Cash Flow Statement Solution of TS Grewal

TS Grewal Double Entry Book Keeping Class 12 Solutions of Analysis of Financial Statement Book.

TS Grewal Accountancy Class 12 Solutions Chapter 5^th Cash Flow Statement are part of TS Grewal Accountancy Class 12 Solutions.

Here we have given TS Grewal Accountancy Class 12 Solutions Chapter 5^th Cash Flow Statement edition – 2019

Board	CBSE
Textbook	NCERT
Book	Analysis of Financial Statements
Volume	III
Class	12th
Subject	Accountancy
Chapter	5TH
Chapter Name	Cash Flow Statement
Number of Questions (Solved)	60
Category	TS Grewal’s Solutions

TS Grewal Accountancy Class 12 Solutions – Chapter 5^th Cash Flow Statement

Question 5:

Following are the extracts from the Balance Sheet of MAH Ltd. as at 31st March, 2019:

Particular	31st March 2019 (₹)	31st March 2018 (₹)
Surplus, i.e., Balance in Statement of Profit and Loss	10,00,000	5,00,000
Dividend Payable	50,000	–

Additional Information: Proposed Dividend for the years ended 31st March, 2018 and 2019 are ₹ 4,00,000 and ₹ 5,00,000 respectively.
Prepare the Note to show Net Profit before Tax and Extraordinary Items.

ANSWER:

Question 6:

Following is the extract from the Balance Sheet of Zee Ltd.:

Particular	31st March 2019 (₹)	31st March 2018 (₹)
Equity Share Capital	8,00,000	8,00,000
10% Preference Share Capital	6,00,000	6,00,000
Surplus i.e., Balance in Statement of Profit and Loss	7,20,000	4,00,000
Unpaid Dividend	20,000	–

Additional Information:
(i) Proposed dividend on equity shares for the year 2017-18 and 2018-19 are ₹ 1,60,000 and ₹ 2,00,000 respectively.
(ii) An Interim Dividend of ₹ 40,000 on Equity Shares was paid.
Calculate Net Profit before Tax and Extraordinary Items.

ANSWER:

Question 7:

Calculate Net Profit before Tax and Extraordinary Items of Premier Sales Ltd. from its Balance Sheet as at 31st March, 2019:

Particulars ulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital		5,00,000	5,00,000
(b) Reserves and Surplus (Surplus, i.e.,  Balance in Statement of Profit and Loss)		2,00,000	1,45,000
2. Current Liabilities
(a) Trade Payables		90,000	50,000
(b) Other Current Liabilities		20,000	10,000
(c) Short-term Provisions	1	50,000	30,000
Total      Total Expenses		8,60,000	7,35,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets		4,50,000	4,00,000
(b) Non-Current Investments		50,000	1,50,000
2. Current Assets		2,60,000	1,85,000
Total		8,60,000	7,35,000

Notes to Accounts

Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
I. Short-term Provisions
Provision for Tax	50,000	30,000

Additional Information:(i) Proposed Dividend for the years ended 31st March, 2018 and 2019 are ₹ 50,000 and ₹ 75,000 respectively.
(ii) Interim Dividend paid during the year was ₹ 10,000.

ANSWER:

Question 8:

From the following information, calculate Net Profit before Tax and Extraordinary Items:

	₹
Surplus, i.e., Balance in Statement of Profit and Loss (Opening)	1,00,000
Surplus, i.e., Balance in Statement of Profit and Loss (Closing)	3,36,000
Dividend paid in the current year	72,000
Interim Dividend Paid during the year	90,000
Transfer to Reserve	1,00,000
Provision for Tax for the current year	1,50,000
Refund of Tax	3,000
Loss due to Earthquake	2,00,000
Insurance Proceeds from Earthquake disaster settlement	1,00,000

ANSWER:

Question 9:

From the following information, calculate Operating Profit before Working Capital Changes:

	₹
Net Profit before Tax and Extraordinary Items	4,47,000
Depreciation on Machinery	84,000
Interest on Borrowings	16,800
Goodwill Amortised	18,600
Loss on Sale of Furniture	18,000
Premium on Redemption of Preference Shares	6,000
Gain (Profit) on Sale of Investments	12,000
Interest and Dividend Received on Investments	27,600

ANSWER:

Question 10:

From the following Balance Sheet of Double Tree Ltd. as at 31st March, 2019 and additional information, calculate Operating Profit before Working Capital Changes:

Particulars ulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital		5,00,000	5,00,000
(b) Reserves and Surplus	1	6,70,000	5,00,000
2. Current Liabilities
(a) Trade Payables		60,000	50,000
(b) Other Current Liabilities (Outstanding Expenses)		20,000	15,000
(c) Short-term Provisions (Provision for Tax)		1,00,000	90,000
Total      Total Expenses		13,50,000	11,55,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets (Tangible)		7,50,000	7,30,000
(b) Non-Current Investments		2,50,000	3,00,000
2. Current Assets		3,50,000	1,25,000
Total		13,50,000	11,55,000

Notes to Accounts

Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
I. Reserve and Surplus
General Reserve	5,00,000	4,00,000
Surplus, i.e., Balance in Statement of Profit and Loss	1,70,000	1,00,000
	6,70,000	5,00,000

Additional Information: Depreciation for the year was ₹75,000.

ANSWER:

Question 11:

Calculate Cash Flow from Operating Activities from the following details:

Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
Surplus, i.e., Balance in Statement of Profit and Loss	80,000	60,000
Trade Receivables	25,000	31,000
Provision for Depreciation	40,000	30,000
Inventories	80,000	60,000
Outstanding Rent	12,000	21,000
Goodwill	30,000	38,000
Prepaid Insurance	1,000	2,000
Trade Payables (Creditors)	13,000	19,000

ANSWER:

Question 12:

Compute Cash Flow from Operating Activities from the following information:

Particulars	₹
Net Profit after Provision for Tax and Payment of Dividend	2,15,000
Provision for Tax	45,000
Final Dividend paid during the year	50,000
Depreciation	25,000
Loss on Sale of Machinery	10,000
Patents Amortised	30,000
Gain on Sale of Land	70,000
Income Tax Refund	30,000

ANSWER:

Question 13:

Calculate Cash Flow from Operating Activities from the following:

(i) Profit form the year is ₹ 7,00,000 after considering the following items:

Particulars	(₹)
Depreciation on Fixed Assets	40,000
Goodwill Amortised	20,000
Gain on Sale of Land	90,000
Appropriation of Profit towards General Reserve	60,000

(ii) Following is the position of Current Assets and Current Liabiliites

Particulars	Closing Balance (₹)	Opening Balance (₹)
Trade Payables	50,000	75,000
Trade Receivables	75,000	60,000
Prepaid Expenses	10,000	18,000

ANSWER:

Question 14:

Grand Hospitality Ltd., reported Net Profit after Tax of ₹ 6,40,000 for the year ended 31st March, 2019. The relevant extract from Balance Sheet as at 31st March, 2019 is:

Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
Inventories	1,15,000	1,25,000
Trade Receivables	1,50,000	1,10,000
Prepaid Expenses	20,000	6,000
Trade Payables	1,10,000	80,000
Provision for Tax	20,000	15,000

Depreciation charged on Plant and Machinery ₹ 55,000, insurance claim received ₹ 50,000, gain (profit) on sale of investment ₹ 20,000 appeared in the Statement of Profit and Loss for the year ended 31st March, 2019. Calculate Cash Flow from Operating Activities.

