Question 17:
Compute
Cash Flow from Operating Activities from the following:
(i) Profit for the year ended 31st March, 2026 is ₹ 10,000 after
providing for depreciation of ₹ 2,000.
(ii) Current Assets and Current Liabilities of the business for the year ended
31st March, 2025 and 2026 are as follows:
|
Particular |
31st March (₹) |
31st March (₹) |
|
Trade Receivables |
14,000 |
15,000 |
|
Provision for Doubtful Debts |
1,000 |
1,200 |
|
Trade Payables |
13,000 |
15,000 |
|
Inventories |
5,000 |
8,000 |
|
Other Current Assets |
10,000 |
12,000 |
|
Expenses Payables |
1,000 |
1,500 |
|
Prepaid Expenses |
2,000 |
1,000 |
|
Accrued Income |
3,000 |
4,000 |
|
Income Received in Advance |
2,000 |
1,000 |
Answer:
|
Cash Flow Statement |
|||
|
|
Particulars |
(₹) |
(₹) |
|
|
Cash Flow from Operating Activities |
|
|
|
|
Profit as per Statement of Profit and Loss |
|
10,000 |
|
|
Items to be Added: |
|
|
|
|
Depreciation |
2,000 |
2,000 |
|
|
Operating Profit before Working Capital Adjustments |
|
12,000 |
|
|
Less: Increase in Current Assets |
|
|
|
|
Accrued Income |
(1,000) |
|
|
|
Inventories |
(3,000) |
|
|
|
Other Current Assets |
(2,000) |
|
|
|
Trade Receivables |
(1,000) |
|
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
Income Received in Advance |
(1,000) |
|
|
|
Add: Increase in Current Liabilities |
|
|
|
|
Expenses Payable |
500 |
|
|
|
Provision for Doubtful Debts |
200 |
|
|
|
Trade Payables |
2,000 |
|
|
|
Add: Decrease in Current Assets |
|
|
|
|
Prepaid Expenses |
1,000 |
(4,300) |
|
|
Cash Generated from Operations |
|
7,700 |
Question 18:
Calculate Cash Flow from Operating Activities from the following information.
|
Particular |
(₹) |
|
Net Profit (Difference between Closing and Opening Balance of Surplus, i.e., Balance in Statement of Profit and Loss) |
8,00,000 |
|
Final Dividend paid in the year |
1,10,000 |
|
Compensation for Natural Disaster credited to Statement of Profit and Loss |
75,000 |
|
Depreciation |
1,50,000 |
|
Loss on Sale of Investment |
30,000 |
|
Gain (Profit) on Sale of Land |
90,000 |
|
Provision for Tax |
1,10,000 |
|
Dividend Received |
20,000 |
|
Decrease in Current Assets (Other than Cash and Cash Equivalents) |
40,000 |
|
Increase in Current Liabilities |
70,000 |
|
Decrease in Current Liabilities |
10,000 |
|
Increase in Current Assets (Other than Cash and Cash Equivalents) |
60,000 |
|
Income Tax Refund |
10,000 |
|
Income Tax Paid |
1,20,000 |
Answer:
|
Cash Flow from Operating Activities |
|||
|
|
Particulars |
(₹) |
(₹) |
|
|
Profit as per Statement of Profit and Loss |
|
8,00,000 |
|
|
Add: Provision for Tax |
|
1,10,000 |
|
|
Add: Proposed
Dividend |
|
1,10,000 |
|
|
|
|
|
|
|
Profit Before Tax and Extraordinary items |
|
9,35,000 |
|
|
Items to be Added: |
|
|
|
|
Depreciation on Plant and Machinery |
1,50,000 |
|
|
|
Loss on sale of Investment |
30,000 |
1,80,000 |
|
|
|
|
11,15,000 |
|
|
Items to be Deducted: |
|
|
|
|
Profit on Sale of Land |
(90,000) |
|
|
|
Dividend Received |
(20,000) |
(1,10,000) |
|
|
Operating Profit before Working Capital Adjustments |
|
10,05,000 |
|
|
Add: Increase in Current Liabilities |
70,000 |
