Question 53:
From
the following Balance Sheet of Samta Ltd., as at 31st
March, 2025, prepare Cash Flow Statement:
|
Particulars |
Note No. |
31st
March, 2025 (₹) |
31st March, (₹) |
|
I. EQUITY AND LIABILITIES |
|
|
|
|
1. Shareholders' Funds |
|
|
|
|
(a)
Share Capital |
1 |
7,50,000 |
7,50,000 |
|
(b)
Reserves and Surplus |
2 |
3,05,000 |
(20,000) |
|
2. Non-Current Liabilities |
|
|
|
|
Long-term
Borrowings (8% Debentures) |
|
2,60,000 |
1,50,000 |
|
3. Current Liabilities |
|
|
|
|
(a)
Short-term Borrowings (8% Bank Loan) |
|
40,000 |
50,000 |
|
(b)
Trade Payables |
|
1,20,000 |
1,10,000 |
|
(c)
Short-term Provisions |
3 |
50,000 |
40,000 |
|
Total |
|
15,25,000 |
10,80,000 |
|
II. ASSETS |
|
|
|
|
1. Non-Current Assets |
|
|
|
|
(a)
Fixed Assets: |
|
|
|
|
(i) Tangible
Assets (Net) |
|
8,60,000 |
6,20,000 |
|
(ii) Intangible Assets (Goodwill) |
|
15,000 |
40,000 |
|
(b)
Non-Current Investments |
|
1,25,000 |
80,000 |
|
2. Current Assets |
|
|
|
|
(a) Current Investments |
|
5,000 |
15,000 |
|
(b) Inventories |
|
1,95,000 |
1,00,000 |
|
(c) Trade Receivables |
|
2,00,000 |
2,00,000 |
|
(d) Cash and Cash Equivalents |
|
1,25,000 |
25,000 |
|
Total |
|
15,25,000 |
10,80,000 |
|
|
|
|
|
Notes to Accounts
|
Particulars |
|
31st March, 2025 (₹) |
31st March, 2024 (₹) |
|
1. Share Capital |
|
|
|
|
Equity Share Capital |
|
5,50,000 |
4,50,000 |
|
12% Preference Share Capital |
|
2,00,000 |
3,00,000 |
|
|
|
7,50,000 |
7,50,000 |
|
2. Reserves and Surplus |
|
|
|
|
Securities
Premium Reserve |
10,000 |
... |
|
|
Less:
Premium on redemption on pref. shares |
5,000 |
5,000 |
|
|
General
Reserve |
|
1,50,000 |
1,20,000 |
|
Surplus,
i.e., Balance in Statement of Profit and Loss |
|
1,50,000 |
(1,40,000) |
|
|
|
3,05,000 |
(20,000) |
|
4. Short-term Provisions |
|
|
|
|
Provision for Tax |
|
50,000 |
40,000 |
|
|
|
|
|
Additional Information :
(i) During the year a piece of machinery costing ₹ 60,000 on which depreciation charged
was ₹ 20,000 was sold at 50% of
its book value. Depreciation provided on tangible Assets ₹ 60,000;
(ii) Income tax ₹ 45,000 was
provided;
(iii) Additional Debentures were issued at par on 1st October, 2024 and Bank
Loan was repaid on the same date;
(iv) At the end of the year Preference Shares were redeemed at a premium of 5%.