ANSWER:

Question 15:

Calculate Cash Flow from Operating Activities from the following information.

Particular	31st March 2017 (Rs)
Net Profit (Difference between Closing and Opening Balance of Surplus, i.e., Balance in Statement of Profit and Loss)	8,00,000
Final Dividend paid in the year	1,10,000
Compensation for Natural Disaster credited to Statement of Profit and Loss	75,000
Depreciation	1,50,000
Loss on Sale of Investment	30,000
Gain (Profit) on Sale of Land	90,000
Provision for Tax	1,10,000
Dividend Received	20,000
Decrease in Current Assets (Other than Cash and Cash Equivalents)	40,000
Increase in Current Liablilities	70,000
Decrease in Current Liabilities	10,000
Increase in Current Assets (Other than Cash and Cash Equivalents)	60,000
Income Tax Refund	10,000
Income Tax Paid	1,20,000

ANSWER:

Question 16:

Following information is related to ABC Ltd.:

STATEMMENT OF PROFIT AND LOSS
for the year ended 31st March, 2019

Particulars ulars	Note No.	(₹)
I. Revenue from Operations (Net Sales)		30,00,000
II. Other Income	1	45,000
III. Total Revenue (I + II)		30,45,000
IV. Expenses;
(a) Purchases of Stock-in-Trade		23,03,000
(b) Change in Inventories of Stock-in-Trade	2	(16,000)
(c) Depreciation and Amortisation Expenses		1,85,000
(d) Other Expenses	3	3,29,000
Total Expenses		28,01,000
V. Profit before Tax (III − IV)		2,44,000
VI. Less: Provision for Tax		64,000
VII. Profit after Tax (V – VI)		1,80,000

Notes to Accounts

Particulars	₹
1. Other Income
(a) Dividend Received	5,000
(b) Gain (Profit) on Sale of Plant	40,000
	45,000
2. Change in Inventories of Stock-in-Trade
Opening Inventories	2,84,000
Less: Closing Inventories	3,00,000
	(16,000)
3. Other Expenses
(a) Office Expenses	58,000
(b) Selling Expenses	2,35,000
(c) Loss on Sale of Assets	36,000
	3,29,000

Other Information:	Balance as on 31st March, 2019 (₹)	Balance as on 31st March, 2018 (₹)
Trade Payables	2,78,000	2,50,000
Trade Receivables	4,52,000	4,15,000
Inventories	3,00,000	2,84,000
Office Expenses Outstanding	…	5,000
Selling Expenses Outstanding	25,000	22,000

Calculate Cash Flow from Operating Activities.

ANSWER:

Question 17:

Compute Cash Flow from Operating Activities from the following:

Particulars	Closing Balances (₹)	Opening Balances (₹)
Surplus, i.e., Balance in Statement of Profit and Loss	65,000	60,000
Trade Receivables:
Debtors	67,000	1,02,000
Bills Receivable	1,03,000	62,000
General Reserve	2,37,000	2,02,000
Provision for Depreciation	30,000	20,000
Outstanding Expenses	12,000	30,000
Goodwill	70,000	80,000

An asset costing ₹ 40,000 having book value of ₹ 28,000 was sold for ₹ 36,000.

ANSWER:

Question 18:

Charles Ltd. earned a profit of ₹ 1,00,000 after charging depreciation of 20,000 on assets and a transfer to General Reserve of ₹ 30,000. Goodwill amortised was ₹ 7,000, and gain on sale of machinery was ₹ 3,000. Other information available is (changes in the value of Current Assets and Current Liabilities): trade receivables showed an increase of ₹ 3,000; trade payables an increase of ₹ 6,000; Prepaid expenses an increase of ₹ 200; and outstanding expenses a decrease of ₹ 2,000.
Ascertain Cash Flow from Operating Activities.

ANSWER:

Question 19:

Compute Cash Flow from Operating Activities from the following:
(i) Profit for the year ended 31st March, 2019 is ₹ 10,000 after providing for depreciation of ₹ 2,000.
(ii) Current Assets and Current Liabilities of the business for the year ended 31st March, 2018 and 2019 are as follows:

Particular	31st March 2018 (₹)	31st March 2019 (₹)
Trade Receivables	14,000	15,000
Provision for Doubtful Debts	1,000	1,200
Trade Payables	13,000	15,000
Inventories	5,000	8,000
Other Current Assets	10,000	12,000
Expenses Payables	1,000	1,500
Prepaid Expenses	2,000	1,000
Accrued Income	3,000	4,000
Income Received in Advance	2,000	1,000

ANSWER:

Question 20:

Calculate Cash Flow from Operating Activities from the following information:

INCOME STATEMENT (STATEMENT OF PROFIT AND LOSS)
for the year ended 31st March, 2019

Particulars	Note No.	(₹)
I. Revenue from Operations (Sales)		5,98,000
II. Other Income	1	19,500
III. Total Revnue (I + II)		6,17,500
IV. Expenses;
Cost of Materials Consumed		4,00,000
Change in Inventories of Finished Goods and Work-in-Progress	2	15,000
Employee Benefit Expenses		1,05,000
Depreciation and Amortisation Expenses		15,000
Other Expenses	3	20,000
Total Expenses		5,55,000
V. Profit before Tax (III − IV)		62,500
VI. Tax @ 30%		18,750
VII. Profit after Tax (V − VI)		43,750

Notes to Accounts

Particulars	₹
1. Other Income
Rent	15,000
Gain (Profit) on Sale of Machinery	2,500
Interest on Debentures held as Investments	2,000
	19,500
Changes in Inventories of Finished Goods and Work-in-Progress
(a) Finished Goods	nbsp;
Opening Inventories	37,500
Less: Closing Inventories	25,000
Sub-Total	12,500
(b) Work-in-Progress
Opening Inventories	22,500
Less: Closing Inventories	20,000
Sub-Total	2,500
Total (a + b)	15,000
2. Other Expenses
Office Expenses	12,500
Selling Expenses	6,000
Loss on Sale of Furniture	1,500
	20,000

