Question 53:
Following
is the Balance Sheet of Akash Ltd. as at 31st March,
2021. Prepare Cash Flow Statement:
|
Particulars |
|
31st March, 2021 (`) |
31st March, 2020 (`) |
|
|
|
|
|
|
I. EQUITY AND LIABILITIES |
|
|
|
|
1. Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
30,00,000 |
20,00,000 |
|
(b) Reserves and Surplus |
1 |
(4,25,000) |
(5,37,500) |
|
2. Non-Current Liabilities |
|
|
|
|
Long-term Borrowings |
2 |
7,50,000 |
6,25,000 |
|
3. Current Liabilities |
|
|
|
|
Trade Payables |
|
4,75,000 |
6,75,000 |
|
Total |
|
38,00,000 |
27,62,500 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
1. Non-Current
Assets |
|
|
|
|
(a) Property, Plant and Equipment (Fixed Assets): |
|
|
|
|
-Tangible Assets (Machinery) |
|
17,25,000 |
12,50,000 |
|
(b) Non-current Investments |
|
3,00,000 |
5,00,000 |
|
2. Current Assets |
|
|
|
|
(a) Inventories |
|
10,00,000 |
7,50,000 |
|
(b) Trade Receivables |
|
6,00,000 |
1,12,500 |
|
(c) Cash and Cash Equivalents |
|
1,75,000 |
1,50,000 |
|
Total |
|
38,00,000 |
27,62,500 |
Notes to Accounts
|
Particulars |
31st March, 2021 (`) |
31st March, 2020 (`) |
|
1. Reserves and Surplus |
|
|
|
Surplus, i.e, Balance in
Statement of Profit and Loss |
(4,25,000) |
(5,37,500) |
|
2. Long-term Borrowings |
|
|
|
12% Debentures |
7,50,000 |
6,25,000 |
Additional Information:
(i) Debentures were issued on 1st January, 2021.
(i) Machinery costing ` 5,00,000
on which depreciation charged was ` 1,75,000 was sold for ` 3,75,000.
(ii)
Depreciation charged during the year amounted to ` 2,00,000.
(iv) Non-current Investments were sold at a profit of 20%.
Prepare
Cash Flow Statement.
Answer:
|
Akash Ltd. Cash Flow Statement
as at 31st March, 2021 |
|||
|
|
Particulars |
Detail |
(`) |
|
I. |
Cash Flow From
operating Activity |
|
|
|
|
Surplus, i.e, Balance in
Statement of Profit and Loss |
|
(1,12,500) |
|
Add: |
Depreciation on Machinery |
2,00,000 |
|
|
|
Interest on Debenture |
78,750 |
2,78,750 |
|
|
|
|
3,91,250 |
|
Less: |
Profit on sale of Machinery |
(50,000) |
|
|
|
Profit on sale of Non-Current Investment |
(40,000) |
(90,000) |
|
|
Operating Profit before working capital changes |
|
3,01,250 |
|
|
|
|
|
|
Less: |
Increase in Assets
and Decrease in Liabilities |
|
|
|
|
Decrease in Trade Payable |
(2,00,000) |
|
|
|
Increase in inventories |
(2,50,000) |
|
|
|
Increase in Trade Receivables |
(4,87,500) |
(9,37,500) |
|
|
Cash Used in
operating Activity |
|
(6,36,250) |
|
|
|
|
|
|
II. |
Cash Flow From
Investing Activity |
|
|
|
|
Proceeds from Sale of Machinery |
2,40,000 |
|
|
|
Proceeds from Sale of Non-Current Investment |
3,75,000 |
6,15,000 |
|
|
Payment for purchase of Machinery |
|
(10,00,000) |
|
|
Cash used in
Investing Activity |
|
(3,85,000) |
|
|
|
|
|
|
III. |
Cash Flow From
Financing Activity |
|
|
|
|
Issue of Shares |
10,00,000 |
|
|
|
Issue of Debentures |
1,25,000 |
11,25,000 |
|
|
Payment of Interest on debentures |
|
(78,750) |
|
|
Cash Flow From
Financing Activity |
|
10,46,250 |
|
|
Net increase in in
cash and cash equivalent |
|
25,000 |
|
Add: |
Opening Cash
