Question
50:
From
the following details relating to Grow More Ltd., prepare Cash Flow Statement:
BALANCE
SHEET OF GROW MORE LTD. as at 31st March, 2025
|
Particulars |
Notes No. |
31st
March, 2025 (₹) |
31st
March, 2024 (₹) |
|
ıı EQUITY AND LIABILITIES 1. Shareholders’ Funds (a) Share Capital (b) Reserves and Surplus 2. Non-Current Liabilities Long-term Borrowings: 10% Debentures 3. Current Liabilities (a) Trade Payables (b) Short-term Provisions |
|
20,00,000 6,00,000
4,00,000
14,000,000 2,00,000 |
16,00,000 4,20,000
----- 16,40,000 1,40,000 |
|
Total |
|
46,00,000
|
38,00,000 |
|
ll. ASSETS 1. Non-Current Assets (a) Fixed Assets (Tangible Assets) (b)
Non-current Investments 2. Current Assets (a) Inventories (b) Trade Receivables (c) Cash and Cash Equivalents |
|
26,00,000 2,00,000 8,00,000 10,00,000
----- |
18,00,000
--- 4,00,000 14,00,000
2,00,000
|
|
Total |
|
46,00,000
|
38,00,000 |
Notes to Accounts
|
Particulars |
31st March, 2025 (₹) |
31st March, 2024 (₹) |
|
|
1. |
Share
Capital Issued, Subscribed and Paid-up: Equity Shares of ₹ 100 each fully paid
|
20,00,000 |
16,00,000 |
|
2. |
Reserves and Surplus General Reserve Surplus, i.e., Balance in Statement of
Profit and Loss |
4,00,000 2,00,000 |
3, 00,000 1,20,000 |
|
|
|
6,00,000 |
4,20,000 |
|
3 |
Short-term Provisions Provision for Tax |
2,00,000 |
1,40,000 |
|
4. |
Tangible Assets Plant and Machinery Land and Buildings |
14,00,000 12,00,000 |
10,00,000 8,00,000 |
|
|
|
26,000,000 |
18,00,000 |
Additional
Information:
1. Depreciation @ 25% was charged on the opening
value of Plant and Machinery.
2. During the year one old machine costing ₹1,00,000 (Written Down Value ₹ 40,000) was sold for
₹ 70,000.
3. ₹1,00,000 was paid
as income tax during the year.
4. Proposed dividend for the year ended 31st March,
2025 was ₹4,00,000 and for the year ended 31st
March, 2024 was ₹ 2,00,000.
5. During the current year new debentures were
issued on 1st October, 2024.
Answer:
|
Cash Flow Statement |
||
|
Particulars |
Detail |
₹ |
|
I.
Cash flow from operating activities Net profit as per Statement of profit and
loss (2,00,000-1,20,000) Add: General Reserve Proposed Dividend Provision for Tax |
1,00,000 2,00,000 1,60,000 |
80,000 4,60,000 |
|
Net profit before tax and extraordinary
items Add: |
|
5,40,000 |
|
Depreciation on
Machinery |
2,50,000 |
|
|
Interest on
debentures |
20,000 |
2,70,000 |
|
Less: Gain on Sale of
machinery |
|
8,10,000 (30,000) |
|
Operating Profit Before Working Capital
Changes Add: Trade Receivable |
|
7,80,000 4,00,000 |
|
Less: Trade payable Inventories |
2,40,000 4,00,000 |
11,80,000 6,40,000 |
|
Cash Generated from operation |
|
5,40,000 |
|
Less: Tax paid |
|
(1,00,000) |
|
Cash flow from operating activities |
|
4,40,000 |
|
II.
Cash flow from Investing activities Proceeds From sale
of Machinery Payments for the purchase
of Plant and Machinery Payments for the
purchase of Land and Buildings Payments for the
purchase of Non-Current Investment |
|
70,000 (6,90,000) (4,00,000) (2,00,000) |
|
Cash Used in Investing activities |
|
(12,20,000) |
|
III.
