TS Grewal solutions for अकाऊंटन्सी अनॅलिसिस ऑफ फाइनैन्शल स्टंटमेंट्स [इंग्रजी] इयत्ता १२ chapter 5 - Cash Flow Statement [Latest edition]

Which of the following are operating activities for the purpose of preparing a cash flow statement?

1. Cash payments to suppliers for goods and services.
2. Dividend received from investments in other enterprises.
3. Cash receipts from royalties, fees, commissions, and other revenues.
4. Cash repayments of amounts borrowed.

What will be the effect of transaction 'Payment of employee benefit expenses' on the cash flow statement? 

Dividend received by other than financial enterprise is shown in cash flow statement under ______.

Which of the following is cash flow from Operating activities for a finance company:

Payment of Income Tax is shown as ______.

Dividend paid by a finance company is shown as cash outflow under ______.

Dividend paid by a non-finance company is shown as ______.

Which of the following is shown under Financing Activity?

Short-term highly liquid investments qualify as cash equivalents if they are realisable into known amounts of cash from the date of acquisition within a period of ______.

Which of the following statements is incorrect?

ABC Ltd. has Machinery written down value of which on 1st April, 2025 was ₹ 8,60,000 and on 31st March, 2026 was ₹ 9,50,000. Depreciation for the year was ₹ 40,000. In the beginning of the year, a part of machinery was sold for ₹ 25,000, which had a written down value of ₹ 20,000.

1. Cash Flow from Investing Activities is ______.
   1. ₹ 1,25,000
   2. ₹ (1,25,000)
   3. ₹ 2,50,000
   4. ₹ (2,50,000)
2. Gain (profit) on sale of Machinery is ______.
   1. ₹ 6,000
   2. ₹ 5,000
   3. ₹ 10,000
   4. ₹ 12,000
3. Purchase of Machinery is ______.
   1. ₹ 1,50,000
   2. ₹ 3,00,000
   3. ₹ 4,50,000
   4. ₹ 50,000

Exe Ltd. has balance in Provision for Tax Account of 50,000 and 75,000 as on 31st March, 2025 and 2026, respectively. It made provision for tax during the year of 65,000. Tax paid during the year was ______.

In Cash Flow Statement, ‘interest paid on debentures’ will be shown as ______.

Which of the following is not included in ‘Cash and Cash Equivalents’?

Sultan Chand & Sons (P) Ltd. is a educational publisher. The company purchased a machinery of ₹ 4,00,000 for the use in packing of books. Purchase of machinery will affect ______.

Issue of Debentures for Consideration other than Cash is shown as ______.

Which of the following transactions will result in ‘Cash Flows from Operating Activities’?

‘Sale of Patents’ will result in ______.

Crox Ltd. purchased machinery of ₹ 25,00,000 issuing a cheque of ₹ 15,00,000 and 10% Debentures of ₹ 10,00,000. In the Cash Flow Statement, the transaction will be shown as ______.

Paid ₹ 5,00,000 to purchase shares of Suraksha Ltd. and received dividend of ₹ 50,000 after purchase. These transactions will result in ______.

Which of the transactions will not result in flow of Cash?

1. Issue of Equity Shares of ₹ 20,00,000.
2. Purchase of machinery of ₹ 5,00,000.
3. Redemption of Debentures of ₹ 10,00,000.
4. Cash deposited into bank ₹ 50,000.

From the above information, ‘Cash flows from investing activities’ will be;

Proposed Dividend for the year ended March 31, 2025 and March 31, 2024 were ₹ 2,50,000 and ₹ 2,00,000 respectively. Shareholders finalised the dividend amount at ₹ 1,80,000 during the year ended March 31, 2025 in AGM held in June-July 2024. Unclaimed dividend as at March 31, 2025 was ₹ 10,000.

Choose the correct option while preparing Cash Flow Statement for the year ended March 31, 2025:

Buy-back of shares is an extraordinary item for ______.

X Ltd. purchased furniture for ₹ 20,00,000, paying 60% by issue of equity shares of ₹ 10 each and the balance by a cheque. This transaction will result in?

What will be the effect of ‘Purchase of Marketable Securities for Cash’ on Cash Flow Statement?

Which of the following transactions will result in 'Flow of Cash'?

Angel Ltd., a stock broker, purchased 5,000 shares of Tata Housing Ltd. It is ______.

The transaction ‘Acquisition of machinery by issue of Equity Shares of ₹ 5,00,00,000’ will result in ______.

Interest received on Calls-in-Arrears by any company will be shown as ______.

‘Paid ₹ 5,00,000 to acquire shares in Neligare Industries and received a dividend of ₹ 30,000 after acquisition.’ The transaction will result in ______.

Which of the following transactions will result in outflow of cash?

The transaction ‘Capital gains tax paid on sale of fixed assets’ is classified under which of the following?

Acquisition of machinery by issue of equity shares of ₹ 30,00,000 will result in ______.

While computing cash from operating activities, which of the following item(s) will be added to the net profit?

