Question 45:
Following
is the Balance Sheet of Mevanca Limited as
at 31st March, 2017:
|
Mevanca
Limited BALANCE SHEET |
|||
|
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:
|
Cash flow Statement |
||
|
for the year ended 31st March, 2017 |
||
|
Particulars |
Amount |
Amount |
|
A. Cash Flow from Operating
Activities |
|
|
|
Net Loss as per Statement of
Profit and Loss |
(95,000) |
|
|
Add:
Provision for Tax made (WN1) |
51,000 |
|
|
Net loss before Tax and
Extraordinary Items |
(44,000) |
|
|
Add:
Depreciation charged during the year |
25,000 |
|
|
Interest paid on loan (WN2) |
7,500 |
|
|
Net Loss before Working Capital
Changes |
(11,500) |
|
|
Add:
Decrease in Trade Receivables |
14,000 |
|
|
Decrease in other Current Assets |
4,000 |
|
|
Less:
Decrease in Trade Payables |
(14,000) |
|
|
Increase In Inventories |
(7,000) |
|
|
Net Loss before Tax |
(14,500) |
|
|
Add:
Tax to be paid during the year |
(53,000) |
|
|
Cash used in Operating Activities |
|
(67,500) |
|
B. Cash Flow from Investing
Activities |
|
|
|
Purchase of Machinery |
(1,69,000) |
|
|
Cash used in Investing Activities |
|
(1,69,000) |
|
C. Cash Flow from Financing
Activities |
|
|
|
Proceeds from Issue of Shares |
2,00,000 |
|
|
Proceeds from additional loan
taken |
20,000 |
|
|
Interest paid on long-term loan |
(7,500) |
|
|
Cash flow from Financing
Activities |
|
2,12,500 |
|
Net decrease in Cash and Cash
Equivalents |
|
(24,000) |
|
Add:
Opening Balance of Cash and Cash Equivalent |
|
49,000 |
|
Cash and Cash Equivalents at the
end of the year |
|
25,000 |
|
|
|
|
Working Notes:
1.
|
Dr. |
Provision for Tax A/c |
Cr. |
||||
|
Date |
Particulars |
Amount (
`) |
Date |
Particulars |
Amount (
`) |
|
|
2017 |
|
|
2016 |
|
|
|
|
March 31 |
To Cash A/c- Tax Paid |
53,000 |
April 01 |
By balance b/d |
70,000 |
|
|
March 31 |
To balance c/d |
68,000 |
2017 |
|
|
|
|
|
|
|
March 31 |
By Statement of Profit & Loss
A/c |
51,000 |
|
|
|
|
|
|
|
|
|
|
|
|
1,21,000 |
|
|
1,21,000 |
|
|
|
|
|
|
|
|
|
2. Interest on Loan
Interest on Loan taken on 1st July, 2016= `. 20,000×10/100×9/12= `. 1,500
Interest on Loan as on 31st March, 2016= `. 60,000×10100= `. 6,000
Total Interest Paid on Loan= `. (6,000+1,500)= `. 7,500
Question
46:
Following is the Balance sheet of X Ltd. as at 31st March, 2018;
BALANCE SHEET OF X LTD. as at 31st March, 2018
|
Particulars |
Note
No. |
31st March, 2018 (`) |
31st March, 2017 (`) |
|
I. EQUITY AND LIABILITIES 1. Shareholders’ Funds (a)
Share Capital (b)
Reserves and Surplus 2. Non-Current Liabilities Long-term
Borrowings 3. Current Liabilities (a)
Short-term Borrowings (b)
Short-term Provisions |
1 2 3 4 |
19,00,000 6,00,000 5,00,000 1,70,000 2,00,000 |
17,00,000 3,00,000 4,00,000 1,75,000 1,65,000 |
|
Total |
|
33,70,000 |
27,40,000 |
|
ASSETS 1. Non-Current Assets (a) Fixed Assets: (i) Tangible Assets (ii)
Intangible Assets (b)
Non-current Investments 2. Current Assets (a)
Current Investments (b)
Inventories (c)
Cash and Cash Equivalents |
5 6 |
24,00,000 2,00,000 3,00,000 1,40,000 2,60,000 70,000 |
19,00,000 3,00,000 2,00,000 1,70,000 1,30,000 40,000 |
|
Total |
|
33,70,000 |
27,40,000 |
Notes to Accounts
|
Particulars |
31st
March, 2018 (`) |
31st
March, 2017 (`) |
Surplus,
i.e., Balance in Statement of Profit and Loss |
6,00,000 |
3,00,000 |
|
|
6,00,000 |
3,00,000 |
|
2,
Long-term Borrowings 12% Debentures |
5,00,000 |
4,00,000 |
|
|
5,00,000 |
4,00,000 |
|
3.Short-term
Borrowings Bank
Overdraft |
1,70,000 |
1,75,000 |
|
|
1,70,000 |
1,75,000 |
|
Å,
Short-term Provisions Provision
for Tax |
2,00,000 |
1,65,000 |
|
|
2,00,000 |
1,65,000 |
|
5.
