Question 29:
Calculate
Cash Flow from Investing Activities from the following information:
|
Particular |
31st March, (₹) |
31st March, (₹) |
|
Investment
in Land |
3,00,000 |
3,00,000 |
|
Shares
in Damodar Ltd. |
1,50,000 |
1,50,000 |
|
12%
Long-term Investments |
80,000 |
50,000 |
|
Plant
and Machinery |
7,50,000 |
6,00,000 |
|
Patents |
70,000 |
1,00,000 |
|
Goodwill |
1,50,000 |
1,00,000 |
Additional
Information:
1. A piece of land was purchased as an investment out of surplus. It was let
out for commercial purpose and the rent received was ₹ 20,000.
2. Dividend received from Damodar Ltd. @ 12%.
3. Patents written off to the extent of ₹ 20,000. Some patents were sold
at a profit of ₹ 10,000.
4. A machine costing ₹ 80,000 (depreciation provided thereon ₹
30,000) was sold for ₹ 35,000. Depreciation charged during the year was ₹
70,000.
5. During the year 12% investments were purchased for ₹ 1,00,000 and some investments were sold at a profit of ₹ 10,000. Interest on investments for
the year was duly received.
Answer:
|
Cash Flow from
Investing Activities |
|||
|
|
Particulars |
(₹) |
(₹) |
|
|
Purchase of Plant and Machinery |
(2,70,000) |
|
|
|
Purchase of Investment |
(1,00,000) |
|
|
|
Purchase of Goodwill |
(50,000) |
|
|
|
Rent Received |
20,000 |
|
|
|
Dividend Received (1,50,000
× 12%) |
18,000 |
|
|
|
Sale of Plant and Machinery |
35,000 |
|
|
|
Sale of Investment |
80,000 |
|
|
|
Interest on Investments |
6,000 |
|
|
|
Sale of Patents |
20,000 |
|
|
|
Net Cash Used in Investing Activities |
|
(2,41,000) |
Working Notes:
WN1Computation of Interest on Investments
Interest
on 12% Long-term Investments = 50,000×12/100=6,000
WN2
|
Patents Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
(₹) |
Particulars |
(₹) |
|
Balance
b/d |
1,00,000 |
Profit
and Loss A/c (Written-off) |
20,000 |
|
Profit
and Loss A/c (Profit on Sale) |
10,000 |
Bank
A/c (Sale- Bal. Fig.) |
20,000 |
|
|
|
Balance
c/d |
70,000 |
|
|
1,10,000 |
|
1,10,000 |
|
|
|
|
|
WN3
|
12% Long-Term Investments Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
(₹) |
Particulars |
(₹) |
|
Balance
b/d |
50,000 |
Bank
A/c (Sale- Bal. Fig.) |
80,000 |
|
Bank
A/c (Purchase) |
1,00,000 |
Balance
c/d |
80,000 |
|
Profit
and Loss A/c (Profit on Sale) |
10,000 |
|
|
|
|
1,60,000 |
|
1,60,000 |
|
|
|
|
|
WN3
|
Plant and Machinery Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
(₹) |
Particulars |
(₹) |
|
Balance
b/d |
6,00,000 |
Depreciation
A/c |
70,000 |
|
Bank
A/c (Purchase- Bal. Fig.) |
2,70,000 |
Bank
A/c (Sale) |
35,000 |
|
|
|
Profit
and Loss A/c (Loss on Sale) |
15,000 |
|
|
|
Balance
c/d |
7,50,000 |
|
|
8,70,000 |
|
8,70,000 |
|
|
|
|
|
Cash
Flow from Operating Activities and Investing Activities
Question 30:
From the following information, calculate Cash Flow
from Operating Activities and Investing Activities:
|
Particulars |
31st March, 2024 (₹) |
31st March, 2025 (₹) |
|
Surplus, i.e., Balance in Statement of
Profit and Loss Provision for Tax Trade Payables Current Assets (Inventories and Trade
Receivables) Fixed Assets (Net) |
1,00,000
30,000
40,000 4,60,000
3,25,000 |
4,00,000 30,000 1,50,000 5,20,000
3,92,000 |
Additional Information:
1. Depreciation of ₹ 80,000 was provided and a
machine costing ₹ 1,05,000 (Depreciation
provided thereon ₹ 65,000) was sold at a loss of ₹ 8,000.
2. Tax paid during the year ₹ 30,000.
Answer:
|
Cash Flow Statement |
||
|
I.
Cash flow from operating activities (A)
Net profit as per Statement of profit and loss (4,00,000-1,00,000) Add: Provision of Tax |
|
3,00,000 30,000 |
|
Net profit before tax and extraordinary items Add: Depreciation on
Fixed assets Loss on sale of
Fixed Assets |
80,000 8,000 |
3,30,000 , 88,000 |
|
Operating Profit Before Working Capital Changes Add: Trade Payable |
|
4,18,000 1,10,000 |
|
|
|
5,28,000 |
|
Less: Current Assets
(5,20,000-4,60,000) |
1 |
60,000 |
|
Cash Generated from operation |
|
4,68,000 |
|
Less: Tax paid |
|
30,000 |
|
Cash flow from operating activities |
|
4,38,000 |
|
I.