and Cash Equivalents |
|
1,50,000 |
|
|
closing Cash and
Cash Equivalents |
|
1,75,000 |
|
|
|
|
|
Working Notes:
|
Dr. |
Machinery A/c |
Cr. |
|
|
Particulars |
` |
Particulars |
` |
|
To Balance B/d |
12,50,000 |
By Bank A/c (Sale) |
3,75,000 |
|
To P&L a/c (Profit on sale) |
50,000 |
By P&L a/c (Depreciation provided during the year) |
2,00,000 |
|
To Bank a/c (Purchase) |
10,00,000 |
By Balance C/d |
17,25,000 |
|
|
23,00,000 |
|
23,00,000 |
Question 54:
From the following Balance Sheet of Mishi Ltd. as at 31st March, 2022, prepare Cash Flow Statement:
|
Particulars ulars |
Note
No. |
31st
March, 2022 (`) |
31st
March, 2021 (`) |
|
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, 2022 (`) |
31st March, 2021 (`) |
|
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, 2022 |
|
||||||||||||||||
|
|
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 55:
From the following Balance Sheet of Samta Ltd., as at 31st March, 2019, prepare Cash Flow Statement:
|
Particulars |
Note
No. |
31st
March, 2019 (`) |
31st
March, (`) |
|
I. EQUITY AND LIABILITIES |
|
|
|
|
1. Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1 |
7,50,000 |
7,50,000 |
|
(b) Reserves and Surplus |
2 |
3,10,000 |
(20,000) |
|
2. Non-Current Liabilities |
|
|
|
|
Long-term Borrowings (8% Debentures) |
|
2,60,000 |
1,50,000 |
|
3. Current Liabilities |
|
|
|
|
(a) Short-term Borrowings (8% Bank Loan) |
|
40,000 |
50,000 |
|
(b) Trade Payables |
|
1,20,000 |
1,10,000 |
|
(c) Short-term Provisions |
3 |
50,000 |
40,000 |
|
Total |
|
15,30,000 |
10,80,000 |
|
II. ASSETS |
|
|
|
|
1. Non-Current Assets |
|
|
|
|
(a) Fixed Assets: |
|
|
|
|
(i) Tangible Assets
(Net) |
|
8,60,000 |
6,20,000 |
|
(ii) Intangible Assets (Goodwill) |
|
15,000 |
40,000 |
|
(b) Non-Current Investments |
|
1,25,000 |
80,000 |
|
2. Current Assets |
|
|
|
|
(a) Current Investments |
|
5,000 |
15,000 |
|
(b) Inventories |
|
1,95,000 |
1,00,000 |
|
(c) Trade Receivables |
|
2,00,000 |
2,00,000 |
|
(d) Cash and Cash Equivalents |
|
1,30,000 |
25,000 |
|
Total |
|
15,30,000 |
10,80,000 |
|
|
|
|
|
Notes to Accounts
|
Particulars |
31st March, 2019 (`) |
31st March, 2018 (`) |
|
1. Share Capital |
|
|
|
Equity Share Capital |
5,50,000 |
4,50,000 |
|
12% Preference Share Capital |
2,00,000 |
3,00,000 |
|
|
7,50,000 |
7,50,000 |
|
2. Reserves and Surplus |
|
|
|
Securities Premium Reserve |
10,000 |
... |
|
General Reserve |
1,50,000 |
1,20,000 |
|
Surplus, i.e., Balance
in Statement of Profit and Loss |
1,50,000 |
(1,40,000) |
|
|
3,10,000 |
(20,000) |
|
4. Short-term Provisions |
|
|
|
Provision for Tax |
50,000 |
40,000 |
|
|
|
|
Additional Information :
(i) During the year a piece of machinery costing ` 60,000 on which depreciation
charged was `
20,000 was sold at 50% of its book value. Depreciation provided on tangible
Assets `
60,000;
(ii) Income tax `
45,000 was provided;
(iii) Additional Debentures were issued at par on 1st October, 2018 and Bank Loan
was repaid on the same date;
(iv) At the end of the year Preference Shares were redeemed at a premium of 5%.
