Question 41:
Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheet of Nidhi Ltd. as at 31st March 2026:
|
Particulars ulars |
Note No. |
31st March, 2026 (₹) |
31st March, 2025 (₹) |
|
I. EQUITY AND LIABILITIES |
|
|
|
|
1. Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
8,00,000 |
6,00,000 |
|
(b) Reserves and Surplus |
1 |
4,00,000 |
3,00,000 |
|
2. Non-Current Liabilities |
|
|
|
|
Long-term Borrowings |
|
1,00,000 |
1,50,000 |
|
3. Current Liabilities |
|
|
|
|
(a) Trade Payables |
|
40,000 |
48,000 |
|
Total |
|
13,40,000 |
10,98,000 |
|
II. ASSETS |
|
|
|
|
1, Non-Current Assets |
|
|
|
|
(a) Fixed Assets: |
|
|
|
|
Tangible Assets |
|
8,50,000 |
5,60,000 |
|
(b) Non-Current Investments |
|
2,32,000 |
1,60,000 |
|
2. Current Assets |
|
|
|
|
(a) Current Investments |
|
50,000 |
1,34,000 |
|
(b) Inventories |
|
76,000 |
82,000 |
|
(c) Trade Receivables |
|
38,000 |
92,000 |
|
(d) Cash and Cash Equivalents |
|
94,000 |
70,000 |
|
Total |
|
13,40,000 |
10,98,000 |
|
|
|
|
|
Notes to Accounts
|
Particulars |
31st March, 2026 (₹) |
31st March, 2025 (₹) |
|
I. Reserves and Surplus |
|
|
|
Surplus, i.e., Balance in Statement of Profit and Loss |
4,00,000 |
3,00,000 |
|
|
|
|
Answer:
|
|
Cash Flow Statement for the year ended March 31, 2026 |
||
|
|
Particulars |
Details (₹) |
(₹) |
|
A |
Cash from Operating Activities |
|
|
|
|
Net Profit |
|
1,00,000 |
|
|
Operating Profit Before Working Capital Changes |
|
1,00,000 |
|
|
Add: Decrease in Current Assets |
|
|
|
|
Inventories |
6,000 |
|
|
|
Trade Receivables |
54,000 |
|
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
Trade Payables |
(8,000) |
52,000 |
|
|
|
|
|
|
|
Cash Generated from Operations |
|
1,52,000 |
|
|
Less: Tax Paid |
|
- |
|
|
Net Cash Flow from Operating Activities |
|
1,52,000 |
|
|
|
|
|
|
B |
Cash From Investing Activities |
|
|
|
|
Purchase of Tangible Assets |
(2,90,000) |
|
|
|
Purchase on Non Current Investment |
(72,000) |
|
|
|
|
|
|
|
|
Net Cash Used in Investing Activities |
|
(3,62,000) |
|
|
|
|
|
|
C |
Cash From Financing Activities |
|
|
|
|
Issue of Share Capital |
2,00,000 |
|
|
|
Long Term Borrowings |
(50,000) |
|
|
|
|
|
|
|
|
Net Cash Flow from Financing Activities |
|
1,50,000 |
|
|
|
|
|
|
D |
Net Decrease in Cash and Cash Equivalents |
|
(60,000) |
|
|
Add: Cash and Cash Equivalents in the beginning of the period (70,000 + 1,34,000) |
|
2,04,000 |
|
|
Cash and Cash Equivalents at the end of the period (94,000 + 50,000) |
|
1,44,000 |
|
|
|
|
|
|
|
|
|
|
Cash flow statements with Adjustments
Question 42:
Balance Sheet of Bright Ltd as at 31st March, 2026 is as s follows:
|
Particulars |
Note No. |
31st March, 2026 (₹) |
31st March, 2025 (₹) |
|
I. EQUITY AND LIABILITIES 1. Shareholders’ Funds (a) Share Capital (b) Reserves and Surplus: Surplus, i.e., Balance in Statement of Profit and Loss 2. Non-Current Liabilities Long-term Borrowings 3. Current Liabilities Trade Payables |
|
2,00,000
98,000
90,000
82,000 |
2,00,000
96,000
60,000
72000 |
|
Total |
|
4,70,000 |
4,28,000 |
|
li. ASSETS 1. Non-Current Assets Fixed Assets (Tangible) 2. Current Assets (a) Inventories (b) Trade Receivables (c) Cash and Cash Equivalents |
|
3,42,000
44,000 76,800 7,200 |
3,00,000 50,000
70,000 8,000 |
|
Total |
|
4,70,000 |
428,000 |
Notes to Accounts
|
Particulars |
|
|
31st March, 2026 (₹) |
31st March, 2025 (₹) |
|
1. Long-term Borrowings Loan from Z Ltd. Loan from Bank |
|
40,000 50,000 |
------ 60,000 |
|
|
|
|
|
90,000 |
60,000 |
|
2. Fixed Assets (Tangible) (i) Land (ii) Building (iii) Machinery Less: Accumulated Depreciation |
31-03-2026
2,44,000 72,000 |
31-03-2025
2,14,000 54,000 |
60,000 1,10,000
1,72,000 |
40,000 1,00,000
1,60,000 |
|
|
|
|
3,42,000 |
3,00,000 |
Additional Information: During the year ₹ 52,000 were paid as interim dividend.