Current Assets and Current Liabilities	As on 31st March, 2019 (₹)	As on 1st April, 2018 (₹)
Trade Receivables	25,000	20,000
Trade Payables	32,500	35,000
Outstanding Expenses	8,000	5,000
Prepaid Expenses	5,000	3,500

ANSWER:

Question 21:

Mars Ltd. has Plant and Machinery whose written down value on 1st April, 2017 was ₹9,60,000 and on 31st March, 2018 was ₹10,50,000. Depreciation for the year was ₹35,000. In the beginning of the year, a part of plant was sold for ₹45,000 which had a written down value of ₹30,000.
Calculate Cash Flow from Investing Activities

ANSWER:

Question 22:

From the following details. calculate Cash Flow from Investing Activities

Particulars	Closing (₹)	Opening (₹)
Machinery (At Cost)	10,00,000	9,50,000
Accumulated Depreciation	1,50,000	1,10,000
Patents	2,00,000	3,00,000

Additional Information:

1. During the year, machine costing ₹ 90,000 with accumulated depreciation of ₹ 60,000 was sold for ₹ 50,000.
2. Patents written off were ₹ 50,000 while a part of patents were sold at a profit of ₹ 40,000.

ANSWER:

Question 23:

Welprint Ltd. has given the following information:	₹
Machinery as on 1st April, 2018	50,000
Machinery as on 31st March, 2019	60,000
Accumulated Depreciation on 1st April, 2018	25,000
Accumulated Depreciation on 31st march, 2019	15,000

During the year, a machine costing ₹ 25,000 (accumulated depreciation thereon ₹ 15,000) was sold for ₹ 13,000.

Calculate Cash Flow from Investing Activities on the basis of the above information.

ANSWER:

Question 24:

From the following details. Calculate Cash Flow from Investing Activities

Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
Investment in 10% Debentures	10,00,000	5,00,000
Land and Building	15,00,000	9,00,000

Additional Information:
1. Half of the investment held in the beginning of the year were sold at 10% profit.
2. Depreciation on Land and Building was ₹ 50,000 for the year.
3. Interest received on investments ₹ 75,000.

ANSWER:

Question 25:

From the following information, calculate Cash Flow from Investing Activities:

	₹			₹
Purchase of Machine	2,50,000		Purchase of Investments	1,60,000
Purchase of Goodwill	1,00,000		Sale of Patents	40,000
Sale of Machine	35,000		Interest and Dividend Received	10,000
Sale of Investment	50,000

A building was purchased as investment out of surplus which was let out for commercial purposes.
Rent Received ₹20,000.

ANSWER:

Question 26:

From the following Balance Sheet of Combiplast Ltd. for the year ended 31st March, 2019 and additional information, calculate Cash Flow from Investing Activities:

Particulars ulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital		7,50,000	5,00,000
(b) Reserves and Surplus		10,00,000	8,50,000
2. Current Liabilities		4,50,000	3,50,000
Total      Total Expenses		22,00,000	17,00,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets−Tangible Assets	1	12,00,000	12,00,000
(b) Non-Current Investments		5,00,000	3,00,000
2. Current Assets
(a) Trade Receivables		3,00,000	1,10,000
(b) Cash and Cash Equivalents		2,00,000	90,000
Total		22,00,000	17,00,000

Notes to Accounts

Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
I. Tangible Assets
Land	3,00,000	3,00,000
Building	4,00,000	4,00,000
Plant and Machinery	5,00,000	5,00,000
	12,00,000	12,00,000

Additional Information: During the year the company sold machinery at Book Value of ₹ 1,50,000.

ANSWER:

Question 27:

From the following information, calculate Cash Flow from Investing Activities

Particular	31st March, 2019(₹)	31st March, 2018(₹)
Plant and Machinery	10,00,000	8,50,000
Investment (Long-term)	1,00,000	40,000
Land (At Cost)	1,00,000	2,00,000

Additional Information:
1. Depreciation charged on Plant and Machinery ₹ 50,000.
2. Plant and Machinery with a Book Value of ₹ 60,000 was sold for ₹ 40,000.
3. Land was sold at a profit of ₹ 60,000.
4. No investment was sold during the year.

ANSWER:

Question 28:

From the following extracts of a company, calculate Cash Flow from Investing Activities:

Particular	31st March,2019(₹)	31st March,2018(₹)
Goodwill	75,000	1,00,000
Patents	1,00,000	75,000
Land	90,000	1,00,000
Furniture	2,46,000	21,000
Plant and Machinery (Net)	2,00,000	2,00,000
10% Investments	1,80,000	2,00,000
Accrued Interest on Investments	6,000	…

ANSWER:

Question 29:

Calculate Cash Flow from Investing Activities from the following information:
 

Particular	31st March, 2019(₹)	31st March, 2018(₹)
Investment in Land	3,00,000	3,00,000
Shares in Damodar Ltd.	1,50,000	1,50,000
12% Long-term Investments	80,000	50,000
Plant and Machinery	7,50,000	6,00,000
Patents	70,000	1,00,000
Goodwill	1,50,000	1,00,000

Additional Information:
1. A piece of land was purchased as an investment out of surplus. It was let out for commercial purpose and the rent received was ₹ 20,000.
2. Dividend received from Damodar Ltd. @ 12%.
3. Patents written off to the extent of ₹ 20,000. Some patents were sold at a profit of ₹ 10,000.
4. A machine costing ₹ 80,000 (depreciation provided thereon ₹ 30,000) was sold for ₹ 35,000. Depreciation charged during the year was ₹ 70,000.
5. During the year 12% investments were purchased for ₹ 1,00,000 and some investments were sold at a profit of ₹ 10,000. Interest on investments for the year was duly received.

ANSWER:

Question 30:

From the following information, calculate Cash Flow from Investing Activities:

Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
Machinery (At cost)	5,50,000	5,00,000
Accumulated Depreciation	1,70,000	1,00,000

During the year, a machinery costing ₹ 50,000 (accumulated depreciation provided thereon ₹ 20,000) was sold for ₹ 26,000.

ANSWER:

Question 31:

From the following particulars, calculate Cash Flow from Investing Activities

Particulars	Purchased (₹)	Sold (₹)
Machinery	6,20,000	2,00,000
Investments	2,40,000	80,000
Goodwill	1,00,000	…
Patents	…	1,50,000

Additional Information:

1. Interest received on debentures held as investment ₹ 8,000.

2. Interest paid on debentures issued ₹ 20,000.

3. Dividend received on shares held as investment ₹ 20,000.

4. Dividend paid on Equity Share Capital ₹ 30,000.

5. A plot of land was purchased out of the surplus funds for investment purposes and was let out for commercial use. Rent received ₹ 50,000 during the year.

ANSWER:

Question 32:

From the following information, calculate Cash Flow from Financing Activities:

	1st April, 2018 (₹)	31st March, 2019 (₹)
Long-term Loan	2,00,000	2,50,000

During the year, the company repaid a loan of ₹1,00,000.