Answer:
|
|
Cash Flow Statement for
the year ended March 31, 2019 |
||||
|
|
Particulars |
Amount (`) |
Amount (`) |
||
|
A |
Cash
Flow from Operating Activities |
|
|
||
|
|
Profit as
per Statement of Profit and Loss [1,50,000 − (−1,40,000)] |
2,90,000 |
|
||
|
|
Provision
for Tax |
45,000 |
|
||
|
|
General
Reserve |
30,000 |
|
||
|
|
Profit Before Taxation |
|
3,65,000 |
||
|
|
Items
to be Added: |
|
|
||
|
|
Depreciation
on Fixed Assets |
60,000 |
|
||
|
|
Loss on
Fixed Assets |
20,000 |
|
||
|
|
Interest on
Debentures (6,000 + 10,400) |
16,400 |
|
||
|
|
Interest on
Bank Loan (2,000 + 1,600) |
3,600 |
|
||
|
|
Premium on
Redemption of Preference Shares |
5,000 |
|
||
|
|
Goodwill
written off |
25,000 |
1,30,000 |
||
|
|
Operating Profit before Working Capital
Adjustments |
|
4,95,000 |
||
|
|
Less: Increase in Current Assets |
|
|
||
|
|
|
Inventories |
(95,000) |
|
|
|
|
Add: Increase in Current Liabilities |
|
|
||
|
|
Trade Payables |
10,000 |
(85,000) |
||
|
|
Cash Generated from Operations |
|
4,10,000 |
||
|
|
Less: Tax Paid |
|
(35,000) |
||
|
|
Net Cash Flows from Operating Activities |
|
3,75,000 |
||
|
|
|
|
|
|
|
|
B |
Cash
Flow from Investing Activities |
|
|
||
|
|
|
Sale of
Fixed Assets |
20,000 |
|
|
|
|
|
Purchase of
Fixed Assets |
(3,40,000) |
|
|
|
|
|
Purchase of
Investment |
(45,000) |
|
|
|
|
Net Cash Used in Investing Activities |
|
(3,65,000) |
||
|
|
|
|
|
||
|
C |
Cash
Flow from Financing Activities |
|
|
||
|
|
Proceeds from Issue of Share
Capital |
1,00,000 |
|
||
|
|
Proceeds from Issue of
Debentures |
1,10,000 |
|
||
|
|
Interest on Debentures Paid |
(16,400) |
|
||
|
|
Redemption of Preference Share
Capital |
(1,00,000) |
|
||
|
|
Premium on Redemption of
Preference Share Capital |
(5,000) |
|
||
|
|
Security Premium Reserve |
10,000 |
|
||
|
|
Repayment of Bank Loan |
(10,000) |
|
||
|
|
Interest on Bank Loan Paid |
(3,600) |
|
||
|
|
Net Cash Flow from Financing Activities |
|
85,000 |
||
|
D |
Net
Increase in Cash and Cash Equivalents |
|
95,000 |
||
|
|
|
Add:
Cash and Cash Equivalent in the beginning of the period (25,000+15,000) |
|
40,000 |
|
|
|
Cash
and Cash Equivalents at the end of the period (1,30,000+5,000) |
|
1,35,000 |
||
|
Working Notes: |
|||
|
Fixed
Assets Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
Amount (`) |
Particulars |
Amount (`) |
|
Balance b/d |
6,20,000 |
Bank A/c (Sale)
(40,000×50%) |
20,000 |
|
Bank A/c (Purchase- Bal. Fig.) |
3,40,000 |
Depreciation |
60,000 |
|
|
|
Profit and Loss A/c (Loss on Sale) |
20,000 |
|
|
|
Balance c/d |
8,60,000 |
|
|
9,60,000 |
|
9,60,000 |
|
|
|
|
|
WN2:
|
Provision
for Taxation Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
Amount (`) |
Particulars |
Amount (`) |
|
Bank A/c (Tax Paid) (Bal.
Fig.) |
35,000 |
Balance b/d |
40,000 |
|
Balance c/d |
50,000 |
Profit and Loss A/c |
45,000 |
|
|
85,000 |
|
85,000 |
|
|
|
|
|
Question 56:
From the following Balance Sheet and information of Sun Ltd., prepare Cash Flow Statement:
|
Particulars |
Note
No. |
31st
March, 2022 (`) |
31st
March, 2021 (`) |
|
I. EQUITY AND LIABILITIES |
|
|
|
|
1. Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1 |
7,00,000 |
6,00,000 |
|
(b) Reserves and Surplus |
2 |
4,10,000 |
2,00,000 |
|
2. Non-Current Liabilities |
|
|
|
|
Long-term Borrowings: 10% Debentures |
|
3,00,000 |
2,00,000 |
|
3. Current Liabilities |
|
|
|
|
(a) Trade Payables |
|
1,40,000 |
60,000 |
|
Total |
|
15,50,000 |
10,60,000 |
|
II. ASSETS |
|
|
|
|
1. Non-Current Assets |
|
|
|
|
(a) Fixed Assets−Tangible |
|
7,00,000 |
6,00,000 |
|
(b) 10% Investments |
|
2,00,000 |
1,00,000 |
|
2. Current Assets |
|
|
|
|
(a) Current Investments |
|
90,000 |
50,000 |
|
(b) Inventories |
|
2,00,000 |
1,00,000 |
|
(c) Trade Receivables |
3 |
2,80,000 |
1,90,000 |
|
(d) Cash and Cash Equivalents |
|
80,000 |
20,000 |
|
Total |
|
15,50,000 |
10,60,000 |
|
|
|
|
|
|
Notes to
Accounts : |
||
|
Particulars |
31st March, 2022 (`) |
31st March, 2021 (`) |
|
1. Share
Capital |
|
|
|
Equity Share
Capital |
5,00,000 |
3,00,000 |
|
10% Preference
Share Capital |
2,00,000 |
3,00,000 |
|
|
7,00,000 |
6,00,000 |
|
2. Reserves and
Surplus |
|
|
|
Securities Premium
Reserve |
10,000 |
... |
|
Surplus i.e.,
Balance in Statement of Profit and Loss |
4,00,000 |
2,00,000 |
|
|
4,10,000 |
2,00,000 |
|
3. Trade
Receivables |
|
|
|
Sundry Debtors |
3,00,000 |
2,00,000 |
|
Less: Provision for Doubtful Debts |
20,000 |
10,000 |
|
|
2,80,000 |
1,90,000 |
|
|
|
|
You are informed that during the year:
|
(i) |
Proposed Dividend: |
31st
March, 2022 |
31st
March, 2021 |
|
|
Equity Share Capital |
Nil |
Nil |
|
|
Preference Share Capital |
10% |
10% |
(ii) A machine with a book value of `
90,000 was sold for `
50,000;
(iii) Depreciation charged during the year `
60,000;
(iv) Debentures were issued on 1st April, 2021;
(v) Investments were purchased on 31st March, 2022;
(vi) Preference shares were redeemed on 31st December,2021;
(vii) An interim dividend @ 15% was paid on equity shares on 31st December,
2021;
(viii) Fresh equity shares were issued at a premium of 5% on 31st March, 2022.
