Solution for Q 41 to 52 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 preparatiion of complete cash flow statement, preparation of complete cash flow statement with adjustments
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 41
| |
Cash Flow from operating activities |
|
|
|
|
|
Amount |
| |
Surplus |
|
100000 |
| |
|
|
|
|
|
|
|
| |
Net Profit before tax and extra ordinary items |
|
100000 |
| |
|
|
|
|
|
|
|
| |
No Adjustments as per question |
|
|
| |
|
|
|
|
|
|
|
| |
Operating Profit before working capital changes |
|
100000 |
| |
|
|
|
|
|
|
|
| Add |
Decrease in Current Assets |
|
|
| |
Inventories |
|
6000 |
| |
Trade Receivables |
|
54000 |
| |
|
|
|
|
|
|
|
| Less |
Decrease in Current Liabilities |
|
|
| |
Trade Payables |
|
8000 |
| |
|
|
|
|
|
|
|
| |
Cash Generated from operations |
|
152000 |
| |
|
|
|
|
|
|
|
| Less |
Income tax paid |
|
0 |
| |
|
|
|
|
|
|
|
| |
Cash Flow from Operating Activities |
|
|
|
|
|
152000 |
| Cash Flow from Investing Activities |
|
|
|
Amount |
Remarks |
|
|
| Purchase of Tangible Assets |
|
-290000 |
(850000-560000) |
|
|
| Purchase of Non Current Investments |
|
-72000 |
(232000-160000) |
|
|
| |
|
|
|
|
|
|
|
| Net Cash Flow from Investing Activities |
|
|
|
-362000 |
|
|
|
| Cash Flow from Financing Activity |
|
|
|
Amount |
|
|
|
| Issue of share capital |
|
200000 |
|
|
|
| Repayment of Short Term Borrowings |
|
-50000 |
|
|
|
| |
|
|
|
|
|
|
|
| Cash generated from financing activities |
|
|
|
150000 |
|
|
|
| Net Increase/decrease in cash |
|
|
|
-60000 |
|
|
|
| Add |
Cash at the beginning |
|
|
|
|
|
|
| |
Cash on Hand |
70000 |
|
|
|
|
| |
Current Investments |
134000 |
204000 |
|
|
|
| |
|
|
|
|
|
|
|
| |
Cash at the end |
|
|
|
|
| |
Cash on Hand |
94000 |
|
|
|
|
| |
Current Investments |
|
50000 |
144000 |
|
|
|
▶ Video Solution: Coming Soon
Question 42
| |
Cash Flow from operating activities |
|
|
|
|
Amount |
| |
Surplus |
|
2000 |
| |
|
|
|
|
|
|
| Add |
Interim Dividend |
|
52000 |
| |
|
|
|
|
|
|
| |
Net Profit before tax and extra ordinary items |
|
54000 |
| |
|
|
|
|
|
|
| Add |
Non Cash Expenses |
|
|
| |
Depreciation during the year |
|
18000 |
| |
|
|
|
|
|
|
| |
Operating Profit before working capital changes |
|
72000 |
| |
|
|
|
|
|
|
| Add |
Decrease in Inventories |
|
6000 |
| Add |
Increase in Trade Payables |
|
10000 |
| Less |
Increase in Trade Receivables |
|
6800 |
| |
|
|
|
|
|
|
| |
Cash Generated from operations |
|
81200 |
| |
|
|
|
|
|
|
| Less |
Income tax paid |
|
0 |
| |
|
|
|
|
|
|
| |
Cash Flow from Operating Activities |
|
|
|
|
81200 |
| Cash Flow from Investing Activities |
|
|
|
Amount |
|
|
| Purchase of Land |
|
-20000 |
|
|
| Purchase of Building |
|
-10000 |
|
|
| Purchase of Machinery |
|
-30000 |
|
|
| |
|
|
|
|
|
|
| Net Cash used in Investing Activities |
|
|
|
-60000 |
|
|
| Cash Flow from Financing Activity |
|
|
|
Amount |
|
|
| Loan taken from Aman |
|
40000 |
|
|
| Repayment of loan from bank |
|
-10000 |
|
|
| Payment of Interim Dividend |
|
-52000 |
|
|
| |
|
|
|
|
|
|
| Cash generated from financing activities |
|
|
|
-22000 |
|
|
| Net Increase/decrease in cash |
|
|
|
-800 |
|
|
| Add |
Cash at the beginning |
|
|
|
|
|
| |
Cash on Hand |
|
8000 |
|
|
| |
|
|
|
|
|
|
| |
Cash at the end |
|
|
|
|
| |
Cash on Hand |
|
|
7200 |
|
|
| Machinery |
|
| Particulars |
|
Amount |
Particulars |
|
Amount |
|
| To Balance B/d |
|
214000 |
By Balance C/d |
|
244000 |
|
| To Bank A/c |
|
30000 |
By Acc Depreciation A/c |
|
0 |
|
| (Bal Figure) |
|
|
By Loss on Sale |
|
0 |
|
| |
|
|
By Bank A/c |
|
0 |
|
| |
|
|
|
|
|
|
| Total |
|
244000 |
|
|
244000 |
|
| Accumulated Depreciation |
|
| Particulars |
|
Amount |
Particulars |
|
Amount |
|
| To Balance C/d |
|
72000 |
By Balance B/d |
|
54000 |
|
| To PPE A/c |
|
0 |
By Depreciation A/c |
|
18000 |
|
| |
|
|
(Bal Figure) |
|
|
|
| |
|
|
|
|
|
|
| Total |
|
72000 |
|
|
72000 |
|
▶ Video Solution: Coming Soon
Question 43
| |
Cash Flow from operating activities |
Amount |
| |
Surplus |
9000 |
| |
|
|
|
|
|
| Add |
Dividend paid in the current year |
39000 |
| Add |
Transfer to General Reserve |
10000 |
| Add |
Provision for Tax |
32000 |
| |
|
|
|
|
90000 |
| |
|
|
|
|
|
| |
NP before tax and extra ordinary items |
90000 |
| |
|
|
|
|
|
| Add |
Non Cash Expenses |
|
| |
Goodwill Written Off |
10000 |
| |
|
|
|
|
|
| |
OP before working capital changes |
100000 |
| |
|
|
|
|
|
| Add |
Decrease in Current Assets |
