T S Grewal Solutions 2026-27 [Class 12] – Cash Flow Statements– Q 31 to 40

Related Posts

Leave a Comment Cancel Reply

Solution for Q 31 to 40 of Chapter 5 of Book 3 - Analysis of Financial Statements of T S Grewal Class 12 Accountancy 2026-27 are given below. The Chapter name is Cash Flow Statements class 12. These Solutions are based on topics Calculation of cash flow from operating and investing activities, cash flow from financig activities, cash flow from investing and financing activities

Working notes are given with each solution. These help in understanding the steps and are also important for board exams as marks are given for steps.

These solutions are also useful for CA Foundation, CS Foundation and CMA Foundation students. The solutions will be helpful for students as well as teachers teaching class 12 accounts.

Question 31

Surplus					300000
Add - Provision for Tax					30000
Total					330000
Less - Refund of Tax					0
Net Profit before tax and extra ordinary items					330000

Add - Non Cash Expenses
Depreciation for the year					80000
Loss on sale of fixed assets					8000

Operating Profit before working capital changes					418000

Add - Increase in Current Liabilities
Trade Payables (150000-40000)					110000
Less - Increase in Current Assets
Inventories and Trade Receivables (520000-460000)					60000
Cash Generated from operations					468000

Less - Income tax paid					30000
Cash Flow from Operating Activities					438000

Cash Flow from Investing Activities				Amount
Sale of fixed assets				32000
Purchase of fixed assets				-187000

Net Cash Flow from investing activities				-155000

Working Note :

Fixed Assets

Particulars	Amount	Particulars	Amount
To Balance B/d	325000	By Balance C/d	392000
To Bank A/c (Purchase)	187000	By Depreciation	80000
		(for the year)
(Bal Figure)		By Loss on sale	8000
		By Bank A/c	32000
		(Amt received on sale)

Total	512000		512000

Prov for tax
Particulars	Amount	Particulars	Amount
To Balance C/d	30000	By Balance B/d	30000
To Bank A/c (Tax Paid)	30000	By P & L A/c	30000
		(Bal Figure, Prov for the year)


Total	60000		60000

Note :

Amount received on sale of machine
Cost of machine			105000
Less - Depreciation			65000

Written Down Value			40000
Less - Loss on sale			8000

Cash Received on Sale			32000

▶ Video Solution: Coming Soon

Question 32

	Surplus	750000

	Prov for tax made during the year	75000

	NP before tax and extra ordinary items	825000

Add	Non Cash Expenses
	Depreciation for the year	200000
	Loss on sale of fixed assets	20000

	OP before working capital changes	1045000

Add	Increase in Current Liabilities
	Trade Payables	275000

Less	Increase in Current Assets
	Inventories and Trade Receivables	150000

	Cash generated from operations	1170000
Less	Tax Paid	75000

	Cash Flow from Operating Activities	1095000

Cash Flow from Investing Activities					Amount
Cash inflow on sale of fixed assets					80000
Cash Outlfow on purchase of fixed assets					-467500

Cash used in investing activities					-387500

Working Note : Cash Flow from Investing Activities

	Property , Plant and Equipment

Particulars	Amount	Particulars	Amount
To Balance B/d	2125000	By Balance C/d	2330000
To Bank A/c	467500
(Bal Figure)		By Loss on sale	20000
		By Bank A/c	80000
		(Amt received on sale)
		By Acc Depreciation	162500
Total	2592500		2592500

Accumulate Depreciation

Particulars	Amount	Particulars	Amount
To Balance B/d	1100000	By Balance C/d	1062500
To PPE A/c	162500	By Depreciation	200000
		(Bal Fig)

Total	1262500		1262500

Prov for tax

Particulars	Amount	Particulars	Amount
To Balance C/d	75000	By Balance B/d	75000
To Bank A/c	75000	By P & L A/c (Bal Figure)	75000
		(prov during the year)


Total	150000		150000

Note :

Amount received on sale of machine				Amount
Cost of machine				105000
Less - Depreciation				65000

Written Down Value				40000
Less - Loss on sale				8000

Cash Received on Sale				32000

▶ Video Solution: Coming Soon

Question 33 (a)

