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Question No 55 Chapter 8 – UNIMAX Class 12 Part 2 – 2021
55. From the following particulars of Bharat Ltd., prepare a cash flow statement:
| Particulars | ₹ | ₹ | |
| Equity & liabilities | |||
| Shareholders’ funds | |||
| Equity share capital | 7,20,000 | 9,50,000 | |
| 18% pref. Share capital | 4,00,000 | 2,00,000 | |
| Reserve & surplus | |||
| Profit and loss a/c | 1,00,000 | 4,00,000 | |
| Reserves | 1,20,000 | 1,40,000 | |
| Non-current liabilities | |||
| 14% debentures | 2,00,000 | 3,00,000 | |
| Current liabilities | |||
| Creditors | 40,000 | 1,50,000 | |
| Bank Overdraft | 60,000 | 50,000 | |
| Provision for tax | 20,000 | 40,000 | |
| Provision for doubtful debts | 20,000 | 30,000 | |
| Total | 16,80,000 | 22,60,000 | |
| Assets | |||
| Non-current assets | |||
| Fixed assets | 10,20,000 | 12,40,000 | |
| Non-current investment | |||
| 10% investments (long-term) | 60,000 | 1,60,000 | |
| Current assets | |||
| Debtors | 80,000 | 1,50,000 | |
| Stock | 3,80,000 | 3,70,000 | |
| Cash | 1,20,000 | 3,30,000 | |
| Other current assets | |||
| Underwriting commission | 5,000 | 6000 | |
| Discount on issue | |||
| Debentures | 15,000 | 4000 | |
| Total | 16,80,000 | 22,60,000 | |
You are informed that during the year:
Proposed dividend 2021 1,20,000; 2022 1,50,000.
(a) A machine costing 1,40,000 (depreciation provided thereon 60,000) was sold for 50,000, depreciation charged during the year was 1,40,000.
(b) An interim dividend @ 15% was paid on equity shares. A new share was issued on 31.12.2022.
(c) Tax paid during the year was 10,000.
(d) On 31.12.2022 some investments were purchased for 1,80,000 and some, investments were sold at a profit of 20% on sale.
(e) Preference shares were redeemed on 31.12.2022 at a premium of 5%
The solution of Question 55 Chapter 8 – Unimax Publication Class 12 Part 2-2021: –
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31st DEC,2022
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| Particulars | ₹ | ₹ | |
| Cash from operating activities: | |||
| Net profit as per balance sheet | 3,00,000 | ||
| Add: non-cash, non-operating expenses: | |||
| Discount on issue of debentures w/o | 11,000 | ||
| Depreciation charged | 1,40,000 | ||
| Loss on sale of machinery | 30,000 | ||
| Interim dividend paid | 1,08,000 | ||
| Provision for taxation | 30,000 | ||
| Premium paid on redemption of pref. shares | 10,000 | ||
| Preference share dividend paid | 72,000 | ||
| Transfer to reserve | 20,000 | ||
| Interest on debentures | 28,000 | ||
| Proposed dividend | 1,20,000 | 5,69,000 | |
| Less: non-cash, non-operating incomes: | |||
| Interest received on investment | (6,000) | ||
| Profit on sale of investment | (16,000) | (22,000) | |
| Add: decrease in current assets & increase in current liability: | |||
| Decrease in stock | 10,000 | ||
| Increase in creditors | 1,10,000 | ||
| Increase in provision for doubtful debts | 10,000 | ||
| Decrease in current liabilities & | |||
| Increase in current assets: | |||
| Increase in debtors | (70,000) | 60,000 | |
| Less: income paid tax | (10,000) | (10,000) | |
| Cash flow from operating activities | 8,97,000 | ||
| Cash from investing activities: | |||
| Purchase of investment | (1,80,000) | ||
| Purchase of machinery | (4,40,000) | ||
| Sale of machinery | 50,000 | ||
| Sale of investment | 96,000 | ||
| Interest received from investment | 6,000 | ||
| Cash flow from investing activities | (4,68,000) | ||
| Cash from financing activities: | |||
| Issue of equity share capital | 2,30,000 | ||
| Redemption of pref. share capital (2,00,000+10,000) | (2,10,000) | ||
| Issue of debenture | (99,000) | ||
| Underwriting commission | (1,08,000) | ||
| Interim dividend paid | (72,000) | ||
| Bank Overdraft | (10,000) | ||