Prepare Cash Flow Statement.
Answer:
|
Cash Flow Statement
|
||
|
Particulars |
Detail |
₹ |
|
I. Cash flow from operating activities Net profit as per Statement of profit and loss (98,000-96,000) Add: Interim Dividend |
52000 |
2,000
52000 |
|
Net profit before tax and extraordinary items Add: Depreciation on Machinery |
|
54,000 , 18,000 |
|
Operating Profit Before Working Capital Changes Add: Trade Payable (82,000-72,000) Inventories (50,000-44,000) |
10,000 6,000 |
72,000
16000 |
|
|
|
88,000 |
|
Less: Current Assets (76,800-70,000) |
|
(6,800) |
|
Cash Generated from operation |
|
81,200 |
|
Less: Tax paid |
|
-------- |
|
Cash flow from operating activities |
|
81,200 |
|
II. Cash flow from Investing activities Payments for the purchase of Land Payments for the purchase of Building Payments for the purchase of Machinery |
|
(20,000) (10,000) (30,000) |
|
Cash Used in Investing activities |
|
(60,000) |
|
III. Cash flow from Financing activities Proceeds from loan from Z Ltd. Repayment of Bank loan Payment of Interim dividend |
(10,000) (52,000) |
40,000
(62,000) |
|
Cash used in Financing activities |
|
(22,000) |
|
Net Decrease in Cash and cash equivalents [81,200+(60,000)+ (22,000)] Add: Opening Cash and Cash Equivalents |
|
(800)
8,000 |
|
Closing Cash and Cash Equivalents |
|
7,200 |
Working notes:
|
Dr. |
Fixed Assets A/c |
Cr. |
|
|
Particulars |
₹ |
Particulars |
₹ |
|
To Balance B/d To Bank a/c (Purchase) |
2,14,000 40,000 |
By Balance C/d |
2,44,000 |
|
|
5,12,000 |
|
5,12,000 |
Space
|
Dr. |
Provision for Depreciation A/c |
Cr. |
|
|
Particulars |
₹ |
Particulars |
₹ |
|
To Balance C/d |
72,000 |
By Balance B/d By P&L a/c (Dep. provided during the year) |
54,000 18,000
|
|
|
72,000 |
|
72,000 |
Question 43:
Following
is the Balance Sheet of Fine Products Ltd. as at 31st March, 2026:
|
Particulars |
Note No. |
31st March, 2026 (₹) |
31st March, 2025 (₹) |
|
I. EQUITY AND LIABILITIES |
|
|
|
|
1. Shareholders' Funds |
|
|
|
|
(a) Share Capital: Equity Share Capital |
|
3,50,000 |
3,00,000 |
|
(b) Reserves and Surplus |
1 |
57,000 |
38,000 |
|
2. Current Liabilities |
|
|
|
|
(a) Trade Payables |
|
53,000 |
35,000 |
|
(b) Other Current Liabilities |
|
6,000 |
8,000 |
|
(c) Short-term Provisions |
2 |
32,000 |
28,000 |
|
Total |
|
4,98,000 |
4,09,000 |
|
II. ASSETS |
|
|
|
|
1. Non-Current Assets |
|
|
|
|
(a) Fixed Assets: |
|
|
|
|
(i) Tangible Assets |
3 |
2,48,000 |
2,00,000 |
|
(ii) Intangible Assets (Goodwill) |
|
40,000 |
50,000 |
|