|
| |
Inventories |
18000 |
| |
|
|
|
|
|
| Add |
Increase in Current Liabilities |
|
| |
Trade Payables |
18000 |
| |
|
|
|
|
|
| Less |
Increase in Current Assets |
|
| |
Trade Receivables |
33000 |
| |
|
|
|
|
|
| Less |
Decrease in Current Liabilities |
|
| |
Other Current Liabilities |
2000 |
| |
|
|
|
|
|
| |
Cash Generated from operations |
101000 |
| |
|
|
|
|
|
| Less |
Income tax paid |
28000 |
| |
|
|
|
|
|
| |
Cash Flow from Operating Activities |
73000 |
| Cash Flow from Investing Activities |
|
|
|
|
Amount |
| Sale of Land and Building |
|
53000 |
| Purchase of Plant and Machinery |
|
-101000 |
| Purchase of Non-Current Investments |
|
-25000 |
| |
|
|
|
|
|
| Net Cash used in Investing Activities |
|
|
|
|
-73000 |
| Cash Flow from Financing Activity |
|
|
|
|
Amount |
| Issue of shares |
|
50000 |
| Dividend paid |
|
-39000 |
| |
|
|
|
|
|
| Cash generated from financing activities |
|
|
|
|
11000 |
| Net Increase/decrease in cash |
11000 |
| |
|
| Add |
Cash at the beginning |
|
|
|
|
| |
Cash on Hand |
|
17000 |
| |
Current Investments |
|
0 |
| |
|
|
|
|
|
| |
Cash at the end |
|
|
| |
Cash on Hand |
|
28000 |
| |
Current Investments |
|
|
|
0 |
| Note : |
| Proposed dividend for last year is assumed to be paid this year |
| It will be added to Surplus to find the Net Profit for the year and |
| will also be part of Cash flow from investing activities |
▶ Video Solution: Coming Soon
Question 44
| Cash Flow from operating activities |
| |
| |
Cash Flow from operating activities |
Amount |
| |
Surplus (25000-120000) |
-95000 |
| Add |
Provision for Tax |
51000 |
| |
|
|
|
|
|
|
| |
Net Profit before tax and extra ordinary items |
-44000 |
| |
|
|
|
|
|
|
| Add |
Non Cash Expenses |
|
| |
|
Depreciation during the year |
25000 |
| Add |
Non Operating Expenses and Losses |
|
| |
|
Interest on Bank Loan |
7500 |
| |
|
|
|
|
|
|
| |
Operating Profit before working capital changes |
-11500 |
| |
|
|
|
|
|
|
| Add |
Decrease in Current Assets |
|
| |
|
Trade Receivables |
14000 |
| |
|
Other Current Assets |
4000 |
| |
|
|
|
|
|
|
| Less |
Increase in Current Assets |
|
| |
|
Inventories |
7000 |
| |
|
|
|
|
|
|
| Less |
Decrease in Current Liabilities |
|
| |
|
Trade Payables |
14000 |
| |
|
|
|
|
|
|
| |
Cash Generated from operations |
-14500 |
| |
|
|
|
|
|
|
| Less |
Income tax paid |
53000 |
| |
|
|
|
|
|
|
| |
Cash used in Operating Activities |
-67500 |
| Cash Flow from Investing Activities |
|
|
|
Amount |
|
|
| Purchase of Machinery |
|
-169000 |
|
|
| |
|
|
|
|
|
|
| Net Cash used in Investing Activities |
|
|
|
-169000 |
|
|
| Cash Flow from Financing Activity |
|
|
|
Amount |
|
|
| Issue of shares |
|
200000 |
|
|
| Receipts from Long Term Loan |
|
20000 |
|
|
| Interest Paid on Long Term Loan |
|
-7500 |
|
|
| |
|
|
|
|
|
|
| Cash generated from financing activities |
|
|
|
212500 |
|
|
| Net Increase/decrease in cash |
-24000 |
| |
|
| Add |
Cash at the beginning |
|
|
|
|
|
| |
Cash on Hand |
|
49000 |
|
|
| |
Current Investments |
|
0 |
|
|
| |
|
|
|
|
|
|
| |
Cash at the end |
|
|
|
|
| |
Cash on Hand |
|
25000 |
|
|
| |
Current Investments |
|
|
0 |
|
|
| Particulars |
|
Amount |
Particulars |
|
Amount |
|
| To Balance C/d |
|
68000 |
By Balance B/d |
|
70000 |
|
| To Bank A/c |
|
53000 |
By P & L A/c (Prov made) |
|
51000 |
|
| |
|
|
(Bal Figure) |
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Total |
|
121000 |
|
|
121000 |
|
| Particulars |
|
Amount |
Particulars |
|
Amount |
|
| To Balance B/d |
|
215000 |
By Balance C/d |
|
384000 |
|
| To Bank A/c |
|
169000 |
By Acc Depreciation A/c |
|
0 |
|
| (Bal Figure) |
|
|
By Loss on Sale |
|
0 |
|
| |
|
|
By Bank A/c |
|
0 |
|
| |
|
|
|
|
|
|
| Total |
|
384000 |
|
|
384000 |
|
| Particulars |
|
Amount |
Particulars |
|
Amount |
|
| To Balance C/d |
|
48000 |
By Balance B/d |
|
23000 |
|
| To Machinery A/c |
|
0 |
By Depreciation A/c |
|
25000 |
|
| |
|
|
(Bal Figure) |
|
|
|
| |
|
|
|
|
|
|
| Total |
|
48000 |
|
|
48000 |
|
▶ Video Solution: Coming Soon
Question 45
| |
Cash Flow from operating activities |
Amount |
|
| |
Net profit after tax |
250000 |
|
| Add |
Provision for Tax |
50000 |
|
| |
Net Profit before tax and extra ordinary items |
300000 |
|
| |
|
|
|
|
|
|
|
| Add |
Non Cash and non operating Expenses |
|
|
| |
Depreciation during the year |
99000 |
|
| |
Goodwill written off |
10000 |
|
| |
Interest on Debentures |
60000 |
|
| |
