Question 37:
Jalco Ltd. provided the following information, calculate Net Cash Flow from Financing Activities:
|
Particular |
31st March, 2026 (₹) |
31st March, 2025 (₹) |
|
Equity Share Capital |
12,00,000 |
10,00,000 |
|
12% Debentures |
2,00,000 |
1,00,000 |
Additional
Information:
1.Interest paid on debentures ₹ 19,000.
2. Dividend paid in the year ₹ 50,000.
3. During the year,JalcoLtd. issued bonus shares in the ratio of 5 : 1 by
captialising reserve.
Answer:
|
Cash Flow from Financing Activities |
|||
|
|
Particulars |
(₹) |
(₹) |
|
|
Proceeds from Issue of 12% Debentures |
1,00,000 |
|
|
|
Interest Paid |
(19,000) |
|
|
|
Dividend Paid |
(50,000) |
|
|
|
Net Cash Flows from Financing Activities |
|
31,000 |
Note: Amount of Equity Share Capital has been increased due to the issue of Bonus Shares which does not involve any flow of cash. Therefore, it is not considered in the Financing Activities.
Question 38:
From the following extracts of Balance Sheet of Exe Ltd., calculate Cash Flow from Financing Activities:
|
Particulars |
31st March, 2026 (₹) |
31st March, 2025 (₹) |
|
Equity Share Capital |
5,25,000 |
4,00,000 |
|
10% Preference Share Capital |
4,00,000 |
5,50,000 |
|
Debenture Redemption Reserve |
1,00,000 |
1,00,000 |
|
12% Debentures |
4,00,000 |
3,00,000 |
Additional
Information:
1. Equity Shares were issued on 31st March, 2026.
2. Interim dividend on Equity Shares was paid @ 15%.
3. Preference Shares were redeemed on 31st March, 2026 at a premium of 5%.
4. 12% Debentures of face value ₹ 1,00,000 were issued on 31st March, 2026.
Answer:
|
Cash Flow from Financing Activities for the year ended
March 31, 2026 |
|||
|
|
Particulars |
(₹) |
(₹) |
|
|
Issue of Shares |
1,25,000 |
|
|
|
Issue of Debentures |
1,00,000 |
2,25,000 |
|
|
2,25,000 |
||
|
|
Premium on redemption of Preference Shares (5% of 1,50,000) |
(7,500) |
|
|
Interim Dividend Paid(15% of 4,00,000) |
(60,000) |
||
|
|
Redemption of Preference Share Capital |
(1,50,000) |
|
|
|
Interest on Debentures (12% of 3,00,000) |
(36,000) |
|
|
|
Dividend paid on Preference Share Capital |
(55,000) |
(3,08,500) |
|
|
Net Cash Flow from Financing Activities |
|
83,500 |
|
|
|
|
|
Question 39:
From the following information, calculate (a) Cash Flow from Investing Activities; and (b) Cash Flow from Financing Activities:
|
Particulars | |
31st March, 2025 (₹) |
31st March, 2026 (₹) |
|
Plant and Machinery |
8,50,000 |
10,00,000 |
|
Non-Current Investments |
40,000 |
1,00,000 |
|
Land (at Cost) |
2,00,000 |
1,00,000 |
|
Equity Share Capital |
20,00,000 |
30,00,000 |
|
109% Preference Share Capital |
2,00,000 |
1,00,000 |
|
Securities Premium |
- |
1,00,000 |
|
10% Debentures |
10,00,000 |
10,00,000 |
Additional Information:
(i) Depreciation charged on Plant and Machinery was 50,000.
(ii) Plant and Machinery of book value 60,000 was sold for ₹40,000.
(iii) Land was sold at a gain of 60,000.
(iv) Preference Shares were redeemed on 31st March, 2026 at a premium of 5%.
(v) Dividend on Equity Shares and Preference Shares for the year ended 31st March, 2025 was Nil and for the year ended 31st March, 2026. Proposed Dividend on Equity Shares was 10%.
(vi) Fresh issue of Equity Shares was on 1st April, 2025.