(b) Non-Current Investments |
|
35,000 |
10,000 |
|
2. Current Assets |
|
|
|
|
(a) Inventories |
|
39,000 |
57,000 |
|
(b) Trade Receivables |
|
1,08,000 |
75,000 |
|
(c) Cash and Bank Balance |
|
28,000 |
17,000 |
|
Total |
|
4,98,000 |
4,09,000 |
|
|
|
|
|
Notes to Accounts
|
Particulars |
31st March, 2026 (₹) |
31st March, 2025 (₹) |
|
1. Reserves and Surplus |
|
|
|
General Reserve |
30,000 |
20,000 |
|
Surplus, i.e., Balance in Statement of Profit and Loss |
27,000 |
18,000 |
|
|
57,000 |
38,000 |
|
2. Short-term Provisions |
|
|
|
Provision for Tax |
32,000 |
28,000 |
|
3. Tangible Fixed Assets |
|
|
|
Land and Building |
57,000 |
1,10,000 |
|
Plant and Machinery |
1,91,000 |
90,000 |
|
|
2,48,000 |
2,00,000 |
|
|
|
|
Note: Proposed dividends on equity for the years ended 31st March, 2025 and 2026 are ₹ 39,000 and ₹ 45,000 respectively.
You are required to prepare Cash Flow Statement for the year ended 31st March, 2026.
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 |
|
9,000 |
|
|
|
Items to be Added: |
|
|
|
|
|
General Reserve |
10,000 |
|
|
|
|
Goodwill |
10,000 |
|
|
|
|
Provision for Taxation |
32,000 |
|
|
|
|
Proposed Dividend |
39,000 |
1,00,000 |
|
|
|
Operating Profit before Working Capital Adjustments |
|
1,00,000 |
|
|
|
Less: Increase in Current Assets |
|
|
|
|
|
|
Trade Receivables |
(33,000) |
|
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
|
Other Current Liabilities |
(2,000) |
|
|
|
|
Add: Decrease in Current Assets |
|
|
|
|
|
Inventories |
18,000 |
|
|
|
|
Add: Increase in Current Liabilities |
|
|
|
|
|
Trade Payables |
18,000 |
1,000 |
|
|
|
Cash Generated from Operations |
|
1,01,000 |
|
|
|
Less: Tax Paid |
|
(28,000) |
|
|
|
Net Cash Flows from Operating Activities |
|
73,000 |
|
|
|
|
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
|
|
Purchase of Non-Current Investments |
|
(25,000) |
|
|
|
Purchase of Plant & Machinery |
|
(1,01,000) |
|
|
|
Sale of Land & Building |
|
53,000 |
|
|
|
Net Cash Used in Investing Activities |
|
(73,000) |
|
|
|
|
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
|
|
Dividend Paid |
|
(39,000) |
|
|
|
Proceeds from Issue of Share Capital |
|
50,000 |
|
|
|
Net Cash Flow from Financing Activities |
|
11,000 |
|
|
D |
Net Increase or Decrease in Cash and Cash Equivalents |
|
11,000 |
|
|
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
17,000 |
|
|
|
Cash and Cash Equivalents at the end of the period |
|
28,000 |
|
|
|
|
|
|
|
Note: Proposed Dividend treatment is as per
AS-4 (Revised).