Operating Profit before working capital changes |
469000 |
|
| |
|
|
|
|
|
|
|
| |
Working Capital Changes |
|
|
| Less |
Increase in Current Assets |
|
|
| |
Inventories |
62000 |
|
| |
Cash Generated from operations |
407000 |
|
| |
|
|
|
|
|
|
|
| Less |
Income tax paid |
70000 |
|
| |
|
|
|
|
|
|
|
| |
Cash flow from Operating Activities |
337000 |
|
| Cash Flow from Investing Activities |
|
|
|
Amount |
|
|
|
| |
|
|
|
|
|
|
|
| Purchase of Machinery |
|
-382000 |
|
|
|
| Purchase of Non-Current Investments |
|
-25000 |
|
|
|
| |
|
|
|
|
|
|
|
| Net Cash used in Investing Activities |
|
|
|
-407000 |
|
|
|
| Cash Flow from Financing Activity |
|
|
|
Amount |
|
|
|
| |
|
|
|
|
|
|
|
| Issue of shares |
|
100000 |
|
|
|
| Redemption of 12% Debentures |
|
-50000 |
|
|
|
| Interest Paid on 12% Debentures |
|
-60000 |
|
|
|
| Receipts of Bank Overdraft |
|
100000 |
|
|
|
| |
|
|
|
|
|
|
|
| Cash generated from financing activities |
|
|
|
90000 |
|
|
|
| Net Increase/decrease in cash |
20000 |
| |
|
| Add |
Cash at the beginning |
|
|
|
|
|
|
| |
Cash on Hand |
|
60000 |
|
|
|
| |
Current Investments |
|
60000 |
|
|
|
| |
|
|
|
|
|
|
|
| |
Cash at the end |
|
|
|
|
|
| |
Cash on Hand |
|
90000 |
|
|
|
| |
Current Investments |
|
|
50000 |
|
|
|
| Particulars |
|
|
Amount |
Particulars |
|
|
Amount |
| To Balance B/d |
|
821000 |
By Balance C/d |
|
1203000 |
| |
|
|
|
By Acc Depreciation A/c |
|
0 |
| To Bank A/c |
|
382000 |
By Loss on Sale |
|
0 |
| (Bal Figure) |
|
|
By Bank A/c |
|
0 |
| |
|
|
|
|
|
|
|
| Total |
|
|
1203000 |
Total |
|
|
1203000 |
| Particulars |
|
|
Amount |
Particulars |
|
|
Amount |
| To Balance C/d |
|
200000 |
By Balance B/d |
|
101000 |
| To Machinery A/c |
|
0 |
By Depreciation A/c |
|
99000 |
| |
|
|
|
(Bal Figure) |
|
|
| |
|
|
|
|
|
|
|
| Total |
|
|
200000 |
|
|
|
200000 |
| Particulars |
|
|
Amount |
Particulars |
|
|
Amount |
| To Balance C/d |
|
70000 |
By Balance B/d |
|
90000 |
| To Bank A/c |
|
70000 |
By P & L A/c (Prov made) |
|
50000 |
| |
|
|
|
(Bal Figure) |
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Total |
|
|
140000 |
|
|
|
140000 |
| Note : |
| 12% Debentures are redeemed on 31-Mar-2022 so interest for whole year will be paid on Rs 5 Lakh |
▶ Video Solution: Coming Soon
Question 46
| |
Cash Flow from operating activities |
|
|
|
Amount |
| |
Surplus (340000-200000) |
|
140000 |
| |
General Reserve (300000-240000) |
|
60000 |
| |
|
|
|
|
|
| |
Net Profit before tax and extra ordinary items |
|
200000 |
| |
|
|
|
|
|
| Add |
Depreciation during the year |
|
160000 |
| Add |
Interest on Debentures |
|
20000 |
| Add |
Loss on Sale of machinery |
|
10000 |
| Less |
Gain on Sale of investments |
|
16000 |
| |
|
|
|
|
|
| |
Operating Profit before working capital changes |
|
374000 |
| |
|
|
|
|
|
| Add |
Decrease in Trade Receivables |
|
220000 |
| Less |
Decrease in Trade Payables |
|
30000 |
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
Cash flow from operations |
|
564000 |
| |
|
|
|
|
|
| Less |
Income tax paid |
|
0 |
| |
|
|
|
|
|
| |
Cash flow from Operating Activities |
|
|
|
564000 |
| Cash Flow from Investing Activities |
|
|
|
Amount |
|
| |
|
|
|
|
|
| Purchase of Machinery |
|
-880000 |
|
| Sale of Machinery |
|
20000 |
|
| Sale of Non Current Investments |
|
96000 |
|
| Purchase of Non current Investment |
|
-150000 |
|
| |
|
|
|
|
|
| Net Cash used in Investing Activities |
|
|
|
-914000 |
|
| Cash Flow from Financing Activity |
|
|
|
Amount |
|
| |
|
|
|
|
|
| Issue of share capital |
|
400000 |
|
| Issue of 10% Debentures |
|
120000 |
|
| Interest on 10% Debentures |
|
-20000 |
|
| Securities Premium reserve |
|
20000 |
|
| Bank Loan repaid |
|
-30000 |
|
| |
|
|
|
|
|
| Cash generated from financing activities |
|
|
|
490000 |
|
| Net Increase/decrease in cash |
|
|
|
140000 |
|
| Add |
Cash at the beginning |
|
|
|
|
| |
Cash on Hand |
|
240000 |
|
| |
Current Investments |
|
80000 |
|
| |
|
|
|
|
|
| |
Cash at the end |
|
|
|
| |
Cash on Hand |
|
300000 |
|
| |
Current Investments |
|
|
160000 |
|
| Machinery |
| Particulars |
|
Amount |
Particulars |
|
Amount |
| To Balance B/d |
|
1400000 |
By Balance C/d |
|
2140000 |
| |
|
|
By Acc Dep |
|
110000 |
| To Bank A/c |
|
880000 |
By Loss on Sale |
|
10000 |
| (Purchase) |
|
|
By Bank A/c (Sale) |
|
20000 |
| |
|
|
|
|
|
| Total |
|
2280000 |
|
|
2280000 |
| Acc Dep |
| Particulars |
|
Amount |
Particulars |
|
Amount |
| To Balance B/d |
|
240000 |