Tangible Assets Machinery Less:
Accumulated Depreciation |
26,00,000 (2,00,000) |
20,00,000 (1,00,000) |
|
|
24,00,000 |
19,000,000 |
|
6.
Intangible Assets Goodwill |
2,00,000 |
3,00,000 |
|
|
2,00,000 |
3,00,000 |
Additional
Information:
(i) ` 1,00,000, 12% Debentures were issued on 1st April, 2017.
(ii) During the year, a piece of machinery costing ` 80,000 on which accumulated depreciation was ` 40,000 was sold at a gain of `10,000.
Prepare a Cash Flow Statement. (CBSE 2019C)
Answer:
|
Cash Flow Statement |
||
|
Particulars |
Detail |
` |
|
I.
Cash
flow from operating activities Net profit as per
Statement of profit and loss (6,00,000-3,00,000) Add: Provision for Tax |
|
3,00,000 2,00,000 |
|
Net profit before
tax and extraordinary items Add: Depreciation on Machinery Goodwill amortised Interest on debentures |
1,40,000 1,00,000 60,000 |
5,00,000 , 3,00,000 |
|
Less: Gain on Sale of machinery |
|
8,00,000 (10,000) |
|
Operating Profit
Before Working Capital Changes Less: Inventories |
|
7,90,000 (1,30,000) |
|
Cash Generated from
operation |
|
6,60,000 |
|
Less: Tax paid |
|
(1,65,000) |
|
Cash flow from
operating activities |
|
4,95,000 |
|
II.
Cash
flow from Investing activities Proceeds From sale of Machinery Payments for the purchase of Machinery Payments for the purchase of Current Investment |
|
50,000 (6,80,000) (1,00,000) |
|
Cash Used in
Investing activities |
|
(7,30,000) |
|
III.
Cash flow from Financing activities Proceeds from Issue of Shares Proceeds from Issue of Debenture Decrease in Bank Overdraft Payment of Interest on Debenture |
|
2,00,000 1,00,000 (5,000) (60,000) |
|
Cash used in
Financing activities |
|
2,35,000 |
|
Net Decrease in
Cash and cash equivalents Add: Opening Cash and
Cash Equivalents |
|
Nil 2,10,000 |
|
Closing Cash and
Cash Equivalents |
|
2,10,000 |
Working notes:
|
Dr. |
Fixed
Assets A/c |
Cr. |
|
|
Particulars |
` |
Particulars |
` |
|
To Balance B/d To P&L a/c (Gain on sale) To Bank a/c (Purchase) |
20,00,000 40,000 6,80,000 |
By Provision for Dep. a/c By Bank a/c (sale) By Balance C/d |
40,000 50,000 26,00,000 |
|
|
26,90,000 |
|
26,90,000 |
Space
|
Dr. |
Provision
for Depreciation A/c |
Cr. |
|
|
Particulars |
` |
Particulars |
` |
|
To Machinery a/c To Balance C/d |
40,000 2,00,000 |
By Balance B/d By P&L a/c (Dep. provided during the year) |
1,00,000 1,40,000 |
|
|
2,40,000 |
|
2,40,000 |
Question 47:
Following was the
Balance Sheet of M.M. Ltd. as at 31st March, 2022:
|
Particulars |
Note
No. |
31
march 2022(
`) |
31
march 2021(
`) |
|
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 |
|
