Question 9:
From the following
information, calculate Net Profit before Tax and Extraordinary Items:
Particulars
|
31st March,
|
31st March,
|
|
|
2025
|
2024
|
|
|
|
|
Surplus, i.e, Balance in Statement of Profit & Loss
|
6,45,000
|
(90,000)
|
Proposed Dividend
|
1,35,000
|
90,000
|
General Reserve
|
3,60,000
|
2,70,000
|
Workmen Compensation
Reserve
|
1,80,000
|
1,65,000
|
Additional Information:
Interim Dividend paid during the year
|
₹1,80,000
|
Provision for Tax made during the year
|
₹3,00,000
|
Refund of Tax
|
₹6,000
|
Loss by Fire
|
₹4,00,000
|
Insurance Claim Received
|
₹2,00,000
|
Answer:
Calculate
Net Profit before Tax and Extraordinary Item
Surplus, i.e, Balance in Statement of Profit & Loss
|
|
7,35,000
|
Add:
|
|
|
General Reserve
|
90,000
|
|
Workmen Compensation Reserve
|
15,000
|
|
Provision for Tax made during the year
|
3,00,000
|
|
Proposed Dividend
|
90,000
|
|
Interim Dividend paid during the year
|
1,80,000
|
|
Loss by Fire
|
4,00,000
|
10,75,000
|
Less:
|
|
18,10,000
|
Refund of Tax
|
6,000
|
|
Insurance Claimn
Received
|
2,00,000
|
2,06,000
|
Profit before Tax
and Extraordinary ltems
|
|
16,04,000
|
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:
Calculate
Cash Flow from Operating Activities from the following details:
|
Particulars |
31st
March, 2025 (₹) |
31st
March, 2024 (₹) |
|
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 |
|
Question 12:
Compute
Cash Flow from Operating Activities from the following information:
|
|
|
|
Particulars |
₹ |
|
Net Profit after Provision for Tax and Payment of
Dividend |
2,15,000 |
|
Provision for Tax |
45,000 |
|
Final Dividend paid during the year |
50,000 |
|
Depreciation |
25,000 |
|
Loss on Sale of Machinery |
10,000 |
|
Patents Amortised |
30,000 |
|
Gain on Sale of Land |
70,000 |
|
Income Tax Refund |
30,000 |
|
|
|
Answer:
|
Cash Flow from
Operating Activities |
|||
|
|
Particulars |
Amount (₹) |
Amount (₹) |
|
|
Net Profit after Provision for Tax and Proposed
Dividend |
|
2,15,000 |
|
|
Add: Provision for Tax |
|
45,000 |
|
|
Add:
Proposed Dividend |
|
50,000 |
|
|
Profit Before Taxation |
|
3,10,000 |
|
|
Items to be Added: |
|
|
|
|
Depreciation |
25,000 |
|
|
|
Loss
on Sale of Machinery |
10,000 |
|
|
|
Patents
Amortised |
30,000 |
65,000 |
|
|
|
|
3,75,000 |
|
|
Items to be Deducted: |
|
|
|
|
Income
Tax Refund |
(30,000) |
|
|
|
Gain
on Sale of Land |
(70,000) |
(1,00,000) |
|
|
Operating
Profit before Working Capital Changes |
|
2,75,000 |
|
|
Less: Net Tax Paid (45,000 – 30,000) |
|
(15,000) |
|
|
Net
Cash Flows from Operating Activities |
|
2,60,000 |
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Ts Grewal Solution 2025-2026
Class 12 / Volume – 3
Chapter 5 – Cash Flow Statements