By Balance C/d |
|
190000 |
| To Machinery |
|
110000 |
By Depreciation for the year |
|
160000 |
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| Total |
|
350000 |
|
|
350000 |
| Calculation of loss on sale |
|
|
|
|
|
| Cost of Machinery |
|
140000 |
|
|
| Less - Acc Depreciation |
|
110000 |
(depreciation since year of purchase) |
|
| |
|
|
|
|
|
| Book Value |
|
30000 |
|
|
| Sale Value |
|
20000 |
|
|
| |
|
|
|
|
|
| Loss on Sale |
|
|
10000 |
(30000-20000) |
|
| Non Current Investment |
| Particulars |
|
Amount |
Particulars |
|
Amount |
| To Balance B/d |
|
200000 |
By Balance C/d |
|
270000 |
| To Gain on Sale |
|
16000 |
|
|
|
| To Bank A/c |
|
150000 |
By Bank A/c (Sale) |
|
96000 |
| (Purchase) |
|
|
|
|
|
| Total |
|
366000 |
|
|
366000 |
▶ Video Solution: Coming Soon
Question 47
| |
Cash Flow from operating activities |
|
|
|
Amount |
|
|
| |
Surplus |
|
18000 |
|
|
| |
|
|
|
|
|
|
|
| Add |
Proposed Dividend (Last Year) |
|
50000 |
|
|
| Add |
Interim Dividend |
|
20000 |
|
|
| Add |
Transfer to General Reserve |
|
30000 |
|
|
| Add |
Provision for Tax (Current Year) |
|
45000 |
|
|
| |
|
|
|
|
|
|
|
| |
NP before tax and extra ordinary items |
|
163000 |
|
|
| |
|
|
|
|
|
|
|
| Add |
Non Cash & non operating Expenses |
|
|
|
|
| |
Depreciation during the year |
|
20000 |
|
|
| |
Loss on Sale of Machine |
|
10000 |
|
|
| |
Goodwill written off |
|
25000 |
|
|
| |
|
|
|
|
|
|
|
| |
OP before working capital changes |
|
218000 |
|
|
| |
|
|
|
|
|
|
|
| Add |
Increase in Current Liabilities |
|
|
|
|
| |
Trade Payables |
|
34000 |
|
|
| |
|
|
|
|
|
|
|
| Less |
Increase in Current Assets |
|
|
|
|
| |
Inventories |
|
82000 |
|
|
| |
|
|
|
|
|
|
|
| |
Cash Generated from operations |
|
170000 |
|
|
| |
|
|
|
|
|
|
|
| Less |
Income tax paid |
|
35000 |
|
|
| |
|
|
|
|
|
|
|
| |
Cash flow from Operating Activities |
|
|
|
135000 |
|
|
| |
Cash Flow from Investing Activities |
|
|
|
Amount |
|
|
| |
|
|
|
|
|
|
|
| |
Purchase of Machinery |
|
-130000 |
|
|
| |
Sale of Machinery |
|
10000 |
|
|
| |
|
|
|
|
|
|
|
| |
Net Cash used in Investing Activities |
|
|
|
-120000 |
|
|
| |
Cash Flow from Financing Activity |
|
|
|
Amount |
|
|
| |
|
|
|
|
|
|
|
| |
Issue of equity share capital |
|
100000 |
|
|
| |
Repayment of 10% preference share capital |
|
-50000 |
|
|
| |
Receipts of Security Premium Reserve |
|
10000 |
|
|
| |
Dividend Paid during the year |
|
-70000 |
|
|
| |
|
|
|
|
|
|
|
| |
Cash generated from financing activities |
|
|
|
-10000 |
|
|
| Net Increase/decrease in cash |
5000 |
| |
|
| Add |
Cash at the beginning |
|
|
|
|
|
|
| |
Cash on Hand |
|
81000 |
|
|
| |
Current Investments |
|
15000 |
|
|
| |
|
|
|
|
|
|
|
| |
Cash at the end |
|
|
|
|
| |
Cash on Hand |
|
91000 |
|
|
| |
Current Investments |
|
|
|
10000 |
|
|
| |
|
|
Machinery |
|
|
|
|
| Particulars |
|
|
Amount |
Particulars |
|
|
Amount |
| To Balance B/d |
|
280000 |
By Balance C/d |
|
370000 |
| |
|
|
|
By Depreciation(Current Year) |
|
20000 |
| To Bank A/c |
|
130000 |
By Loss on Sale |
|
10000 |
| (Bal Figure) |
|
|
By Bank A/c (Asset Sold) |
|
10000 |
| |
|
|
|
|
|
|
|
| Total |
|
|
410000 |
|
|
|
410000 |
| |
|
|
Provision for Tax |
|
|
|
|
| Particulars |
|
|
Amount |
Particulars |
|
|
Amount |
| To Balance C/d |
|
50000 |
By Balance B/d |
|
40000 |
| To Bank A/c (tax paid) |
|
35000 |
By P & L A/c (Prov made) |
|
45000 |
| |
|
|
|
(Bal Figure) |
|
|
| |
|
|
|
|
|
|
|
| Total |
|
|
85000 |
|
|
|
85000 |
| Note : |
|
|
|
|
|
|
|
| Profit/Loss on Sale of machinery |
|
|
|
Amount |
|
|
|
| |
|
|
|
|
|
|
|
| Cost of machine |
|
50000 |
|
|
|
| Acc Depreciation |
|
30000 |
|
|
|
| |
|
|
|
|
|
|
|
| Book Value |
|
20000 |
|
|
|
| Sale Value |
|
10000 |
|
|
|
| |
|
|
|
|
|
|
|
| Loss on Sale |
|
|
|
10000 |
|
|
|
| Note: |
| a) It is assumed that the proposed dividend includes preference share dividend also. |
| We assume that the last year proposed dividend is paid in this year. |
| So Rs 50000 includes the preference dividend also |
| |
| b) Alternatively we can assume that the proposed dividend does not include |
| the preference share dividend and so consider it separately |
▶ Video Solution: Coming Soon
Question 48
| |
Cash Flow from operating activities |
Amount |
| |
Surplus |
80000 |
| |
|
|
|
|
|
|
| Add |
Proposed Dividend (Last Year) |
200000 |
| Add |
Transfer to General Reserve |
100000 |
| Add |
Provision for Tax (Current Year) |
160000 |
| |
