Request a call back

Join NOW to get access to exclusive study material for best results

Class 12-commerce T S GREWAL Solutions Accountancy Chapter 5: Cash Flow Statements

Cash Flow Statements Exercise 5.89

Solution Ex. 1

a. Cash Sale of Goods- Operating Activity

b. Cash Received against Revenue from Services rendered- Operating Activity

c. Cash Purchases of Goods- Operating Activity

d. Cash paid against Services Taken- Operating Activity

e. Patents Purchased- Investing Activity

f. Marketable Securities- Cash and Cash Equivalents

g. Bank overdraft- Financing Activity

h. Proceeds from Issue of Debentures- Financing Activity

i. Purchases of Share- Investing Activity

j. Repayment of Long-term Loan- Financing Activity

k. Commission Received- Operating Activity

l. Redemption of Debentures- Financing Activity

m. Interest of Debenture- Financing Activity

n. Interest on Investments- Investing Activity

o. Income Tax paid- Operating Activity

p. Income Tax Paid on Gain of Sale of Asset- Investing Activity

q. Cash Received from Debtors- Operating Activity

r. Cash Paid to Creditors. - Operating Activity

Cash Flow Statements Exercise 5.90

Solution Ex. 2

Classification of  transactions as operating activities for a financial company:

a. Purchase of Shares on a Stock Exchange- Operating Activities

b. Dividend received on Shares- Operating Activities

c. Dividend paid on Shares- Refer Note

d. Loans given- Operating Activities

e. Loans taken- Operating Activities

f. Interest paid on borrowings- Operating Activities

A financial company is one that deals in shares, bonds, debentures, etc. on a regular basis. The transactions related to purchase and sale of these securities is regular phenomenon and forms part of their stock and is categorised under Operating Activity. However, dividend paid by them does not form part of Financing Activities.

Also, for a non-financial company issue of shares, debentures, etc. forms part of financing activities and not the operating activities.

Solution Ex. 3

a. Sale of Fixed Assets, Book Value Rs.1,00,000 at a profit of Rs.10,000- Inflow

b. Sale of goods against cash- Inflow

c. Purchase of machinery for cash- Outflow

d. Purchase of Land and Building fort Rs.10,00,000. Consideration paid by issue of debenture- No flow

e. Issued fully paid Bonus Shares - No flow

f. Cash withdrawn from bank- No flow

g. Payment of Interim Dividend- Outflow

h. Proposed Dividend- No flow

Solution Ex. 4

(a) Investing Activity: 50,000 (outflow)

(b) Investing Activity: 2,00,000 (outflow)

(c) Investing Activity: 60,000 (inflow)

Solution Ex. 5

 
 

Particulars

Rs. 

  Profit as per Statement of Profit and Loss (10,00,000 - 5,00,000) 5,00,000
 

    Add: Proposed Dividend

4,00,000

  Profit Before Taxation and Extraordinary Item

9,00,000

Cash Flow Statements Exercise 5.91

Solution Ex. 6

 

 

 

Particulars

Rs. 

 

Profit as per Statement of Profit and Loss (7,20,000 - 4,00,000)

3,20,000

 

----Add: Proposed Dividend

1,60,000

 

----Add: Proposed Preference Dividend (Current Year, i.e. 10% of 6,00,000)

60,000

 

----Add: Interim Dividend

40,000

 

Profit Before Taxation and Extraordinary Item

5,80,000

 

Solution Ex. 7

 

 

 

Particulars

Rs. 

 

Profit as per Statement of Profit and Loss (2,00,000 - 1,45,000)

55,000

 

----Add: Proposed Dividend

50,000

 

----Add: Proposed Preference Dividend (Current Year)

50,000

 

----Add: Interim Dividend Paid

10,000

 

Profit Before Taxation and Extraordinary Item

1,65,000

 

Cash Flow Statements Exercise 5.92

Solution Ex. 8

 

Particulars

Rs.

 

Profit as per Statement of Profit and Loss (3,36,000 - 1,00,000)

2,36,000

 

Items to be Added:

 

 

-----------Transfer to Reserve

1,00,000

 

  Proposed Dividend

72,000

 

  Interim Dividend

90,000

 

  Provision for Taxation

1,50,000

 

  Extraordinary Items (Earthquake Loss)

2,00,000

 

----Less: Extraordinary Items

 

 

----------- Earthquake Insurance Proceeds 

(1,00,000)

 

----  Income Tax Refund

(3,000)

 

 

 

 

Net Profit Before Tax and Extraordinary Items

7,45,000

 

Solution Ex. 9

 

Particulars

Rs.

A

Cash Flow From Operating Activities

 

 

Net Profit before Taxation and Extraordinary Items

4,47,000

 

Items to be Added:

 

 

----------Depreciation on Machinery

84,000

 

  Loss on Sale of Furniture

18,000

 

  Interest on Borrowings

16,800

 

  Goodwill Amortised

18,600

 

Items to be Deducted: 

 

 

----------- Profit on Sale of Investment 

(12,000)

 

----  Interest and Dividend Received

(27,600)

 

 

 

 

Operating Profit before Working Capital Changes

5,44,800

 

Solution Ex. 10

 

Computation of Operating Profit before Working Capital Changes

for the year ended March 31, 2019 

 

Particulars

Rs. 

 

Profit as per Statement of Profit and Loss (1,70,000 - 1,00,000)

70,000

 

Transfer to General Reserve (5,00,000 - 4,00,000)

1,00,000

 

Provision for Taxation (Current Year)

1,00,000

 

Profit before Tax

2,70,000

 

Items to be Added:

 

 

-----------Depreciation for the year

75,000

 

Operating Profit before Working Capital Changes

3,45,000

 

Cash Flow Statements Exercise 5.93

Solution Ex. 11

 

Cash Flow Statement

for the year ended March 31, 2019

 

Particulars

Rs. 

Rs.

 

Profit as per Statement of Profit and Loss (Net Income)

 

20,000

 

Items to be Added:

 

 

 

-----------Depreciation

10,000

 

 

-----------Goodwill written off 

8,000

18,000

 

Operating Profit before Working Capital Changes

 

38,000

 

----Add: Decrease in Current Assets

 

 

 

-----------Trade Receivables

6,000

 

 

-----------Prepaid Insurance  

1,000

 

 

----Less: Increase in Current Assets

 

 

 

-----------Inventories

(20,000)

 

 

----Less: Decrease in Current Liabilities

 

 

 

-----------Outstanding Rent

(9,000)

 

 

-----------Trade Payables 

(6,000)

(28,000)

 

Cash Generated from operations 

 

10,000

 

----Less: Tax Paid

 

Nil

 

Net Cash Flows from Operating Activities

 

10,000

 

Solution Ex. 12

 

Cash Flow From Operating Activities

for the year ended March 31, 2019 

 

Particulars

Rs. 

Rs.

 

Net Profit after Provision for Tax and Proposed Dividend

 

2,15,000

 

----Add: Provision Tax

 

45,000

 

----Add: Proposed Dividend

 

50,000

 

Profit Before Taxation

 

3,10,000

 

Items to be Added:

 

 

 

-----------Depreciation

25,000

 

 

-----------Loss on Sale of Machinery 

10,000

 

 

-----------Patents Amortised 

30,000

65,000

 

 

 

3,75,000

 

Items to be Deducted:

 

 

 

-----------Income Tax Refund

(30,000

 

 

-----------Gain on Sale of Land  

(70,000)

(1,00,000)

 

Operating Profit before Working Capital Changes 

 

2,75,000

 

----Less: Net Tax Paid (45,000 - 30,000)

 

(15,000)

 

Net Cash Flows from Operating Activities

 

2,60,000

 

Solution Ex. 13

 

Cash Flow From Operating Activities

Fo the year ended ….

 

Particulars

Rs. 

Rs.

 

Profit as per Statement of Profit and Loss

 

7,00,000

 

----Add: Transfer to Reserve

 

60,000

 

Profit Before Extraordinary Items

 

7,60,000

 

Items to be Added:

 

 

 

-----------Depreciation on fixed Assets

40,000

 

 

-----------Goodwill Amortised

20,000

60,000

 

 

 

8,20,000

 

Items to be Deducted:

 

 

 

-----------Gain on Sale of Land

 

(90,000)

 

Operating Profit before Working Capital Changes 

 

7,30,000

 

----Less: Decrease in Current Liabilities

 

 

 

-----------Trade Payable

(25,000)

 

 

----Less: Increase in Current Assets

 

 

 

-----------Trade Receivables

(15,000)

(40,000)

 

 

 

6,90,000

 

----Add: Decrease in Current Assets

 

 

 

-----------Prepaid Expenses

 

8,000

 

Cash Generated from Operations

 

6,98,000

 

----Less: Tax Paid

 

Nil

 

Net Cash Flows from Operating Activities

 

6,98,000

 

Cash Flow Statements Exercise 5.94

Solution Ex. 14

 

Cash Flow From Operating Activities

for the year ended March, 31, 2019 

 

Particulars

Rs. 

Rs.

