12th | Ts grewal 2021-2022 Question 33 to 36 | Cash Flow Statement

Page No 5.103:

Question 33:


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

Particulars

31st March,
2021

( `)

31st March,
2020

( `)

Equity Share Capital

10,00,000

9,00,000

Securities Premium Reserve

2,60,000

2,50,000

12% Debentures

1,00,000

1,50,000

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

Answer:

Cash Flow from Financing Activities

 

Particulars

 ( `)

 ( `)

 

Proceeds from Issue of Equity Shares

1,10,000

 

 

Redemption of 12% Debentures

(50,000)

 

 

Interest Paid

(18,000)

 

 

Net Cash Flows from Financing Activities

 

42,000

 

Page No 5.103:

Question 34:


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

Particulars

31st March,

2021

( `)

31st March,

2020

( `)

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, 2021.
2. Interim dividend on Equity Shares was paid @ 15%.
3. Preference Shares were redeemed on 31st March, 2021 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, 2021.

Answer:

Cash Flow from Financing Activities

for the year ended March 31, 2021
 

 

Particulars

Amount

( `)

Amount

( `)

 

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

 

 

 

 

 

Page No 5.103:

Question 35:


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

Particulars

31st March

2021

( `)

31st March

2020

( `)

Machinery (At cost)

50,000

40,000

Accumulated Depreciation

12,000

10,000

Capital

35,000

30,000

Bank Loan

...

10,000

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

Answer:

Cash Flow Statement

for the year ended March 31, 2021

 

Particulars

Amount

( `)

Amount

( `)

 

Cash Flow from Investing Activities

 

 

 

Purchase of Machinery

(20,000)

 

 

Sale of Machine

4,000

 

 

Net Cash from (used in) Investing Activities

 

(16,000)

 

 

 

 

 

Cash Flow from Financing Activities

 

 

 

Proceeds from Issue of Equity Shares

5,000

 

 

Repayment of Bank Loan

(10,000)

 

 

Net Cash from (used in) Financing Activities

 

(5,000)

 

 

 

 

Working Notes:

Machinery Account

Dr.

Cr.

Particulars

Amount

( `)

Particulars

Amount

( `)

Balance b/d

40,000

Accumulated Depreciation A/c

4,000

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

20,000

Bank A/c (Sale)

4,000

 

 

Profit and Loss A/c (Loss on Sale)

2,000

 

 

Balance c/d

50,000

 

60,000

 

60,000

 

 

 

 

 

Accumulated Depreciation Account

Dr.

Cr.

Particulars

Amount

( `)

Particulars

Amount

( `)

To Machinery A/c (Bal. Fig.)

4,000

Balance b/d

10,000

Balance c/d

12,000

By Profit and Loss A/c (Dep. charged during the year)

6,000

 

16,000

 

16,000

 

 

 

 

 

Page No 5.104:

Question 36:


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

Particular

31st, March,

2020,

( `)

31st, March,

2021,

( `)

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:

Cash flow Statement 

for the year ended 31st March, 2021

Particulars

( `)

( `)

A. Cash Flow from Operating Activities

 

 

Net Profit as per Statement of Profit & Loss

7,50,000

 

Add: Provision for Tax made

75,000

 

Net Profit before Tax and Extraordinary Items

8,25,000

 

Add: Depreciation charged during the year

2,00,000

 

Add: Loss on Sale of Machine

20,000

 

Net Profit before working Capital changes

10,45,000

 

Add: Increase in Trade Payables

2,75,000

 

Less: Increase in Current Assets

(1,50,000)

 

Net Profit before Tax

11,70,000

 

Less: Tax Paid during the year

75,000

 

Cash Flow from Operating Activities

 

10,95,000

B. Cash flow from Investing Activities

 

 

Purchase of Fixed Asset

(4,67,500)

 

Sale of Machine

80,000

 

Cash used in Investing Activities

 

3,87,500

 

Dr.

Accumulated Depreciation A/c

Cr.

Date

Particulars

Amount

( `)

Date

Particulars

Amount

( `)

2021

 

 

2020

 

 

March 31

To Fixed Asset A/c
(Depreciation on Mach. Sold)

1,62,500

April 01

By Balance b/d

10,62,500

March 31

To balance c/d

11,00,000

 

By Statement of Profit & Loss A/c
(Bal. Fig.)

2,00,000

 

 

 

 

 

 

 

 

12,62,500

 

 

12,62,500

 

 

 

 

 

 

 

Dr.

Fixed Assets A/c

Cr.

Date

Particulars

Amount

( `)

Date

Particulars

Amount

( `)

2020

 

 

2021

 

 

April 01

To balance b/d

21,25,000

March 31

By Accumulated Depreciation A/c

1,62,500

2021

 

 

March 31

By Statement of Profit & Loss A/c- Loss

20,000

 

 

 

March 31

By Bank A/c (1,00,000 – 20,000)

80,000

March 31

To Cash/Bank A/c

4,67,500

March 31

By balance c/d

23,30,000

 

 

 

 

 

 

 

 

25,92,500

 

 

25,92,500