ANSWER:

Question 33:

From the following information, calculate Cash Flow from Financing Activities:

Particulars	31st March, 2019(₹)	31st March, 2018(₹)
Equity Share Capital	10,00,000	9,00,000
Securities Premium Reserve	2,60,000	2,50,000
12% Debentures	1,00,000	1,50,000

Additional Information: Interest paid on debentures ₹ 18,000.

ANSWER:

Question 34:

From the following extracts of Balance Sheet of Exe Ltd., calculate Cash Flow from Financing Activities:

Particulars	31st March,2019(₹)	31st March,2018(₹)
Equity Share Capital	5,25,000	4,00,000
10% Preference Share Capital	4,00,000	5,50,000
Securities Premium Reserve	2,25,000	1,00,000
12% Debentures	4,00,000	3,00,000

Additional Information:
1. Equity Shares were issued on 31st March, 2019.
2. Interim dividend on Equity Shares was paid @ 15%.
3. Preference Shares were redeemed on 31st March, 2019 at a premium of 5%. Premium paid was debited to Statement of Profit and Loss.
4. 12% Debentures of face value ₹ 1,00,000 were issued on 31st March, 2019.

ANSWER:

Question 35:

From the following information, calculate Cash Flow from Investing and Financing Activities:

Particulars	31stMarch2019(₹)	31stMarch2018(₹)
Machinery (At cost)	50,000	40,000
Accumulated Depreciation	12,000	10,000
Capital	35,000	30,000
Bank Loan	…	10,000

During the year, a machine costing ₹ 10,000 was sold at a loss of ₹ 2,000. Depreciation on machinery charged during the year amounted to ₹ 6,000.

ANSWER:

Question 36:

From the following information, calculation Cash Flow from Operating Activities and Investing Activities:

Particular	31st, March,2018, (₹)	31st, March,2019, (₹)
Surplus, i.e., Balance in Statement of Profit and Loss	2,50,000	10,00,000
Provision for Tax	75,000	75,000
Trade Payables	1,00,000	3,75,000
Current Assets (Trade Receivables and Inventories)	11,50,000	13,00,000
Fixed Assets (Tangible)	21,25,000	23,30,000
Accumulated Depreciation	10,62,500	11,00,000

Additional Information:
1. A machine having book value of ₹ 1,00,000 (Depreciation provided thereon ₹ 1,62,500) was sold at a loss of ₹ 20,000.
2. Tax paid during the year ₹ 75,000.

ANSWER:

Question 37:

XYZ. Ltd. provided the following information, calculate Net Cash Flow from Financing Activities:

Particular	31st March,2019 (₹)	31st March,2018  (₹)
Equity Share Capital	12,00,000	10,00,000
12% Debentures	2,00,000	1,00,000

Additional Information:
1. Interest paid on debentures ₹ 19,000.
2. Dividend paid in the year ₹ 50,000.
3. During the year, XYZ Ltd. issued bonus shares in the ratio of 5 : 1 by captialising reserve.

ANSWER:

Question 38:

From the following information, calculate Net Cash Flow from Operating Activities and Financing Activities:

Particular	31stMarch2019(₹)	31stMarch2018(₹)
Equity Share Capital	13,75,000	11,25,000
5% Preference Share Capital	5,00,000	7,50,000
General Reserve	3,75,000	3,00,000
Surplus i.e., Balance in Statement of Profit and Loss	3,75,000	(3,50,000)
Securities Premium Reserve	25,000	…
Provision for Tax	1,00,000	50,000
Non-current Liabilities (8% Debentures)	6,50,000	3,75,000
Short-term Borrowings (8% Bank Loan)	1,00,000	1,25,000
Trade Payables	5,00,000	2,50,000
Trade Receivables and Inventories	13,00,000	11,50,000

Additional Information:
(i) During the year additional debentures were issued at par on 1st October and Bank Loan was repaid on the same date.
(ii) Dividend on Equity Shares @ 8% was paid on Opening Balance.
(iii) Income tax ₹ 1,12,500 has been provided during the year.
(iv) Preference shares were redeemed at par at the end of the year.
 

ANSWER:

Question 39:

From the following information, prepare Cash Flow Statement:

Particulars	(₹)
Opening Cash and Bank Balances	1,50,000
Closing Cash and Bank Balances	1,70,000
Decrease in Stock	80,000
Increase in Bills Payable	1,20,000
Sale of Fixed Assets	3,00,000
Repayment of Long-term Loan	5,00,000
Net Profit for the Year	20,000

ANSWER:

Question 40:

From the following Balance Sheet of Young India Ltd., prepare Cash Flow Statement:

BALANCE SHEET OF YOUNG INDIA LTD.
as at 31st March, 2019

Particular	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital		2,50,000	2,00,000
(b) Reserves and Surplus: Surplus, i.e., Balance in Statement of Profit and Loss		1,83,000	82,000
2. Non-Current Liabilities
Long-term Borrowings:
15% Debentures		80,000	50,000
3. Current Liabilities
(a) Trade Payables		1,50,000	1,10,000
(b) Other Current Liabilities		12,000	20,000
Total		6,75,000	4,62,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets (Tangible)		2,74,000	1,17,000
(b) Non-Current Investments		68,000	55,000
2. Current Assets
(a) Inventories		2,06,000	1,50,000
(b) Trade Receivables		32,000	70,000
(c) Cash and Cash Equivalents		95,000	70,000
Total		6,75,000	4,62,000

ANSWER:

Question 41:

Following is the Balance Sheet of Fine Products Ltd.as at 31st March, 2019:

Particulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital: Equity Share Capital		3,50,000	3,00,000
(b) Reserves and Surplus	1	57,000	38,000
2. Current Liabilities
(a) Trade Payables		53,000	35,000
(b) Other Current Liabilities		6,000	8,000
(c) Short-term Provisions	2	32,000	28,000
Total		4,98,000	4,09,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets:
(i) Tangible Assets	3	2,48,000	2,00,000
(ii) Intangible Assets (Goodwill)		40,000	50,000
(b) Non-Current Investments		35,000	10,000
2. Current Assets
(a) Inventories		39,000	57,000
(b) Trade Receivables		1,08,000	75,000
(c) Cash and Bank Balance		28,000	17,000
Total		4,98,000	4,09,000

Notes to Accounts

Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
1. Reserves and Surplus
General Reserve	30,000	20,000
Surplus, i.e., Balance in Statement of Profit and Loss	27,000	18,000
	57,000	38,000
2. Short-term Provisions
Provision for Tax	32,000	28,000
3. Tangible Fixed Assets
Land and Building	57,000	1,10,000
Plant and Machinery	1,91,000	90,000
	2,48,000	2,00,000

Note: Proposed dividends on equity for the years ended 31st March, 2018 and 2019 are ₹ 39,000 and ₹ 45,000 respectively.