 

Profit as per Statement of Profit and Loss

 

6,40,000

 

----Add: Provision for Tax

 

20,000

 

----Less: Extraordinary Item

 

 

 

-----------Insurance Claim

 

(50,000)

 

Profit Before Tax and Extraordinary items

 

6,10,000

 

Items to be Added:

 

 

 

-----------Depreciation on Plant and Machinery

 

55,000

 

 

 

6,65,000

 

Items to be Deducted:

 

 

 

-----------Gain on Sale of Investments

 

(20,000)

 

Operating Profit before Working Capital Adjustments  

 

6,45,000

 

----Add: Increase in Current Liabilities

 

 

 

-----------Trade Payable

30,000

 

 

----Add: Decrease in Current Liabilities

 

 

 

-----------Inventories

10,000

40,000

 

----Less: Increase in Current Assets

 

6,85,000

 

-----------Trade Receivables

(40,000)

 

 

-----------Prepaid Expenses 

(14,000)

(54,000)

 

Cash Generated from Operations before tax and Extraordinary items

 

6,31,000

 

----Less: Tax Paid

 

(15,000)

 

Cash Flow from Operating Activities after Tax

 

6,16,000

 

----Add: Extraordinary Items

 

 

 

-----------Insurance Claim

 

50,000

 

Net Cash Flows from Operating Activities

 

6,66,000

 

 

Solution Ex. 15

 

Cash Flow From Operating Activities

for the year ended ….. 

 

Particulars

 

Rs.

 

Profit as per Statement of Profit and Loss

 

8,00,000

 

----Add: Provision for Tax

 

1,10,000

 

----Add: Proposed Dividend

 

1,10,000

 

----Less: Compensation for Natural Disaster

 

(75,000)

 

Profit Before Tax and Extraordinary items

 

9,45,000

 

Items to be Added:

 

 

 

-----------Depreciation

1,50,000

 

 

-----------Loss on Sale of Investment

30,000

1,80,000

 

 

 

11,25,000

 

Items to be Deducted:

 

 

 

-----------Profit on Sale of Land

(90,000)

 

 

-----------Dividend Received 

(20,000)

(1,10,000)

 

Operating Profit before Working Capital Adjustments  

 

10,15,000

 

----Add: Increase in Current Liabilities

70,000

 

 

----Add: Decrease in Current Assets

40,000

1,10,000

 

----- 

 

11,25,000

 

----Less: Increase in Current Liabilities

(10,000)

 

 

----Less: Increase in Current Assets

(60,000)

(70,000)

 

Cash Generated from Operations

 

10,55,000

 

----Less: Net Tax Paid (1,20,000 - 10,000)

 

(1,10,000)

 

Cash Flow from Operating Activities after Tax

 

 

 

----Add: Compensation for Natural Disaster

 

75,000

 

Net Cash Flows from Operating Activities

 

10,20,000

 

Note: The answer given in the book is different. 

Solution Ex. 16

 

Cash Flow From Operating Activities

for the year ended March, 31, 2019 

 

Particulars

 

Rs.

 

Profit as per Statement of Profit and Loss

 

18,00,000

 

----Add: Payment of Tax

 

64,000

 

Profit Before Tax and Extraordinary items

 

2,44,000

 

Items to be Added:

 

 

 

-----------Loss on Sale of Assets

36,000

 

 

-----------Depreciation and Amortisation Expenses 

1,85,000

2,21,000

 

 

 

4,65,000

 

Items to be Deducted:

 

 

 

-----------Dividend Received

(5,000)

 

 

-----------Profit on Sale of Plant 

(40,000)

(45,000)

 

Operating Profit before Working Capital Adjustments  

 

4,20,000

 

----Less: Decrease in Current Liabilities

 

 

 

-----------Office Expenses Outstanding

 

(5,000)

 

----Add: Increase in Current Liabilities

 

 

 

-----------Trade Payable ---- 

28,000

 

 

-----------Selling Expenses Outstanding

3,000

31,000

 

----Less: Increase in Current Assets

 

 

 

-----------Trade Receivables  ---- 

 

(37,000)

 

-----------Inventories  ---- 

 

(16,000)

 

Cash Generated from Operations

 

3,93,000

 

----Less: Tax Paid

 

(64,000)

 

Net Cash Flows from Operating Activities

 

3,29,000

 

Cash Flow Statements Exercise 5.95

Solution Ex. 17

 

Cash Flow From Operating Activities

 

 

Particulars

 

Rs.

 

Profit as per Statement of Profit and Loss

5,000

 

 

----Add: Transfer to Reserve

35,000

40,000

 

Profit Before Tax and Extraordinary items

 

40,000

 

Items to be Added:

 

 

 

-----------Depreciation written of (WN1)

22,000

 

 

-----------Goodwill Written-off 

10,000

32,000

 

Items to be Deducted:

 

 

 

-----------Profit on Sale of Asset 

 

8,000

 

Operating Profit before Working Capital Adjustments  

 

64,000

 

----Less: Increase in Current Assets

 

 

 

-----------Bills Receivables

 

(41,000)

 

----Add: Increase in Current Assets

 

 

 

-----------Debtors ---- 

 

35,000

 

----Less: Decrease in Current Liabilities

 

 

 

-----------Outstanding Expenses  ---- 

 

(18,000)

 

Cash Generated from Operations

 

40,000

 

----Less: Tax Paid

 

Nil

 

Net Cash Flows from Operating Activities

 

40,000

 

Working Note:

Provision for Depreciation Account

Dr. 

 

 

Cr.

Particulars

Rs. 

Particulars

Rs. 

To Assets A/c (40,000 - 28,000)*

12,000

By Balance b/d

20,000

To Balance c/d

30,000

By Profit and Loss A/c

22,000

 

42,000

 

42,000

 

Particulars

Rs. 

Cost of Asset Sold

40,000

----Less: Provision for Depreciation*

(12,000)

Book Value

28,000

----Less: Sale of Assets

(36,000)

Profit on Sale

8,000

 

Solution Ex. 18

 

 

Cash Flow Statement

 

Particulars

Amount

(Rs.)

Amount

(Rs.)

 

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

 

1,00,000

 

Items to be Added: 

 

 

 

Depreciation

20,000

 

 

Goodwill amortised

7,000

 

 

Transfer to General Reserve

30,000

 

 

Items to be Deducted: 

 

 

 

Gain on sale of machinery

(3,000)

54,000

 

Operating Profit before Working Capital Adjustments

 

1,54,000

 

Less: Increase in Current Assets

 

 

 

 

 Trade Receivables

(3,000)

 

 

 

 Prepaid Expenses

(200)

 

 

Less: Decrease in Current Liabilities

 

 

 

 Outstanding Expenses

(2,000)

 

 

Add: Increase in Current Liabilities

 

 

 

 Trade Payables

6,000

800

 

Cash Generated from Operations

 

1,54,800

 

Cash Flow Statements Exercise 5.96

Solution Ex. 19

 

Cash Flow Statement

 

Particulars

Amount

(Rs.)

Amount

(Rs.)

 

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

 

10,000

 

Items to be Added: 

 

 

 

Depreciation

2,000

 

 

Operating Profit before Working Capital Adjustments

 

12,000

 

Less: Increase in Current Assets

 

 

 

 

 Trade Receivables

(1,000)

 

 

 

 Other Current Assets

(2,000)

 

 

 

 Inventories

(3,000)

 

 

 

 Accrued Income

(1,000)

 

 

Less: Decrease in Current Liabilities

 

 

 

 Income Received in Advance

(1,000)

 

 

Add: Increase in Current Liabilities

 

 

 

 Trade Payables

2,000

 

 

 Expenses Payable

500

 

 

 Provision for Doubtful Debts 

200

 

 

Add: Decrease in Current Assets

 

 

 

 Prepaid Expenses

1,000

(4,300)

 

Cash Generated from Operations

 

7,700

 

Solution Ex. 20

 

Cash Flow From Operating Activities

for the year ended March, 31, 2019 

 

Particulars

 

Rs.

 

Profit as per Statement of Profit and Loss

 

43,750

 

-----------Provision for Tax

 

18,750

 

Profit Before Taxation

 

62,500

 

Items to be Added:

 

 

 

-----------Loss on Sale of Furniture

1,500

 

 

-----------Depreciation  

15,000

16,500

 

Items to be Deducted: 

 

 

 

-----------Profit on Sale of machinery 

(2,500)

 

 

-----------Rent 

(15,000)

 

 

-----------Interest on Investment 

(2,000)

(19,500)

 

Operating Profit before Working Capital Adjustments ---

 

59,500

 

----Less: Increase in Current Assets

 

 

 

-----------Trade Receivables---- 

(5,000)

 

 

-----------Prepaid Expenses 

(1,500)

 

 

----Add: Increase in Current Liabilities

 

 

 

-----------Outstanding Expenses  ---- 

3,000

 

 

----Less: Decrease in Current Liabilities

 

 

 

-----------Trade Payables---- 

(2,500)

 

 

----Add: Decrease in Current Assets

 

 

 

-----------Inventories---- 

15,000

9,000

 

Cash Generated from Operations

 

68,500

 

----Less: Tax Paid

 

(18,750)

 

Net Cash Flows from Operating Activities

 

49,750

 

Cash Flow Statements Exercise 5.97

Solution Ex. 21

 

Cash Flow From Operating Activities

for the year ended March, 31, 2019 

 

Particulars

 

Rs.

 

Purchase of Plant and Machinery

 

(1,55,000)

 

Sale of Plant and Machinery

 

45,000

 

Net Cash Used in Investing Activities

 

(1,10,000)

 

Working Notes:

Plant and Machinery Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

 

To Balance b/d

9,60,000

By Depreciation

35,000

To Profit and Loss A/c (Profit on Sale)

15,000

By Bank A/c (Sale)

45,000

To Bank A/c (Purchase)

1,55,000

By Balance c/d

10,50,000

 

11,30,000

 

11,30,000

 

Solution Ex. 22

 

Cash Flow From Investing Activities

for the year ended …. 

Particulars

Rs. 

Rs.

