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 |
1 |
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, 2023 and 2022 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, 2023, 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, 2023 was `4,00,000 and for the year ended 31st March, 2022 was ` 2,00,000.
5. During the current year new debentures were issued on 1st October, 2022.
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 |
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 |
|
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 profits 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 |
|
|
|
|
|
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Ts Grewal Solution 2024-2025
Class 12 / Volume – 3
Chapter 4 – Cash Flow Statements