	Net profit	-100000

Add	Provision for Tax	120000
Add	Proposed Dividend for last year	150000

	Net Profit before tax and extra ordinary items	170000

Add	Non Cash Expenses
	Goodwill Written Off	50000

	Operating Profit before working capital changes	220000

Add	Increase in Current Liabilities
	Trade Payables	50000

Less	Increase in Current Assets
	Trade Receivables	40000

	Cash Generated from operations	230000

Less	Income tax paid	100000

	Cash Flow from Operating Activities	130000

Note :

Prov for tax for current year is added to find net profit before tax

Prov for tax for last year is assumed to be paid this year

▶ Video Solution: Coming Soon

Question 33(b)

Cash Flow from Investing Activities				Amount
Purchase of Machinery				-1100000
Insurance Claim Received (Extra Ordinary)				32000
Sale of Machinery				140000

Cash Used in Investing Activities				-928000

Machinery A/c

Particulars	Amount	Particulars	Amount
To Balance B/d	2000000	By Balance C/d	2800000
		By Acc Depreciation A/c	100000
To Bank A/c	1100000	By Bank (Sale)	140000
(New Purchases)		By Loss on Fire	40000
		By Loss on Sale	20000

Total	3100000		3100000

Accumulated Depreciation A/c

Particulars	Amount	Particulars	Amount
To Balance C/d	650000	By Balance B/d	400000
To Machinery A/c	100000	By Depreciation A/c	350000
		(For the year)

Total	750000		750000

Note :

Loss by fire of Machinery 1
Cost of Machinery	50000
Less - Acc Dep	10000	(Bal Fig)

Book Value	40000

Loss by Fire	40000

Journal entries :

Loss by Fire A/c Dr..	40000
To Machinery A/c		40000

Bank A/c Dr..	32000
To Insurance Claim A/c		32000

Loss on Sale of Machine 2

Cost of Machine			250000
Less - Acc Dep			90000
(100000-10000)
Book Value			160000
Loss on sale			20000

Sale Value			140000

Note : Accumulated Depreciation
1) Total Accumulated depreciation as per Accumulated depreciation A/c
	comes to Rs 100000 (Balancing Figure)
2) Total two machines are disposed during the year
3) The machine that was losyt due to fire has accumulated depreciation of Rs 10000 (given in quesiton)
4) It means accumulated depreciation on second machinery was (100000-10000) = 90000
5) This accumulated depreciation on second machinery will be used to find loss on sale of machinery

▶ Video Solution: Coming Soon

Question 34

	Surplus	150000

Add	Provision for Tax	100000
Add	Transfer to Reserves	50000

	Net Profit before tax and extra ordinary items	300000

Add	Non Cash and non operating Expenses
	Interest on Debentures @ 10%	40000

	Operating Profit before working capital changes	340000

Add	Decrease in current assets
	Inventories	50000
	Trade Receivables	100000

	Cash Generated from operations	490000

Less	Income tax paid	50000

	Cash Flow from Operating Activities	440000

Note :

Prov for tax for current year is added to find net profit before tax

Prov for tax for last year is assumed to be paid this year

▶ Video Solution: Coming Soon

Question 35

Long Term Loan

Particulars	Amount	Particulars	Amount
To Balance C/d	250000	By Balance B/d	200000
To Bank A/c	100000	By Bank A/c	150000
		(Bal Figure)
		(Loan taken)

Total	350000	Total	350000

Cash Flow from Financing Activity					Amount
Repayment of Term Loan					-100000
Receipt of Long Term Loan					150000

Cash Generated from Financing Activities					50000

▶ Video Solution: Coming Soon

Question 36

Cash Flow from Financing Activity					Amount
Issue of Equity Shares					100000
Receipt of Security Premium Reserve					10000
Repayment of 12% Debentures					-50000
Interest paid on Debentures					-18000

Cash Generated from Financing activities					42000

▶ Video Solution: Coming Soon

Question 37

Cash Flow from Financing Activity					Amount
Issue of Equity Shares					0
Issue of Debentures					100000
Dividend paid					-50000
Interest paid on Debentures					-19000

Cash Generated from Financing activities					31000

Note :

