experts pls answer mine queries of cash flow statement:

practical problem : 41, 42, 43, 44 , 45 and 30 also. i need the solutions urgently.

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The answer to your questions are given below. 

 Q-41 

 

  Cash Flow Statement

Particular

Amount

Amount

(A) Cash Flow from Operating Activities

 

 

Profit for the year (2,04,000 – 1,68,000)

36,000

 

Add: Transfer to Reserve

30,000

 

Add: Provision for Tax

27,000

 

Add: Interim Dividend

1,20,000

 

Add: Depreciation

2,10,000

 

Less: Profit on Sale of Investment

(1,500)

 

Less: Profit on Sale of Fixed Assets

(6,000)

 

Operating Profit before Working Capital Change

4,15,500

 

Add: Decrease in Stock

90,000

 

Less: Decrease in Creditors

(1,02,000)

 

Less: Increase in Debtors

(7,35,000)

 

 

(3,31,500)

 

Less: Income Tax Paid

(2,22,000)

 

Cash used in Operating Activities

 

(5,53,500)

(B) Cash Flow from Investing Activities

 

 

Purchase of Investment

(54,000)

 

Rate of Investment

25,500

 

Sale of Fixed Assets

36,000

 

Cash of Flow Investing Activities

 

7,500

(C) Cash Flow from Financing Activities

 

 

Raising of Mortgaged Loan

8,10,000

 

Interim Dividend

(1,20,000)

 

Cash Flow from Financing Activities

 

6,90,000

Net Increase in Cash and Cash Equivalents

 

1,44,000

Add: Opening Balance of Bank

 

4,47,000

Closing Balance of Bank

 

5,91,000

 

 

 

  Working Note:

  W.N-1

Provision for Tax Account

Particular

Amount

Particular

Amount

Bank A/c (Tax Paid)

2,22,000

Balance b/d

2,25,000

Balance c/d

30,000

Profit and Loss A/c (Prov made)

27,000

 

2,52,000

 

2,52,000

 

 

 

 

  W.N-2

Investment Account

Particular

Amount

Particular

Amount

Balance b/d

1,50,000

Bank A/c (Sale)

25,500

Profit on Sale (25,500 – 24,000)

1,500

 

 

Bank A/c (Purchase)

54,000

Balance c/d

1,80,000

 

2,05,500

 

2,05,500

 

 

 

 

  W.N-3

Fixed Assets Account

Particular

Amount

Particular

Amount

Balance b/d

12,00,000

Bank A/c (Sale)

36,000

Profit on Sale (36,000 – 30,000)

6,000

Depreciation A/c (Bal Fig)

2,10,000

 

 

Balance c/d

9,60,000

 

12,06,000

 

12,06,000

 

 

 

 

Q.42

Sol. 

Cash Flow Statement

Particular

Amount

Amount

(A) Cash Flow from Operating Activities

 

 

Profit for the year

10,000

 

Add: Transfer to Reserve

20,000

 

Add: Proposed Dividend

30,000

 

Add: Depreciation

50,000

 

Add: Preliminary Expenses written off

7,000

 

Add: Interest on Debentures

10,000

 

Operating Profit before Working Capital Changes

1,27,000

 

Add: Increase in Creditor

40,000

 

Less: Increase in Stock in Trade

(40,000)

 

Less: Increase in Sundry Debtor

(18,000)

 

Net Cash from Operating Activities

 

1,09,000

(B) Cash Flow from Investing Activities

 

 

Purchase of Fixed Assets

(1,00,000)

 

Net Cash used in Investing Activities

 

(1,00,000)

(C) Cash Flow form Financing Activities

 

 

Issue of Share Capital

40,000

 

Redemption of Debentures

(10,000)

 

Interest on Debentures

(10,000)

 

Proposed Dividend

(20,000)

 

Cash form Financing Activities

 

Nil

Net Increase in Cash & Cash Equivalents

 

9,000

Add: Opening Balance of Cash & Cash Equivalents (3,000 + 40,000)

 

43,000

Closing Balance of Cash & Cash Equivalent (2,000 + 50,000  )

 

52,000

 

 

 

 

Fixed Assets Account

Particular

Amount

Particular

Amount

Balance b/d

3,60,000

Depreciation

50,000

Bank A/c (Purchase)

1,00,000

Balance c/d

4,10,000

 

4,60,000

 

4,60,000

 

 

 

 

Q.43

Sol 

Cash Flow Statement for the year ended March 31,2012

Particulars

Amount Rs

Cash Flow from Operating Activities

 

 

Profit as per Profit and Loss Account

100

 

Profit transfer to General Reserve

10,000

 

Dividend

23,000

 

Provision for Taxation

33,000

 

Profit before Taxation

66,100

 

Add: Item at to be added

 

 

Depreciation on Machinery

14,000

 

Depreciation on Building

10,000

 

Profit before Working Capital Changes

90,100

 

Add: Decrease in Current Assets:

 

 

Decrease in Stock

26,000

 

Decrease in Debtors

15,800

 

Less: Decrease in Current Liabilities:

 

 

Decrease in Creditors

(14,800)

 

Cash Generated from Operation

1,17,100

 

Less: Income Tax paid

(28,000)

 

Cash from Operating Activities

89,100

89,100

Cash Flow from Investing Activities

 

 

Purchase of Goodwill

(5,000)

 

Purchase of Plant and Machinery

(33,000)

 

Cash used in Investing Activities

(38,000)

(38,000)

Cash Flow from Financing Activities

 

 

Proceeds from Issue of Shares

50,000

 

Repayment of Bank Loan

(70,000)

 

Dividend paid

(23,000)

 

Net Cash used in Financing Activities

(43,000)

(43,000)

Net Increase in Cash and Cash Equivalents

 

8,100

Add: Opening Balance of Cash and Cash Equivalents

 

500

Closing Balance of Cash and Cash Equivalents

 

8,600

 

 

 

  Working Note.