You are required to prepare Cash Flow Statement for the year ended 31st March, 2019.

ANSWER:

Question 42:

Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheet of Libra Ltd. as at 31st March, 2013 and 31st March 2012:

Particulars ulars	Note No.	31st March, 2013 (₹)	31st March, 2012 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital		8,00,000	6,00,000
(b) Reserves and Surplus	1	4,00,000	3,00,000
2. Non-Current Liabilities
Long-term Borrowings		1,00,000	1,50,000
3. Current Liabilities
(a) Trade Payables		40,000	48,000
Total      Total Expenses		13,40,000	10,98,000
II. ASSETS
1, Non-Current Assets
(a) Fixed Assets:
Tangible Assets		8,50,000	5,60,000
(b) Non-Current Investments		2,32,000	1,60,000
2. Current Assets
(a) Current Investments		50,000	1,34,000
(b) Inventories		76,000	82,000
(c) Trade Receivables		38,000	92,000
(d) Cash and Cash Equivalents		94,000	70,000
Total		13,40,000	10,98,000

Notes to Accounts

Particulars	31st March, 2013 (₹)	31st March, 2012 (₹)
I. Reserves and Surplus
Surplus, i.e., Balance in Statement of Profit and Loss	4,00,000	3,00,000

CASH FLOW STATEMENT WITH ADJUSTMENTS

Question 43:

Following are the Balance Sheets of Solar Power Ltd. as at 31st March, 2014 and 2013:

Solar Power Ltd.

BALANCE SHEET

Particulars ulars	Note No.	31st March, 2014 (₹)	31st March, 2013 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital		24,00,000	22,00,000
(b) Reserves and Surplus	1	6,00,000	4,00,000
2. Non-Current Liabilities
Long-term Borrowings		4,80,000	3,40,000
3. Current Liabilities
(a) Trade Payables		3,58,000	4,08,000
(b) Short-term Provisions		1,00,000	1,54,000
Total      Total Expenses		39,38,000	35,02,000
II. ASSETS
1. Non-Current Assets
Fixed Assets:
(i) Tangible Assets	2	21,40,000	17,00,000
(ii) Intangible Assets	3	80,000	2,24,000
2. Current Assets
(a) Current Investments		4,80,000	3,00,000
(b) Inventories		2,58,000	2,42,000
(c) Trade Receivables		3,40,000	2,86,000
(d) Cash and Cash Equivalents		6,40,000	7,50,000
Total		39,38,000	35,02,000

Notes to Accounts

Particulars ulars	31st March, 2014 (₹)	31st March, 2013 (₹)
1. Revenue and Surplus Surplus, i.e., Balance in Statement of Profit and Loss	6,00,000	4,00,000
2. Tangible Assets
Machinery	25,40,000	20,00,000
Less: Accumulated Deprciation	(4,00,000)	(3,00,000)
Total Expenses	21,40,000	17,00,000
3. Intangible Assets
Goodwill	80,000	2,24,000

Additional Iformation:
Druing the year, a piece of machinery costing ₹48,000 on which accumulated deprciation was ₹ 32,000. was sold for ₹ 12,000.
Prepare Cash Flow Statement.

ANSWER:

Question 44:

Following is the Balance Sheet of Mevanca Limitedas at 31st March, 2017:

Mevanca Limited BALANCE SHEET
as at 31st March, 2017:

Particulars	Note No.	31st March, 2017 (₹)	31st March, 2016 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital		3,00,000	1,00,000
(b) Reserves and Surplus	1	25,000	1,20,000
2. Non-Current Liabilities
Long-term Borrowings	2	80,000	60,000
3. Current Liabilities
(a) Trade Payables		6,000	20,000
(b) Short-term Provisions	3	68,000	70,000
Total		4,79,000	3,70,000
II. ASSETS
1. Non-Current Assets
Fixed Assets	4	3,36,000	1,92,000
2. Current Assets
(a) Inventories		67,000	60,000
(b) Trade Receivables		51,000	65,000
(c) Cash and Cash Equivalents		25,000	49,000
(d) Other Current Assets		…	4,000
Total		4,79,000	3,70,000

 Notes to Accounts

Particulars	31st March, 2017 (₹)	31st March, 2016 (₹)
1. Reserves and Surplus
Surplus, i.e., Balance in Statement of Profit and Loss	25,000	1,20,000
	25,000	1,20,000
2. Long-term Borrowings
10% Long-term Loan	80,000	60,000
	80,000	60,000
3. Short-term Provisions
Provision for Tax	68,000	70,000
	68,000	70,000
4. Fixed Assets
Machinery	3,84,000	2,15,000
Accumulated Depreciation	(48,000)	(23,000)
	3,36,000	1,92,000

Additional Information:
(i) Additional loan was taken on 1st July, 2016.
(ii) Tax of ₹ 53,000 was paid during the year.
Prepare Cash Flow Statement.

ANSWER:

Question 45:

From the following Balance Sheet of Kumar Ltd. as at 31st March, 2019, prepare Cash Flow Statement:

Particulars ulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital	1	16,00,000	10,40,000
(b) Reserves and Surplus,	2	5,50,000	2,60,000
2. Non-Current Liabilities
Long-term Borrowings:
9% Debentures		4,00,000	6,00,000
3. Current Liabilities
Trade Payables		4,50,000	1,00,000
Total      Total Expenses		30,00,000	20,00,000
II. ASSETS
1. Non-Current Assets
Fixed Assets		20,00,000	15,00,000
2. Current Assets
(a) Inventories		3,00,000	2,00,000
(b) Trade Receivables		2,00,000	1,00,000
(c) Cash and Cash Equivalents		5,00,000	2,00,000
Total		30,00,000	20,00,000

Notes to Accounts

Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
1. Share Capital
Equity Share Capital	15,00,000	10,00,000
7% Preference Share Capital	1,00,000	40,000
	16,00,000	10,40,000
2. Reserves and Surplus
General Reserve	4,00,000	60,000
Surplus, i.e., Balance in Statement of Profit and Loss	1,50,000	2,00,000
	5,50,000	2,60,000

Additional Information:
1. During a year, a machinery costing ₹ 20,000 was sold for ₹ 6,000.
2. Dividend paid during the year ₹ 50,000.