Cash flow from
Financing activities Proceeds from Issue
of Equity Shares Proceeds from Issue
of Debenture Payment of Interest
on Debenture Payment of final
Dividend |
|
4,00,000 4,00,000 (20,000) (2,00,000) |
|
Cash flow from Financing activities |
|
5,80,000 |
|
Net decrease in Cash and cash equivalents Add: Opening Cash and Cash Equivalents |
|
(2,00,000) 2,00,000 |
|
Closing Cash and Cash Equivalents |
|
Nil |
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) |
10,00,000 30,000 6,90,000 |
By Provision for
Dep. a/c By Bank a/c (sale) By Balance C/d |
250000 70,000 26,00,000 |
|
|
17,20,000 |
|
17,20,000 |
Space
|
Dr. |
Provision for Tax A/c |
Cr. |
|
|
Particulars |
₹ |
Particulars |
₹ |
|
To bank (tax paid)
a/c To Balance C/d |
1,00,000 2,00,000 |
By Balance B/d By P&L a/c (tax provided during
the year) |
1,40,000 1,60,000 |
|
|
3,00,000 |
|
3,00,000 |
Question 51:
Following
is the summarised Balance Sheet of Philips India Ltd.
as at 31st March 2025:
|
Particulars ulars |
Note
No. |
31st
March, 2025 (₹) |
31st
March, 2024 (₹) |
|
I. EQUITY AND LIABILITIES |
|
|
|
|
1. Shareholders' Funds |
|
|
|
|
(a)
Share Capital |
|
13,50,000 |
13,50,000 |
|
(b)
Reserves and Surplus |
1 |
11,34,000 |
10,68,000 |
|
2. Non-Current Liabilities |
|
|
|
|
Long-term Borrowings: 10% Mortgage Loan |
|
8,10,000 |
... |
|
3. Current Liabilities |
|
|
|
|
(a)
Trade Payables (Creditors) |
|
4,20,000 |
5,04,000 |
|
(b) Short-term
Provisions: |
|
|
|
|
Provision for Tax |
|
30,000 |
2,25,000 |
|
Total |
|
37,26,000 |
31,47,000 |
|
II. ASSETS |
|
|
|
|
1, Non-Current Assets |
|
|
|
|
(a)
Fixed Assets (Tangible) |
|
9,60,000 |
12,00,000 |
|
(b)
Non-Current Investments |
|
1,80,000 |
1,50,000 |
|
2. Current Assets |
|
|
|
|
(a)
Current Investments |
|
21,000 |
17,000 |
|
(b)
Inventories |
|
63,30,000 |
7,82,000 |
|
(c)
Trade Receivables |
|
13,65,000 |
6,30,000 |
|
(c) Cash
and Cash Equivalents |
|
5,70,00 |
4,30,000 |
|
Total |
|
37,26,000 |
31,47,000 |
|
|
|
|
|
Notes to Accounts
|
Particulars |
31st
March, 2025 (₹) |
31st
March, 2024 (₹) |
|
I. Reserves and Surplus |
|
|
|
General
Reserve |
9,30,000 |
9,00,000 |
|
Surplus,
i.e., Balance in Statement of Profit and Loss |
2,04,000 |
1,68,000 |
|
|
11,34,000 |
10,68,000 |
|
|
|
|
Additional
Information:
1. Investments costing ₹ 24,000
were sold during the year for ₹
25,5000.
2. Provision for Tax made during the year was ₹ 27,000.
3. During the year, a part of the Fixed Assets costing ₹ 30,000 was sold for ₹ 36,000. The profits were included in
the Statement of Profit and Loss.
4. The Interim Dividend paid during the year amounted to ₹ 1,20,000.
You are required to prepare Cash Flow Statement.