|
|
|
Add: Decrease in Current Assets |
40,000 |
1,10,000 |
|
|
|
|
11,15,000 |
|
|
Less: Decrease in Current Liabilities |
(10,000) |
|
|
|
Less: Increase in Current Assets |
(60,000) |
(70,000) |
|
|
Cash Generated from Operations |
|
10,45,000 |
|
|
Less: Tax Paid |
|
(1,20,000) |
|
|
Cash Flow from operations after Tax |
|
9,25,000 |
|
|
Add: Compensation
for Natural Disaster |
|
75,000 |
|
|
Net Cash Flows from Operating Activities |
|
10,10,000 |
Question 19:
Following
information is related to ABC Ltd.:
|
STATEMMENT
OF PROFIT AND LOSS |
||
|
Particulars |
Note No. |
(₹) |
|
I. Revenue from Operations (Net Sales) |
|
30,00,000 |
|
II. Other Income |
1 |
45,000 |
|
III. Total Revenue (I + II) |
|
30,45,000 |
|
IV. Expenses; |
|
|
|
(a) Purchases of Stock-in-Trade |
|
23,03,000 |
|
(b) Change in Inventories of Stock-in-Trade |
2 |
(16,000) |
|
(c) Depreciation and Amortisation Expenses |
|
1,85,000 |
|
(d) Other Expenses |
3 |
3,29,000 |
|
Total Expenses |
|
28,01,000 |
|
V. Profit before Tax (III − IV) |
|
2,44,000 |
|
VI. Less: Provision for Tax |
|
64,000 |
|
VII. Profit after Tax (V – VI) |
|
1,80,000 |
|
|
|
|
Notes to Accounts
|
Particulars |
₹ |
|
1. Other Income |
|
|
(a) Dividend Received |
5,000 |
|
(b) Gain (Profit) on Sale of Plant |
40,000 |
|
|
45,000 |
|
2. Change in Inventories of Stock-in-Trade |
|
|
Opening Inventories |
2,84,000 |
|
Less: Closing Inventories |
3,00,000 |
|
|
(16,000) |
|
3. Other Expenses |
|
|
(a) Office Expenses |
58,000 |
|
(b) Selling Expenses |
2,35,000 |
|
(c) Loss on Sale of Assets |
36,000 |
|
|
3,29,000 |
|
|
|
|
Other Information: |
Balance
as on |
Balance as on 31st March, 2025 (₹) |
|
Trade Payables |
2,78,000 |
2,50,000 |
|
Trade Receivables |
4,52,000 |
4,15,000 |
|
Inventories |
3,00,000 |
2,84,000 |
|
Office Expenses Outstanding |
... |
5,000 |
|
Selling Expenses Outstanding |
25,000 |
22,000 |
Calculate Cash Flow from Operating Activities.
Answer:
|
Cash Flow from Operating Activities |
|||
|
|
Particulars |
(₹) |
(₹) |
|
|
Profit as per Statement of Profit and Loss |
|
1,80,000 |
|
|
Add: Tax Expense |
|
64,000 |
|
|
Profit Before Taxation |
|
2,44,000 |
|
|
Items to be Added: |
|
|
|
|
Loss on Sale of Assets |
36,000 |
|
|
|
Depreciation and Amortisation Expenses |
1,85,000 |
2,21,000 |
|
|
|
|
4,65,000 |
|
|
Items to be Deducted: |
|
|
|
|
Dividend Received |
(5,000) |
|
|
|
Profit on Sale of Plant |
(40,000) |
(45,000) |
|
|
Operating Profit before Working Capital Adjustments |
|
4,20,000 |
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
Office Expenses Outstanding |
|
(5,000) |
|
|
Add:Increase in Current Liabilities |
|
|
|
|
Trade Payables |
28,000 |
|
|
|
Selling Expenses Outstanding |
3,000 |
31,000 |
|
|
Less: Increase in Current Assets |
|
|
|
|
Trade Receivables |
(37,000) |
|
|
|
Inventories |
(16,000) |
(53,000) |
|
|
Cash Generated from Operations |
|
3,93,000 |
|
|
Less: Tax Paid |
|
(64,000) |
|
|
Net Cash Flows from Operating Activities |
|
3,29,000 |
Question 20:
Following is the Balance Sheet of Bharat Gas Ltd. as at 31 March, 2023:
Particulars |
Note No. |
31st March, |
31st March, |
|
|
|
2023 |