 Purchase of Machinery

(1,40,000)

 

----------Sale of Machinery

50,000

 

----------Sale of Patents

90,000

Nil

Net Cash Used in Investing Activities

 

Nil

 

Working Notes:

1:

Machinery Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Balance b/d

9,50,000

By Provision for Depreciation A/c

60,000

To Profit and Loss A/c (Profit on Sale)

20,000

By Bank A/c (Sale)

50,000

To Bank A/c (Purchase)

1,40,000

By Balance c/d

10,00,000

 

11,10,000

 

11,10,000

 

2:

Patents Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Balance b/d

3,00,000

By Patents Written off

50,000

To Profit and Loss A/c (Profit on Sale)

40,000

By Bank A/c (Sale) (Balancing Fig.)

90,000

 

 

By Balance e c/d

2,00,000

 

3,40,000

 

3,40,000

 

3:

Accumulated Depreciation Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Asset A/c

60,000

By Balance b/d

1,10,000

To Balance c/d

1,50,000

By Profit and Loss

(Depreciation Charged during the year)

1,00,000

 

2,10,000

 

2,10,000

 

Solution Ex. 23

 

 

Cash Flow Statement

 

Particulars

Amount

(Rs.)

Amount

(Rs.)

 

Cash Flow from Investing Activities

 

 

 

Sale of Machinery

13,000

 

 

Purchase of Machinery

(35,000)

(22,000)

 

Cash Used in Investing Activity 

 

(22,000)

 Working Notes:

Machinery Account

Dr.

Cr.

Particulars

Amount

(Rs.)

Particulars

Amount

(Rs.)

Balance b/d

50,000

Bank A/c (Sale)

13,000

Profit and Loss A/c (Profit on Sale)

3,000

Accumulated Depreciation

15,000

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

35,000

Balance c/d

60,000

 

 

 

 

 

88,000

 

88,000

 

 

 

 

 

Accumulated Depreciation Account

Dr.

Cr.

Particulars

Amount

(Rs.)

Particulars

Amount

(Rs.)

Fixed Assets A/c

15,000

Balance b/d

25,000

Balance c/d

15,000

Profit and Loss A/c

 (Dep. charged during the year- Bal. Fig.)

5,000

 

30,000

 

30,000

 

 

 

 

 

Solution Ex. 24

 

Cash Flow From Investing Activities

for the year ended March, 31, 2019 

Particulars

Rs. 

Rs.

Purchase of Land and Building

(6,50,000)

 

Interest received on Investments

75,000

 

Sale of Debentures

2,75,000

 

Purchase of Debentures  

(7,50,000)

(10,50,000)

Net Cash Used in Investing Activities

 

(10,50,000)

 

Working Notes:

1:

 Land and Building Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Balance b/d

9,00,000

By Depreciation A/c

50,000

To Bank A/c

6,50,000

By Balance c/d

15,00,000

 

15,50,000

 

15,50,000

 

2:

 Investment in 10% Debentures Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Balance b/d

5,00,000

By Bank A/c (Sale)

2,75,000

To Profit and Loss A/c (Profit on Sale)

25,000

By Balance c/d

10,00,000

By Bank A/c (Purchase)

7,50,000

 

 

 

12,75,000

 

12,75,000

 

Cash Flow Statements Exercise 5.98

Solution Ex. 25

 

Cash Flow From Investing Activities

 

 

Particulars

Rs.

Rs.

 

Purchase of Machine

(2,50,000)

 

 

Purchase of Goodwill

(1,00,000)

 

 

Purchase of Investments 

(1,50,000)

 

 

Sale of Machine

35,000

 

 

Sale of Investment 

50,000

 

 

Sale of Patents 

40,000

 

 

Interest and Dividend Received 

10,000

 

 

Rent Received 

20,000

 

 

Net Cash Flow from (used in) Investing Activities

 

(3,45,000)

 

Solution Ex. 26

 

Cash Flow From Investing Activities

for the year Ended March 31, 2019 

 

Particulars

Rs. 

Rs.

 

Cash Flow from Investing Activities

 

 

 

----------Sale of Machinery

1,50,000

 

 

----------Purchase of Machinery 

(1,50,000)

 

 

----------Purchase of Non-Current Investments

(2,00,000)

 

 

Net Cash Flow from (used in) Investing Activities

 

(2,00,000)

 

Working Notes:

 Plant and Machinery Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs. 

To Balance b/d

5,00,000

By Bank A/c (Sale)

1,50,000

To Bank A/c (Purchase - Bal. Fig)

1,50,000

By Balance c/d

5,00,000

 

6,50,000

 

6,50,000

 

Solution Ex. 27

 

Cash Flow From Investing Activities

for the year ended March, 31, 2019 

Particulars

Rs. 

Rs.

Purchase of Plant and Machinery

(2,60,000)

 

Purchase of Investments 

(60,000)

 

Sale of Plant and Machinery

40,000

 

Sale of Land  

1,60,000

 

Net Cash Flow from (used in) Investing Activities

 

(1,20,000)

 

Working Notes:

1:

 Plant and Machinery Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs. 

To Balance b/d

8,50,000

By Depreciation A/c

50,000

To Bank A/c (Purchase - b/f)

2,60,000

By Bank A/c (Sale)

40,000

 

 

By Profit and Loss A/c (Loss on Sale)

20,000

 

 

By Balance c/d

10,00,000

 

11,10,000

 

11,10,000

 

2

 Land Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Balance b/d

2,00,000

By Bank A/c (Sale-Bal. Fig)

1,60,000

To Profit and Loss A/c (Profit on Sale)

60,000

By Balance c/d

1,00,000

 

11,10,000

 

11,10,000

 

Cash Flow Statements Exercise 5.99

Solution Ex. 28

 

Cash Flow From Investing Activities

for the year ended March, 31, 2019 

Particulars

Rs. 

Rs.

Purchase of Patents

(25,000)

 

Purchase of Furniture 

(2,25,000)

 

Interest received on Investment

14,000

 

Sale of Investment  

20,,000

 

Sale of Land

10,000

 

Net Cash Flow from Used in Investing Activities

 

(2,06,000)

 

Note: 

It has been assumed that investments have been sold at their Book Value at the end of the accounting period.

Working Note:

Computation of Interest on Investments

Computation of Interest on Investments

Solution Ex. 29

 

Cash Flow From Investing Activities

for the year ended March, 31, 2019 

Particulars

Rs. 

Rs.

Purchase of Plant and Machinery

(2,70,000)

 

Purchase of Investment 

(1,00,000)

 

Purchases of Goodwill

(50,000)

 

Rent Received

20,000

 

Dividend Received (1,50,000 x 12%)

18,000

 

Sale of Plant and Machinery

35,000

 

Sale of Investment

80,000

 

Interest on Investments

6,000

 

Sale of Patents

20,000

 

Net Cash Used in Investing Activities

 

(2,41,000)

 

Working Note:

1 : Computation of Interest on Investments

CBSE Class 12 tsgrewal solutions Cash Flow Statements-599Ex29

2

 Patents Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Balance b/d

1,00,000

By Profit and Loss A/c

(Written-off)

20,000

To Profit and Loss A/c (Profit on Sale)

10,000

By Bank A/c (Sale-Bal. Fig)

20,000

 

 

Balance c/d

70,000

 

1,10,000

 

1,10,,000

 

3

 12% Long -Term Investments  Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Balance b/d

50,000

By Bank A/c (Sale-Bal. Fig)

80,000

To Bank A/c (Purchase)

1,00,000

By Balance c/d

80,000

To Profit and Loss A/c (Profit on Sale)

10,000

 

 

 

1,60,000

 

1,60,000

 

4

 Plant and Machinery Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Balance b/d

6,00,000

By Depreciation A/c

70,000

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

2,70,000

By Bank A/c (Sale)

35,000

 

 

By Profit and Loss A/c (Loss on Sale)

15,000

 

 

By Balance c/d

7,50,000

 

8,70,000

 

8,70,000

 

Cash Flow Statements Exercise 5.100

Solution Ex. 30

 

Cash Flow From Investing Activities

Particulars

Rs. 

Rs.

Purchase of Machinery

(1,00,000)

 

Sale of Investment 

26,000

 

Net Cash Flow from (used in) Investing Activities

 

(74,000)

 

Working Notes:

Machinery Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Balance b/d

5,00,000

By Accumulated Depreciation A/c

20,000

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

1,00,000

By Bank A/c (Sale)

26,000

 

 

By Profit and Loss A/c (Loss on Sale)

4,000

 

 

By Balance c/d

5,50,000

 

6,00,000

 

6,00,000

 

 Accumulated Depreciation Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Machinery A/c

20,000

By Balance b/d

1,00,000

To Balance c/d

1,70,000

By Profit and Loss A/c

 (Dep. Charged during the year - Bal. Fig)

90,000

 

1,90,000

 

1,90,,000

 

Solution Ex. 31

 

Cash Flow From Investing Activities

 

Particulars

Rs. 

Rs.

 

Purchase of Machinery

(6,20,000)

 

 

Purchase of Investment 

(2,40,000)

 

 

Purchases of Goodwill

(1,00,000)

 

 

Sale of Machinery

2,00,000

 

 

Rent Received

50,000

 

 

Dividend Received

20,000

 

 

Sale of Investments

80,000

 

 

Interest on Debentures

8,000

 

 

Sale of Patents

1,50,000

 

 

Net Cash Flow from (used in) Investing Activities

 

(4,52,000)

Note: Dividend and interest paid is considered as a part of Financing Activities.

Solution Ex. 32

 

Cash Flow Statement

 

Particulars

Amount

(Rs.)

Amount

(Rs.)