Answer:
|
|
Cash Flow Statement for the year ended March 31, 2026 |
|||
|
|
Particulars |
Amount (₹) |
Amount (₹) |
|
|
I. |
Cash Flow from Investing Activities |
|
|
|
|
|
Proceeds from sale of Plant and machinery |
|
40,000 |
|
|
|
Proceeds from sale of Land |
|
1,60,000 |
|
|
|
Purchase of Plant and machinery |
|
(2,60,000) |
|
|
|
Purchase of Non-Current Investments |
|
(60,000) |
|
|
|
|
|
|
|
|
|
Cash Used in Investing Activities |
|
(1,20,000) |
|
|
|
||||
|
|
Particulars |
Amount (₹) |
Amount (₹) |
|
|
I. |
Cash Flow from Financing Activities |
|
|
|
|
Add: |
Issue of Equity Share Capital |
10,00,000 |
|
|
|
|
Securities Premium Received |
1,00,000 |
11,00,000 |
|
|
Less: |
Preference Shares were redeemed |
(1,00,000) |
|
|
|
|
Premium Paid on redemption |
(5,000) |
|
|
|
|
Interest on debenture paid |
(1,00,000) |
(2,05,000) |
|
|
|
Cash Flow from Financing Activities |
|
8,95,000 |
|
Working Notes:
|
Plant and Machinery |
|||
|
Particulars |
₹ |
Particulars |
₹ |
|
To balance b/d |
8,50,000 |
By P&L A/c(Loss) |
20,000 |
|
To bank A/c– Bal. figure |
2,60,000 |
By Bank A/c(Sale) Bal. |
40,000 |
|
(Purchase) |
|
By P&L A/c(Dep.) |
50,000 |
|
|
|
By balance C/d |
10,00,000 |
|
|
11,10,000 |
|
11,10,000 |
|
|
|
|
|
|
Land ac |
|||
|
Particulars |
₹ |
Particulars |
₹ |
|
To balance b/d |
2,00,000 |
By Bank A/c(Sale) Bal. |
1,60,000 |
|
To P&L A/c(Gain) |
60,000 |
|
|
|
|
|
By balance C/d |
1,00,000 |
|
|
2,60,000 |
|
2,60,000 |
|
|
|
|
|
|
Non-Current Investments ac |
|||
|
Particulars |
₹ |
Particulars |
₹ |
|
To balance b/d |
40,000 |
By balance C/d |
1,00,000 |
|
To Bank A/c(Purchase) Bal. |
60,000 |
|
|
|
|
2,60,000 |
|
2,60,000 |
Question 40:
From
the following Balance Sheet of Young India Ltd., prepare Cash Flow Statement:
|
BALANCE SHEET OF YOUNG INDIA LTD. |
|||
|
Particular |
Note No. |
31st March, 2026(₹) |
31st March, 2025(₹) |
|
I. EQUITY AND LIABILITIES |
|
|
|
|
1. Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
2,50,000 |
2,00,000 |
|
(b) Reserves and Surplus: Surplus, i.e., Balance in Statement of Profit and Loss |
|
1,83,000 |
82,000 |
|
2. Non-Current Liabilities |
|
|
|
|
Long-term Borrowings: |
|
|
|
|
15% Debentures |
|
80,000 |
50,000 |
|
3. Current Liabilities |
|
|
|
|
(a) Trade Payables |
|
1,50,000 |
1,10,000 |
|
(b) Other Current Liabilities |
|
12,000 |
20,000 |
|
Total |
|
6,75,000 |
4,62,000 |
|
II. ASSETS |
|
|
|
|
1. Non-Current Assets |
|
|
|
|
(a) Fixed Assets (Tangible) |
|
2,74,000 |
1,17,000 |
|
(b) Non-Current Investments |
|
68,000 |
55,000 |
|
2. Current Assets |
|
|
|
|
(a) Inventories |
|
2,06,000 |
1,50,000 |
|
(b) Trade Receivables |
|
32,000 |
70,000 |
|
(c) Cash and Cash Equivalents |
|
95,000 |
70,000 |
|
Total |
|
6,75,000 |
4,62,000 |
|
|
|
|
|
Answer:
|
Cash Flow Statement for the year ended March 31, 2026 |
|||
|
|
Particulars |
(₹) |
(₹) |
|
A |
Cash Flow from Operating Activities |
|
|
|
|
Profit as per Statement of Profit and Loss (1,83,000 – 82,000) |
1,01,000 |
|
|
|
Profit Before Taxation |
1,01,000 |
|
|
|
Items to be Added: |
|
|
|
|
Interest on Debentures |
7,500 |
|
|
|
Operating Profit before Working Capital Adjustments |
1,08,500 |
|
|
|
Less: Increase in Current Assets |
|
|
|
|
Inventories |
(56,000) |
|
|
|
Add: Increase in Current Liabilities |
|
|
|
|
Trade Payables |
40,000 |
|
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
Other Current Liabilities |
(8,000) |
|
|
|
Add:Decrease in Current Assets |
|
|
|
|
Trade Receivables |
38,000 |
|
|
|
Cash Generated from Operations |
1,22,500 |
|
|
|
Less: Tax Paid |
– |
|
|
|
Net Cash Flows from Operating Activities |
|
1,22,500 |
|
|
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
|
Purchase of Fixed Assets |
(1,57,000) |
|
|
|
Purchase of Investments |
(13,000) |
|
|
|
Net Cash Used in Investing Activities |
|
(1,70,000) |
|
|
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
|
Proceeds from Issue of Equity Share Capital |
50,000 |
|
|
|
Proceeds from Issue of 15% Debentures |
30,000 |
|
|
|
Interest on Debentures (50,000 × 15%) |
(7,500) |
|
|
|
Net Cash Flow from Financing Activities |
|
72,500 |
|
|
|
|
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
25,000 |
|
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
70,000 |
|
|
Cash and Cash Equivalents at the end of the period |
|
95,000 |
|
|
|
|
|
Note: It has been assumed that Debentures were issued at the end of the accounting period. Therefore, interest on Debentures is computed on the opening balance of the Debenture.
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