Question 49:
Following is the summarised Balance Sheet of Philips India 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 |
|
13,50,000 |
13,50,000 |
|
(b) Reserves and Surplus |
1 |
11,34,000 |
10,68,000 |
|
2. Non-Current Liabilities |
|
|
|
|
Long-term Borrowings: 10% Mortgage Loan |
|
8,10,000 |
... |
|
3. Current Liabilities |
|
|
|
|
(a) Trade Payables (Creditors) |
|
4,20,000 |
5,04,000 |
|
(b) Short-term Provisions: |
|
|
|
|
Provision for Tax |
|
30,000 |
2,25,000 |
|
Total |
|
37,26,000 |
31,47,000 |
|
II. ASSETS |
|
|
|
|
1, Non-Current Assets |
|
|
|
|
(a) Fixed Assets (Tangible) |
|
9,60,000 |
12,00,000 |
|
(b) Non-Current Investments |
|
1,80,000 |
1,50,000 |
|
2. Current Assets |
|
|
|
|
(a) Current Investments |
|
21,000 |
17,000 |
|
(b) Inventories |
|
63,30,000 |
7,82,000 |
|
(c) Trade Receivables |
|
13,65,000 |
6,30,000 |
|
(c) Cash and Cash Equivalents |
|
5,70,00 |
4,30,000 |
|
Total |
|
37,26,000 |
31,47,000 |
|
|
|
|
|
Notes to Accounts
|
Particulars |
31st March, 2026 (₹) |
31st March, 2025 (₹) |
|
I. Reserves and Surplus |
|
|
|
General Reserve |
9,30,000 |
9,00,000 |
|
Surplus, i.e., Balance in Statement of Profit and Loss |
2,04,000 |
1,68,000 |
|
|
11,34,000 |
10,68,000 |
|
|
|
|
Additional Information:
1. Investments costing ₹ 24,000 were sold during the year for ₹
25,5000.
2. Provision for Tax made during the year was ₹ 27,000.
3. During the year, a part of the Fixed Assets costing ₹ 30,000 was sold
for ₹ 36,000. The profits were included in the Statement of Profit and
Loss.
4. The Interim Dividend paid during the year amounted to ₹ 1,20,000.
You are required to prepare Cash Flow Statement.
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 (2,04,000 – 1,68,000) |
36,000 |
|
|
|
Transfer to General Reserve |
30,000 |
|
|
|
Interim Dividend |
1,20,000 |
|
|
|
Provision for Taxation |
27,000 |
|
|
|
Profit Before Taxation |
2,13,000 |
|
|
|
Items to be Added: |
|
|
|
|
Depreciation |
2,10,000 |
|
|
|
Profit on Sale of Investments |
(1,500) |
|
|
|
Profit on Sale of Fixed Assets |
(6,000) |
|
|
|
Operating Profit before Working Capital Adjustments |
4,15,500 |
|
|
|
Less: Increase in Current Assets |
|
|
|
|
Trade Receivables |
(7,35,000) |
|
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
Trade Payables |
(1,02,000) |
|
|
|
Add:Decrease in Current Assets |
|
|
|
|
Inventories |
90,000 |
|
|
|
Cash Generated from Operations |
(3,31,500) |
|
|
|
Less: Tax Paid |
(2,22,000) |
|
|
|
Net Cash from (used in) Operating Activities |
|
(5,53,500) |
|
|
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
|
|
Sale of Investments |
25,500 |
|
|
|
Sale of Fixed Assets |
36,000 |
|
|
|
Purchase of Investments |
(54,000) |
|
|
|
Net Cash Flow from Investing Activities |
|
7,500 |
|
|
|
|
|
|
C |
Cash Flow from Financing Activities |
|
|
|
|
Proceeds from Issue of 10% Mortgage Loan |
8,10,000 |
|
|