Answer:
|
|
Cash Flow
Statement for the year ended March 31, 2025 |
||||
|
|
Particulars |
Amount (₹) |
Amount (₹) |
||
|
A |
Cash Flow from Operating Activities |
|
|
||
|
|
Profit as per Statement of Profit and Loss [1,50,000
− (−1,40,000)] |
2,90,000 |
|||
|
|
Provision for Tax |
45,000 |
|
||
|
|
General Reserve |
30,000 |
75,000 |
||
|
|
Profit Before Taxation |
|
3,65,000 |
||
|
|
Items to
be Added: |
|
|
||
|
|
Depreciation on Fixed Assets |
60,000 |
|
||
|
|
Loss on Fixed Assets |
20,000 |
|
||
|
|
Interest on Debentures (6,000 + 10,400) |
16,400 |
|
||
|
|
Interest on Bank Loan (2,000 + 1,600) |
3,600 |
|
||
|
|
Premium on Redemption of Preference Shares |
5,000 |
|
||
|
|
Goodwill written off |
25,000 |
1,30,000 |
||
|
|
Operating Profit before Working Capital Adjustments |
|
4,95,000 |
||
|
|
Less: Increase in Current Assets |
|
|
||
|
|
|
Inventories |
(95,000) |
|
|
|
|
Add: Increase in Current Liabilities |
|
|
||
|
|
Trade Payables |
10,000 |
(85,000) |
||
|
|
Cash Generated
from Operations |
|
4,10,000 |
||
|
|
Less: Tax Paid |
|
(40,000) |
||
|
|
Net Cash Flows from Operating Activities |
|
3,70,000 |
||
|
|
|
|
|
|
|
|
B |
Cash Flow from Investing Activities |
|
|
||
|
|
|
Sale of Fixed Assets |
20,000 |
|
|
|
|
|
Purchase of Fixed Assets |
(3,40,000) |
|
|
|
|
|
Purchase of Investment |
(45,000) |
|
|
|
|
Net Cash Used in
Investing Activities |
|
(3,65,000) |
||
|
|
|
|
|
||
|
C |
Cash Flow from Financing Activities |
|
|
||
|
|
Proceeds
from Issue of Share Capital |
1,00,000 |
|
||
|
|
Proceeds
from Issue of Debentures |
1,10,000 |
|
||
|
|
Interest
on Debentures Paid |
(16,400) |
|
||
|
|
Redemption
of Preference Share Capital |
(1,00,000) |
|
||
|
|
Premium
on Redemption of Preference Share Capital |
(5,000) |
|
||
|
|
Security
Premium Reserve |
10,000 |
|
||
|
|
Repayment
of Bank Loan |
(10,000) |
|
||
|
|
Interest
on Bank Loan Paid |
(3,600) |
|
||
|
|
Net Cash Flow
from Financing Activities |
|
85,000 |
||
|
D |
Net Increase in Cash and Cash Equivalents |
|
90,000 |
||
|
|
|
Add: Cash and Cash Equivalent in the beginning of the
period (25,000+15,000) |
|
40,000 |
|
|
|
Cash and Cash Equivalents at the end of the period
(1,30,000+5,000) |
|
1,30,000 |
||
|
|
|
|
|
||
|
|
|
|
|
|
|
Working
Notes:
WN1:
|
Fixed Assets Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance
b/d |
6,20,000 |
Bank
A/c (Sale) (40,000×50%) |
20,000 |
|
Bank
A/c (Purchase- Bal. Fig.) |
3,40,000 |
Depreciation |
60,000 |
|
|
|
Profit
and Loss A/c (Loss on Sale) |
20,000 |
|
|
|
Balance
c/d |
8,60,000 |
|
|
9,60,000 |
|
9,60,000 |
|
|
|
|
|
WN2:
|
Provision for Taxation Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Bank
A/c (Tax Paid) (Bal. Fig.) |
35,000 |
Balance
b/d |
40,000 |
|
Balance
c/d |
50,000 |
Profit
and Loss A/c |
45,000 |
|
|
85,000 |
|
85,000 |
|
|
|
|
|
Question 55:
From
the following Balance Sheet and information of Sun Ltd., prepare Cash Flow
Statement:
|
Particulars |
Note
No. |
31st
March, 2025 (₹) |
31st
March, 2024 (₹) |
|
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, 2025 (₹) |
31st
March, 2024 (₹) |
|
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:
|
(i) |
Proposed Dividend: |
31st
March, 2025 |
31st
March, 2024 |
|
|
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, 2024;
(v) Investments were purchased on 31st March, 2025;
(vi) Preference shares were redeemed on 31st December,2024;
(vii) An interim dividend @ 15% was paid on equity shares on 31st December, 2024;
(viii) Fresh equity shares were issued at a premium of 5% on 31st March, 2025.
Answer:
|
|
Cash Flow
Statement for the year ended March 31, 2025 |
||||
|
|
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, 2024 as ₹1,00,000 Preference Shares were redeemed on 31st December,
2024.
(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 |
|
|
|
|
|
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Ts Grewal Solution 2025-2026
Class 12 / Volume – 3
Chapter 5 – Cash Flow Statements