ANSWER:

Question 46:

Following was the Balance Sheet of M.M. Ltd. as at 31st March, 2015:

Particulars	Note No.	(₹)	(₹)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital		5,00,000	4,00,000
(b) Reserves and Surplus	1	2,00,000	(50,000)
2. Non-Current Liabilities
Long-term Borrowings	2	4,50,000	5,00,000
3. Current Liabilities
(a) Short-term Borrowings	3	1,50,000	50,000
(b) Short-term Provisions	4	70,000	90,000
Total      Total Expenses		13,70,000	9,90,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets:
(i) Tangible Assets	5	10,03,000	7,20,000
(ii) Intangible Assets	6	20,000	30,000
(b) Non-Current Investments		1,00,000	75,000
2. Current Assets
(a) Current Investments		50,000	60,000
(b) Inventories	7	1,07,000	45,000
(c) Cash and Cash Equivalents		90,000	60,000
Total		13,70,000	9,90,000

Notes to Accounts

Particular		31st March 2015 (₹)	31st March 2014 (₹)
1.	Reserves and Surplus
	Surplus, i.e., Balance in Statement of Profit and Loss	2,00,000	(50,000)
		2,00,000	(50,000)
2.	Long-term Borrowings
	12% Debentures	4,50,000	5,00,000
		4,50,000	5,00,000
3.	Short-term Borrowings
	Bank Overdraft	1,50,000	50,000
		1,50,000	50,000
4.	Short-term Provisions
	Provision for Tax	70,000	90,000
		70,000	90,000
5.	Tangible Assets
	Machinery	12,03,000	8,21,000
	Less: Accumulated Depreciation	(2,00,000)	(1,01,000)
		10,03,000	7,20,000
6.	Intangible Assets
	Goodwill	20,000	30,000
		20,000	30,000
7.	Inventories
	Stock-in-Trade	1,07,000	45,000
		1,07,000	45,000

Additional Information:
1. 12% Debentures were redeemed on 31st March, 2015.
2. Tax ₹ 70,000 was paid during the year.
Prepare Cash Flow Statement.

ANSWER:

Question 47:

The Balance Sheet of Virendra Paper Ltd. as at 31st March, 2019 is given below:

Particulars ulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital		7,20,000	6,00,000
(b) Reserves and Surplus:
Surplus i.e., Balance in Statement of Profit and Loss		4,80,000	3,75,000
2. Non-Current Liabilities
Long-term Borrowings:
10% Debentures		2,70,000	4,50,000
3. Current Liabilities
Trade Payables		1,20,000	90,000
Total		15,90,000	15,15,000
II. ASSETS
1. Non-Current Assets
Fixed Assets (Tangible)	1	7,50,000	7,20,000
2. Current Assets
(a) Inventories		3,60,000	4,20,000
(b) Trade Receivables		3,00,000	2,25,000
(c) Cash and Cash Equivalents		1,80,000	1,50,000
Total		15,90,000	15,15,000

Notes to Accounts

Particulars				31st March, 2019 (₹)	31st March, 2018 (₹)
1. Fixed Assets (Tangible)
Land				2,40,000	3,00,000
	31st March,		31st March,
	2019 (₹)		2018 (₹)
Plant and Machinery	7,50,000		6,00,000
Less: Accumulated Depreciation	2,40,000		1,80,000
	5,10,000		4,20,000	5,10,000	4,20,000
				7,50,000	7,20,000

Additional Information:
1. Interim Dividend of ₹75,000 has been paid during the year.
2. Debenture Interest paid during the year ₹ 27,000.
You are required to prepare Cash Flow Statement.

ANSWER:

Question 48:

Following are the Balance Sheets of Krishtec Ltd. for the years ended 31st March 2012 and 2011:

Particulars ulars	Note No.	31st March, 2012 (₹)	31st March, 2011 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital		12,00,000	8,00,000
(b) Reserves and Surplus (Surplus, i.e., Balance in Statement of Profit and Loss)		3,50,000	4,00,000
2. Non-Current Liabilities
Long-term Borrowings		4,40,000	3,50,000
3. Current Liabilities
(a) Trade Payables		60,000	50,000
Total      Total Expenses		20,50,000	16,00,000
II. ASSETS
1, Non-Current Assets
Fixed Assets:
Tangible Assets		12,00,000	9,00,000
2. Current Assets
(a) Inventories		2,00,000	1,00,000
(b) Trade Receivables		3,10,000	2,30,000
(c) Cash and Cash Equivalents		3,40,000	3,70,000
Total		20,50,000	16,00,000

Prepare a Cash Flow Statement after taking into account the following adjustments:
(a) The company paid Interest ₹36,000 on its long-term borrowings.
(b) Depreciation charged on tangible fixed assets was ₹1,20,000.

ANSWER:

Question 49:

From the following Balance Sheet of JY Ltd. as at 31st March 2017, prepare a Cash Flow Statement:

BALANCE SHEET
as at 31st March, 2017

Particular	Note No.	31st March, 2017 (₹)	31st March, 2016 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital		5,00,000	5,00,000
(b) Reserves and Surplus	1	1,00,000	(25,000)
2. Non-Current Liabilities
Long-term Borrowings	2	2,50,000	1,50,000
3. Current Liabilities
(a) Short-term Borrowings	3	1,50,000	1,10,000
(b) Short-term Provisions	4	1,25,000	75,000
Total		11,25,000	8,00,000
II. ASSETS
1. Non-Current Assets
Fixed Assets–Tangible	5	6,00,000	4,50,000
2. Current Assets
(a) Trade Receivables		2,75,000	2,25,000
(b) Cash and Cash Equivalents		50,000	25,000
(c) Short-term Loans and Advances		2,00,000	1,00,000
Total		11,25,000	8,00,000

Notes to Accounts

Particular		31st March, 2017 (₹)	31st March, 2016 (₹)
1.	Reserves and Surplus
	Surplus, i.e., Balance in Statement of Profit and Loss	1,00,000	(25,000)
		1,00,000	(25,000)
2.	Long-term Borrowings
	10% Debentures	2,50,000	1,50,000
		2,50,000	1,50,000
3.	Short-term Borrowings
	Bank Overdraft	1,50,000	1,00,000
		1,50,000	1,00,000
4.	Short-term Provisions
	Provision for Tax	1,25,000	75,000
		1,25,000	75,000
5.	Tangible Assets
	Machinery	7,37,500	5,25,000
	Accumulated Depreciation	(1,37,500)	(75,000)
		6,00,000	4,50,000

Note: Proposed Dividend for the years ended 31st March, 2016 and 2017 are ₹ 50,000 and ₹ 75,000 respectively.
Additional Information: ₹ 1,00,000, 10% Debentures were issued on 31st March, 2017.