|
Interim Dividend Paid |
(1,20,000) |
|
|
|
Net Cash Flow from Financing Activities |
|
6,90,000 |
|
|
|
|
|
|
D |
Net Increase in Cash and Cash Equivalents |
|
1,44,000 |
|
|
Add: Cash and Cash Equivalent in the beginning of the period |
|
4,47,000 |
|
|
Cash and Cash Equivalents at the end of the period |
|
5,91,000 |
|
|
|
|
|
Working Notes:
WN1
|
Fixed Assets Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
(₹) |
Particulars |
(₹) |
|
Balance b/d |
12,00,000 |
Bank A/c (Sale) |
36,000 |
|
Profit and Loss A/c (Profit on Sale) |
6,000 |
Depreciation (Bal. Fig.) |
2,10,000 |
|
|
|
Balance c/d |
9,60,000 |
|
|
12,06,000 |
|
12,06,000 |
|
|
|
|
|
WN2
|
Investments Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
(₹) |
Particulars |
(₹) |
|
Balance b/d |
1,50,000 |
Bank A/c (Sale) |
25,500 |
|
Profit and Loss A/c (Profit on Sale) |
1,500 |
Balance c/d |
1,80,000 |
|
Bank A/c (Purchases- Bal. Fig.) |
54,000 |
|
|
|
|
2,05,500 |
|
2,05,500 |
|
|
|
|
|
WN 3
|
Provision for Taxation Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
(₹) |
Particulars |
(₹) |
|
Bank A/c (Tax Paid- Bal. Fig.) |
2,22,000 |
Balance b/d |
2,25,000 |
|
Balance c/d |
30,000 |
Profit and Loss A/c |
27,000 |
|
|
2,52,000 |
|
2,52,000 |
|
|
|
|
|
Question 50:
Following is the Balance Sheet of Nidhi Ltd. as at 31st March, 2026. Prepare Cash Flow Statement:
|
Particulars |
|
31st March, 2026 (₹) |
31st March, 2025 (₹) |
|
|
|
|
|
|
I. EQUITY AND LIABILITIES |
|
|
|
|
1. Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
30,00,000 |
20,00,000 |
|
(b) Reserves and Surplus |
1 |
(4,25,000) |
(5,37,500) |
|
2. Non-Current Liabilities |
|
|
|
|
Long-term Borrowings |
2 |
7,50,000 |
6,25,000 |
|
3. Current Liabilities |
|
|
|
|
Trade Payables |
|
4,75,000 |
6,75,000 |
|
Total |
|
38,00,000 |
27,62,500 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
1. Non-Current Assets |
|
|
|
|
(a) Property, Plant and Equipment (Fixed Assets): |
|
|
|
|
-Tangible Assets (Machinery) |
|
17,25,000 |
12,50,000 |
|
(b) Non-current Investments |
|
3,00,000 |
5,00,000 |
|
2. Current Assets |
|
|
|
|
(a) Inventories |
|
10,00,000 |
7,50,000 |
|
(b) Trade Receivables |
|
6,00,000 |
1,12,500 |
|
(c) Cash and Cash Equivalents |
|
1,75,000 |
1,50,000 |
|
Total |
|
38,00,000 |
27,62,500 |
Notes to Accounts
|
Particulars |
31st March, 2026 (₹) |
31st March, 2025 (₹) |
|
1. Reserves and Surplus |
|
|
|
Surplus, i.e, Balance in Statement of Profit and Loss |
(4,25,000) |
(5,37,500) |
|
2. Long-term Borrowings |
|
|
|
12% Debentures |
7,50,000 |
6,25,000 |
Additional Information:
(i) Debentures were issued on 1st January, 2026.
(i) Machinery costing ₹ 5,00,000 on which depreciation charged was ₹ 1,75,000 was sold for ₹ 3,75,000.
(ii) Depreciation charged during the year amounted to ₹ 2,00,000.
(iv) Non-current Investments were sold at a profit of 20%.
Prepare Cash Flow Statement.
