Question 17:
Compute
Cash Flow from Operating Activities from the following:
(i) Profit for the year ended 31st March, 2025
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, 2024 and 2025 are as follows:
|
Particular |
31st March (₹) |
31st March (₹) |
|
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:
|
Cash Flow
Statement |
|||
|
|
Particulars |
(₹) |
(₹) |
|
|
Cash
Flow from Operating Activities |
|
|
|
|
Profit as per Statement of Profit and Loss |
|
10,000 |
|
|
Items
to be Added: |
|
|
|
|
Depreciation |
2,000 |
2,000 |
|
|
Operating
Profit before Working Capital Adjustments |
|
12,000 |
|
|
Less:
Increase in Current Assets |
|
|
|
|
Accrued Income |
(1,000) |
|
|
|
Inventories |
(3,000) |
|
|
|
Other Current Assets |
(2,000) |
|
|
|
Trade Receivables |
(1,000) |
|
|
|
Less:
Decrease in Current Liabilities |
|
|
|
|
Income Received in Advance |
(1,000) |
|
|
|
Add:
Increase in Current Liabilities |
|
|
|
|
Expenses Payable |
500 |
|
|
|
Provision for Doubtful Debts |
200 |
|
|
|
Trade Payables |
2,000 |
|
|
|
Add:
Decrease in Current Assets |
|
|
|
|
Prepaid
Expenses |
1,000 |
(4,300) |
|
|
Cash Generated from Operations |
|
7,700 |
Question 18:
Calculate
Cash Flow from Operating Activities from the following information.
|
Particular |
(₹) |
|
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 Liabilities |
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:
|
Cash Flow from
Operating Activities |
|||
|
|
Particulars |
(₹) |
(₹) |
|
|
Profit as per Statement of Profit and Loss |
|
8,00,000 |
|
|
Add:
Provision for Tax |
|
1,10,000 |
|
|
Add: Proposed
Dividend |
|
1,10,000 |
|
|
|
|
|
|
|
Profit Before Tax and
Extraordinary items |
|
9,35,000 |
|
|
Items to be Added: |
|
|
|
|
Depreciation on Plant and Machinery |
1,50,000 |
|
|
|
Loss on sale of Investment |
30,000 |
1,80,000 |
|
|
|
|
11,15,000 |
|
|
Items to be Deducted: |
|
|
|
|
Profit on Sale of Land |
(90,000) |
|
|
|
Dividend Received |
(20,000) |
(1,10,000) |
|
|
Operating Profit before
Working Capital Adjustments |
|
10,05,000 |
|
|
Add:
Increase in Current Liabilities |
70,000 |
|
|
|
Add:
Decrease in Current Assets |
40,000 |
1,10,000 |
|
|
|
|
11,15,000 |
|
|
Less:
Decrease in Current Liabilities |
(10,000) |
|
|
|
Less:
Increase in Current Assets |
(60,000) |
(70,000) |
|
|
Cash
Generated from Operations |
|
10,45,000 |
|
|
Less:
Tax Paid |
|
(1,20,000) |
|
|
Cash Flow from operations after Tax |
|
9,25,000 |
|
|
Add:
Compensation for Natural Disaster |
|
75,000 |
|
|
Net
Cash Flows from Operating Activities |
|
10,10,000 |
Question 19:
Following
information is related to ABC Ltd.:
|
STATEMMENT
OF PROFIT AND LOSS |
||
|
Particulars |
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 |
Balance
as on 31st
March, 2024 (₹) |
|
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:
|
Cash Flow from
Operating Activities |
|||
|
|
Particulars |
(₹) |
(₹) |
|
|
Profit as per Statement of Profit and Loss |
|
1,80,000 |
|
|
Add: Tax Expense |
|
64,000 |
|
|
Profit Before Taxation |
|
2,44,000 |
|
|
Items to be Added: |
|
|
|
|
Loss on Sale of Assets |
36,000 |
|
|
|
Depreciation and Amortisation
Expenses |
1,85,000 |
2,21,000 |
|
|
|
|
4,65,000 |
|
|
Items to be Deducted: |
|
|
|
|
Dividend Received |
(5,000) |
|
|
|
Profit on Sale of Plant |
(40,000) |
(45,000) |
|
|
Operating Profit before
Working Capital Adjustments |
|
4,20,000 |
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
Office
Expenses Outstanding |
|
(5,000) |
|
|
Add:Increase in Current Liabilities |
|
|
|
|
Trade
Payables |
28,000 |
|
|
|
Selling
Expenses Outstanding |
3,000 |
31,000 |
|
|
Less: Increase in Current Assets |
|
|
|
|
Trade
Receivables |
(37,000) |
|
|
|
Inventories |
(16,000) |
(53,000) |
|
|
Cash
Generated from Operations |
|
3,93,000 |
|
|
Less: Tax Paid |
|
(64,000) |
|
|
Net
Cash Flows from Operating Activities |
|
3,29,000 |
Question 20:
Following is the Balance Sheet of Bharat Gas
Ltd. as at 31 March, 2023:
Particulars
|
Note No.