Net Profit before tax and extra ordinary items |
540000 |
| |
|
|
|
|
|
|
| Add |
Non Cash and non operating Expenses |
|
| |
Depreciation during the year |
250000 |
| |
Interest on Debentures |
20000 |
| |
(400000*10/100*6/12) |
|
| Less |
Non cash and non Operating Income and Gains |
|
| |
Gain on Sale of Machine |
30000 |
| |
|
|
|
|
|
|
| |
Operating Profit before working capital changes |
780000 |
| |
|
|
|
|
|
|
| Less |
Decrease in Current Liabilities |
|
| |
Trade Payables |
240000 |
| |
|
|
|
|
|
|
| |
Cash Generated from operations |
540000 |
| |
|
|
|
|
|
|
| Less |
Income tax paid |
100000 |
| |
|
|
|
|
|
|
| |
Cash flow from Operating Activities |
440000 |
| Cash Flow from Investing Activities |
|
|
|
Amount |
|
|
| |
|
|
|
|
|
|
| Purchase of Machinery |
|
-690000 |
|
|
| Sale of Machinery |
|
70000 |
|
|
| Purchase of non current investments |
|
-200000 |
|
|
| Purchase of Land and Buildings |
|
-400000 |
|
|
| |
|
|
|
|
|
|
| Net Cash used in Investing Activities |
|
|
|
-1220000 |
|
|
| Cash Flow from Financing Activity |
|
|
|
Amount |
|
|
| |
|
|
|
|
|
|
| Issue of equity share capital |
|
400000 |
|
|
| Issue of Debentures |
|
400000 |
|
|
| Interest on 10% Debentures |
|
-20000 |
|
|
| (For 6 months) |
|
|
|
|
| Dividend Paid during the year |
|
-200000 |
|
|
| |
|
|
|
|
|
|
| Cash generated from financing activities |
|
|
|
580000 |
|
|
| Net Increase/decrease in cash |
|
|
|
-200000 |
|
|
| Add |
Cash at the beginning |
|
|
|
|
|
| |
Cash on Hand |
|
200000 |
|
|
| |
|
|
|
|
|
|
| |
Cash at the end |
|
|
|
|
| |
Cash on Hand |
|
|
0 |
|
|
| |
|
Machinery |
|
|
|
|
| Particulars |
|
Amount |
Particulars |
|
Amount |
|
| To Balance B/d |
|
1000000 |
By Balance C/d |
|
1400000 |
|
| To Gain on Sale |
|
30000 |
By Depreciation |
|
250000 |
|
| |
|
|
(Current Year) |
|
|
|
| To Bank A/c |
|
690000 |
By Loss on Sale |
|
0 |
|
| (Bal Figure) |
|
|
By Bank A/c |
|
70000 |
|
| |
|
|
|
|
|
|
| Total |
|
1720000 |
|
|
1720000 |
|
| |
|
Provision for Tax |
|
|
|
|
| Particulars |
|
Amount |
Particulars |
|
Amount |
|
| To Balance C/d |
|
200000 |
By Balance B/d |
|
140000 |
|
| To Bank A/c |
|
100000 |
By P & L A/c |
|
160000 |
|
| |
|
|
(Prov made) |
|
|
|
| (tax paid) |
|
|
(Bal Figure) |
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Total |
|
300000 |
|
|
300000 |
|
| Note : |
|
|
|
Amount |
|
|
| Profit/Loss on Sale of machinery |
|
|
|
|
| Cost of machine |
|
100000 |
|
|
| Acc Depreciation |
|
60000 |
|
|
| |
|
|
|
|
|
|
| Book Value |
|
40000 |
|
|
| Sale Value |
|
70000 |
|
|
| |
|
|
|
|
|
|
| Profit on sale |
|
|
|
30000 |
|
|
▶ Video Solution: Coming Soon
Question 49
| |
Cash Flow from operating activities |
|
|
|
Amount |
| |
Surplus |
|
36000 |
| |
|
|
|
|
|
| Add |
Interim Dividend |
|
120000 |
| Add |
Transfer to General Reserve |
|
30000 |
| Add |
Provision for Tax (Current Year) |
|
27000 |
| |
Net Profit before tax and extra ordinary items |
|
213000 |
| |
|
|
|
|
|
| Add |
Non Cash Expenses |
|
|
| |
Depreciation during the year |
|
210000 |
| Less |
Non Operating Income and Gains |
|
|
| |
Gain on Sale of Machine |
|
6000 |
| |
Gain on Sale of investments |
|
1500 |
| |
|
|
|
|
|
| |
Operating Profit before working capital changes |
|
415500 |
| |
|
|
|
|
|
| Add |
Decrease in Current Assets |
|
|
| |
Inventories |
|
90000 |
| |
|
|
|
|
|
| Less |
Increase in Current Assets |
|
|
| |
Trade Receivables |
|
735000 |
| |
|
|
|
|
|
| Less |
Decrease in Current Liabilities |
|
|
| |
Trade Payables |
|
102000 |
| |
|
|
|
|
|
| |
Cash Generated from operations |
|
-331500 |
| |
|
|
|
|
|
| Less |
Income tax paid |
|
222000 |
| |
|
|
|
|
|
| |
Cash Used in Operating Activities |
|
|
|
-553500 |
| Cash Flow from Investing Activities |
|
|
|
Amount |
|
| |
|
|
|
|
|
| Sale of Machinery |
|
36000 |
|
| Purchase of non current investments |
|
-54000 |
|
| Sale of Non Current Investments |
|
25500 |
|
| |
|
|
|
|
|
| Cash used in Investing Activities |
|
|
|
7500 |
|
| Cash Flow from Financing Activity |
|
|
|
Amount |
|
| |
|
|
|
|
|
| Issue of 10% mortgage loan |
|
810000 |
|
| Interim Dividend paid during the year |
|
-120000 |
|
| |
|
|
|
|
|
| Cash generated from financing activities |
|
|
|
690000 |
|
| Net Increase/decrease in cash |
144000 |
| |
|
| Add |
Cash at the beginning |
|
|
|
|
| |
Bank |
|
430000 |
|
| |
Current Investments |
|
17000 |
|
| |
|
|
|
|
|
| |
Cash at the end |
|
|
|
| |
Bank |
|
570000 |
|
| |
Current Investments |
|
|
21000 |