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 |
|
||
|
|
Preference
Dividend (3,00,000×10100)W.N.-1 |
30,000 |
|
||
|
|
Profit Before Taxation |
|
2,30,000 |
||
|
|
Items
to be Added: |
|
|
||
|
|
Depreciation
on Fixed Assets |
60,000 |
|
||
|
|
Loss on
Fixed Assets |
40,000 |
|
||
|
|
Interest on
Debentures |
30,000 |
|
||
|
|
Dividend on
Equity Shares |
45,000 |
|
||
|
|
Provision for
Doubtful Debts |
10,000 |
|
||
|
|
Items
to be Deducted: |
|
|
||
|
|
Interest on
Investment |
(10,000) |
1,75,000 |
||
|
|
Operating
Profit before Working Capital Adjustments |
|
4,05,000 |
||
|
|
Less: Increase in Current Assets |
|
|
||
|
|
|
Trade Receivables |
(1,00,000) |
|
|
|
|
|
Inventories |
(1,00,000) |
(2,00,000) |
|
|
|
Add: Increase in Current Liabilities |
|
|
||
|
|
Trade Payables |
80,000 |
80,000 |
||
|
|
Cash
Generated from Operations |
|
2,85,000 |
||
|
|
Less: Tax Paid |
|
- |
||
|
|
Net
Cash Flows from Operating Activities |
|
2,85,000 |
||
|
|
|
|
|
|
|
|
B |
Cash
Flow from Investing Activities |
|
|
||
|
|
|
Sale of
Fixed Assets |
50,000 |
|
|
|
|
|
Purchase of
Fixed Assets |
(2,50,000) |
|
|
|
|
|
Purchase of
Investment |
(1,00,000) |
|
|
|
|
|
Interest on
Investment |
10,000 |
|
|
|
|
Net
Cash Used in Investing Activities |
|
(2,90,000) |
||
|
|
|
|
|
||
|
C |
Cash
Flow from Financing Activities |
|
|
||
|
|
Proceeds from Issue of Share
Capital |
2,00,000 |
|
||
|
|
Proceeds from Issue of
Debentures |
1,00,000 |
|
||
|
|
Interest on Debentures Paid |
(30,000) |
|
||
|
|
Redemption of Preference Share
Capital |
(1,00,000) |
|
||
|
|
Security Premium Reserve |
10,000 |
|
||
|
|
Dividend Paid on Preference
Share Capital |
(30,000) |
|
||
|
|
Dividend Paid on Equity Share
Capital |
(45,000) |
|
||
|
|
Net
Cash Flow from Financing Activities |
|
1,05,000 |
||
|
|
|
|
|
|
|
|
D |
Net
Increase in Cash and Cash Equivalents |
|
1,00,000 |
||
|
|
|
Add:
Cash and Cash Equivalent in the beginning of the period (50,000+20,000) |
|
70,000 |
|
|
|
Cash
and Cash Equivalents at the end of the period (90,000+80,000) |
|
1,70,000 |
||
|
|
|
|
|
||
|
|
|
|
|
|
|
Working
Notes:
(1) Dividend on 10% Preference Shares has been calculated on the value as on
31st March, 2018 as `1,00,000
Preference Shares were redeemed on 31st December, 2018.
(2)
|
Fixed
Assets Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
Amount (`) |
Particulars |
Amount (`) |
|
Balance b/d |
6,00,000 |
Bank A/c (Sale) |
50,000 |
|
Bank A/c (Purchase- Bal. Fig.) |
2,50,000 |
Depreciation |
60,000 |
|
|
|
Profit and Loss A/c (Loss on
Sale) |
40,000 |
|
|
|
Balance c/d |
7,00,000 |
|
|
8,50,000 |
|
8,50,000 |
|
|
|
|
|
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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