| Interest on debentures | (28,000) | ||
| Proposed dividend paid | (1,20,000) | ||
| Cash flow from financial activity | (2,19,000) | ||
| Net increase | 2,20,000 | ||
| Add: opening cash & bank overdraft (1,20,000) | 60,000 | ||
| Closing cash & bank overdraft (3,30,000) | 2,80,000 | ||
Working Notes:
MACHINERY A/C
| Particulars | ₹ | Particulars | ₹ |
| To Balance b/d | 10,20,000 | By Cash a/c (sale) | 50,000 |
| To Cash a/c (purchased) (B/F) | 4,40,000 | By Profit & loss a/c (loss) | 30,000 |
| By Profit & loss a/c (Depreciation charged) | 1,40,000 | ||
| By Balance c/d | 12,40,000 | ||
| 14,60,000 | 14,60,000 |
Provision for taxation A/C
| Particulars | ₹ | Particulars | ₹ |
| To Cash a/c (tax paid) | 10,000 | By Balance b/d | 20,000 |
| To Balance c/d | 40,000 | By Profit & loss a/c (B/F) | 30,000 |
| (New provision) | |||
| 50,000 | 50,000 |
Investment A/c
| Particulars | ₹ | Particulars | ₹ |
| To Balance b/d | 60,000 | By Cash a/c (sale) | 96,000 |
| To Profit & loss a/C | 16,000 | By Balance c/d | 1,60,000 |
| To Purchase | 1,80,000 | ||
| 2,56,000 | 2,56,000 |
End of Solution
Check Out the Solution of all questions for this chapter:
The solution to all questions of Chapter No. 8 – Cash Flow Statement Class 12 Unimax is shown as follows, click on the image of the question to get the solution.
Question No 06 Chapter 8 – UNIMAX Class 12 Part 2 – 2021
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Question No 18 Chapter 8 – UNIMAX Class 12 Part 2 – 2021
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Question No 42 Chapter 8 – UNIMAX Class 12 Part 2 – 2021
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Question No 55 Chapter 8 – UNIMAX Class 12 Part 2 – 2021
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UnimaxSolutions.in offers a comprehensive solution for students studying Advanced Accountancy Part 1 in Class 12. With their meticulously curated study material, students can access comprehensive solutions to all the questions in each chapter. By selecting the chapter name from the study material, students can easily navigate through the topics and find detailed explanations and step-by-step solutions to the problems presented in that section. Whether it’s understanding complex accounting concepts, mastering calculation techniques, or analyzing financial statements, Unimax provides a valuable resource to aid students in their learning journey. With these comprehensive solutions at their disposal, students can enhance their understanding, clarify doubts, and improve their problem-solving skills in Advanced Accountancy, ensuring they are well-prepared for their Class 12 examinations.
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UnimaxSolutions.in presents an exceptional resource for students studying Advanced Accountancy Part 2 in Class 12. With their comprehensive study material, students can conveniently access extensive solutions to all the questions in each chapter. By simply selecting the desired chapter from the study material, students can effortlessly navigate through the topics and gain access to detailed explanations and step-by-step solutions to every problem presented in that particular section. Whether it involves understanding intricate accounting principles, honing calculation techniques, or analyzing complex financial statements, Unimax provides a valuable tool to support students in their learning journey. Equipped with these comprehensive solutions, students can enhance their comprehension, resolve any uncertainties, and strengthen their problem-solving abilities in Advanced Accountancy, empowering them to excel in their Class 12 examinations with confidence.
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Punjab School Education Board (PSEB) Solutions of Usha Publication.
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