|
| Property, Plant and Equipment A/c |
| Particulars |
|
Amount |
Particulars |
|
Amount |
| To Balance B/d |
|
1200000 |
By Balance C/d |
|
960000 |
| To gain on Sale |
|
6000 |
By Depreciation |
|
210000 |
| |
|
|
(for the year) (Bal Figure) |
|
|
| |
|
|
By Loss on Sale |
|
0 |
| |
|
|
By Bank A/c |
|
36000 |
| |
|
|
|
|
|
| Total |
|
1206000 |
|
|
1206000 |
| |
|
Provision for Tax |
|
|
|
| Particulars |
|
Amount |
Particulars |
|
Amount |
| To Balance C/d |
|
30000 |
By Balance B/d |
|
225000 |
| To Bank A/c |
|
222000 |
By P & L A/c |
|
27000 |
| (Bal Figure) |
|
|
(Prov made) |
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| Total |
|
252000 |
|
|
252000 |
| Non Current Investments |
| Particulars |
|
Amount |
Particulars |
|
Amount |
| To Balance B/d |
|
150000 |
By Balance C/d |
|
180000 |
| To gain on Sale |
|
1500 |
|
|
0 |
| To Bank A/c |
|
54000 |
|
|
0 |
| (Bal Fig) |
|
|
By Bank A/c |
|
25500 |
| |
|
|
|
|
|
| Total |
|
205500 |
|
|
205500 |
| Note : |
| It is assumed that the mortgage loan is issued on the last date |
| of year and so no interest charged on the same |
▶ Video Solution: Coming Soon
Question 50
| |
Cash Flow from operating activities |
|
|
|
Amount |
|
|
| |
Surplus |
|
112500 |
|
|
| |
|
|
|
|
|
|
|
| |
Net Profit before tax and extra ordinary items |
|
112500 |
|
|
| |
|
|
|
|
|
|
|
| Add |
Non Cash Expenses |
|
|
|
|
| |
Depreciation during the year |
|
200000 |
|
|
| Less |
Non Cash Income |
|
|
|
|
| |
Gain on Sale of Machine |
|
50000 |
|
|
| |
|
|
|
|
|
|
|
| Add |
Non Operating Expenses and Losses |
|
|
|
|
| |
Interest on Debentures |
|
78750 |
|
|
| Less |
Non Operating Income and Gains |
|
|
|
|
| |
Gain on Sale of investments |
|
40000 |
|
|
| |
|
|
|
|
|
|
|
| |
Operating Profit before working capital changes |
|
301250 |
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Less |
Increase in Current Assets |
|
|
|
|
| |
Inventories |
|
250000 |
|
|
| |
Trade Receivables |
|
487500 |
|
|
| |
|
|
|
|
|
|
|
| Less |
Decrease in Current Liabilities |
|
|
|
|
| |
Trade Payables |
|
200000 |
|
|
| |
|
|
|
|
|
|
|
| |
Cash Used in operations |
|
-636250 |
|
|
| |
|
|
|
|
|
|
|
| Less |
Income tax paid |
|
0 |
|
|
| |
|
|
|
|
|
|
|
| |
Cash used in Operating Activities |
|
|
|
-636250 |
|
|
| Cash Flow from Investing Activities |
|
|
|
|
Amount |
|
|
| |
|
|
|
|
|
|
|
| Purchase of Machinery |
|
-1000000 |
|
|
| Sale of Machinery |
|
375000 |
|
|
| Sale of Non Current Investments |
|
240000 |
|
|
| |
|
|
|
|
|
|
|
| Cash used in Investing Activities |
|
|
|
|
-385000 |
|
|
| Cash Flow from Financing Activity |
|
|
|
|
Amount |
|
|
| |
|
|
|
|
|
|
|
| Issue of equity share capital |
|
1000000 |
|
|
| Issue of 12% Debentures |
|
125000 |
|
|
| Interest on 12% Debentures |
|
-78750 |
|
|
| |
|
|
|
|
|
|
|
| Cash generated from financing activities |
|
|
|
|
1046250 |
|
|
| Net Increase/decrease in cash |
|
|
|
|
25000 |
|
|
| Add |
Cash at the beginning |
|
|
|
|
|
|
| |
Cash on Hand |
|
150000 |
|
|
| |
Current Investments |
|
0 |
|
|
| |
|
|
|
|
|
|
|
| |
Cash at the end |
|
|
|
|
| |
Cash on Hand |
|
175000 |
|
|
| |
Current Investments |
|
|
|
0 |
|
|
| Machinery |
| Particulars |
|
|
Amount |
Particulars |
|
|
Amount |
| To Balance B/d |
|
1250000 |
By Balance C/d |
|
1725000 |
| To gain on Sale |
|
50000 |
By Depreciation for the year |
|
200000 |
| To Bank A/c |
|
1000000 |
By Loss on Sale |
|
0 |
| |
|
|
|
By Bank A/c |
|
375000 |
| |
|
|
|
|
|
|
|
| Total |
|
|
2300000 |
|
|
|
2300000 |
| Non Current Investments |
| Particulars |
|
|
Amount |
Particulars |
|
|
Amount |
| To Balance B/d |
|
500000 |
By Balance C/d |
|
300000 |
| To gain on Sale |
|
40000 |
By Bank A/c |
|
240000 |
| |
|
|
|
|
|
|
|
| Total |
|
|
540000 |
|
|
|
540000 |
| Note : |
|
|
|
|
|
|
|
| Cost of Machinery |
|
500000 |
|
|
|
|
| Less - Acc Depreciation |
|
175000 |
|
|
|
|
| |
|
|
|
|
|
|
|
| Book Value |
|
325000 |
|
|
|
|
| Sale Value |
|
375000 |
|
|
|
|
| |
|
|
|
|
|
|
|
| Profit on Sale |
|
|
50000 |
|
|
|
|
▶ Video Solution: Coming Soon
Question 51
| |
Profit for the year |
|
|
|
1500000 |
| Add |
Provision for Tax (CY) |
|
100000 |
| Add |
Loss of furniture due to fire |
|
10000 |
| Less |
Refund of tax |
|
10000 |
| Add |
Proposed Dividend |
|
150000 |
| Add |
Interim Dividend |
|
120000 |
| |
NP before tax and extra ordinary items |
|
1870000 |
| |
|
|
|
|
|
| Add |
Depreciation |
|
100000 |
| Less |
Interest on Investments |
|