Provision for Taxation

Dr

 

Cr

Particulars

Amount Rs

Particulars

Amount Rs

Bank (Payment)

23,000

Balance b/d

30,000

Balance c/d

35,000

Profit and Loss (Balance Figure)

33,000

 

63,000

 

63,000

 

 

 

 

      

 

Plant and Machinery Account

Dr

 

Cr

Particulars

Amount Rs

Particulars

Amount Rs

Balance b/d

1,50,000

Depreciation

14,000

Bank (Purchases)

33,000

Balance c/d

1,69,000

 

1,83,000

 

1,83,000

 

 

 

 

      

Q.44

Sol. 

Cash Flow Statement for the year ended March 31,2012

Particulars

Amount Rs

Cash Flow from Operating Activities

 

 

Profit during the year 2011-12

2,16,000

 

Interim Dividend (4,05,000 × 15%)

60,750

 

Preference Share Dividend

21,600

 

Profit before Declaration of Dividend

2,98,350

 

Add: Items to be added:

 

 

Discount on Issue of Shares written off

6,750

 

Depreciation on Fixed Assets

81,000

 

Premium on Redemption of Preference Share (1,35,000 × 15%)

20,250

 

Loss on Sale of Fixed Assets

20,250

 

Debenture Interest

10,800

 

Operating Profit before Working Capital Change

4,37,400

 

Add: Increase in Current Assets

1,08,000

 

Less: Increase in Current Liabilities

(1,35,000)

 

Cash from Operating Activities

4,10,400

4,10,000

Cash Flow from Investing Activities

 

 

Purchase of Fixed Assets

(2,83,500)

 

Purchase of Investments (1,08,000 – 40,500)

(67,500)

 

Proceeds from Sale of Fixed Assets

33,750

 

Cash used in Investing Activities

(3,17,250)

(3,17,250)

Cash Flow from Financing Activities

 

 

Proceeds from Issue of Share

1,67,500

 

Proceeds from Issue of 8% Debenture

1,35,000

 

Redemption of 8% Preference Share

(1,35,000)

 

Premium on redemption of Preference Share

(20,250)

 

Interim Dividend paid to equity shares

(60,750)

 

Dividend paid to 8% Preference Share

(21,600)

 

Interest paid on 8% Debentures

(10,800)

 

Cash from financing Activities

54,100

54,100

Net Increase in cash and Cash Equivalents

 

1,47,250

Add: Opening balance of Cash

 

54,000

Closing balance of Cash and Cash Equivalents

 

2,01,250

 

 

 

    Working Notes:

Fixed Assets Account

Dr

 

Cr

Particular

Amount Rs

Particular

Amount Rs

Balance b/d

6,88,500

Depreciation

81,000

Bank (Purchase Balancing Figure)

2,83,500

Bank (Sale)

33,750

 

 

Profit and Loss (Loss)

20,250

 

 

Balance c/d

8,37,000

 

9,72,000

 

9,72,000

 

 

 

 

 

Q-30

 

Cash Flow Statement for the year ended March 31,2012

Particular

Amount Rs

Cash Flow from Operating Activities

 

 

Profit during the year 2011-12

28,000

 

Add Items to be Added:

 

 

Loss on Sale of Machinery

2,000

 

Depreciation on Machinery

18,000

 

Operating profit before working Capital Charges

48,000

 

Add Decrease in Current Assets and Increase in Current Liabilities

 

 

Decrease in Stock

15,000

 

Increase in Creditors

4,000

 

Less: Increase in Current Assets

 

 

Increase in Debtors

(20,000)

 

Net Cash from Operating Activities

47,000

47,000

Cash Flow from Investing Activities

 

 

Purchase of Land

(15,000)

 

Purchase of Building

(25,000)

 

Proceeds from Sale of Machinery

5,000

 

Net Cash used in Investing Activities

(35,000)

(35,000)

Cash Flow from Financing Activities

 

 

Repayment of Loan from X

(25,000)

 

Loan from Bank

10,000

 

Net Cash used in Financing Activities

15,000

(15,000)

Net Decrease in cash and Cash Equivalents

 

(3,000)

Add: Increase balance of Cash

 

10,000

Closing balance of Cash and Cash Equivalents

 

7,000

 

 

 

    Working Note:

    1- Purchase of Land = Closing balance – Opening balance

  = 50,000 – 35,000

  = Rs 15,000

    2- Purchase of Building = Closing balance – Opening balance

  = 60,000 – 35,000

  = Rs 15,000

Machinery Account

Dr

 

Cr

Particulars

Amount Rs

Particulars

Amount Rs

Balance b/d

80,000

Bank (Sale)

5,000

 

 

Profit and Loss (Loss)

2,000

 

 

Depreciation (Balancing Figure)

18,000

 

 

Balance c/d

55,000

 

80,000

 

80,000

 

 

 

 

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