|
31st March,
|
31st March,
|
|
|
|
2023
|
2022
|
|
|
|
|
|
L EQUITY AND
LIABILITIES
|
|
|
|
Shareholders' Funds
|
|
|
|
(a) Share Capital
|
|
14,00,000
|
10,00,000
|
(b) Reserves and
Surplus
|
1
|
5,00,000
|
4,00,000
|
Non-current Liabilities
|
|
|
|
(a) Long-term
Borrowings
|
|
5,00,000
|
140,000
|
Current Liabilities
|
|
|
|
(a) Trade Payables
|
|
1,00,000
|
60,000
|
(b) Short-term
Provisions
|
2
|
80,000
|
60,000
|
Total
|
|
25,80,000
|
16,60,000
|
I. ASSETS
|
|
|
|
Non-Current Assets
|
|
|
|
(a) Fixed Assets
(Property, Plant and Equipment and Intangible Assets)
|
|
|
|
(i)
Tangible assets (Property, Plant and Equipment)
|
3
|
16,00,000
|
9,00,000
|
(ii) Intangible Assets
|
4
|
140,000
|
2,00,000
|
Current Assets
|
|
|
|
(a) Inventories
|
|
2,50,000
|
2,00,000
|
(b) Trade Receivables
|
|
5,00,000
|
3,00,000
|
(c) Cash and Cash
Equivalents
|
|
90,000
|
60,000
|
Total
|
|
25,80,000
|
16,60,000
|
Notes to
Accounts
|
|
Particulars
|
31st March,
|
31st March,
|
|
|
|
2023
|
2022
|
|
|
|
|
|
1.
|
Reserves and Surplus
|
|
|
|
|
Balance in Statement of
Profit and Loss
|
5,00,000
|
4,00,000
|
|
|
|
5,00,000
|
4,00,000
|
2.
|
Short-term Provisions
|
|
|
|
|
Provision for Taxation
|
80,000
|
60,000
|
|
|
|
80,000
|
60,000
|
3.
|
Tangible Assets (Property, Plant and Equipment)
|
|
|
|
|
Machinery
|
18,50,000
|
10,00,000
|
|
|
Less: Accumulated
Depreciation
|
(2,50,000)
|
(1,00,000)
|
|
|
|
16,00,000
|
9,00,000
|
4.
|
Intangible Assets
|
|
|
|
|
Goodwill
|
1,40,000
|
2,00,000
|
|
|
|
1,40,000
|
2,00,000
|
Adjustments:
During
the year, a machine costing ₹3,00,000 on which
accumulated depreciation was ₹45,000 was sold for ₹1,35,000.
Calculate
Cash Flows from Operating Activities.
(CBSE 2024)
Answer:
Cash Flow Statement
(Indirect
Method)
|
|
|
|
Particulars |
|
₹ |
|
A. Cash Flows from Operating
Activities |
|
|
Balance in Statement of
Profit and Loss
|
|
1,00,000 |
|
Add: Provision for Tax |
|
80,000 |
|
Profit before Tax and
Extraordinary Items |
|
1,80,000 |
|
Adjustments for: |
|
|
|
Depreciation (Machinery) |
1,95,000 |
|
|
Loss on Sale of Machine |
1,20,00 |
|
|
Amortisation (Goodwill) |
60,000 |
3,75,000 |
|
Operating profit before
working-capital changes |
|
5,55,000 |
|
Working-capital adjustments: |
|
|
|
Add:
Trade Payable |
|
40,000 |
|
|
|
5,95,000 |
|
Less:
|
|
|
|
Inventories |
50,000 |
|
|
Trade Receivable |
2,00,000 |
2,50,000 |
|
Cash generated from operations |
|
3,45,000 |
|
Income-tax paid |
|
60,000 |
|
Net Cash from Operating Activities |
|
2,85,000 |
|
|
|
|
|
|
|
|
Machine A/c
|
|||
Particulars
|
₹
|
Particulars
|
₹
|
To Balance B/d
|
10,00,000
|
By Accumulated Depreciation A/c
|
45,000
|
To Bank A/c (Purchase)
|
11,50,000
|
By Bank A/c (Sale)
|
1,35,000
|
|
|
|
By Loss on Sale of machine A/c
|
1,20,000
|
|
|
|
By Balance C/d
|
18,50,000
|
|
|
21,50,000
|
|
21,50,000
|
Accumulated Depreciation A/c
|
|||
Particulars
|
₹
|
Particulars
|
₹
|
To Machine A/c
|
45,000
|
By Balance B/d
|
1,00,000
|
To Balance C/d
|
2,50,000
|
By Depreciation A/c
|
1,95,000
|
|
|
|
(Provided During the year)
|
|
|
|
|
|
|
|
|
2,95,000
|
|
2,95,000
|
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Ts Grewal Solution 2025-2026
Class 12 / Volume – 3
Chapter 5 – Cash Flow Statements