 

Cash Flow from Financing Activities

 

 

 

Loan Repaid

(1,00,000)

 

 

New Loan Raised

1,50,000

50,000

 

Cash Flows from Financing Activity 

 

50,000

 Working Notes:

Long Term Loan Account

Dr.

Cr.

Particulars

Amount

(Rs.)

Particulars

Amount

(Rs.)

Bank A/c (Loan Repaid)

1,00,000

Balance b/d

2,00,000

Balance c/d

2,50,000

Bank A/c (Loan Raised)

1,50,000

 

3,50,000

 

3,50,000

 

 

 

 

 

Solution Ex. 33

 

Cash Flow From Financing Activities

for the year ended March, 31, 2019 

Particulars

Rs. 

Rs.

Proceeds from Issue of Equity Shares

1,10,000

 

Redemption of 12% Debentures 

(50,000)

 

Interest Paid

(18,000)

 

Net Cash Flow from Financing Activities

 

42,000

 

Cash Flow Statements Exercise 5.101

Solution Ex. 34

 

Cash Flow From Financing Activities

for the year ended March, 31, 2019 

Particulars

Rs. 

Rs.

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

 

Solution Ex. 35

 

Cash Flow Statement

for the year ended March, 31, 2019 

Particulars

Rs. 

Rs.

Cash Flow from Investing Activities

 

 

----------- Purchase of Machinery

(20,000)

 

-----------Sale of Machine 

4,000

 

Net Cash Flow 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 Flow from (used in) Financing Activities

 

(5,000)

 

Working Notes:

Machinery Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Balance b/d

40,000

By Accumulated Depreciation A/c

4,000

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

20,000

By Bank A/c (Sale)

4,000

 

 

By Profit and Loss A/c (Loss on Sale)

2,000

 

 

By Balance c/d

50,000

 

60,000

 

60,000

 

Accumulated Depreciation Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Machinery A/c (Bal. Fig.)

4,000

By Balance b/d

10,000

To Balance c/d

12,000

By Profit and Loss A/c

(Dep. Charged during the year)

6,000

 

16,000

 

16,000

 

Solution Ex. 36

 

Cash Flow Statement

 

Particulars

Amount

(Rs.)

Amount

(Rs.)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

 

7,50,000

 

Items to be Added: 

 

 

 

Provision for Tax

75,000

 

 

Depreciation

2,00,000

 

 

Loss on Sale of Machine

20,000

 

 

Operating Profit before Working Capital Adjustments

10,45,000

 

 

Less: Increase in Current Assets

 

 

 

 

 Trade Receivables and Inventories

(1,50,000)

 

 

Add: Increase in Current Liabilities

 

 

 

 Trade Payables

2,75,000

 

 

Cash Generated from Operations

11,70,000

 

 

Less: Taxes Paid 

(75,000)

 

 

Cash Flow from Operating Activities

 

10,95,000

B

Cash Flow from Investing Activities

 

 

 

Sale of Fixed Assets

Purchase of Fixed Asset

80,000

 

(4,67,500)

 

 

 

 

 Cash Flows from Investing Activities

 

3,87,500

 

Working Notes:

Fixed Asset Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Balance b/d

21,25,000

By Accumulated Depreciation A/c

1,62,500

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

4,67,500

By Bank A/c (Sale)

80,000

 

 

By Profit and Loss A/c (Loss on Sale)

20,000

 

 

By Balance c/d

23,30,000

 

25,92,500

 

25,92,500

 

Accumulated Depreciation Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Fixed Asset A/c (Bal. Fig.)

1,62,500

By Balance b/d

10,62,500

To Balance c/d

11,00,000

By Profit and Loss A/c

(Dep. Charged during the year)

2,00,000

 

12,62,5000

 

12,62,5000

 

 

Cash Flow Statements Exercise 5.102

Solution Ex. 37

 

Cash Flow From Financing Activities

for the year ended March, 31, 2019 

Particulars

Rs. 

Rs.

Proceeds from Issue of 12% Debentures

1,00,000

 

Interest Paid 

(19,000)

 

Dividend Paid

(50,000)

 

Net Cash Flow from (used in) Financing Activities

 

(31,000)

Note: 

Issue of bonus shares does not lead to any change in cash flow statement. Therefore, increase in share capital due to issue of bonus shares will not be classified as Financing Activities.

Solution Ex. 38

 

Cash Flow Statement

 

Particulars

Amount

(Rs.)

Amount

(Rs.)

 

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

 

7,25,000

 

Items to be Added: 

 

 

 

Provision for Tax

1,12,500

 

 

Interest on Debentures

41,000

 

 

Interest on Bank Loan

9,000

 

 

Dividend on Equity Shares

90,000

 

 

Dividend on Preference Shares

37,500

 

 

Transfer to General Reserve

75,000

3,65,000

 

Operating Profit before Working Capital Adjustments

 

10,90,000

 

Less: Increase in Current Assets

 

 

 

 

 Trade Receivables and Inventories

(1,50,000)

 

 

Add: Increase in Current Liabilities

 

 

 

 Trade Payables

2,50,000

1,00,000

 

Cash Generated from Operations

 

11,90,000

 

Less: Taxes Paid 

 

62,500

 

Cash Flow from Operating Activities

 

11,27,500

           

 

 

Cash Flow Statement

 

Particulars

Amount

(Rs.)

Amount

(Rs.)

 

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of Equity Shares

2,50,000

 

 

Redemption of Preference Shares

(2,50,000)

 

 

Increase in Securities Premium Reserve

25,000

 

 

Proceeds from Issue of Debentures

2,75,000

 

 

Repayment of Bank Loan

(25,000)

 

 

Interest on Debentures

(41,000)

 

 

Interest on Bank Loan

(9,000)

 

 

Dividend on Equity Shares

(90,000)

 

 

Dividend on Preference Shares

(37,500)

 

 

Cash Flows from Financing Activity 

 

97,500

         

Working Notes:

Provision for Tax Account

Dr.

Cr.

Particulars

Amount

(Rs.)

Particulars

Amount

(Rs.)

Bank A/c (Bal. fig.)

62,500

Balance b/d

50,000

Balance c/d

1,00,000

Profit and Loss A/c

1,12,500

 

1,62,500

 

1,62,500

 

 

 

 

 

Calculation of Interest on Debentures

CBSE Class 12 tsgrewal solutions Cash Flow Statements-5102Ex38-1 

Calculation of Interest on Bank Loan

CBSE Class 12 tsgrewal solutions Cash Flow Statements-5102Ex38-2 

Note: Dividend on equity shares (@8%) and on preference shares (@5%) is calculated on their opening balances respectively.

Cash Flow Statements Exercise 5.103

Solution Ex. 39

 

Cash Flow Statement 

 

Particulars

Rs. 

Rs.

A

Cash Flow from Operating Activities

 

 

 

-----------Profit as per Statement of Profit and Loss (Net Profit)

20,000

 

 

-----------Profit Before Taxation

20,000

 

 

Items to be Added:

-

 

 

Operating Profit before Working Capital Adjustments ---

20,000

 

 

----Add: Decrease in Current Assets

 

 

 

------------Stock

80,000

 

 

----Add: Increase in Current Liabilities

 

 

 

-----------Bills Payable

1,20,000

 

 

Cash Generated from Operations

2,20,000

 

 

----Less: Tax Paid

-

 

 

Net Cash Flows from Operating Activities

 

2,20,000

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

-----------Sale of Fixed Assets

3,00,000

 

 

Net Cash Flows from Investing Activities

 

3,00,000

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

-----------Repayment of Long-Term Loan

(5,00,000)

 

 

Net Cash Flows from (used in) Financing Activities

 

(5,00,000)

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

20,000

 

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

 

1,50,000

 

Cash and Cash Equivalents at the end of the period

 

1,70,000

 

Solution Ex. 40

 

Cash Flow Statement 

for the year ended March, 31, 2019 

 

Particulars

Rs. 

Rs.

A

Cash Flow from Operating Activities

 

 

 

-----------Profit as per Statement of Profit and Loss (1,83,000 - 82,000)

1,01,000

 

 

-----------Profit Before Tax

1,01,000

 

 

Items to be Added:

 

 

 

-----------Interest on Debentures

7,500

 

 

Operating Profit before Working Capital Adjustments ---

1,08,500

 

 

----Less: Increase in Current Assets

 

 

 

-----------Inventories

(56,000)

 

 

----Add: Increase in Current Liabilities

 

 

 

-----------Trade Payable

40,000

 

 

----Less: Decrease in Current Liabilities

 

 

 

-----------Other Current Liabilities

(8,000)

 

 

----Add: Decrease in Current Assets

 

 

 

-----------Trade Receivables

38,000

 

 

Cash Generated from Operations

1,22,500

 

 

----Less: Tax Paid

-

 

 

Net Cash Flows from Operating Activities

 

1,22,500

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

-----------Purchase of Fixed Assets

(1,57,000)

 

 

-----------Purchase of Investments 

(13,000)

 

 

Net Cash Flows from (used in)Investing Activities

 

(1,70,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

-----------Proceeds from Issue of Equity Share Capital

50,000

 

 

-----------Proceeds from Issue of 15% Debentures  

30,000

 

 

-----------Interest on Debentures (50,000 x 15%) 

(7,500)

 

 

Net Cash Flows from Financing Activities

 

72,500

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

25,000

 

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

 

70,000

 

Cash and Cash Equivalents at the end of the period

 

95,000

 

Assumption:

Debentures were issued at the end of the accounting period. Accordingly, Interest on debentures has been computed on the opening balance (@15% on 50,000).

