12th | Cash Flow Statement | Question No. 5 To 8 | Ts Grewal Solution 2026-2027

Question 5:

Following are the extracts from the Balance Sheet of MAH Ltd. as at 31st March, 2026:

Particular

31st March

2026

(₹)

31st March

2025

(₹)

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

20,00,000

10,00,000

Dividend Payable

50,000

Additional Information: Proposed Dividend for the years ended 31st March, 2025 and 2026 are  ₹ 8,00,000 and  ₹ 10,00,000 respectively.
Prepare the Note to show Net Profit before Tax and Extraordinary Items.

Answer:

 

Particulars

Amount

(₹)

 

Profit as per Statement of Profit and Loss (20,00,000 – 10,00,000)

10,00,000

 

Add: Proposed Dividend (Current Year)

8,00,000

 

Profit Before Taxation and Extraordinary Items

18,00,000

 

Question 6:

Following is the extract from the Balance Sheet of Zee Ltd.:

Particular

31st March

2026

(₹)

31st March

2025

(₹)

Equity Share Capital

8,00,000

8,00,000

10% Preference Share Capital

6,00,000

6,00,000

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

7,20,000

4,00,000

Unpaid Dividend

20,000

Additional Information:
(i) Proposed dividend on equity shares for the year 2024-25 and 2025-26 are  ₹ 1,60,000 and  ₹ 2,00,000 respectively.
(ii) An Interim Dividend of ₹40,000 on Equity Shares was paid.
Calculate Net Profit before Tax and Extraordinary Items.

Answer:

 

Particulars

Amount

(₹)

 

Profit as per Statement of Profit and Loss (7,20,000 – 4,00,000)

3,20,000

 

Add: Proposed Dividend (Current Year)

1,60,000

 

Add: Proposed Preference Dividend (Current Year) 10% of 6,00,000

60,000

 

Add: Interim Dividend

40,000

 

Profit Before Taxation and Extraordinary Items

5,80,000

 

Question 7:

From the following extract of Balance Sheet of Sunrise Ltd, calculate Net Profit before Tax and Extraordinary items:

Equity and Liabilities

31st March, 2026 (₹)

31st March, 2025 (₹)

Equity Share Capital

10,00,000

10,00,000

10% Preference Share Capital

10,00,000

10,00,000

Surplus, i.e., Balance in Statement of Profit & Loss

15,00,000

10,00,000

Additional Information:

Interim Dividend of 2,00,000 was paid on Equity Shares on 1st November, 2025.

 

Answer:

 

Particulars

Amount

(₹)

 

Profit as per Statement of Profit and Loss

(15,00,000 – 10,00,000)

5,00,000

 

Add:

 

 

Interim Dividend Paid on Equity Shares

2,00,000

 

Interim Dividend Paid on Preference Shares

(10% on 10,00.000)

1,00,000

 

Profit Before Taxation and Extraordinary Items

8,00,000

 

Question 8:

From the following information, calculate Net Profit before Tax and Extraordinary Items:

 

Surplus, i.e., Balance in Statement of Profit and Loss (Opening)

1,00,000

Surplus, i.e., Balance in Statement of Profit and Loss (Closing)

3,36,000

Dividend paid in the current year

72,000

Interim Dividend Paid during the year

90,000

Transfer to Reserve

1,00,000

Provision for Tax for the current year

1,50,000

Refund of Tax

3,000

Loss due to Earthquake

2,00,000

Insurance Proceeds from Earthquake disaster settlement

1,00,000

Answer:

Cash Flow Statement

for the year ended… 

 

Particulars

Amount

(₹)

A

Cash Flow from Operating Activities

 

 

Profit as per Statement of Profit and Loss

(3,36,000 − 1,00,000)

2,36,000

 

Add:

 

  Transfer to Reserve

1,00,000

 

  Interim Dividend

90,000

 

  Provision for Tax

1,50,000

 

  Extraordinary Items (Loss due to Earthquake)

2,00,000

 

Less: Extraordinary Items (Insurance Proceeds from Earthquake  disaster settlement )

(1,00,000)

 

  Refund of Tax

(3,000)

 

Net Profit before Tax and Extraordinary Items

6,73,000

 

 

 

 

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Ts Grewal Solution 2026-2027

Class 12 / Volume – 3

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