Question 44:
Following is the Balance Sheet of Mevanca Limited as at 31st March, 2026:
|
Mevanca Limited BALANCE SHEET |
|||
|
Particulars |
Note No. |
31st March, 2026 (₹) |
31st March, 2025 (₹) |
|
I. EQUITY AND LIABILITIES |
|||
|
1. Shareholders' Funds |
|||
|
(a) Share Capital |
3,00,000 |
1,00,000 |
|
|
(b) Reserves and Surplus |
1 |
25,000 |
1,20,000 |
|
2. Non-Current Liabilities |
|||
|
Long-term Borrowings |
2 |
80,000 |
60,000 |
|
3. Current Liabilities |
|||
|
(a) Trade Payables |
6,000 |
20,000 |
|
|
(b) Short-term Provisions |
3 |
68,000 |
70,000 |
|
Total |
4,79,000 |
3,70,000 |
|
|
II. ASSETS |
|||
|
1. Non-Current Assets |
|||
|
Fixed Assets |
4 |
3,36,000 |
1,92,000 |
|
2. Current Assets |
|||
|
(a) Inventories |
67,000 |
60,000 |
|
|
(b) Trade Receivables |
51,000 |
65,000 |
|
|
(c) Cash and Cash Equivalents |
25,000 |
49,000 |
|
|
(d) Other Current Assets |
4,000 |
||
|
Total |
4,79,000 |
3,70,000 |
|
Notes to Accounts
|
Particulars |
31st March, 2026 (₹) |
31st March, 2025 (₹) |
|
1. Reserves and Surplus |
||
|
Surplus, i.e., Balance in Statement of Profit and Loss |
25,000 |
1,20,000 |
|
25,000 |
1,20,000 |
|
|
2. Long-term Borrowings |
||
|
10% Long-term Loan |
80,000 |
60,000 |
|
80,000 |
60,000 |
|
|
3. Short-term Provisions |
||
|
Provision for Tax |
68,000 |
70,000 |
|
68,000 |
70,000 |
|
|
4. Fixed Assets |
||
|
Machinery |
3,84,000 |
2,15,000 |
|
Accumulated Depreciation |
(48,000) |
(23,000) |
|
3,36,000 |
1,92,000 |
|
Additional Information:
(i) Additional loan was taken on 1st July, 2025.
(ii) Tax of ₹ 53,000 was paid during the year.
Prepare Cash Flow Statement.
Answer:
|
Cash flow Statement |
||
|
for the year ended 31st March, 2026 |
||
|
Particulars |
Amount |
Amount |
|
A. Cash Flow from Operating Activities |
|
|
|
Net Loss as per Statement of Profit and Loss |
(95,000) |
|
|
Add: Provision for Tax made (WN1) |
51,000 |
|
|
Net loss before Tax and Extraordinary Items |
(44,000) |
|
|
Add: Depreciation charged during the year |
25,000 |
|
|
Interest paid on loan (WN2) |
7,500 |
|
|
Net Loss before Working Capital Changes |
(11,500) |
|
|
Add: Decrease in Trade Receivables |
14,000 |
|
|
Decrease in other Current Assets |
4,000 |
|
|
Less: Decrease in Trade Payables |
(14,000) |
|
|
Increase In Inventories |
(7,000) |
|
|
Net Loss before Tax |
(14,500) |
|
|
Add: Tax to be paid during the year |
(53,000) |
|
|
Cash used in Operating Activities |
|
(67,500) |
|
B. Cash Flow from Investing Activities |
|
|
|
Purchase of Machinery |
(1,69,000) |
|
|
Cash used in Investing Activities |
|
(1,69,000) |
|
C. Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Shares |
2,00,000 |
|
|
Proceeds from additional loan taken |
20,000 |
|
|
Interest paid on long-term loan |
(7,500) |
|
|
Cash flow from Financing Activities |
|
2,12,500 |
|
Net decrease in Cash and Cash Equivalents |
|
(24,000) |
|
Add: Opening Balance of Cash and Cash Equivalent |
|
49,000 |
|
Cash and Cash Equivalents at the end of the year |
|
25,000 |
|
|
|
|
Working Notes:
1.
|
Dr. |
Provision for Tax A/c |
Cr. |
||||
|
Date |
Particulars |
Amount (₹) |
Date |
Particulars |
Amount (₹) |
|
|
2026 |
|
|
2025 |
|
|
|
|
March 31 |
To Cash A/c- Tax Paid |
53,000 |
April 01 |
By balance b/d |
70,000 |
|
|
March 31 |
To balance c/d |
68,000 |
2026 |
|
|
|
|
|
|
|
March 31 |
By Statement of Profit & Loss A/c |
51,000 |
|
|
|
|
|
|
|
|
|
|
|
|
1,21,000 |
|
|
1,21,000 |
|
|
|
|
|
|
|
|
|
2. Interest on Loan
Interest on Loan taken on 1st July, 2025=
₹. 20,000×10/100×9/12= ₹. 1,500
Interest on Loan as on 31st March, 2025= ₹. 60,000×10100= ₹. 6,000
Total Interest Paid on Loan= ₹. (6,000+1,500)= ₹. 7,500
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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