Cash Flow Statements Exercise 5.104

Solution Ex. 41

 

Cash Flow Statement

for the year ended March 31, 2019

 

Particulars

Amount

(Rs.)

Amount

(Rs.)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

 

9,000

 

Items to be Added:

 

 

 

Provision for Taxation

32,000

 

 

General Reserve

10,000

 

 

Goodwill

10,000

 

 

Proposed Dividend

45,000

97,000

 

Operating Profit before Working Capital Adjustments

 

1,06,000

 

Less: Increase in Current Assets

 

 

 

 

 Trade Receivables

(33,000)

 

 

Less: Decrease in Current Liabilities

 

 

 

 Other Current Liabilities

(2,000)

 

 

Add: Decrease in Current Assets

 

 

 

 Inventories

18,000

 

 

Add: Increase in Current Liabilities

 

 

 

 Trade Payables

18,000

1,000

 

Cash Generated from Operations

 

1,07,000

 

Less: Tax Paid

 

(28,000)

 

Net Cash Flows from Operating Activities

 

79,000

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Sale of Land and Building

 

53,000

 

 

Purchase of Non-Current Investments

 

(25,000)

 

 

Purchase of Plant and Machinery

 

(1,01,000)

 

Net Cash Used in Investing Activities

 

(73,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

 Proceeds from Issue of Share Capital

 

50,000

 

Dividend Paid

 

(39,000)

 

Net Cash Flow from Financing Activities

 

11,000 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

11,000

 

 

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

 

17,000

 

Cash and Cash Equivalents at the end of the period

 

28,000

 

 

 

 

 

Cash Flow Statements Exercise 5.105

Solution Ex. 42

 

Cash Flow Statement

for the year ended March, 31, 2013 

 

Particulars

Rs. 

Rs.

A

Cash Flow from Operating Activities

 

 

 

Net Profit

 

1,00,000

 

-----------Operating Profit before Working Capital Adjustments ---

 

1,00,000

 

----Add: Decrease in Current Assets  

 

 

 

-----------Inventories

6,000

 

 

-----------Trade Receivables 

54,000

 

 

----Less: Decrease in Current Liabilities

 

 

 

-----------Trade Payable

(8,000)

52,000

 

Cash Generated from Operations

 

1,52,000

 

----Less: Tax Paid 

-

 

 

Net Cash Flows from Operating Activities

 

1,52,000

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

-----------Purchases of Tangible Assets

(2,90,000)

 

 

-----------Purchases on Non Current Investment 

(72,000)

 

 

Net Cash Flows from (used in) Investing Activities

 

(3,62,000)

 

 

 

 

C

Cash From Financing Activities

 

 

 

-----------Issue of Share Capital

2,00,000

 

 

-----------Long Term Borrowings 

(50,000)

 

 

Net Cash Flows from Financing Activities

 

1,50,000

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

(60,000)

 

--Add: Cash and Cash Equivalent in the beginning of the period (70,000 + 1,34,000)

 

2,04,000

 

Cash and Cash Equivalents at the end of the period

 

1,44,000

 

Cash Flow Statements Exercise 5.106

Solution Ex. 43

 

Cash Flow Statement

for the year ended March, 31, 2014 

 

Particulars

Rs. 

Rs.

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

2,00,000

 

 

----------- Profit Before Tax

 

2,00,000

 

Items to be Added:

 

 

 

-----------Amortisation of Goodwill

1,44,000

 

 

-----------Depreciation

1,32,00

 

 

-----------Loss on Sale of Fixed Assets

4,000

2,80,000

 

Operating Profit before Working Capital Adjustments ---

 

4,80,000

 

----Less: Increase in Current Assets

 

 

 

-----------Inventories

16,000

 

 

-----------Trade Receivables 

54,000

 

 

----Less: Decrease in Current Liabilities

 

 

 

-----------Trade Payable

(50,000)

 

 

-----------Short-Term Provisions 

(54,000)

1,74,000

 

Net Cash Flows from Operating Activities

 

3,06,000

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

-----------Sale of Machinery

12,000

 

 

-----------Purchases of Machinery 

(5,88,000)

 

 

Net Cash Flows from (used in) Investing Activities

 

(5,76,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

-----------Proceeds from Issue of Share Capital

2,00,000

 

 

-----------Proceeds from Long Term Borrowings 

1,40,000

 

 

Net Cash Flows from Financing Activities

 

3,40,000

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

70,000

 

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

 

10,50,000

 

Cash and Cash Equivalents at the end of the period

 

11,20,000

Working Notes:

 Machinery Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Balance b/d

20,00,000

By Bank A/c (Sale)

12,000

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

5,88,000

By Depreciation A/c

(on part of machinery) 

32,000

 

 

By Profit and Loss A/c (Loss on sale)

4,000

 

 

By Balance c/d

25,40,000

 

 25,88,000

 

25,88,000

 

 Accumulated Depreciation Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs. 

To Machinery A/c

32,000

By Balance b/d

3,00,000

To Balance c/d

4,00,000

By Profit and Loss A/c

(Dep. Charged during the year)

1,32,000

 

4,32,000

 

4,32,000

 

Cash Flow Statements Exercise 5.107

Solution Ex. 44

Cash Flow Statement

for the year ended March, 31, 2019 

 

Particulars

Rs. 

Rs.

A

Cash Flow from Operating Activities

 

 

 

-----------Profit as per Statement of Profit and Loss (1,20,000 - 25,000)

(95,000)

 

 

Items to be Added:

 Provision for Tax (WN)

 

51,000

 

 

-----------Depreciation (WN) 

25,000

 

 

Profit Before Taxation

(19,000)

 

 

Items to be Added:

 

 

 

-----------Interest Paid

7,500

 

 

Operating Profit before Working Capital Adjustments ---

(11,500)

 

 

----Less: Increase in Current Assets

 

 

 

-----------Trade Payables

(14,000)

 

 

-----------Inventories 

(7,000)

 

 

----Add: Decrease in Current Liabilities

 

 

 

-----------Trade Receivables

 Other Current Assets

14,000

4,000

 

 

Cash Generated from Operations

 

 

 

----Less: Tax Paid

(53,000)

 

 

Net Cash Flows from Operating Activities

 

(67,500)

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

-----------Purchase of Fixed Assets (WN) 

(1,69,000)

 

 

Net Cash Flows from (used in) Investing Activities

 

(1,69,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

-----------Proceeds from Additional Loan

20,000

 

 

-----------Interest Paid

 Proceeds from Share Capital  

(7,500)

2,00,000

 

 

Net Cash Flows from Financing Activities

 

2,12,500

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

(24,000)

 

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

 

49,000

 

Cash and Cash Equivalents at the end of the period

 

25,000 

 

Working Notes:

 Fixed Assets Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Balance b/d

2,15,000

 

 

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

1,69,000

 

 

 

 

By Balance c/d

3,84,000

 

3,84,000

 

3,84,000

 

 Accumulated Depreciation Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs. 

 

 

By Balance b/d

23,000

To Balance c/d

48,000

By Profit and Loss A/c

(Dep. Charged during the year)

25,000

 

48,000

 

48,000

 

Provision for Tax Account

Dr.

Cr.

Particulars

Amount

(Rs.)

Particulars

Amount

(Rs.)

Bank A/c (Bal. fig.)

53,000

Balance b/d

70,000

Balance c/d

68,000

Profit and Loss A/c

51,000

 

1,21,000

 

1,21,000

 

 

 

 

 

 

Cash Flow Statements Exercise 5.108

Solution Ex. 45

 

Cash Flow Statement

for the year ended March, 31, 2019 

 

Particulars

Rs. 

Rs.

A

Cash Flow from Operating Activities

 

 

 

-----------Profit as per Statement of Profit and Loss (1,50,000 - 2,00,000)

(50,000)

 

 

-----------Transfer to General Reserve

3,40,000

 

 

-----------Dividend Paid 

50,000

 

 

-----------Profit Before Taxation

3,40,000

 

 

Items to be Added:

 

 

 

-----------Interest Paid

54,000

 

 

-----------Loss on Sale of Machinery 

14,000

 

 

Operating Profit before Working Capital Adjustments ---

4,08,000

 

 

----Less: Increase in Current Assets

 

 

 

-----------Inventories

(1,00,000)

 

 

-----------Trade Receivables 

(1,00,000)

 

 

----Add: Decrease in Current Liabilities

 

 

 

-----------Trade Payable

3,50,000

 

 

Cash Generated from Operations

5,58,000

 

 

----Less: Tax Paid

-

 

 

Net Cash Flows from Operating Activities

 

5,58,000

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

-----------Sale of Machinery

6,000

 

 

-----------Purchase of Fixed Assets 

(5,20,000)

 

 

Net Cash Flows from (used in) Investing Activities

 

(5,14,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

-----------Proceeds from Issue of Equity Share Capital

5,00,000

 

 

-----------Proceeds from 7% Preference Share Capital 

60,000

 

 

-----------Dividend Paid 

(50,000)

 

 

-----------Redemption of 9% Debentures 

(2,00,000)

 

 

-----------Interest Paid (60,000 x 9%) 

(54,000)

 

 

Net Cash Flows from Financing Activities

 

2,56,000

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

3,00,000

 

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

 

2,00,000

 

Cash and Cash Equivalents at the end of the period

 

5,00,000

 

Working Notes:

 Fixed Assets Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

 

To Balance b/d

15,00,000

By Bank A/c (Sale)

6,000

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

5,20,000

By Profit and Loss A/c (Loss on Sale)

14,000

 

 

By Balance c/d

20,00,000

 

20,20,000

 

20,20,000

 

Cash Flow Statements Exercise 5.109

Solution Ex. 46

 

Cash Flow Statement

for the year ended March, 31, 2015 

 

Particulars

Rs. 

