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	31^st March, 2023 (`)	31^st 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

31^st March,

2023 (`)

31^st 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	31^st March, 2023 (`)	31^st 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	31^st March 2023 (`)	31^st 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