Question 41:
Prepare
a Cash Flow Statement on the basis of the information given in the Balance
Sheet of Libra Ltd. as at 31st March, 2024 and 31st March 2025:
|
Particulars ulars |
Note
No. |
31st
March, 2025 (₹) |
31st
March, 2024 (₹) |
|
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, 2024 (₹) |
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, 2025 |
||
|
|
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 Varun Ltd
as at 31st March, 2025 is as s follows:
|
Particulars |
Note No. |
31st
March, 2025 (₹) |
31st
March, 2024 (₹) |
|
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, 2025 (₹) |
31st
March, 2024 (₹) |
|
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 |
31-03-2025 2,44,000 72,000 |
31-03-2024 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, 2025:
|
Particulars |
Note No. |
31st March, 2025 (₹) |
31st March, 2024 (₹) |
|
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, 2025 (₹) |
31st March, 2024 (₹) |
|
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, 2024 and 2025 are ₹ 39,000 and ₹
45,000 respectively.
You are
required to prepare Cash Flow Statement for the year ended 31st March, 2025.
Answer:
|
Cash Flow
Statement for the year ended March 31, 2025 |
||||
|
|
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 Limitedas at 31st March, 2025:
|
Mevanca
Limited BALANCE SHEET |
|||
|
Particulars |
Note No. |
31st March, 2025 (₹) |
31st March, 2024 (₹) |
|
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, 2025 (₹) |
31st March, 2024 (₹) |
|
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, 2024.
(ii) Tax of ₹ 53,000 was paid during the year.
Prepare Cash Flow Statement.
Answer:
|
Cash flow Statement |
||
|
for the year ended 31st March, 2025 |
||
|
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 (₹) |
|
|
2025 |
|
|
2024 |
|
|
|
|
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 |
2025 |
|
|
|
|
|
|
|
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, 2024= ₹.
20,000×10/100×9/12= ₹.
1,500
Interest on Loan as on 31st March, 2024= ₹.
60,000×10100= ₹.
6,000
Total Interest Paid on Loan= ₹.
(6,000+1,500)= ₹. 7,500
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Ts Grewal Solution 2025-2026
Class 12 / Volume – 3
Chapter 5 – Cash Flow Statements