Rs.

A

Cash Flow from Operating Activities

 

 

 

Net Profit before Tax and Extraordinary Items

 

2,50,000

 

Items to be Added:

 

 

 

-----------Depreciation

99,000

 

 

  Intangible Assets w/off

10,000

 

 

  Interest on Debentures (@12% on 5,00,000)

60,000

 

 

-----------Provision for Tax 

50,000

2,19,000

 

Operating Profit before Working Capital Adjustments ---

 

4,69,000

 

----Less: Increase in Current Assets

 

 

 

-----------Inventories 

(62,000)

(62,000)

 

Cash Generated from Operations

 

4,07,000

 

----Less: Tax Paid (Net)

70,000

(70,000)

 

Net Cash Flows from Operating Activities

 

3,37,000

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

----------- Purchase of Non-Current Investments

(25,000)

 

 

-----------Purchase of Fixed Assets 

(3,82,000)

 

 

Net Cash Flows from (used in) Investing Activities

 

(4,07,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

-----------Proceeds from Issue of  Share Capital

1,00,000

 

 

-----------Repayments of Debentures 

(50,000)

 

 

-----------Interest Paid on Debentures 

(60,000)

 

 

-----------Increase in Bank o/d 

1,00,000

 

 

Net Cash Flows from (used in) Financing Activities

 

90,000

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

20,000

 

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

 

1,20,000

 

Cash and Cash Equivalents at the end of the period

 

1,40,000

 

Working Notes:

 Provision for Taxation

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Bank

70,000

By Balance b/d

90,000

To Balance c/d (b/f)

70,000

By PandL

50,000

 

1,40,000

 

1,40,000

 

Also, Cash and Cash Equivalents includes the current investments.

Cash Flow Statements Exercise 5.110

Solution Ex. 47

 

Cash Flow From Operating Activities

for the year ended March, 31, 2019 

 

Particulars

Rs. 

Rs.

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss (4,8,000 - 3,75,000)

1,05,000

 

 

-----------Interim Dividend  

75,000

 

 

Profit Before Tax

1,80,000

 

 

Items to be Added:

 

 

 

-----------Interest Paid on Debentures

27,000

 

 

----------- Depreciation 

60,000

 

 

Operating Profit before Working Capital Adjustments ---

2,67,000

 

 

----Less: Increase in Current Assets

 

 

 

-----------Trade Receivables

75,000

 

 

----Add: Increase in Current Liabilities

 

 

 

-----------Trade Payable

30,000

 

 

----Add: Decrease in Current Assets

 

 

 

-----------Inventories

60,000

 

 

Cash Generated from Operations

2,82,000

 

 

----Less: Tax Paid

-

 

 

Net Cash Flows from Operating Activities

 

2,82,000

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

-----------Sale of Land

60,000

 

 

-----------Purchase of Machinery 

(1,50,000)

 

 

Net Cash Flows (used in) from Investing Activities

 

(90,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

-----------Proceeds from Issue of Share Capital

1,20,000

 

 

-----------Redemption of 10% Debentures 

(1,80,000)

 

 

-----------Interim Dividend Paid 

(75,000)

 

 

-----------Interest Paid on Debentures 

(27,000)

 

 

Net Cash Flows (used in) from Financing Activities

 

(1,62,000)

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

30,000

 

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

 

1,50,000

 

Cash and Cash Equivalents at the end of the period

 

1,80,000

 

Cash Flow Statements Exercise 5.111

Solution Ex. 48

 

Cash Flow Statement

for the year ended March 31, 2012

 

Particulars

Amount

(Rs.)

Amount

(Rs.)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

 

(50,000)

 

Items to be Added:

 

 

 

Depreciation

1,20,000

 

 

Interest

36,000

1,56,000

 

Operating Profit before Working Capital Adjustments

 

1,06,000

 

Less: Increase in Current Assets

 

 

 

 

 Trade Receivables

(80,000)

 

 

 

 Inventories

(1,00,000)

 

 

Add: Increase in Current Liabilities

 

 

 

 Trade Payables

10,000

(1,70,000)

 

Cash Generated from Operations

 

(64,000)

 

Less: Tax Paid

 

NIL

 

Net Cash Flows from Operating Activities

 

(64,000)

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Purchase of Tangible Fixed Assets

 

(4,20,000)

 

Net Cash Used in Investing Activities

 

(4,20,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

 Proceeds from Issue of Share Capital

 

4,00,000

 

 Proceeds from Long Term Borrowings

 

90,000

 

Interest Paid

 

(36,000)

 

Net Cash Flow from Financing Activities

 

4,54,000 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

(30,000)

 

 

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

 

3,70,000

 

Cash and Cash Equivalents at the end of the period

 

3,40,000

 

 

 

 

 

Tangible Fixed Assets Account

Dr.

Cr.

Particulars

Amount

(Rs.)

Particulars

Amount

(Rs.)

Balance b/d

9,00,000

Depreciation A/c

1,20,000

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

4,20,000

Balance c/d

12,00,000

 

13,20,000

 

13,20,000

 

 

 

 

 

Solution Q 49

 

Cash Flow Statement

for the year ended March 31, 2017

 

Particulars

Amount

(Rs.)

Amount

(Rs.)

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

 

1,25,000

 

Items to be Added:

 

 

 

Depreciation

62,500

 

 

Interest

Proposed Dividend

Provision for Tax

15,000

50,000

1,25,000

 

 

2,52,500

 

Operating Profit before Working Capital Adjustments

 

 

3,77,500

 

Less: Increase in Current Assets

 

 

 

 

 Trade Receivables

(50,000)

(50,000)

 

Cash Generated from Operations

 

3,27,500

 

Less: Tax Paid

 

(75,000)

 

Net Cash Flows from Operating Activities

 

2,52,500

 

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

 

Purchase of Tangible Fixed Assets

Short term loans and advances

(2,12,500)

(1,00,000)

 

 

Net Cash Used in Investing Activities

 

(3,12,500)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

 Proceeds from Long Term Borrowings

1,00,000

 

 

Interest Paid

Bank Overdraft

Dividend Paid

(15,000)

50,000

(50,000)

 

 

Net Cash Flow from Financing Activities

 

85,000 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

25,000

 

 

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

 

25,000

 

Cash and Cash Equivalents at the end of the period

 

50,000

 

 

 

 

 

 

Cash Flow Statements Exercise 5.112

Solution Ex. 50

 

 

Cash Flow Statement

for the year ended March, 31, 2013 

 

Particulars

Rs. 

Rs.

A

Cash Flow from Operating Activities

 

 

 

Net Profit

 

2,00,000

 

----Add: Non Operating Expenses

 

 

 

-----------Depreciation on Plant and Machinery

30,000

 

 

----Less: Non Operating Incomes

 

 

 

-----------Profit on Sale of Machinery

(10,000)

20,000

 

Operating Profit Before Working Capital Changes

 

2,20,000

 

----Add: Increase in Current Liabilities

 

 

 

-----------Trade Payables 

1,00,000

 

 

----Add: Decrease in Current Assets

 

 

 

-----------Inventories 

50,000

 

 

----Less: Increase in Current Assets

 

 

 

-----------Trade Receivables

(2,00,000)

(50,000)

 

Cash Generated from Operations

 

1,70,000

 

----Less: Tax Paid

 

-

 

Net Cash Flow from Operating Activities

 

1,70,000

B

Cash Flow from Investing Activities

 

 

 

---  Sale of Plant and Machinery

60,000

 

 

-----------Purchases on Plant and Machinery 

(2,80,000)

 

 

Net Cash Flows from (used in) Investing Activities

 

(2,20,000)

 

 

 

 

C

Cash From Financing Activities

 

 

 

-----------Issue of  Share Capital

1,00,000

 

 

Net Cash Flows from Financing Activities

 

1,00,000

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

50,000

 

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

 

30,000

 

Cash and Cash Equivalents at the end of the period

 

80,000

 

Working Notes:

 Plant and Machinery Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

 

To Balance b/d

3,00,000

By Depreciation A/c

30,000

To P and L A/c (Profit)

10,000

By Bank A/c (Sale)

60,000

To Purchases (b/f)

2,80,000

Balance c/d

5,00,000

 

5,90,000

 

5,90,000

 

Cash Flow Statements Exercise 5.113

Solution Ex. 51

 

Cash Flow Statement

for the year ended March, 31, 2018 

 

Particulars

Rs. 

Rs.

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 Tax 

2,13,000

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 Payable

(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 Flows 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 Flows 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 Flows from Financing Activities

 

6,90,000

 

 

 

 

D

Net Increase or Decrease 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:

1

 Fixed Assets Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Balance b/d

12,00,000

By Bank A/c (Sale)

36,000

To Profit and Loss A/c (Profit on Sale)

6,000

By Depreciation (Bal. Fig.)

2,10,000

 

 

By Balance c/d

9,60,000

 

12,06,000

 

12,06,000

 

2

 Investments Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Balance b/d

1,50,000

By Bank A/c (Sale)

25,500

To Profit and Loss A/c (Profit on Sale)

1,500

By Balance c/d

1,80,000

To Bank A/c (Purchases-b/f)

54,000

 

 

 

2,05,000

 

2,05,500

 

3

 Provision for Taxation Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Bank A/c (Tax Paid- b/f)

2,22,000

By Balance b/d

2,25,000

To Balance c/d

30,000

By Profit and Loss A/c

27,000

 

252,000

 

2,52,000

 

Cash Flow Statements Exercise 5.114

Solution Ex. 52

 

Cash Flow Statement

for the year ended March, 31, 2019 

 

Particulars

Rs. 

