T S Grewal Solutions 2026-27 [Class 12] – Cash Flow Statements– Q 41 to 52

Cash Flow Statement /

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    
Note :
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    
Note :  
  Provision for Tax
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  
Machinery
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  
Accumulated Depreciation
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      
Note :  
  Machinery
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
Accumulated Depreciation
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
Provision for Tax
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  
Note :
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    
Note :
 
      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    
Note :
 
    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  
Note :
 
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    
Note :
 
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      
Note :
 
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      
Note :
 
      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

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