 2022

(`)

1.

Share Capital

 

 

 

Equity share Capital

5,00,000

4,00,000

 

10% preference share Capital

1,00,000

1,50,000

 

 

6,00,000

5,50,000

2.

Reserves and surplus

 

 

 

Securities premium reserves

10,000

-

 

General reserves

70,000

40,000

Surplus i.e., Balance in Statement of Profit and Loss

48,000

30,000

 

 

 

 

 

 

1,28,000

70,000

3.

Short-term Provisions

 

 

 

Provision for Tax

50,000

40,000

 

 

50,000

40,000

 

 

 

 

 

Additional Information:

1. Proposed dividend for the years ended 31st March, 2020 and 2019 were `60,000 and `50,000 respectively.

2. A machine costing `50,000 (depreciation provided thereon `30,000) was sold for `10,000.

3. Depreciation charged during the year was `20,000.

4. Interim dividend paid `20,000.

5. Income Tax paid `35,000.

Prepare a Cash Flow Statement for the year ended 31st March, 2020, complying with AS-3 (Revised).

Answer:

Cash flow Statement 

for the year ended 31st March, 2023

Particulars


(
`)

 (`)

A. Cash Flow from Operating Activities

 

 

Closing Balance of Surplus i.e. Statement of Profit and Loss

48,000 

Less: Opening Balance of Surplus i.e. Statement of Profit and Loss

 

(30,000) 

 

 

18,000 

Add:

Amount Transferred to General reserve (70,000 - 40,000 )

Proposed Dividend paid as on 31st March, 2019

 

30,000

50,000

 

Interim dividend

Provision of Tax

20,000

45,000

 

1,45,000 

Net Profit before tax and extraordinary items

1,63,000

Add:

Depreciation charged during the year

 

20,000

 

Goodwill Amortised

Loss on Sale of Machinery

25,000

10,000

 

55,000 

Net Profit before Working Capital changes

 

2,18,000

Add: Increase in Current assets and Decrease in Current liabilities

 

 

Increase in Trade Payables

 

34,000

 

 

2,52,000

Add: Increase in Current Liabilities and Decrease in Current Assets

Increase Inventories

 

 

 

(82,000)

Cash Generated From operation

 

1,70,000

Less: Tax Paid during the year

 

(35,000)

Cash flow Extraordinary items

(-/+) Extraordinary items (Related to Operating)

 

1,35,000

  ------

Cash flow from Operating Activities

 

1,35,000

 

 

 

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

 

 

 

 

Working notes:

Dr.

Plant and Machinery A/c

Cr.

Particulars

`

Particulars

`

To Balance B/d

To Bank a/c (Purchase)

 

28,00,000

1,30,000

By bank a/c (Sale)

By P&L a/c (Loss)

By Depreciation a/c

By Balance C/d

10,000

10,000

20,000

3,70,000

 

4,10,000

 

4,10,000

Space

Dr.

Provision for Tax A/c

Cr.

Particulars

`

Particulars

`

To Bank a/c

(Tax Paid)

To Balance C/d

35,000

 

50,000

By Balance B/d

By P&L a/c

(Tax Provided during the year )

 

40,000

45,000

 

85,000

 

85,000

 

 

Question 51:

From the following details relating to Grow More Ltd., prepare Cash Flow Statement:

BALANCE SHEET OF GROW MORE LTD. as at 31st March, 2023

Particulars

Notes No.

31st March, 2023 (`)

31st March, 2022 (`)

ıı EQUITY AND LIABILITIES

1. Shareholders’ Funds

(a) Share Capital

(b) Reserves and Surplus

2. Non-Current Liabilities

Long-term Borrowings: 10% Debentures

3. Current Liabilities

(a) Trade Payables

(b) Short-term Provisions 

 

 

 

20,00,000

6,00,000

 

4,00,000

 

14,000,000

2,00,000

 

 

16,00,000

4,20,000

 

-----

 

16,40,000

1,40,000

Total

 

46,00,000

38,00,000

ll. ASSETS

1. Non-Current Assets

(a) Fixed Assets (Tangible Assets)

 (b) Non-current Investments

2. Current Assets

(a) Inventories

(b) Trade Receivables

(c) Cash and Cash Equivalents

 

 

 

26,00,000

2,00,000

 

8,00,000

10,00,000

-----

 

 

18,00,000

---

 

4,00,000

14,00,000

2,00,000

Total

 

46,00,000

38,00,000

Notes to Accounts

Particulars

31st March, 2023 (`)

31st March, 2022 (`)

1.