Rs.

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss (30,600 - 30,500)

100

 

 

-----------Proposed Dividend

23,000

 

 

-----------Transfer to General Reserve 

10,000

 

 

-----------Provision for Taxation 

33,000

 

 

-----------Profit Before Tax 

 

66,100

 

Items to be Added:

 

 

 

-----------Depreciation on Machinery

14,000

 

 

-----------Depreciation on Building 

10,000

 

 

Operating Profit before Working Capital Adjustments ---

 

90,100

 

----Add: Decrease in Current Assets

 

 

 

-----------Inventories

26,000

 

 

-----------Trade Receivables 

15,800

 

 

----Less: Decrease in Current Liabilities

 

 

 

-----------Trade Payable

(14,800)

 

 

Cash Generated from Operations

 

1,17,100

 

----Less: Tax Paid

(28,000)

 

 

Net Cash Flows from Operating Activities

 

89,100

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

-----------Purchase of Machinery

(33,000)

 

 

-----------Purchase of Goodwill 

(5,000)

 

 

Net Cash Flows from (used in) Investing Activities

 

(38,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

-----------Proceeds from Issue Equity Shares

50,000

 

 

-----------Repayment of Bank Loan 

(70,000)

 

 

-----------Dividend Paid 

(23,000)

 

 

Net Cash Flows from (used in) Financing Activities

 

(43,000)

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

8,100

 

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

 

500

 

Cash and Cash Equivalents at the end of the period

 

8,600

 

Working Note:

1

 Machinery Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Balance b/d

1,50,000

By Depreciation

14,000

To Bank A/c (Purchases-b/f)

33,000

By Balance c/d

1,69,000

 

1,83,000

 

1,83,000

 

2

 Provision for Taxation Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Bank A/c (Tax Paid)

28,000

By Balance b/d

30,000

To Balance c/d

35,000

By Profit and Loss A/c (b/f)

33,000

 

63,000

 

63,000

 

Cash Flow Statements Exercise 5. 115

Solution Ex. 53

 

Cash Flow From Operating Activities

for the year ended March, 31, 2014 

 

Particulars

Rs. 

Rs.

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of PandL

1,40,000

 

 

-----------Provision for Tax 

23,000

 

 

-----------Profit before Tax

 

1,63,000

 

----Add: Non Operating Expenses

 

 

 

-----------Depreciation  

90,000

 

 

-----------Loss on Sale of Fixed Assets 

8,000

98,000

 

Operating Profit Before Working Capital Changes

 

2,61,000

 

----Add: Decrease in Current Assets

 

 

 

-----------Inventory 

22,000

 

 

----Less: Increase in Current Assets

 

 

 

-----------Trade Receivables 

(3,000)

 

 

----Less: Decrease in Current Liabilities

 

 

 

-----------Trade Payables 

(68,000)

(49,000)

 

Cash Generated from Operations

 

2,12,000

 

----Less: Tax Paid

 

(16,000)

 

Net Cash Flow from Operating Activities

 

1,96,000

B

Cash Flow from Investing Activities

 

 

 

-----------Sale of Fixed Assets

2,000

 

 

-----------Purchase of Patents 

(20,000)

 

 

-----------Purchase of Fixed Assets 

(3,50,000)

 

 

Net Cash Flows from (used in) Investing Activities

 

(3,68,000)

 

 

 

 

C

Cash From Financing Activities

 

 

 

-----------Issue of Share Capital

1,00,000

 

 

-----------Long-term Borrowings 

75,000

 

 

-----------Increase in Bank Overdraft 

2,000

 

 

Net Cash Flows from Financing Activities

 

1,77,000

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents  (A+ B + C)

 

5,000

 

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

 

17,000

 

Cash and Cash Equivalents at the end of the period (14,000 + 8,000)

 

22,000

 

Working Note:

1

 Prov. For Tax Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Bank A/c (Tax Paid)

16,000

By Balance b/d

11,000

To Balance c/d

18,000

By Profit and Loss A/c (B/f)

23,000

 

34,000

 

34,000

 

2

 Fixed Assets Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Balance b/d

17,00,000

By Bank A/c- Sales

2,000

To Bank A/c- Purchases

3,50,000

By Acc. Depreciation A/c

40,000

 

 

By Profit and Loss A/c (Loss on Sale)

8,000

 

 

By Balance c/d

20,00,000

 

20,50,000

 

20,50,000

 

3

 Accumulated Depreciation Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Fixed Assets A/c

40,000

By Balance b/d

90,000

To Balance c/d

1,40,000

By Profit and Loss A/c (B/f)

90,000

 

1,80,000

 

1,80,000

 

 

Cash Flow Statements Exercise 5.116

Solution Ex. 54

Cash Flow Statement  

for the year ended March 31, 2016 

Particulars 

Amount 

(Rs.) 

Amount 

(Rs.) 

A 

Cash Flow from Operating Activities 

Profit as per Statement of Profit and Loss 

75,000 

Provision for Tax 

1,00,000 

1,75,000 

Profit Before Taxation 

1,75,000 

Items to be Added: 

Goodwill written off 

25,000 

Debentures interest 

21,000 

Depreciation 

55,000 

Loss on sale of machinery 

5,000 

1,06,000 

Operating Profit before Working Capital Adjustments 

2,81,000 

Less: Increase in Current Assets 

Inventories 

(25,000) 

(25,000) 

Cash Generated from Operations 

2,56,000 

Less: Tax Paid 

(62,500)

Net Cash Flows from Operating Activities 

1,93,500 

B 

Cash Flow from Investing Activities 

Sale of machinery 

15,000 

Purchase of machinery 

(3,55,000) 

Purchase of non-current investment 

(25,000) 

(3,65,000) 

Net Cash Used in Investing Activities 

(3,65,000) 

C 

Cash Flow from Financing Activities 

Proceeds from Issue of Share Capital 

1,00,000 

Increase in Bank Overdraft 

37,500 

Interest on Debentures paid 

(21,000) 

 

Proceeds from Issue of Debentures 

50,000 

Net Cash Flow from Financing Activities 

1,66,500 

D 

Net ↑/↓ in Cash and Cash Equivalents (A+B+C) 

(5,000)

Add: Cash and Cash Equivalent in the beginning of the period (26,500+35,000) 

61,500 

Cash and Cash Equivalents at the end of the period (36,500+20,000) 

56,500 

 

Working Notes: 

Machinery Account 

Dr. 

Cr. 

Particulars 

Amount 

(Rs.) 

Particulars 

Amount 

(Rs.) 

Balance b/d 

5,22,500 

Bank A/c (Sale) 

15,000 

Bank A/c (Purchase- Bal. Fig.) 

3,55,000 

Accumulated Depreciation A/c 

20,000 

Profit and Loss A/c (Loss on Sale) 

5,000 

Balance c/d 

8,37,500 

8,77,500 

8,77,500 

 

Accumulated Depreciation Account 

Dr. 

Cr. 

Particulars 

Amount 

(Rs.) 

Particulars 

Amount 

(Rs.) 

Machinery A/c 

20,000 

Balance b/d 

70,000 

Balance c/d 

1,05,000 

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

55,000 

1,25,000 

1,25,000 

 

Cash Flow Statements Exercise 5.117

Solution Ex. 55

 

Cash Flow Statement

for the year ended March, 31, 2019 

 

Particulars

Rs. 

Rs.

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

1,40,000

 

 

-----------Transfer to General Reserve 

60,000

 

 

-----------Profit Before Tax 

 

2,00,000

 

Items to be Added/Subtracted

 

 

 

-----------Depreciation

1,60,000

 

 

-----------Interest on Debentures 

20,000

 

 

-----------Profit on Sale of Investments 

(16,000)

 

 

-----------Loss on Sale of Fixed Assets 

10,000

1,74,000

 

Operating Profit before Working Capital Adjustments ---

 

3,74,000

 

----Add: Decrease in Current Assets

 

 

 

-----------Trade Receivables 

2,20,000

 

 

----Less: Decrease in Current Liabilities

 

 

 

-----------Trade Payable

(30,000)

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 Asset 

(8,80,000)

 

 

Net Cash Flows from (used in) Investing Activities

 

(9,14,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

-----------Proceeds from Issue Equity Shares

4,00,000

 

 

-----------Proceeds from Issue of Debentures 

1,20,000

 

 

-----------Securities Premium Reserve 

20,000

 

 

-----------Repayment of Bank Loan 

(30,000)

 

 

-----------Interest Paid 

(20,000)

 

 

Net Cash Flows from (used in) Financing Activities

 

4,90,000

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

1,40,000

 

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

 

3,20,000

 

Cash and Cash Equivalents at the end of the period

 

4,60,000

 

Working Note:

1

 Non-Current Investments Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Balance b/d

2,00,000

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

96,000

To Profit and Loss A/c (Profit)

16,000

By Balance c/d

2,70,000

To Bank A/c (Purchases-b/f)

 

 

 

 

3,66,000

 

3,66,000

 

2.

 Fixed Assets Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Balance b/d

14,00,000

By Acc. Depreciation A/c

1,10,000

To Bank A/c (Purchases-b/f)

8,80,000

By Bank A/c

20,000

 

 

By Pand L A/c (Loss)

10,000

 

 

By Balance c/d

21,40,000

 

22,80,000

 

22,80,000

 

3

 Accumulated Depreciation Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Fixed Assets A/c

1,10,000

By Balance b/d

1,90,000

To Balance c/d

2,40,000

By Profit and Loss A/c (b/f)

1,60,000

 

3,50,000

 

3,50,000

 

Cash Flow Statements Exercise 5. 118

Solution Ex. 56

Cash Flow Statement

for the year ended March, 31, 2018 

 

Particulars

Rs. 