Answer:
|
Nidhi Ltd. Cash Flow Statement as at 31st March, 2026 |
|||
|
|
Particulars |
Detail |
(₹) |
|
I. |
Cash Flow From operating Activity |
|
|
|
|
Surplus, i.e, Balance in Statement of Profit and Loss |
|
(1,12,500) |
|
Add: |
Depreciation on Machinery |
2,00,000 |
|
|
|
Interest on Debenture |
78,750 |
2,78,750 |
|
|
|
|
3,91,250 |
|
Less: |
Profit on sale of Machinery |
(50,000) |
|
|
|
Profit on sale of Non-Current Investment |
(40,000) |
(90,000) |
|
|
Operating Profit before working capital changes |
|
3,01,250 |
|
|
|
|
|
|
Less: |
Increase in Assets and Decrease in Liabilities |
|
|
|
|
Decrease in Trade Payable |
(2,00,000) |
|
|
|
Increase in inventories |
(2,50,000) |
|
|
|
Increase in Trade Receivables |
(4,87,500) |
(9,37,500) |
|
|
Cash Used in operating Activity |
|
(6,36,250) |
|
|
|
|
|
|
II. |
Cash Flow From Investing Activity |
|
|
|
|
Proceeds from Sale of Machinery |
2,40,000 |
|
|
|
Proceeds from Sale of Non-Current Investment |
3,75,000 |
6,15,000 |
|
|
Payment for purchase of Machinery |
|
(10,00,000) |
|
|
Cash used in Investing Activity |
|
(3,85,000) |
|
|
|
|
|
|
III. |
Cash Flow From Financing Activity |
|
|
|
|
Issue of Shares |
10,00,000 |
|
|
|
Issue of Debentures |
1,25,000 |
11,25,000 |
|
|
Payment of Interest on debentures |
|
(78,750) |
|
|
Cash Flow From Financing Activity |
|
10,46,250 |
|
|
Net increase in in cash and cash equivalent |
|
25,000 |
|
Add: |
OpeningCash and Cash Equivalents |
|
1,50,000 |
|
|
closing Cash and Cash Equivalents |
|
1,75,000 |
|
|
|
|
|
Working Notes:
|
Dr. |
Machinery A/c |
Cr. |
|
|
Particulars |
₹ |
Particulars |
₹ |
|
To Balance B/d |
12,50,000 |
By Bank A/c (Sale) |
3,75,000 |
|
To P&L a/c (Profit on sale) |
50,000 |
By P&L a/c (Depreciation provided during the year) |
2,00,000 |
|
To Bank a/c (Purchase) |
10,00,000 |
By Balance C/d |
17,25,000 |
|
|
23,00,000 |
|
23,00,000 |
Question 51:
Read the following hypothetical text and answer the given questions on its basis. Profit for the year ended 31st March, 2026 of iPay (a payment processing start up) was ₹15,00,000 after accounting the following:
|
Particulars |
₹ |
|
Depreciation |
1,00,000 |
|
Loss of Furniture due to Fire |
10,000 |
|
Interest on Investment (Long-term) |
25,000 |
|
Tax Refund |
10,000 |
Additional Information:
|
Particulars |
31st March, 2026 (₹) |
31st March, 2025 (₹) |
|
Share Capital |
20,00,000 |
15,00,000 |
|
Securities Premium |
15,00,000 |
20,00,000 |
|
General Reserve |
2,50,000 |
2,50,000 |
|
Machinery |
5,00,000 |
3,00,000 |
|
Furniture |
80,000 |
1,00,000 |
|
Marketable Securities |
1,00,000 |
- |
|
10% Non-current Investment |
3,00,000 |
2,00,000 |
|
Patents |
50,000 |
80,000 |
|
Cash-in-Hand and at Bank |
50,000 |
1,00,000 |
|
Bank Overdraft |
5,00,000 |
7,00,000 |
|
Provision for Tax |
1,00,000 |
75,000 |
(i) Patents purchased during the year was 50,000.
(ii) Proposed Dividend for the year ended 31st March, 2025 and 2026 was ₹1,50,000 and ₹2,00,000 respectively.
(iii) Interim Dividend during the year ended 31st March, 2025 and 2026 was ₹50,000 and ₹1,20,000 respectively.
You are required to:
