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 |
| 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 |
| 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 |
| 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 |
| 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 |
|
|
|
| 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 |
| Loss by fire of Machinery 1 |
|
|
|
|
|
|
|
| Cost of Machinery |
|
50000 |
|
|
|
|
| Less - Acc Dep |
|
10000 |
(Bal Fig) |
|
|
|
| |
|
|
|
|
|
|
|
| Book Value |
|
40000 |
|
|
|
|
| |
|
|
|
|
|
|
|
| Loss by Fire |
|
|
40000 |
|
|
|
|
| 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 |
| |
| Cash Flow from Investing Activities |
|
|
|
Amount |
|
|
| Purchase of PPE |
|
-400000 |
|
|
| Purchase of Non Current Investments |
|
-300000 |
|
|
| |
|
|
|
|
|
|
| Cash Used in Investing Activities |
|
|
|
-700000 |
|
|
▶ Video Solution: Coming Soon
Question 35
| 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