Rs.

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

2,00,000

 

 

-----------Preference Dividend 

30,000

 

 

-----------Profit Before Tax 

 

2,30,000

 

Items to be Added/Subtracted

 

 

 

-----------Depreciation on FA

60,000

 

 

-----------Interest on Debentures 

30,000

 

 

-----------Dividend on Equity Shares 

45,000

 

 

-----------Interest on Investments 

(10,000)

 

 

-----------Provision for Doubtful Debts 

10,000

 

 

-----------Loss on Sale of Fixed Assets 

40,000

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 Payable

80,000

80,000

 

Cash Generated from Operations

 

2,75,000

 

----Less: Tax Paid

-

 

 

Net Cash Flows from Operating Activities

 

2,85,000

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

-----------Sale of Fixed Assets

50,000

 

 

  Interest on Investment

10,000

 

 

  Purchase of Investment 

(1,00,000)

 

 

-----------Purchase of Fixed Asset 

(2,50,000)

 

 

Net Cash Flows from (used in) Investing Activities

 

(2,90,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

-----------Proceeds from Issue Equity Shares

2,00,000

 

 

-----------Proceeds from Issue of Debentures 

1,00,000

 

 

-----------Securities Premium Reserve 

10,000

 

 

---------- Dividend paid on preference shares 

(30,000)

 

 

-----------Dividend paid on Equity  

(45,000)

 

 

-----------Redemption of Preference Shares 

(1,00,000)

 

 

-----------Interest on Debentures 

(30,000)

 

 

Net Cash Flows from (used in) Financing Activities

 

1,05,000

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

1,00,000

 

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

 

70,000

 

Cash and Cash Equivalents at the end of the period

 

1,70,000

 

 Fixed Assets Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Balance b/d

6,00,000

By Depreciation A/c

60,000

To Bank A/c (Purchases-b/f)

2,50,000

By Bank A/c

50,000

 

 

By Pand L A/c (Loss)

40,000

 

 

By Balance c/d

7,00,000

 

8,50,000

 

8,50,000

 

Cash Flow Statements Exercise 5. 119

Solution Ex. 57

Cash Flow Statement

for the year ended March, 31, 2019 

 

Particulars

Rs. 

Rs.

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

82,500

 

 

-----------Preference Dividend 

12,000

 

 

  General Reserves (15,000 - 5,000 - 10,000)

0

 

 

-----------Profit Before Tax 

 

94,500

 

Items to be Added/Subtracted

 

 

 

-----------Depreciation on FA

35,000

 

 

-----------Interest on Debentures 

5,000

 

 

-----------Premium on Redemption of Debentures 

2,500

 

 

-----------Interest on Investments 

(1,500)

 

 

-----------Provision for Doubtful Debts 

2,500

 

 

----------- Premium on Redemption of Pref. Shares 

(2,500)

 

 

-----------Loss on Sale of Fixed Assets 

7,500

48,500

 

Operating Profit before Working Capital Adjustments ---

 

1,43,000

 

----Less: Increase in Current Assets

 

 

 

  Trade Receivables

(50,000)

 

 

----Add: Decrease in Current Assets

 

 

 

----------- Inventories

5,000

 

 

----Add: Increase in Current Liabilities

 

 

 

-----------Trade Payable

37,500

(7,500)

 

Cash Generated from Operations

 

1,29,500

 

----Less: Tax Paid

-

 

 

Net Cash Flows from Operating Activities

 

1,35,500

 

 

 

 

B

Cash Flow from Investing Activities

 

 

 

-----------Sale of Fixed Assets

12,500

 

 

  Interest on Investment

1,500

 

 

  Purchase of Investment 

(25,000)

 

 

-----------Purchase of Fixed Asset 

(1,10,000)

 

 

Net Cash Flows from (used in) Investing Activities

 

(1,21,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

-----------Proceeds from Issue Equity Shares

25,000

 

 

-----------Proceeds from Issue of Debentures 

50,000

 

 

-----------Dividend paid on Pref. Shares 

(12,000)

 

 

---------- Premium on red. of preference shares 

(2,500)

 

 

-----------Dividend paid on Equity  

(5,000)

 

 

-----------Redemption of Preference Shares 

(50,000)

 

 

-----------Interest on Debentures 

(5,000)

 

 

Net Cash Flows from (used in) Financing Activities

 

500

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

15,000

 

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

 

25,000

 

Cash and Cash Equivalents at the end of the period

 

40,000

 

 Fixed Assets Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Balance b/d

2,55,000

By Depreciation A/c

12,500

To Bank A/c (Purchases-b/f)

1,10,000

By Bank A/c

35,000

 

 

By Pand L A/c (Loss)

7,500

 

 

By Balance c/d

3,10,000

 

3,65,000

 

3,65,000

 

Cash Flow Statements Exercise 5. 120

Solution Ex. 58

Cash Flow Statement

for the year ended March, 31, 2019 

 

Particulars

Rs. 

Rs.

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 Reserves

30,000

 

 

-----------Profit Before Tax 

 

3,65,000

 

Items to be Added/Subtracted

 

 

 

-----------Depreciation on FA

60,000

 

 

-----------Interest on Debentures (6,000 + 10,400) 

16,400

 

 

-----------Premium on Redemption of Pref. Shares 

5,000

 

 

-----------Interest on Bank Loan (2,000 + 1,600) 

3,600

 

 

-----------Goodwill w/off 

25,000

 

 

-----------Loss on Sale of Fixed Assets 

20,000

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 Payable

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 Investment 

(45,000)

 

 

-----------Purchase of Fixed Asset 

(3,40,000)

 

 

Net Cash Flows from (used in) Investing Activities

 

(3,65,000)

 

 

 

 

C

Cash Flow from Financing Activities

 

 

 

-----------Proceeds from Issue Equity Shares

1,00,000

 

 

-----------Proceeds from Issue of Debentures 

1,10,000

 

 

-----------Securities Premium Reserve 

10,000

 

 

---------- Premium on red. of preference shares 

(5,000)

 

 

-----------Repayment of Bank Loan  

(10,000)

 

 

-----------Redemption of Preference Shares 

(1,00,000)

 

 

  Interest on Bank Loan

(3,600)

 

 

-----------Interest on Debentures 

(16,400)

 

 

Net Cash Flows from (used in) Financing Activities

 

85,000

 

 

 

 

D

Net Increase or Decrease in Cash and Cash Equivalents

 

95,000

 

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

 

40,000

 

Cash and Cash Equivalents at the end of the period

 

1,35,000

 

 Fixed Assets Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Balance b/d

6,20,000

By Depreciation A/c

60,000

To Bank A/c (Purchases- b/f)

3,40,000

By Bank A/c

20,000

 

 

By Pand L A/c (Loss)

20,000

 

 

By Balance c/d

8,60,000

 

9,60,000

 

9,60,000

 

 Prov. For Tax Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs.

To Bank A/c (Tax Paid)

35,000

By Balance b/d

40,000

To Balance c/d

50,000

By Profit and Loss A/c (B/f)

45,000

 

85,000

 

85,000

 

Cash Flow Statements Exercise 5.121

Solution Ex. 59

Cash Flow Statement  

for the year ended March 31, 2019 

Particulars 

Amount 

(Rs.) 

Amount 

(Rs.) 

A 

Cash Flow from Operating Activities 

Profit as per Statement of Profit and Loss 

1,80,000 

Provision for Tax 

54,000 

2,34,000 

Profit Before Taxation 

2,34,000 

Items to be Added: 

 

Finance Cost

 

15,000

Depreciation 

 

80,000 

Operating Profit before Working Capital Adjustments 

3,29,000 

Less: Increase in Current Assets 

Inventories 

(65,000) 

 

 

 Trade Receivables

(38,000)

 

 

Add: Increase in Current Liabilities

 

 

 

  Creditors

47,000

(56,000)

Cash Generated from Operations 

2,73,000 

Less: Tax Paid 

(40,000)

Net Cash Flows from Operating Activities 

2,33,000 

B 

Cash Flow from Investing Activities 

Purchase of Fixed Assets 

(3,00,000) 

Net Cash Used in Investing Activities 

(3,00,000) 

C 

Cash Flow from Financing Activities 

Proceeds from Issue of Share Capital 

 

1,00,000 

Increase in Bank Overdraft 

 

13,000 

Payment of Long Term Loan 

 

(30,000) 

 

Finance Cost 

 

(15,000) 

Net Cash Flow from Financing Activities 

68,000 

D 

Net ↑/↓ in Cash and Cash Equivalents (A+B+C) 

1,000

Add: Cash and Cash Equivalent in the beginning of the period (20,000+45,000) 

65,000 

Cash and Cash Equivalents at the end of the period (34,000+32,000) 

66,000 

 

Fixed Assets Account

Dr.

Cr.

Particulars

Amount

(Rs.)

Particulars

Amount

(Rs.)

Balance b/d

4,00,000

Depreciation A/c

80,000

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

3,00,000

Balance c/d

6,20,000

 

7,00,000

 

7,00,000

 

 

 

 

 

Cash Flow Statements Exercise 5.123

Solution Ex. 60

Cash Flow Statement

for the year ended March, 31, 2019 

 

Particulars

Rs. 

Rs.

A

Cash Flow from Operating Activities

 

 

 

Profit as per Statement of Profit and Loss

8,00,000