25000 |
| Add |
Patents Written Off |
|
80000 |
| |
|
|
|
|
|
| |
OP before working capital Changes |
|
|
|
2025000 |
| Cash Flow from Investing Activities |
|
|
|
Amount |
|
| Purchase of Machinery |
|
-300000 |
|
| Furniture sold |
|
10000 |
|
| Purchase of 10% non current investment |
|
-100000 |
|
| (300000-200000) |
|
|
|
| Interest on Investments received |
|
25000 |
|
| Patent purchased |
|
-50000 |
|
| |
|
|
|
|
|
| Cash used in investing activity |
|
|
|
-415000 |
|
| Cash Flow from Financing Activity |
|
|
|
Amount |
|
| Issue of share capital |
|
0 |
|
| (SPR used to issue Bonus Shares) |
|
|
|
| Bank Overdraft repaid |
|
-200000 |
|
| (700000-500000) |
|
|
|
| Dividend paid for last year |
|
-150000 |
|
| Interim Dividend paid |
|
-120000 |
|
| |
|
|
|
|
|
| Cash Generated from financing activity |
|
|
|
-470000 |
|
| Cash and Cash Equivalents |
|
|
Opening |
Closing |
|
| Marketable Securities |
|
0 |
100000 |
|
| Cash in hand and at bank |
|
100000 |
50000 |
|
| |
|
|
|
|
|
| Total |
|
|
100000 |
150000 |
|
| |
|
Patents |
|
|
|
| Particulars |
|
Amount |
Particulars |
|
Amount |
| To Balance B/d |
|
80000 |
By Balance C/d |
|
50000 |
| To Bank A/c |
|
50000 |
To P & L A/c |
|
80000 |
| (Purchases) |
|
|
(Patents W/o) |
|
|
| |
|
|
|
|
|
| Total |
|
130000 |
|
|
130000 |
| |
|
Machinery |
|
|
|
| Particulars |
|
Amount |
Particulars |
|
Amount |
| To Balance B/d |
|
300000 |
By Balance C/d |
|
500000 |
| To Bank A/c |
|
300000 |
By Depreciation |
|
100000 |
| |
|
|
|
|
|
| Total |
|
600000 |
|
|
600000 |
| |
|
Furniture |
|
|
|
| Particulars |
|
Amount |
Particulars |
|
Amount |
| To Balance B/d |
|
100000 |
By Balance C/d |
|
80000 |
| |
|
|
By Loss due to fire |
|
10000 |
| |
|
|
By Bank (Bal Fig) |
|
10000 |
| |
|
|
(Sale of Furniture) |
|
|
| |
|
|
|
|
|
| Total |
|
100000 |
|
|
100000 |
| Working Note : |
| 1)It is assumed that the whole depreciation is related to Machinery |
| 2) It is assumed that the company is not following Prov for depreciation method |
| 3) It is assumed that fresh issue of share capital for Rs 5L during the year is a bonus issue |
| from Securities Premium Reserve A/c. Hence there will be no cash flow due to Share issue |
| This seems to be a misprint in the question. Additional information for bonus issue is not written |
| 4) The solution for cash flow from financing activity given in the book also seems to be incorrect. |
| It should be cash used from investing activity. But in book it is written cash generated from Investing activities |
| 5) The question has mistake. It has not mentioned the patents written off in the section |
| "Profit after accounting for the following". Patents written off should also be mentioned there |
▶ Video Solution: Coming Soon
Question 52
| |
Cash Flow from operating activities |
Amount |
|
|
| |
Surplus |
200000 |
|
|
| |
Proposed Dividend on Preference Shares |
30000 |
|
|
| |
(300000*10/100) |
|
|
|
| |
Interim Dividend on Equity shares |
45000 |
|
|
| |
(300000*15/100) |
|
|
|
| |
|
|
|
|
|
|
|
| |
NP before tax and extra ordinary items |
275000 |
|
|
| |
|
|
|
|
|
|
|
| Add |
Non Cash and Non Operting Expenses |
|
|
|
| |
Depreciation during the year |
60000 |
|
|
| |
Interest on Debentures |
30000 |
|
|
| |
(300000*10/100) |
|
|
|
| |
Prov for Bad Debts |
10000 |
|
|
| |
Loss on Sale |
40000 |
|
|
| |
|
|
|
|
|
|
|
| Less |
Non Cash and Non Operting Income |
|
|
|
| |
Interest on Non Current Investments |
10000 |
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
OP before working capital changes |
405000 |
|
|
| |
|
|
|
|
|
|
|
| Less |
Increase in Inventories |
100000 |
|
|
| Less |
Increase in Debtors |
100000 |
|
|
| |
|
|
|
|
|
|
|
| Add |
Increase in Trade Payables |
80000 |
|
|
| |
|
|
|
|
|
|
|
| |
Cash flow from Operating Activities |
285000 |
|
|
| Cash Flow from Investing Activities |
|
|
|
Amount |
|
|
|
| |
|
|
|
|
|
|
|
| Purchase of Machinery |
|
-250000 |
|
|
|
| Sale of Machinery |
|
50000 |
|
|
|
| Purchase of Non current Investment |
|
-100000 |
|
|
|
| Interest on Non Current Investments |
|
10000 |
|
|
|
| (100000*10/100) |
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Net Cash used in Investing Activities |
|
|
|
-290000 |
|
|
|
| Cash Flow from Financing Activity |
|
|
|
Amount |
|
|
|
| Issue of equity share capital |
|
|
|
200000 |
|
|
|
| Redemption of Preference Shares |
|
-100000 |
|
|
|
| Dividend Paid on Preference shares |
|
-30000 |
|
|
|