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 2022 (
`) |
31st March 2021 (
`) |
|
|
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:
|
|
Cash Flow Statement for the year ended 31st March, 2022 |
||||
|
|
Particulars |
( `) |
( `) |
||
|
I |
Cash Flow from Operating Activities |
|
|
||
|
|
A. Net Profit before Tax and Extraordinary items* |
|
2,50,000 |
||
|
|
Adjustments for
Non-cash and Non-operating items |
|
|
||
|
|
B. Add: Items to be Added |
|
|
||
|
|
Depreciation |
99,000 |
|
||
|
|
Intangible Assets Written off |
10,000 |
|
||
|
|
Interest on Debentures (12% of 5,00,000) |
60,000 |
|
||
|
|
Provision for Tax |
50,000 |
2,19,000 |
||
|
|
C. Less: Items to be Deducted |
|
|
||
|
|
|
|
|
||
|
|
D. Operating Profit before Working Capital Adjustments (A
+ B – C) |
|
4,69,000 |
||
|
|
E. Add: Decrease in Current Assets
and Increase in Current Liabilities |
|
|
||
|
|
F. Less: Increase in Current Assets and
Decrease in Current Liabilities |
|
|
||
|
|
Inventories |
62,000 |
(62,000) |
||
|
|
Cash Generated from
Operations (D + E – F) |
|
4,07,000 |
||
|
|
Less: Income Tax Paid
(Net of Refund) |
70,000 |
(70,000) |
||
|
|
Net Cash Flows from (or used
in) Operating Activities |
|
3,37,000 |
||
|
|
|
|
|
|
|
|
II |
Cash Flow from Investing Activities |
|
|
||
|
|
Purchase of Fixed Assets (12,03,000 – 8,21,000) |
(3,82,000) |
|
||
|
|
Purchase of Non-Current Investments |
(25,000) |
|
||
|
|
Net Cash Flows from (or used
in) Investing Activities |
|
(4,07,000) |
||
|
|
|
|
|
||
|
III |
Cash Flow from Financing Activities |
|
|
||
|
|
Proceeds from Issue of Share Capital |
1,00,000 |
|
||
|
|
Redemption of Debentures |
(50,000) |
|
||
|
|
Interest Paid on Debentures |
(60,000) |
|
||
|
|
Increase in Bank Overdraft |
1,00,000 |
|
||
|
|
Net Cash Flow from Financing
Activities |
|
90,000 |
||
|
|
|
|
|
|
|
|
IV |
Net Increase or Decrease in Cash and Cash Equivalents (I + II +
III) |
|
20,000 |
||
|
|
|
Add: Cash and Cash Equivalent in the
beginning of the period |
|
1,20,000 |
|
|
|
|
(Includes Current Investments of ` 60,000) |
|
|
|
|
|
Cash and Cash Equivalents at the end of the period |
|
1,40,000 |
||
|
|
(Includes Current Investments of ` 50,000) |
|
|
||
|
|
|
|
|
|
|
|
Provision for Tax Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
Amount ( `) |
Particulars |
Amount ( `) |
|
Bank A/c |
70,000 |
Balance b/d |
90,000 |
|
Balance c/d |
70,000 |
Statement of
Profit and Loss |
50,000 |
|
|
1,40,000 |
|
1,40,000 |
|
|
|
|
|
Question 48:
From the following
Balance Sheet of Gopal Ltd. and the additional information as at 31st March.
2019.