Share Capital

Issued, Subscribed and Paid-up:

Equity Shares of ` 100 each fully paid

 

 

20,00,000

 

 

16,00,000

2.

Reserves and Surplus

General Reserve

Surplus, i.e., Balance in Statement of Profit and Loss

 

4,00,000

2,00,000

 

3, 00,000

1,20,000

 

 

6,00,000

4,20,000

3

Short-term Provisions

 Provision for Tax

 

2,00,000

 

1,40,000

4.

Tangible Assets

Plant and Machinery

Land and Buildings

 

14,00,000

12,00,000

 

10,00,000

8,00,000

 

 

26,000,000

18,00,000

Additional Information:

1. Depreciation @ 25% was charged on the opening value of Plant and Machinery.

2. During the year one old machine costing `1,00,000 (Written Down Value ` 40,000) was sold for ` 70,000.

3. `1,00,000 was paid as income tax during the year.

4. Proposed dividend for the year ended 31st March, 2020 was `4,00,000 and for the year ended 31st March, 2019 was ` 2,00,000.

5. During the current year new debentures were issued on 1st October, 2019.

 

Answer:

Cash Flow Statement

 

Particulars

Detail

`

I.                   Cash  flow from operating activities

Net profit as per Statement of profit and loss

(2,00,000-1,20,000)

 Add:

General Reserve

Proposed Dividend

Provision for Tax

 

 

 

 

1,00,000

2,00,000

1,60,000

 

80,000

 

 

 

 

4,60,000

Net profit before tax and extraordinary items

Add:

Depreciation on Machinery

Interest on debentures

 

 

2,50,000

20,000

5,40,000

,

 

2,70,000

 

Less:

Gain on Sale of machinery

 

8,10,000

 

(30,000)

Operating Profit Before Working Capital Changes

Add:

Trade Receivable

 

 

 

7,80,000

 

4,00,000

Less:

Trade payable

Inventories

 

2,40,000

4,00,000

11,80,000

 

6,40,000

Cash Generated from operation

 

5,40,000

Less: Tax paid

 

(1,00,000)

Cash flow from operating activities

 

4,40,000

 

II.                Cash  flow from Investing activities

Proceeds From sale of Machinery

Payments for the purchase of Plant and Machinery

Payments for the purchase of Land and Buildings

Payments for the purchase of Non-Current Investment

 

 

 

70,000

(6,90,000)

(4,00,000)

(2,00,000)

Cash Used in Investing activities

 

(12,20,000)

III.             Cash flow from Financing activities

Proceeds from Issue of Equity Shares

Proceeds from Issue of Debenture

Payment of Interest on Debenture

Payment of final Dividend

 

 

 

 

4,00,000

4,00,000

(20,000)

(2,00,000)

Cash flow from Financing activities

 

5,80,000

Net decrease in Cash and cash equivalents

Add: Opening Cash and Cash Equivalents

 

(2,00,000)

2,00,000

Closing Cash and Cash Equivalents

 

Nil

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)

10,00,000

30,000

6,90,000

By Provision for Dep. a/c

By Bank a/c (sale)

By Balance C/d

250000

70,000

26,00,000

 

17,20,000

 

17,20,000

Space

Dr.

Provision for Tax A/c

Cr.

Particulars

`

Particulars

`

To bank (tax paid) a/c

To Balance C/d

1,00,000

2,00,000

By Balance B/d

By P&L a/c

(tax provided during the year)

1,40,000

1,60,000

 

 

3,00,000

 

3,00,000

 

Question 52:

Following is the summarised Balance Sheet of Philips India Ltd. as at 31st March 2023:

Particulars ulars

Note No.

31st March, 2023

(`)

31st March, 2022

(`)

I. EQUITY AND LIABILITIES

 

 

 

1. Shareholders' Funds

 

 

 

(a) Share Capital

 

13,50,000

13,50,000

(b) Reserves and Surplus

1

11,34,000

10,68,000

2. Non-Current Liabilities

 

 

 

Long-term Borrowings: 10% Mortgage Loan

 

8,10,000

...