| Interim Dividend on Equity shares |
|
-45000 |
|
|
|
| (300000*15/100) |
|
|
|
|
|
| 10% Debentures Issued |
|
100000 |
|
|
|
| Interest on 10% Debentures |
|
-30000 |
|
|
|
| Securities Premium reserve |
|
10000 |
|
|
|
| |
|
|
|
|
|
|
|
| Cash generated from financing activities |
|
|
|
105000 |
|
|
|
| Net Increase/decrease in cash |
|
|
|
100000 |
|
|
|
| Add |
Cash at the beginning |
|
|
|
|
|
|
| |
Cash on Hand |
|
20000 |
|
|
|
| |
Current Investments |
|
50000 |
|
|
|
| |
|
|
|
|
|
|
|
| |
Cash at the end |
|
|
|
|
|
| |
Cash on Hand |
|
80000 |
|
|
|
| |
Current Investments |
|
|
90000 |
|
|
|
| Property , Plant and Equipment |
| Particulars |
|
|
Amount |
Particulars |
|
|
Amount |
| To Balance B/d |
|
600000 |
By Balance C/d |
|
700000 |
| |
|
|
|
By Depreciation (For the year) |
|
60000 |
| To Bank A/c |
|
250000 |
By Loss on Sale |
|
40000 |
| (Purchases) |
|
|
By Bank A/c (Sale) |
|
50000 |
| |
|
|
|
|
|
|
|
| Total |
|
|
850000 |
|
|
|
850000 |
| Note : |
| 1) Only proposed dividend of previous year will be considered |
| 2) The date of redemption of preference shares will not impact anything |
| as current year dividend is not considered |
| 3) Interim dividend on equity shares will be on opening balance only as fresh |
| equity shares are issued on the last day of the accounting year |
▶ Video Solution: Coming Soon
Question 55
| |
Cash Flow from operating activities |
Amount |
|
|
| |
Surplus |
200000 |
|
|
| |
Proposed Dividend on Preference Shares |
30000 |
|
|
| |
(300000*10/100) |
|
|
|
| |
Interim Dividend on Equity shares |
45000 |
|
|
| |
(300000*15/100) |
|
|
|
| |
|
|
|
|
|
|
|
| |
NP before tax and extra ordinary items |
275000 |
|
|
| |
|
|
|
|
|
|
|
| Add |
Non Cash and Non Operting Expenses |
|
|
|
| |
Depreciation during the year |
60000 |
|
|
| |
Interest on Debentures |
30000 |
|
|
| |
(300000*10/100) |
|
|
|
| |
Prov for Bad Debts |
10000 |
|
|
| |
Loss on Sale |
40000 |
|
|
| |
|
|
|
|
|
|
|
| Less |
Non Cash and Non Operting Income |
|
|
|
| |
Interest on Non Current Investments |
10000 |
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
OP before working capital changes |
405000 |
|
|
| |
|
|
|
|
|
|
|
| Less |
Increase in Inventories |
100000 |
|
|
| Less |
Increase in Debtors |
100000 |
|
|
| |
|
|
|
|
|
|
|
| Add |
Increase in Trade Payables |
80000 |
|
|
| |
|
|
|
|
|
|
|
| |
Cash flow from Operating Activities |
285000 |
|
|
| Cash Flow from Investing Activities |
|
|
|
Amount |
|
|
|
| |
|
|
|
|
|
|
|
| Purchase of Machinery |
|
-250000 |
|
|
|
| Sale of Machinery |
|
50000 |
|
|
|
| Purchase of Non current Investment |
|
-100000 |
|
|
|
| Interest on Non Current Investments |
|
10000 |
|
|
|
| (100000*10/100) |
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Net Cash used in Investing Activities |
|
|
|
-290000 |
|
|
|
| Cash Flow from Financing Activity |
|
|
|
Amount |
|
|
|
| Issue of equity share capital |
|
|
|
200000 |
|
|
|
| Redemption of Preference Shares |
|
-100000 |
|
|
|
| Dividend Paid on Preference shares |
|
-30000 |
|
|
|
| Interim Dividend on Equity shares |
|
-45000 |
|
|
|
| (300000*15/100) |
|
|
|
|
|
| 10% Debentures Issued |
|
100000 |
|
|
|
| Interest on 10% Debentures |
|
-30000 |
|
|
|
| Securities Premium reserve |
|
10000 |
|
|
|
| |
|
|
|
|
|
|
|
| Cash generated from financing activities |
|
|
|
105000 |
|
|
|
| Net Increase/decrease in cash |
|
|
|
100000 |
|
|
|
| Add |
Cash at the beginning |
|
|
|
|
|
|
| |
Cash on Hand |
|
20000 |
|
|
|
| |
Current Investments |
|
50000 |
|
|
|
| |
|
|
|
|
|
|
|
| |
Cash at the end |
|
|
|
|
|
| |
Cash on Hand |
|
80000 |
|
|
|
| |
Current Investments |
|
|
90000 |
|
|
|
| |
|
|
Property , Plant and Equipment |
|
|
|
|
| Particulars |
|
|
Amount |
Particulars |
|
|
Amount |
| To Balance B/d |
|
600000 |
By Balance C/d |
|
700000 |
| |
|
|
|
By Depreciation (For the year) |
|
60000 |
| To Bank A/c |
|
250000 |
By Loss on Sale |
|
40000 |
| (Purchases) |
|
|
By Bank A/c (Sale) |
|
50000 |
| |
|
|
|
|
|
|
|
| Total |
|
|
850000 |
|
|
|
850000 |
| Note : |
| 1) Only proposed dividend of previous year will be considered |
| 2) The date of redemption of preference shares will not impact anything |
| as current year dividend is not considered |
| 3) Interim dividend on equity shares will be on opening balance only as fresh |
| equity shares are issued on the last day of the accounting year |
▶ 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