ANSWER:

Question 50:

Prepare Cash Flow Statement from the following Balance Sheet:

Particulars ulars	Note No.	31st March, 2013 (₹)	31st March, 2012 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital		6,00,000	5,00,000
(b) Reserves and Surplus	1	4,00,000	2,00,000
2. Current Liabilities
(a) Trade Payables		2,80,000	1,80,000
Total      Total Expenses		12,80,000	8,80,000
II. ASSETS
1, Non-Current Assets
(a) Fixed Assets:
Plant and Machinery		5,00,000	3,00,000
2. Current Assets
(a) Inventories		1,00,000	1,50,000
(b) Trade Receivables		6,00,000	4,00,000
(c) Cash and Cash Equivalents		80,000	30,000
Total		12,80,000	8,80,000

Notes to Accounts

Particulars	31st March, 2013 (₹)	31st March, 2012 (₹)
I. Reserves and Surplus
Surplus, i.e., Balance in Statement of Profit and Loss	4,00,000	2,00,000

Additional Information:
(i) An old machinery having book value of ₹50,000 was sold for ₹60,000.
(ii) Depreciation provided on Machinery during the year was ₹30,000.

ANSWER:

Question 51:

Following is the summarised Balance Sheet of Philips India Ltd. as at 31st March 2018:

Particulars ulars	Note No.	31st March, 2018 (₹)	31st March, 2017 (₹)
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      Total Expenses		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, 2018 (₹)	31st March, 2017 (₹)
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. Provistion 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 rofits 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:

Question 52:

From the following Balance Sheet, prepare Cash Flow Statement:

Particulars ulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital		2,50,000	2,00,000
(b) Reserves and Surplus,	1	90,600	80,500
2. Current Liabilities
(a) Short-term Borrowings: Bank Loan		…	70,000
(b) Trade Payables		1,35,200	1,50,000
(c) Short-term Provisions: Provision for Tax		35,000	30,000
Total      Total Expenses		5,10,800	5,30,500
II. ASSETS
1. Non-Current Assets
Fixed Assets:
(i) Tangible Assets	2	3,59,000	3,50,000
(ii) Intangible Assets: Goodwill		5,000	…
2. Current Assets
(a) Inventories		74,000	1,00,000
(b) Trade Receivables		64,200	80,000
(c) Cash and Cash Equivalents		8,600	500
Total		5,10,800	5,30,500

Notes to Accounts

Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
I. Reserves and Surplus
General Reserve	60,000	50,000
Surplus, i.e., Balance in Statement of Profit and Loss	30,600	30,500
	90,600	80,500
2. Tangible Assets
Land and Building	1,90,000	2,00,000
Plant and Machinery	1,69,000	1,50,000
	3,59,000	3,50,000

Additional Information:
1. Proposed Dividend for the year ended 31st March, 2019 was ₹ 25,000 and for the year ended 31st March, 2018 was ₹ 14,000.
2. Interim Dividend paid during the year was ₹ 9,000.
3. Income Tax paid during the year was ₹ 28,000.
4. Machinery was purchased during the year ₹ 33,000.
5. Depreciation to be charged on machinery ₹ 14,000 and building ₹ 10,000.

ANSWER:

Question 53:

From the following Balance Sheet of Akash Ltd. as at 31st March 2014:

Particulars	Note No.	31st March, 2014 (₹)	31 March, 2013 (₹)
I. EQUITY AND LIABILITES 1. Shareholders’ Funds
(a) Share Capital		15,00,000	14,00,000
(b) Reserves and Surplus	1	2,50,000	1,10,000
2. Non-Current Liabilities
Long-term Borrowings		2,00,000	1,25,000
3. Current Liabilities
(a) Short-term Borrowings	2	12,000	10,000
(b) Trade Payables		15,000	83,000
(c) Short-term Provisions	3	18,000	11,000
Total		19,95,000	17,39,000
II. ASSETS
1. Non-Current Assets
Fixed Assets:
(i) Tangible Assets	4	18,60,000	16,10,000
(ii) Intangible Assets	5	50,000	30,000
2. Current Assets
(a) Current Investments		8,000	5,000
(b) Inventories		37,000	59,000
(c) Trade Receivables		26,000	23,000
(d) Cash and Cash Equivalents		14,000	12,000
Total		19,95,000	17,39,000

Notes to Accounts :
Particulars	31st March, 2014 (₹)	31st March, 2013 (₹)
1. Reserves and Surplus
Surplus, i.e., Balance in Statement of Profit and Loss	2,50,000	1,10,000
2. Short-term Borrowings :
Bank Overdraft	12,000	10,000
3. Short-term Provisions
Provision for Tax	18,000	11,000
4. Tangible Assets :
Machinery	20,00,000	17,00,000
Less: Accumulated Depreciation	(1,40,000)	(90,000)
	18,60,000	16,10,000
5. Intangible Assets
Patents	50,000	30,000

Additional Information :  

(i) Tax paid during the year amounted to ₹ 16,000.
(ii) machine with a net book value of ₹ 10,000 (Accumulated Depreciation ₹ 40,000) was sold for ₹ 2,000.Prepare Cash Flow Statement.

ANSWER:

Question 54:

From the following Balance Sheet of SRS Ltd. and the additional information as on 31st March, 2016, prepare a Cash Flow Statement:

SRS Ltd.

BALANCE SHEET as on 31st March, 2016

Particulars ulars	Note No.	31st March, 2016 (₹)	31st March, 2015 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital		4,50,000	3,50,000
(b) Reserves and Surplus	1	1,25,000	50,000
2. Non-Current Liabilities
Long-term Borrowings	2	2,25,000	1,75,000
3. Current Liabilities
(a) Short-term Borrowingst	3	75,000	37,500
(b) Shrot-term Provisions	4	1,00,000	62,500
Total      Total Expenses		9,75,000	6,75,000
II. ASSETS
1, Non-Current Assets
(a) Fixed Assets:
(i) Tangible	5	7,32,500	4,52,500
(ii) Intangible	6	50,000	75,000
(b) Non-current Investments		75,000	50,000
2. Current Assets
(a) Current Investments		20,000	35,000
(b) Inventories	7	61,000	36,000
(c) Cash and Cash Equivalents		36,500	26,500
Total		9,75,000	6,75,000

Notes to Accounts

Particular		31st March 2016 (₹)	31st March 2015 (₹)
1.	Reserves and Surplus
	Surplus, i.e., Balance in Statement of Profit and Loss	1,25,000	50,000
2.	Long-term Borrowings
	12% Debentures	2,25,000	1,75,000
3.	Short-term Borrowings
	Bank Overdraft	75,000	37,500
4.	Short-term Provisions
	Provision for Tax	1,00,000	62,500
5.	Tangible Assets
	Machinery	8,37,500	5,22,500
	Accumulated Depreciation	(1,05,000)	(70,000)
		7,32,500	4,52,500
6.	Intangible Assets
	Goodwill	50,000	75,000
7.	Inventories
	Stock-in-Trade	61,000	36,000

Additional Information:
(i) ₹50,000, 12% Debentures were issued on 31st March, 2016.
(ii) During the year, a piece of machinery costing ₹40,000, on which accumulated depreciation was ₹20,000, was sold at a loss of ₹5,000.