1. Determine Net Profit before Tax and Extraordinary Items.
2. Determine Operating Profit before Working Capital Changes.
3. Determine Cash Flow from Investing Activities.
4. Determine Cash Flow from Financing Activities.
5. Determine Cash and Cash Equivalents.
|
Surplus; statement of Profit and Loss |
|
15,00,000 |
|
Add: |
|
|
|
Provision for Tax |
1,00,000 |
|
|
Proposed Dividend |
1,50,000 |
|
|
Interim Dividend |
1,20,000 |
3,70,000 |
|
Net Profit before Tax and Extraordinary Items |
|
18,70,000 |
|
Add: |
|
|
|
Depreciation |
1,00,000 |
|
|
Patent amortised |
80,000 |
1,80,000 |
|
|
|
20,50,000 |
|
Less: Interest on Investment (Long-term) |
|
(25,000) |
|
|
||
|
Operating Profit before Working Capital Changes |
|
20,25,000 |
|
|
|
|
|
Investing Activity |
|
|
|
Purchase of machinery (5,00,000-3,00,000) |
(2,00,000) |
|
|
Sale of Furniture (W.N.) |
(90,000) |
|
|
Purchase of Non-current Investment (3,00,000-2,00,000) |
(1,00,000) |
|
|
Purchase of Patent (W.N.) |
(50,000) |
|
|
(4,40,000) |
||
|
Less: Interest on Non-current Investment |
25,000 |
|
|
Net cash used in investing activities |
|
(4,15,000) |
|
|
|
|
|
Financing Activity |
|
|
|
Issue of Share Capital |
|
5,00,000 |
|
Less: |
|
|
|
Repayment of Bank O/D |
(2,00,000) |
|
|
Dividend paid during the year |
(1,50,000) |
|
|
Paid interim dividend |
(1,20,000) |
(4,70,000) |
|
Cash flow from financing activity |
|
30,000 |
|
Cash in hand and at bank (2026) |
|
50,000 |
|
Marketable Securities (2026) |
|
1,00,000 |
|
Cash and Cash Equivalents |
|
1,50,000 |
Working Notes:
|
Patent Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance b/d |
80,000 |
Profit and loss A/c (Amortisation) |
80,000 |
|
(Balancing figure) |
|||
|
Bank A/c (Purchase) |
50,000 |
Balance c/d |
50,000 |
|
|
1,30,000 |
|
1,30,000 |
|
|
|
|
|
|
Furniture Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance b/d |
1,00,000 |
Depreciation A/c |
1,00,000 |
|
Bank A/c (Purchase) |
90,000 |
Profit and Loss A/c(loss on due fire) |
10,000 |
|
(Balancing figure) |
Balance c/d |
80,000 |
|
|
|
1,90,000 |
|
1,90,000 |
|
|
|
|
|
Question 52:
From the following Balance Sheet and information of Sun Ltd., prepare Cash Flow Statement:
|
Particulars |
Note No. |
31st March, 2026 (₹) |
31st March, 2025 (₹) |
|
I. EQUITY AND LIABILITIES |
|
|
|
|
1. Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1 |
7,00,000 |
6,00,000 |
|
(b) Reserves and Surplus |
2 |
4,10,000 |
2,00,000 |
|
2. Non-Current Liabilities |
|
|
|
|
Long-term Borrowings: 10% Debentures |
|
3,00,000 |
2,00,000 |
|
3. Current Liabilities |
|
|
|
|
(a) Trade Payables |
|
1,40,000 |
60,000 |
|
Total |
|
15,50,000 |
10,60,000 |
|
II. ASSETS |
|
|
|
|
1. Non-Current Assets |
|
|
|
|
(a) Fixed Assets−Tangible |
|
7,00,000 |
6,00,000 |
|
(b) 10% Investments |
|
2,00,000 |
1,00,000 |
|
2. Current Assets |
|
|
|
|
(a) Current Investments |
|
90,000 |
50,000 |
|
(b) Inventories |
|
2,00,000 |
1,00,000 |
|
(c) Trade Receivables |
3 |
2,80,000 |
1,90,000 |
|
(d) Cash and Cash Equivalents |
|
80,000 |
20,000 |
|
Total |
|
15,50,000 |
10,60,000 |
|
|
|
|
|
|
Notes to Accounts : |
||
|
Particulars |
31st March, 2026 (₹) |
31st March, 2025 (₹) |
|
1. Share Capital |
|
|
|
Equity Share Capital |
5,00,000 |
3,00,000 |
|
10% Preference Share Capital |
2,00,000 |
3,00,000 |
|
|
7,00,000 |
6,00,000 |
|
2. Reserves and Surplus |
|
|
|
Securities Premium Reserve |
10,000 |
... |
|
Surplus i.e., Balance in Statement of Profit and Loss |
4,00,000 |
2,00,000 |
|
|
4,10,000 |
2,00,000 |
|
3. Trade Receivables |
|
|
|
Sundry Debtors |
3,00,000 |
2,00,000 |
|
Less: Provision for Doubtful Debts |
20,000 |
10,000 |
|
|
2,80,000 |
1,90,000 |
|
|
|
|
You are informed that during the year:
|
Proposed Dividend: |
31st March, 2026 |
31st March, 2025 |
|
Equity Share Capital |
Nil |
Nil |
|
Preference Share Capital |
10% |
10% |
(ii) A machine with a
book value of ₹ 90,000 was sold for ₹ 50,000;
(iii) Depreciation charged during the year ₹ 60,000;
(iv) Debentures were issued on 1st April, 2025;
(v) Investments were purchased on 31st March, 2026;
(vi) Preference shares were redeemed on 31st December,2025;
(vii) An interim dividend @ 15% was paid on equity shares on 31st December, 2025;
(viii) Fresh equity shares were issued at a premium of 5% on 31st March, 2026.