2022 |
|
|
|
|
|
L EQUITY AND LIABILITIES |
|
|
|
Shareholders' Funds |
|
|
|
(a) Share Capital |
|
14,00,000 |
10,00,000 |
(b) Reserves and Surplus |
1 |
5,00,000 |
4,00,000 |
Non-current Liabilities |
|
|
|
(a) Long-term Borrowings |
|
5,00,000 |
140,000 |
Current Liabilities |
|
|
|
(a) Trade Payables |
|
1,00,000 |
60,000 |
(b) Short-term Provisions |
2 |
80,000 |
60,000 |
Total |
|
25,80,000 |
16,60,000 |
I. ASSETS |
|
|
|
Non-Current Assets |
|
|
|
(a) Fixed Assets (Property, Plant and Equipment and Intangible Assets) |
|
|
|
(i) Tangible assets (Property, Plant and Equipment) |
3 |
16,00,000 |
9,00,000 |
(ii) Intangible Assets |
4 |
140,000 |
2,00,000 |
Current Assets |
|
|
|
(a) Inventories |
|
2,50,000 |
2,00,000 |
(b) Trade Receivables |
|
5,00,000 |
3,00,000 |
(c) Cash and Cash Equivalents |
|
90,000 |
60,000 |
Total |
|
25,80,000 |
16,60,000 |
Notes to Accounts
|
|
Particulars |
31st March, |
31st March, |
|
|
|
2023 |
2022 |
|
|
|
|
|
1. |
Reserves and Surplus |
|
|
|
|
Balance in Statement of Profit and Loss |
5,00,000 |
4,00,000 |
|
|
|
5,00,000 |
4,00,000 |
2. |
Short-term Provisions |
|
|
|
|
Provision for Taxation |
80,000 |
60,000 |
|
|
|
80,000 |
60,000 |
3. |
Tangible Assets (Property, Plant and Equipment) |
|
|
|
|
Machinery |
18,50,000 |
10,00,000 |
|
|
Less: Accumulated Depreciation |
(2,50,000) |
(1,00,000) |
|
|
|
16,00,000 |
9,00,000 |
4. |
Intangible Assets |
|
|
|
|
Goodwill |
1,40,000 |
2,00,000 |
|
|
|
1,40,000 |
2,00,000 |
Adjustments:
During the year, a machine costing ₹3,00,000 on which accumulated depreciation was ₹45,000 was sold for ₹1,35,000.
Calculate Cash Flows from Operating Activities.
(CBSE 2024)
Answer:
Cash Flow Statement(Indirect Method) |
|
|
|
Particulars |
|
₹ |
|
A. Cash Flows from Operating Activities |
|
|
Balance in Statement of Profit and Loss |
|
1,00,000 |
|
Add: Provision for Tax |
|
80,000 |
|
Profit before Tax and Extraordinary Items |
|
1,80,000 |
|
Adjustments for: |
|
|
|
Depreciation (Machinery) |
1,95,000 |
|
|
Loss on Sale of Machine |
1,20,00 |
|
|
Amortisation (Goodwill) |
60,000 |
3,75,000 |
|
Operating profit before working-capital changes |
|
5,55,000 |
|
Working-capital adjustments: |
|
|
|
Add: Trade Payable |
|
40,000 |
|
|
|
5,95,000 |
|
Less: |
|
|
|
Inventories |
50,000 |
|
|
Trade Receivable |
2,00,000 |
2,50,000 |
|
Cash generated from operations |
|
3,45,000 |
|
Income-tax paid |
|
60,000 |
|
Net Cash from Operating Activities |
|
2,85,000 |
|
|
|
|
|
|
|
|
Machine A/c |
|||
Particulars |
₹ |
Particulars |
₹ |
To Balance B/d |
10,00,000 |
By Accumulated Depreciation A/c |
45,000 |
To Bank A/c (Purchase) |
11,50,000 |
By Bank A/c (Sale) |
1,35,000 |
|
|
|
By Loss on Sale of machine A/c |
1,20,000 |
|
|
|
By Balance C/d |
18,50,000 |
|
|
21,50,000 |
|
21,50,000 |
Accumulated Depreciation A/c |
|||
Particulars |
₹ |
Particulars |
₹ |
To Machine A/c |
45,000 |
By Balance B/d |
1,00,000 |
To Balance C/d |
2,50,000 |
By Depreciation A/c |
1,95,000 |
|
|
|
(Provided During the year) |
|
|
|
|
|
|
|
|
2,95,000 |
|
2,95,000 |
Click below for more Questions
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