Cash flow from Investing activities Proceeds From Sale of Fixed Assets Payments for the purchase of Fixed Assets |
|
32,000 (1,87,000) |
|
Cash Used in Investing activities |
|
1,55,000 |
Working notes:
|
Dr. |
Fixed Assets A/c |
Cr. |
|
|
Particulars |
₹ |
Particulars |
₹ |
|
To Balance B/d To Bank a/c
(Purchase) |
3,25,000 1,87,000 |
By bank a/c (Sale) By P&L a/c
(Loss) By Depreciation a/c By Balance C/d |
32,000 8,000 80,000 3,92,000 |
|
|
5,12,000 |
|
5,12,000 |
Space
|
Dr. |
Provision for Tax A/c |
Cr. |
|
|
Particulars |
₹ |
Particulars |
₹ |
|
To Bank a/c (Tax Paid) To Balance C/d |
30,000 30,000 |
By Balance B/d By P&L a/c (Tax
Provided) |
30,000 30,000 |
|
|
1,30,000 |
|
1,30,000 |
Question 31:
From
the following information, calculation Cash Flow from Operating Activities and
Investing Activities:
|
Particular |
31st, March, 2024, (₹) |
31st, March, 2025, (₹) |
|
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, 2025 |
||
|
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 |
(₹) |
Date |
Particulars |
(₹) |
||
|
2025 |
|
|
2024 |
|
|
||
|
March 31 |
To Fixed
Asset A/c |
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 |
2,00,000 |
||
|
|
|
|
|
|
|
||
|
|
|
12,62,500 |
|
|
12,62,500 |
||
|
|
|
|
|
|
|
||
|
Dr. |
Fixed Assets A/c |
Cr. |
|||||
|
Date |
Particulars |
(₹) |
Date |
Particulars |
(₹) |
||
|
2024 |
|
|
2025 |
|
|
||
|
April 01 |
To
balance b/d |
21,25,000 |
March 31 |
By
Accumulated Depreciation A/c |
1,62,500 |
||
|
2025 |
|
|
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 |
||
|
|
|
|
|
|
|
||
Question 32:
(a)
From the following information, calculate Cash Flow from Operating Activities:
Particulars
|
31st March,
|
31st March,
|
|
|
2023
|
2022
|
Surplus i.e.
Balance in Statement of Profit and Loss
|
6,00,000
|
5,00,000
|
Provision for
Tax
|
1,00,000
|
1,20,000
|
Trade
Receivables
|
2,00,000
|
2,40,000
|
Trade
Payables
|
1,50,000
|
2,00,000
|
GoodwillI
|
2,00,000
|
1,50,000
|
Additional
Information:
Proposed Dividend for the year
ended 31 March, 2023 and 31 March, 2024 was R 1,50,000
and 1,80,000 respectively.
(b) From the following
information calculate the Cash from Investing Activities:
Particulars
|
31st March,
|
31st March,
|
|
|
2023
|
2022
|
Machinery
(Cost)
|
20,00,000
|
28,00,000
|
Accumulated
Depreciation
|
4,00,000
|
6,50,000
|
Additional Information:
(1) Machinery costing
₹50,000 (Book Value ₹40,000) was lost by fire and insurance claim
of ₹32,000 was received.
(i)
Depreciation charged during the year was ₹3,50,000.
(ii) A part of machinery costing
₹2,50,000 was sold at a loss of ₹20,000.
(CBSE Sample Question Paper 2025)
Answer:
|
Cash
Flow Statement at 31st March, 2025 |
||
|
Particulars |
₹ |
|
|
|
|
|
|
(a) |
Operating Activities Surplus i.e. Balance in Statement
of Profit and Loss |
(1,00,000) |
|
|
Provision
for Tax |
1,20,000 |
|
|
Proposed
Dividend |
1,50,000 |
|
|
Net Loss before Tax |
1,70,000 |
|
|
Adjustments
for Non-Cash & Non-Operating Items: |
|
|
|
Add: Goodwill Amortised
|
50,000 |
|
|
Operating Loss before Working
Capital Changes |
2,20,000 |
|
|
|
|
|
|
Adjustments for Working Capital
Changes: |
|
|
Add: |
Increase in Trade Payables |
50,000 |
|
|
|
2,70,000 |
|
Less: |
Increase in Trade Receivables |
(40,000) |
|
|
|
2,30,000 |
|
Less: |
Tax Paid |
1,00,000 |
|
|
Net Cash Used in Operating
Activities |
1,30,000 |
|
|
|
|
|
(b) |
Investing Activities |
|
|
|
Purchase of Machine |
11,58,000 |
|
|
Sale of Machine |
2,30,000 |
|
|
Net Cash Used in Investing
Activities |
9,28,000 |
|
|
|
|
|
Machine
A/c |
|||
|
Particulars |
₹ |
Particulars |
₹ |
|
To Balance B/d |
20,00,000 |
By Statement P&L A/c (Loss) |
8,000 |
|
To Bank A/c (Purchase- bal. Figure) |
11,58,000 |
By Bank A/c (Sales) |
2,30,000 |
|
|
|
By Statement P&L A/c (Loss) |
20,000 |
|
|
|
By Prov. Depreciation A/c |
1,00,000 |
|
|
|
To Balance c/d |
28,00,000 |
|
|
31,58,000 |
|
31,58,000 |
Click below for more Questions
Ts Grewal Solution 2025-2026
Class 12 / Volume – 3
Chapter 5 – Cash Flow Statements