Answer:
|
|
Cash Flow Statement for the year ended March 31, 2026 |
||||
|
|
Particulars |
Amount (₹) |
Amount (₹) |
||
|
A |
Cash Flow from Operating Activities |
|
|
||
|
|
Profit as per Statement of Profit and Loss |
2,00,000 |
|
||
|
|
Preference Dividend (3,00,000×10100)W.N.-1 |
30,000 |
|
||
|
|
Profit Before Taxation |
|
2,30,000 |
||
|
|
Items to be Added: |
|
|
||
|
|
Depreciation on Fixed Assets |
60,000 |
|
||
|
|
Loss on Fixed Assets |
40,000 |
|
||
|
|
Interest on Debentures |
30,000 |
|
||
|
|
Dividend on Equity Shares |
45,000 |
|
||
|
|
Provision for Doubtful Debts |
10,000 |
|
||
|
|
Items to be Deducted: |
|
|
||
|
|
Interest on Investment |
(10,000) |
1,75,000 |
||
|
|
Operating Profit before Working Capital Adjustments |
|
4,05,000 |
||
|
|
Less: Increase in Current Assets |
|
|
||
|
|
|
Trade Receivables |
(1,00,000) |
|
|
|
|
|
Inventories |
(1,00,000) |
(2,00,000) |
|
|
|
Add: Increase in Current Liabilities |
|
|
||
|
|
Trade Payables |
80,000 |
80,000 |
||
|
|
Cash Generated from Operations |
|
2,85,000 |
||
|
|
Less: Tax Paid |
|
- |
||
|
|
Net Cash Flows from Operating Activities |
|
2,85,000 |
||
|
|
|
|
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
||
|
|
|
Sale of Fixed Assets |
50,000 |
|
|
|
|
|
Purchase of Fixed Assets |
(2,50,000) |
|
|
|
|
|
Purchase of Investment |
(1,00,000) |
|
|
|
|
|
Interest on Investment |
10,000 |
|
|
|
|
Net Cash Used in Investing Activities |
|
(2,90,000) |
||
|
|
|
|
|
||
|
C |
Cash Flow from Financing Activities |
|
|
||
|
|
Proceeds from Issue of Share Capital |
2,00,000 |
|
||
|
|
Proceeds from Issue of Debentures |
1,00,000 |
|
||
|
|
Interest on Debentures Paid |
(30,000) |
|
||
|
|
Redemption of Preference Share Capital |
(1,00,000) |
|
||
|
|
Security Premium Reserve |
10,000 |
|
||
|
|
Dividend Paid on Preference Share Capital |
(30,000) |
|
||
|
|
Dividend Paid on Equity Share Capital |
(45,000) |
|
||
|
|
Net Cash Flow from Financing Activities |
|
1,05,000 |
||
|
|
|
|
|
|
|
|
D |
Net Increase in Cash and Cash Equivalents |
|
1,00,000 |
||
|
|
|
Add: Cash and Cash Equivalent in the beginning of the period (50,000+20,000) |
|
70,000 |
|
|
|
Cash and Cash Equivalents at the end of the period (90,000+80,000) |
|
1,70,000 |
||
|
|
|
|
|
||
|
|
|
|
|
|
|
Working Notes:
(1) Dividend on 10% Preference Shares has been calculated on the value as on 31st March, 2025 as ₹1,00,000 Preference Shares were redeemed on 31st December, 2025.
(2)
|
Fixed Assets Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance b/d |
6,00,000 |
Bank A/c (Sale) |
50,000 |
|
Bank A/c (Purchase- Bal. Fig.) |
2,50,000 |
Depreciation |
60,000 |
|
|
|
Profit and Loss A/c (Loss on Sale) |
40,000 |
|
|
|
Balance c/d |
7,00,000 |
|
|
8,50,000 |
|
8,50,000 |
|
|
|
|
|
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