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12th | Cash Flow Statement | Question No. 9 To 12 | Ts Grewal Solution 2022-2023

Question 9:


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

 

        Proposed Dividend

72,000

 

        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

7,45,000

 

 

 

 

 


Question 10:


From the following information, calculate Operating Profit before Working Capital Changes:

 

 `

Net Profit before Tax and Extraordinary Items

4,47,000

Depreciation on Machinery

84,000

Interest on Borrowings

16,800

Goodwill Amortised

18,600

Loss on Sale of Furniture

18,000

Premium on Redemption of Preference Shares

6,000

Gain (Profit) on Sale of Investments

12,000

Interest and Dividend Received on Investments

27,600

Answer:


 

Cash Flow Statement 

for the year ended March 31, ….

 

Particulars

 (`)

 (`)

A

Cash Flow from Operating Activities

 

 

 

Net Profit Before Taxation and Extraordinary Items

 

4,47,000

 

Items to be Added:

 

 

 

Depreciation on Machinery

84,000

 

 

Loss on Sale of Furniture

18,000

 

 

Interest on Borrowings

16,800

 

 

Goodwill Amortized

18,600

 

 

 

 

1,37,400

 

Items to be Deducted:

 

 

 

Profit on Sale of Investment

(12,000)

 

 

Interest and Dividend Received on Investment

(27,600)

(39,600)

 

Operating Profit before Working Capital Adjustments

 

5,44,800

 

 

 

 

 
Note: Assuming Premium on Redemption of Preference Shares has been paid out of the Securities Premium Reserve Balance.

 


Question 11:


From the following Balance Sheet of Double Tree Ltd. as at 31st March, 2022 and additional information, calculate Operating Profit before Working Capital Changes:
 

Particulars ulars

Note No.

31st March, 2022

(`)

31st March, 2021

(`)

I. EQUITY AND LIABILITIES

 

 

 

1. Shareholders' Funds

 

 

 

(a) Share Capital

 

5,00,000

5,00,000

(b) Reserves and Surplus

1

6,70,000

5,00,000

2. Current Liabilities

 

 

 

(a) Trade Payables

 

60,000

50,000

(b) Other Current Liabilities (Outstanding Expenses)

 

20,000

15,000

(c) Short-term Provisions (Provision for Tax)

 

1,00,000

90,000

Total      Total Expenses

 

13,50,000

11,55,000

II. ASSETS

 

 

 

1. Non-Current Assets

 

 

 

(a) Fixed Assets (Tangible)

 

7,50,000

7,30,000

(b) Non-Current Investments

 

2,50,000

3,00,000

2. Current Assets

 

3,50,000

1,25,000

Total

 

13,50,000

11,55,000

 

Notes to Accounts

Particulars

31st March, 2022

(`)

31st March, 2021

(`)

I. Reserve and Surplus

 

 

General Reserve

5,00,000

4,00,000

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

1,70,000

1,00,000

 

6,70,000

5,00,000

 

Additional Information: Depreciation for the year was `75,000.

Answer:


Computation of Operating Profit before Working Capital Changes

for the year ended March 31, 2022

 

Particulars

Amount

(`)

Amount

(`)

 

Profit as per Statement of Profit and Loss (1,70,000 – 1,00,000)

 

70,000

 

Transfer to General Reserve (5,00,000 – 4,00,000)

 

1,00,000

 

Provision for Taxation (Current Year)

 

1,00,000

 

Profit before Tax

 

2,70,000

 

Items to be Added:

 

 

 

 

Depreciation for the year

 

75,000

 

Operating Profit before Working Capital Changes

 

3,45,000

 


Question 12:


Calculate Cash Flow from Operating Activities from the following details:
 

Particulars

31st March, 2022

(`)

31st March, 2021

(`)

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

80,000

60,000

Trade Receivables

25,000

31,000

Provision for Depreciation

40,000

30,000

Inventories

80,000

60,000

Outstanding Rent

12,000

21,000

Goodwill

30,000

38,000

Prepaid Insurance

1,000

2,000

Trade Payables (Creditors)

13,000

19,000


Answer:


 

Particulars

 (`)

 (`)

 

Profit as per Statement of Profit and Loss (Net Income)

 

20,000

 

Items to be Added:

 

 

 

 

Depreciation

10,000

 

 

 

Goodwill written off

8,000

18,000

 

Operating Profit before Working Capital Changes

 

38,000

 

Add: Decrease in Current Assets

 

 

 

 

 Trade Receivables

6,000

 

 

 

Prepaid Insurance

1,000

 

 

Less: Increase in Current Assets

 

 

 

 

    Inventories

(20,000)

 

 

Less: Decrease in Current Liabilities

 

 

 

 

    Outstanding Rent

(9,000)

 

 

 

Trade Payables

(6,000)

(28,000)

 

Cash Generated from operations

 

10,000

 

Less: Tax Paid

 

Nil

 

Net Cash Flows from Operating Activities

 

10,000

 

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Ts Grewal Solution 2022-2023

Class 12 / Volume – 3

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