Question 9:
From the following information, calculate Net Profit before Tax and Extraordinary Items:
Particulars |
31st March, |
31st March, |
|
|
2026 |
2025 |
|
|
|
|
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 Claim 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, 2026 (₹) |
31st March, 2025 (₹) |
|
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 2026-2027
Class 12 / Volume – 3
Chapter 5 – Cash Flow Statements
Question No. 1 To 4
Question No. 5 To 8
Question No. 9 To 12
Question No. 13 To 16
Question No. 17 To 20
Question No. 21 To 24
Question No. 25 To 28
Question No. 29 To 32
Question No. 33 To 36
Question No. 37 To 40
Question No. 41 To 44
Question No. 45 To 48
Question No. 49 To 52