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Standard V
Mathematics
Need for Trade and Transactions
From the foll...
Question

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.

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Solution

Cash Flow Statement

for the year ended March 31, 2019

Particulars

Amount

(₹)

Amount

(₹)

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: Increase in Current Liabilities

Trade Payables

3,50,000

Cash Generated from Operations

5,58,000

Less: Tax Paid

–

Net Cash Flow 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 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 (6,00,000 × 9%)

(54,000)

Net Cash Flow from Financing Activities

2,56,000

D

Net Increase 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

Amount

(₹)

Particulars

Amount

(₹)

Balance b/d

15,00,000

Bank A/c (Sale)

6,000

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

5,20,000

Profit and Loss A/c (Loss on Sale)

14,000

Balance c/d

20,00,000

20,20,000

20,20,000


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Q.

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%.
Q.

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.

Q.

From the following Balance Sheet as at 31st March, 2019 and Statement of Profit and Loss for the year ended 31st March, 2019 of RSB Ltd. and additional information, prepare Cash Flow Statement:

Particulars

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

1

9,50,000

3,00,000
2. Non-Current Liabilities
Long-term Borrowings (5% Debentures)

7,00,000

4,00,000
3. Current Liabilities
(a) Trade Payables

1,10,000

90,000
(b) Other Current Liabilities

2

39,000

25,000
(c) Short-term Provisions (Provision for Tax)

2,60,000

2,25,000

Total

28,09,000

15,40,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets – Tangible

3

6,85,000

7,45,000
(b) Non-current Investments

7,50,000

2,50,000
2. Current Assets
(a) Current Investments

6,74,000

95,000
(b) Inventories

1,00,000

2,00,000
(c) Trade Receivables

4,00,000

1,50,000
(d) Cash and Cash Equivalents

2,00,000

1,00,000

Total

28,09,000

15,40,000
STATEMENT OF PROFIT AND LOSS
for the year ended 31st March, 2019

Particulars

Note No.

31st March, 2019

(₹)

31st March, 2018

(₹)
I. Revenue from Operations

4

40,00,000

35,00,000
II. Other Income

5

35,000

30,000
III. Total Revenue (I + II)

40,35,000

35,30,000
IV. Expenses:
Purchases of Stock-in-Trade

27,00,000

24,70,000
Change in Inventories of Stock-in-Trade

6

1,00,000

50,000
Finance Cost

27,500

20,000
Depreciation

40,000

45,000
Other Expenses

22,500

20,000
Total Expenses

28,90,000

26,05,000
V. Profit before Tax (III – IV)

11,45,000

9,25,000
VI. Less: Tax

3,45,000

2,25,000
VII. Profit after Tax (V – VI)

8,00,000

7,00,000

Notes to Accounts

Particular

31st March 2019

(₹)

31st March 2018

(₹)

1.

 Reserves and Surplus
Debenture Redemption Reserve

1,00,000

1,00,000
Surplus, i.e., Balance in Statement of Profit and Loss

8,50,000

2,00,000

9,50,000

3,00,000

2.

 Other Current Liabilities
Interest on Debentures

35,000

20,000
Outstanding Expenses

4,000

5,000

39,000

25,000

3.

 Fixed Assets–Tangible
Cost

8,90,000

9,90,000
Less: Accumulated Depreciation

2,05,000

2,45,000

6,85,000

7,45,000

4.

 Revenue from Operations
Sales

42,00,000

35,75,000
Less: Sales Return

2,00,000

75,000

40,00,000

35,00,000

5.

 Other Income
Interest on Deposits

15,000

12,500
Dividend on Investments

10,000

17,500
Gain (Profit) on Sale of Fixed Assets

10,000

…

35,000

30,000

6.

 Change in Inventories of Stock-in-Trade
Opening Stock

2,00,000

2,50,000

Less: Closing Stock

1,00,000

2,00,000

1,00,000

50,000

Additional Information:

Q. 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.
Q.
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.
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