Prepare a Cash Flow
Statement when Cash Flows from Financing Activities is ` 2,32,000;
|
Particulars |
Note No. |
31st March, 2019 (`) |
31st March, 2018 (`) |
|
I. EQUITY AND
LIABILITIES |
|
|
|
|
1. Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
|
10,00,000 |
8,00,000 |
|
(b) Reserves and Surplus |
1 |
4,00,000 |
(1,00,000) |
|
2. Non-Current
Liabilities |
|
|
|
|
Long-term Borrowings |
2 |
9,00,000 |
9,00,000 |
|
3. Current
Liabilities |
|
|
|
|
(a Short-term Borrowings |
3 |
2,40,000 |
1,00,000 |
|
(b) Short-term Provisions |
4 |
2,00,000 |
1,75,000 |
|
Total |
|
27,40,000
|
18,75,000 |
|
|
|
|
|
|
Il. ASSETS |
|
|
|
|
1. Non-Current
Assets |
|
|
|
|
(a) Property, Plant and Equipment (Fixed Assets): |
|
|
|
|
(i) Tangible Assets |
5 |
20,00,000 |
14,42,000 |
|
(ii) Intangible Assets |
6 |
46,000 |
58,000 |
|
(b) Non-current Investments |
|
1,00,000 |
45,000 |
|
2. Current Assets |
|
|
|
|
(a) Current Investments |
|
2,00,000 |
1,20,000 |
|
(b) Inventories |
7 |
2,14,000 |
90,000 |
|
(c) Cash and Cash Equivalents |
|
1,80,000 |
1,20,000 |
|
Total |
|
27,40,000
|
18,75,000 |
Notes to Accounts
|
Particulars |
31st March, 2019 (`) |
31st March, 2018 (`) |
|
1. Reserves and
Surplus |
|
|
|
Surplus, i.e., Balance in Statement of Profit and Loss |
4,00,000 |
(1,00,000) |
|
2. Long-term
Borrowings |
|
|
|
12% Debentures |
9,00,000 |
9,00,000 |
|
3. Short-term
Borrowings |
|
|
|
Bank Overdraft |
240,000 |
1,00,000 |
|
4. Short-term
Provisions |
|
|
|
Provision for Tax |
2,00,000 |
1,75,000 |
|
5. Tangible Assets |
|
|
|
Machinery |
24,00,000 |
16,42,000 |
|
Less: Accumulated Depreciation |
(4,00,000) |
(2,00,000) |
|
|
20,00,000 |
14,42,000 |
|
6. Intangible
Assets |
|
|
|
Goodwill |
46,000 |
58,000 |
|
7. Inventories |
|
|
|
Stock-in-Trade |
2,14,000 |
90,000 |
Additional
Information: Tax ` 1,50,000 was paid during the year. (CBSE 2020).
Answer:
|
Sheet of Gopal Ltd Cash Flow Statement as at 31st March. 2019 |
|||
|
Particulars |
Detail |
` |
|
|
I.
Cash Flow From Operating Activity |
|
|
|
|
Surplus, i.e., Balance in Statement of Profit
and Loss |
|
5,00,000 |
|
|
Add: |
Provision for Tax |
|
1,75,000 |
|
|
|
|
|
|
Add: |
Depreciation on machinery |
2,00,000 |
|
|
|
Goodwill Amortised |
12,000 |
|
|
|
Interest on Debenture |
1,08,000 |
3,20,000 |
|
Operating Profit Before Working Capital
Changes |
|
9,95,000 |
|
|
Add: |
Increase
in Liabilities and Decrease in Assets |
|
|
|
|
Inventories |
|
1,24,000 |
|
Cash Generated From Operation |
|
8,71,000 |
|
|
Less: |
Tax Paid |
|
1,50,000 |
|
Cash
Flow From Operating Activity |
|
7,21,000 |
|
|
|
|
|
|
|
II. |
Cash
Flow From Investing Activity |
|
|
|
|
Payment for purchase of Machinery |
|
(7,58,000) |
|
|
Payment for purchase of Investing |
|
(55,000) |
|
Cash
Flow From Investing Activity |
|
(8,13,000) |
|
|
|
|
|
|
|
III. |
Cash
Flow From Financing Activity |
|
|
|
|
Issue of shares |
2,00,000 |
|
|
|
Increase in Bank Over draft |
1,40,000 |
3,40,000 |
|
|
Payment of Interest on Debenture |
|
(1,08,000) |
|
Cash
Flow From Financing Activity |
|
2,32,000 |
|
|
IV. |
Net
increase in Cash and Cash Equivalents |
|
1,40,000 |
|
|
(7,21,000+(8,13,000)+2,32,000) |
|
|
|
Add: |
Opening Cash and Cash Equivalents |
|
2,40,000 |
|
|
Closing
Cash and Cash Equivalents |
|
3,80,000 |
Working Notes:
|
Dr. |
Provision
for Tax A/c |
Cr. |
|
|
Particulars |
` |
Particulars |
` |
|
To Bank A/c To Balance C/d |
1,50,000 2,00,000 |
By Balance B/d By P&L a/c (Tax provided during the year) |
1,75,000 1,75,000 |
|
|
3,50,000 |
|
3,50,000 |
Class : 12th | Ts Grewal solution 2022-2023
Volume 3 | Chapter 5: Cash Flow Statement
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