3. Current Liabilities

 

 

 

(a) Trade Payables (Creditors)

 

4,20,000

5,04,000

(b) Short-term Provisions:

 

 

 

  Provision for Tax

 

30,000

2,25,000

Total      Total Expenses

 

37,26,000

31,47,000

II. ASSETS

 

 

 

1, Non-Current Assets

 

 

 

(a) Fixed Assets (Tangible)

 

9,60,000

12,00,000

(b) Non-Current Investments

 

1,80,000

1,50,000

2. Current Assets

 

 

 

(a) Current Investments

 

21,000

17,000

(b) Inventories

 

63,30,000

7,82,000

(c) Trade Receivables

 

13,65,000

6,30,000

(c) Cash and Cash Equivalents

 

5,70,00

4,30,000

Total

 

37,26,000

31,47,000

 

 

 

 

Notes to Accounts

Particulars

31st March, 2023

(`)

31st March, 2022

(`)

I. Reserves and Surplus

 

 

General Reserve

9,30,000

9,00,000

Surplus, i.e., Balance in Statement of Profit and Loss

2,04,000

1,68,000

 

11,34,000

10,68,000

 

 

 

Additional Information:
1. Investments costing 
` 24,000 were sold during the year for  ` 25,5000.
2. Provision for Tax made during the year was  ` 27,000.
3. During the year, a part of the Fixed Assets costing  ` 30,000 was sold for 
` 36,000. The rofits were included in the Statement of Profit and Loss.
4. The Interim Dividend paid during the year amounted to  ` 1,20,000.
You are required to prepare Cash Flow Statement.

Answer:

Cash Flow Statement

for the year ended March 31, 2023

 

Particulars

 (`)

 (`)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss (2,04,000 – 1,68,000)

36,000

 

 

Transfer to General Reserve

30,000

 

 

Interim Dividend

1,20,000

 

 

Provision for Taxation

27,000

 

 

Profit Before Taxation

2,13,000

 

 

Items to be Added:

 

 

 

Depreciation

2,10,000

 

 

Profit on Sale of Investments

(1,500)

 

 

Profit on Sale of Fixed Assets

(6,000)

 

 

Operating Profit before Working Capital Adjustments

4,15,500

 

 

Less: Increase in Current Assets

 

 

 

Trade Receivables

(7,35,000)

 

 

Less: Decrease in Current Liabilities

 

 

 

Trade Payables

(1,02,000)

 

 

Add: Decrease in Current Assets

 

 

 

Inventories

90,000

 

 

Cash Generated from Operations

(3,31,500)

 

 

Less: Tax Paid

(2,22,000)

 

 

Net Cash from (used in) Operating Activities

 

(5,53,500)

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

Sale of Investments

25,500

 

 

Sale of Fixed Assets

36,000

 

 

Purchase of Investments

(54,000)

 

 

Net Cash Flow from Investing Activities

 

7,500

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of 10% Mortgage Loan

8,10,000

 

 

Interim Dividend Paid

(1,20,000)

 

 

Net Cash Flow from Financing Activities

 

6,90,000

 

 

 

 

D

Net Increase in Cash and Cash Equivalents

 

1,44,000

 

Add: Cash and Cash Equivalent in the beginning of the period

 

4,47,000

 

Cash and Cash Equivalents at the end of the period

 

5,91,000

 

 

 

 

Working Notes:

WN1

Fixed Assets Account

Dr.

Cr.

Particulars

 (`)

Particulars

 (`)

Balance b/d

12,00,000

Bank A/c  (Sale)

36,000

Profit and Loss A/c (Profit on Sale)

6,000

Depreciation (Bal. Fig.)

2,10,000

 

 

Balance c/d

9,60,000

 

12,06,000

 

12,06,000

 

 

 

 

WN2

Investments Account

Dr.

Cr.

Particulars

 (`)

Particulars

 (`)

Balance b/d

1,50,000

Bank A/c (Sale)

25,500

Profit and Loss A/c (Profit on Sale)

1,500

Balance c/d

1,80,000

Bank A/c (Purchases- Bal. Fig.)

54,000

 

 

 

2,05,500

 

2,05,500

 

 

 

 

WN 3

Provision for Taxation Account

Dr.

Cr.

Particulars

 (`)

Particulars

 (`)

Bank A/c (Tax Paid- Bal. Fig.)

2,22,000

Balance b/d

2,25,000

Balance c/d

30,000

Profit and Loss A/c

27,000

 

2,52,000

 

2,52,000

 

 

 

 

 

 

Ts Grewal Solution 2023-2024

Click below for more Questions

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

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