ANSWER:

Question 55:

From the following Balance Sheet of Mishi Ltd. as at 31st March, 2019, prepare Cash Flow Statement:

Particulars ulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
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      Total Expenses		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, 2019 (₹)	31st March, 2018 (₹)
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:

Question 56:

From the following Balance Sheet and information of Sun Ltd., prepare Cash Flow Statement:

Particulars ulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital	1	7,00,000	6,00,000
(b) Reserves and Surplus	2	4,10,000	2,00,000
2. Non-Current Liabilities
Long-term Borrowings: 10% Debentures		3,00,000	2,00,000
3. Current Liabilities
(a) Trade Payables		1,40,000	60,000
Total      Total Expenses		15,50,000	10,60,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets−Tangible		7,00,000	6,00,000
(b) 10% Investments		2,00,000	1,00,000
2. Current Assets
(a) Current Investments		90,000	50,000
(b) Inventories		2,00,000	1,00,000
(c) Trade Receivables	3	2,80,000	1,90,000
(d) Cash and Cash Equivalents		80,000	20,000
Total		15,50,000	10,60,000

Notes to Accounts :
Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
1. Share Capital
Equity Share Capital	5,00,000	3,00,000
10% Preference Share Capital	2,00,000	3,00,000
	7,00,000	6,00,000
2. Reserves and Surplus
Securities Premium Reserve	10,000	…
Surplus i.e., Balance in Statement of Profit and Loss	4,00,000	2,00,000
	4,10,000	2,00,000
3. Trade Receivables
Sundry Debtors	3,00,000	2,00,000
Less: Provision for Doubtful Debts	20,000	10,000
	2,80,000	1,90,000

You are informed that during the year:

(i)	Proposed Dividend:	31st March, 2019	31st March, 2018
	Equity Share Capital	Nil	Nil
	Preference Share Capital	10%	10%

(ii) A machine with a book value of ₹ 90,000 was sold for ₹ 50,000;
(iii) Depreciation charged during the year ₹ 60,000;
(iv) Debentures were issued on 1st April, 2018;
(v) Investments were purchased on 31st March, 2019;
(vi) Preference shares were redeemed on 31st December,2018;
(vii) An interim dividend @ 15% was paid on equity shares on 31st December, 2018;
(viii) Fresh equity shares were issued at a premium of 5% on 31st March, 2019.

ANSWER:

Question 57:

From the following Balance Sheet and information of Volvo Ltd., prepare Cash Flow Statement:

Particulars ulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital	1	2,25,000	2,50,000
(b) Reserves and Surplus	2	1,27,500	50,000
2. Non-Current Liabilities
Long-term Borrowings: 10% Debentures		1,00,000	50,000
3. Current Liabilities
(a) Trade Payables		72,500	35,000
(b) Other Current Liabilities−Premium on Redemption of Preference Shares		2,500	5,000
Total      Total Expenses		5,27,500	3,90,000
II. ASSETS
1, Non-Current Assets
(a) Fixed Assets−Tangible		3,10,000	2,55,000
(b) Non-Current Investments (10% Investments)		40,000	15,000
2. Current Assets
(a) Current Investments		5,000	4,000
(b) Inventories		45,000	50,000
(c) Trade Receivables	3	92,500	45,000
(d) Cash and Cash Equivalents	4	35,000	21,000
Total		5,27,500	3,90,000

Notes to Accounts

Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
1. Share Capital
Equity Share Capital	1,75,000	1,50,000
12% Preference Share Capital	50,000	1,00,000
	2,25,000	2,50,000
2. Reserves and Surplus
General Reserve	10,000	15,000
Surplus, i.e., Balance in Statement of Profit and Loss	1,17,500	35,000
	1,27,500	50,000
3. Trade Receivables
Sundry Debtors	1,00,000	50,000
Less: Provision for Doubtful Debts	7,500	5,000
	92,500	45,000
4. Cash and Cash Equivalents
Cash in Hand	12,500	6,000
Cash in Bank	22,500	15,000
	35,000	21,000

Additional Information :  
(i) You are informed during the year:

Proposed Dividend	31st March, 2019(₹)	31st March, 2018(₹)
Equity Share Capital	NIL	NIL
Preference Share Capital	12%	12%

 (ii) A machine with a book value of ₹20,000 was sold for ₹12,500;
(iii) Depreciation charged during the year was ₹35,000;
(iv) Preference shares were redeemed on 31st March, 2018 at a premium of 5%;
(v) An Interim dividend of ₹5,000 was paid on equity shares on 31st March, 2019 out of General Reserve;
(vi) Fresh equity shares were Issued on 31st March, 2019; and
(vii) Additional Investments were purchased on 31st March, 2019.

ANSWER:

Question 58:

From the following Balance Sheet of Samta Ltd., as at 31st March, 2019, prepare Cash Flow Statement:

Particulars ulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital	1	7,50,000	7,50,000
(b) Reserves and Surplus	2	3,10,000	(20,000)
2. Non-Current Liabilities
Long-term Borrowings (8% Debentures)		2,60,000	1,50,000
3. Current Liabilities
(a) Short-term Borrowings (8% Bank Loan)		40,000	50,000
(b) Trade Payables		1,20,000	1,10,000
(c) Short-term Provisions	3	50,000	40,000
Total      Total Expenses		15,30,000	10,80,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets:
(i) Tangible Assets (Net)		8,60,000	6,20,000
(ii) Intangible Assets (Goodwill)		15,000	40,000
(b) Non-Current Investments		1,25,000	80,000
2. Current Assets
(a) Current Investments		5,000	15,000
(b) Inventories		1,95,000	1,00,000
(c) Trade Receivables		2,00,000	2,00,000
(d) Cash and Cash Equivalents		1,30,000	25,000
Total		15,30,000	10,80,000

Notes to Accounts

Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
1. Share Capital
Equity Share Capital	5,50,000	4,50,000
12% Preference Share Capital	2,00,000	3,00,000
	7,50,000	7,50,000
2. Reserves and Surplus
Securities Premium Reserve	10,000	…
General Reserve	1,50,000	1,20,000
Surplus, i.e., Balance in Statement of Profit and Loss	1,50,000	(1,40,000)
	3,10,000	(20,000)
4. Short-term Provisions
Provision for Tax	50,000	40,000

Additional Information :  
(i) During the year a piece of machinery costing ₹ 60,000 on which depreciation charged was ₹ 20,000 was sold at 50% of its book value. Depreciation provided on tangible Assets ₹ 60,000;
(ii) Income tax ₹ 45,000 was provided;
(iii) Additional Debentures were issued at par on 1st October, 2018 and Bank Loan was repaid on the same date;
(iv) At the end of the year Preference Shares were redeemed at a premium of 5%.

ANSWER:

Question 59:

Prepare Cash Flow Statement from the following:

STATEMENT OF PROFIT AND LOSS for the year ended 31st March, 2019