Issue of bonus shares will not be part of cash flow statement

▶ Video Solution: Coming Soon

Question 38

Cash Flow from Financing Activity	Amount	Remarks
Issue of equity shares	125000
Redemption of Preference shares	-150000	(550000-400000)
Premium on redemption of preference shares	-7500
Interim Dividend Paid	-60000	(400000X15/100)
Preference Shares Dividend	-55000	(550000X10/100)
Interest on Debentures	-36000	(300000X12/100)
12% Debentures issued	100000

Cash Generated from Financing activities	-83500

Note :

Interim dividend will be paid only on the share capital balance as on 31-Mar-2024

as new shares are issued on 31-Mar-2025

Interest on 12% debentures will be paid even though no information given in the question

Dividend on preference shares to be given even though no information given in the

question as the equity dividend is also paid

Premium on redemption of debentures is debited to P & L A/c. However this will impact

the cash flow statement as there is cash outflow

▶ Video Solution: Coming Soon

Question 39

Cash Flow from Investing Activities				Amount
Purchase of Machinery				-260000
Sale of Machinery				40000
Purchase of non current investments				-60000
Sale of Land				160000

Cash Used in Investing Activities				-120000

Cash Flow from Financing Activity	Amount	Remarks

Issue of Equity Shares	1000000
Redemption of Preference Shares	-100000
Premium on redemption of pref Shares	-5000	(100000*5/100)
Securities Premium Reserve Received	100000
Interest paid on debentures	-100000	(1000000*10/100)

Cash flow from Financing Activities	895000

Working Note :
	Machinery A/c

Particulars	Amount	Particulars	Amount
To Balance B/d	850000	By Balance C/d	1000000
To Bank A/c (Purchase)	260000	By Depreciation A/c	50000
		for the year
(Bal Figure)		By Loss on Sale	20000
		(60000-40000)
		By Bank A/c (sale value)	40000

Total	1110000		1110000

	Land
Particulars	Amount	Particulars	Amount
To Balance B/d	200000	By Balance C/d	100000
To Gain on sale	60000	By Bank A/c	160000
		(Sale Value)

Total	260000		260000

Note :

Proposed dividend on equity shares for current year will not come

▶ Video Solution: Coming Soon

Question 40

	Cash Flow from operating activities	Amount	Remarks
	Surplus	101000	(183000-82000)

	Net Profit before tax and extra ordinary items	101000

Add	Non Operating Expenses and Losses
	Interest on Debentures	7500	(50000*15/100)

	Operating Profit before working capital changes	108500	(101000+7500)

Add	Decrease in Current Assets
	Trade Receivables	38000	(70000-32000)

Add	Increase in Current Liabilities
	Trade Payables	40000	(150000-110000)

Less	Increase in Current Assets
	Inventories	56000	(206000-150000)

Less	Decrease in Current Liabilities
	Other Current Liabilities	8000	(20000-12000)

	Cash Generated from operations	122500

Less	Income tax paid	0

	Cash Flow from Operating Activities	122500

Cash Flow from Investing Activities	Amount	Remarks
Purchase of Fixed Assets	-157000	(274000-117000)
Purchase of Non Current Investments	-13000	(68000-55000)

Net Cash Flow from Investing Activities	-170000

Cash Flow from Financing Activity	Amount	Remarks
Issue of share capital	50000
Issue of 15% Debentures	30000	(80000-50000)
Interest paid on 15% Debentures	-7500	(50000*15/100)

Cash used in financing activities	72500

Net Increase/decrease in cash

25000

Add	Cash at the beginning			70000
	Cash at the end			95000

Note :

1) Interest paid on 15% Debentures is assumed to be paid on opening balance

2) It is assumed that the additional debentures issued at the end of the year and so no interest payable on them

▶ Video Solution: Coming Soon

Q 1-10 | Q 11-20 | Q 21-30 | Q 31-40 | Q 41-52

T S Grewal Solutions – Cash Flow Statements – All Questions

T S Grewal Solutions Class 12 2026-27 – All Chapters

Cash Flow from Investing Activities

Purchase of PPE

Purchase of Non Current Investments

Cash Used in Investing Activities