Answer:
|
Cash Flow
Statement for the year ended March 31, 2025 |
|||
|
|
Particulars |
(₹) |
(₹) |
|
A |
Cash Flow from Operating Activities |
|
|
|
|
Profit as per Statement of Profit and Loss (2,04,000
– 1,68,000) |
36,000 |
|
|
|
Transfer to General Reserve |
30,000 |
|
|
|
Interim Dividend |
1,20,000 |
|
|
|
Provision for Taxation |
27,000 |
|
|
|
Profit Before
Taxation |
2,13,000 |
|
|
|
Items to be Added: |
|
|
|
|
Depreciation |
2,10,000 |
|
|
|
Profit on Sale of Investments |
(1,500) |
|
|
|
Profit on Sale of Fixed Assets |
(6,000) |
|
|
|
Operating
Profit before Working Capital Adjustments |
4,15,500 |
|
|
|
Less: Increase in Current Assets |
|
|
|
|
Trade
Receivables |
(7,35,000) |
|
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
Trade Payables |
(1,02,000) |
|
|
|
Add:Decrease
in Current Assets |
|
|
|
|
Inventories |
90,000 |
|
|
|
Cash Generated
from Operations |
(3,31,500) |
|
|
|
Less: Tax Paid |
(2,22,000) |
|
|
|
Net Cash from (used
in) Operating Activities |
|
(5,53,500) |
|
|
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
|
Sale of Investments |
25,500 |
|
|
|
Sale of Fixed Assets |
36,000 |
|
|
|
Purchase of Investments |
(54,000) |
|
|
|
Net Cash Flow from
Investing Activities |
|
7,500 |
|
|
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
|
Proceeds from Issue of 10% Mortgage Loan |
8,10,000 |
|
|
|
Interim Dividend Paid |
(1,20,000) |
|
|
|
Net Cash Flow from
Financing Activities |
|
6,90,000 |
|
|
|
|
|
|
D |
Net Increase in Cash and Cash Equivalents |
|
1,44,000 |
|
|
Add: Cash and Cash Equivalent in the beginning of the
period |
|
4,47,000 |
|
|
Cash and Cash Equivalents at the end of the period |
|
5,91,000 |
|
|
|
|
|
Working
Notes:
WN1
|
Fixed Assets Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
(₹) |
Particulars |
(₹) |
|
Balance
b/d |
12,00,000 |
Bank
A/c (Sale) |
36,000 |
|
Profit
and Loss A/c (Profit on Sale) |
6,000 |
Depreciation
(Bal. Fig.) |
2,10,000 |
|
|
|
Balance
c/d |
9,60,000 |
|
|
12,06,000 |
|
12,06,000 |
|
|
|
|
|
WN2
|
Investments Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
(₹) |
Particulars |
(₹) |
|
Balance
b/d |
1,50,000 |
Bank
A/c (Sale) |
25,500 |
|
Profit
and Loss A/c (Profit on Sale) |
1,500 |
Balance
c/d |
1,80,000 |
|
Bank
A/c (Purchases- Bal. Fig.) |
54,000 |
|
|
|
|
2,05,500 |
|
2,05,500 |
|
|
|
|
|
WN
3
|
Provision for Taxation Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
(₹) |
Particulars |
(₹) |
|
Bank
A/c (Tax Paid- Bal. Fig.) |
2,22,000 |
Balance
b/d |
2,25,000 |
|
Balance
c/d |
30,000 |
Profit
and Loss A/c |
27,000 |
|
|
2,52,000 |
|
2,52,000 |
|
|
|
|
|
Question 52:
Following is the
Balance Sheet of Akash Ltd. as at 31st March, 2025.
Prepare Cash Flow Statement:
|
Particulars |
|
31st March, 2025 (₹) |
31st March, 2024 (₹) |
|
|
|
|
|
|
I. EQUITY AND
LIABILITIES |
|
|
|
|
1. Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
|
30,00,000 |
20,00,000 |
|
(b) Reserves and
Surplus |
1 |
(4,25,000) |
(5,37,500) |
|
2. Non-Current
Liabilities |
|
|
|
|
Long-term Borrowings |
2 |
7,50,000 |
6,25,000 |
|
3. Current
Liabilities |
|
|
|
|
Trade Payables |
|
4,75,000 |
6,75,000 |
|
Total |
|
38,00,000 |
27,62,500 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
1. Non-Current Assets |
|
|
|
|
(a) Property, Plant
and Equipment (Fixed Assets): |
|
|
|
|
-Tangible Assets
(Machinery) |
|
17,25,000 |
12,50,000 |
|
(b) Non-current
Investments |
|
3,00,000 |
5,00,000 |
|
2. Current Assets |
|
|
|
|
(a) Inventories |
|
10,00,000 |
7,50,000 |
|
(b) Trade Receivables |
|
6,00,000 |
1,12,500 |
|
(c) Cash and Cash
Equivalents |
|
1,75,000 |
1,50,000 |
|
Total |
|
38,00,000 |
27,62,500 |
Notes to Accounts
|
Particulars |
31st March, 2025 (₹) |
31st March, 2024 (₹) |
|
1. Reserves and
Surplus |
|
|
|
Surplus, i.e, Balance in Statement of Profit and Loss |
(4,25,000) |
(5,37,500) |
|
2. Long-term
Borrowings |
|
|
|
12% Debentures |
7,50,000 |
6,25,000 |
Additional Information:
(i) Debentures were issued on 1st January, 2025.
(i) Machinery costing ₹ 5,00,000
on which depreciation charged was ₹ 1,75,000 was sold for ₹
3,75,000.
(ii)
Depreciation charged during the year amounted to ₹ 2,00,000.
(iv)
Non-current
Investments were sold at a profit of 20%.
Prepare Cash
Flow Statement.
Answer:
|
Akash Ltd. Cash Flow Statement as at 31st March, 2025 |
|||
|
|
Particulars |
Detail |
(₹) |
|
I. |
Cash Flow From operating Activity |
|
|
|
|
Surplus, i.e, Balance in Statement of Profit and Loss |
|
(1,12,500) |
|
Add: |
Depreciation on
Machinery |
2,00,000 |
|
|
|
Interest on
Debenture |
78,750 |
2,78,750 |
|
|
|
|
3,91,250 |
|
Less: |
Profit on sale of
Machinery |
(50,000) |
|
|
|
Profit on sale of
Non-Current Investment |
(40,000) |
(90,000) |
|
|
Operating Profit
before working capital changes |
|
3,01,250 |
|
|
|
|
|
|
Less: |
Increase in Assets and Decrease in
Liabilities |
|
|
|
|
Decrease in Trade Payable |
(2,00,000) |
|
|
|
Increase in
inventories |
(2,50,000) |
|
|
|
Increase in Trade
Receivables |
(4,87,500) |
(9,37,500) |
|
|
Cash Used in operating Activity |
|
(6,36,250) |
|
|
|
|
|
|
II. |
Cash Flow From Investing Activity |
|
|
|
|
Proceeds from Sale
of Machinery |
2,40,000 |
|
|
|
Proceeds from Sale
of Non-Current Investment |
3,75,000 |
6,15,000 |
|
|
Payment for purchase
of Machinery |
|
(10,00,000) |
|
|
Cash used in Investing Activity |
|
(3,85,000) |
|
|
|
|
|
|
III. |
Cash Flow From Financing Activity |
|
|
|
|
Issue of Shares |
10,00,000 |
|
|
|
Issue of Debentures |
1,25,000 |
11,25,000 |
|
|
Payment of Interest
on debentures |
|
(78,750) |
|
|
Cash Flow From Financing Activity |
|
10,46,250 |
|
|
Net increase in in
cash and cash equivalent |
|
25,000 |
|
Add: |
OpeningCash and Cash Equivalents |
|
1,50,000 |
|
|
closing Cash and Cash Equivalents |
|
1,75,000 |
|
|
|
|
|
Working Notes:
|
Dr. |
Machinery A/c |
Cr. |
|
|
Particulars |
₹ |
Particulars |
₹ |
|
To Balance B/d |
12,50,000 |
By Bank A/c (Sale) |
3,75,000 |
|
To P&L a/c (Profit on sale) |
50,000 |
By P&L a/c (Depreciation
provided during the year) |
2,00,000 |
|
To Bank a/c (Purchase) |
10,00,000 |
By Balance C/d |
17,25,000 |
|
|
23,00,000 |
|
23,00,000 |
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Ts Grewal Solution 2025-2026
Class 12 / Volume – 3
Chapter 5 – Cash Flow Statements