1. Decrease in value of inventory
2. Increase in share capital
3. Increase in the value of trade receivables
4. Increase in the amount of outstanding expenses

Balance Sheet (Extract)

Additional Information:

Interest on debentures is paid on half yearly basis on 30^th September and 31^st March each year.

Debentures were redeemed on 30^th September, 2019.

How much amount (related to above information) will be shown in Financing Activity for Cash Flow Statement prepared on 31^st March, 2020?

From the following information, find out the inflow of Cash by sale of Office equipment:

Additional Information:

Depreciation for the year 2021-22 was Rs. 40,000

Purchase of Office Equipment purchased during the year: Rs. 30,000

Part of Office Equipment sold at a profit of Rs. 12,000

Statement I: Financing activities relate to long term funds or capital of an enterprise.

Statement II: Separate disclosure of cash flows arising from financing activities is important because they represent the extent to which expenditures have been made for resources intended to generate future income and cash flows. 

Choose the correct option from the following: 

Statement – I: Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Statement – II: Cash payments to acquire fixed assets, including intangibles and capitalised research and development, result in cash outflow from investing activities.

Choose the correct option from the following:

Statement I: Issue of Debentures will result in inflow of cash.

Statement II: Issue of Debentures to the vendors for purchase of machinery will result in outflow of cash.

Choose the correct option from the following:

Statement I: Snow Ltd. made a net profit of ₹ 5,00,000 after taking into consideration interest on investment of ₹ 1,00,000. Operating profit before working capital changes would be ₹ 4,00,000.

Statement II: To calculate operating profit before working capital changes, interest on investment is subtracted from net profit because it is a non-operating income.

Choose the correct option from the following:

While preparing the cash flow statement, match the following activities:

Select the correct answer using the codes given below:

In Cash Flow Statement, match the following activities:

Select the correct answer using the codes given below:

A company issued 20,000; 9% Debentures of ₹ 100 each at 10% Discount. These debentures were to be redeemed at 15% Premium at the end of 5 years. The balance in Securities Premium Account as of the date of Issue was ₹ 3,70,000. How this transaction will be reflected in Cash Flow Statement?

Assertion (A): Cash Flow Statement shows inflow and outflow of Cash and Cash Equivalents under Operating, Investing and Financing Activities of a company during a specified period.

Reason (R): Cash Flow Statement traces the Flow of Cash and Cash Equivalents into and out of the business during an accounting period under Operating, Investing and Financing Activities.

In the context of the above two statements, which option is correct?

Assertion (A): Purchase of Fixed Asset on ‘Long-term Deferred Payment’ would result in outflow of cash.

Reason (R): There will be ‘No flow of Cash’, as purchase of Fixed Asset on Long-term Deferred Payment involves Non-current Assets and Non-current Liability (Long-term deferred payment).

In the context of the above two statements, which option is correct?

Assertion (A): ‘Sale of Property’ is an Operating Activity for a Real Estate Company.

Reason (R): Sale/purchase of property is the Principal Revenue Producing Activity for a Real Estate company.

In the context of the above two statements, which option is correct?

Assertion (A): Non-cash transactions are considered in preparing the Cash Flow Statement.

Reason (R): Non-cash transactions do not affect Cash and Cash Equivalents.

In the context of the above two statements, which option is correct?

Assertion (A): Cash deposited into Bank will not result in Flow of Cash or Cash Equivalents.

Reason (R): Cash deposited into Bank is movement between items of Cash.

In the context of the above two statements, which option is correct?

Assertion (A): Purchase of Stock-in-Trade on credit will not result in Flow of Cash or Cash Equivalents.

Reason (R): Purchase of Stock-in-Trade on credit does not involve cash.

In the context of the above two statements, which option is correct?

Assertion (A): Declaration of Proposed (Final) Dividend results in an Outflow of Cash.

Reason (R): It does not affect the cash of the company since there is no payment or receipt in cash.

In the context of the above two statements, which option is correct?

Assertion (A): ‘Redemption of Debentures’ will result in an outflow of cash.

Reason (R): Redemption of Debentures decreases Cash and Cash Equivalents.

In the context of the above two statements, which option is correct?

Assertion (A): Purchase of Goodwill is classified as Investing Activity in case of all the enterprises.

Reason (R): Purchase of Goodwill by a finance company is classified under ‘Financing Activity’ while preparing Cash Flow Statement.

In the context of the above two statements, which option is correct?

Assertion (A): Movement between the items that are part of Cash or Cash Equivalents doesn’t result into cash flow.

Reason (R): These are the components of Cash and Cash Equivalents.

In the context of the above two statements, which option is correct?

An extract of the Balance Sheet of Nova Ltd. shows:

During the year 2025-26, the company raised its share capital by issuing bonus shares to the shareholders at the beginning of the year in the ratio of 1 : 5 (one bonus share was issued for every five equity shares). The balance shares were issued for cash to the public.

How many shares were issued for cash by the company?

AA Securities Ltd., a Stock broking company purchased 10,000 Equity Shares of Tata Tea Ltd. Under which activity it will be shown?

What will be the effect of writing off loss on issue of debenture on:

1. Cash Flow from Operating Activities, and
2. Cash Flow from Financing Activity?

What will be the effect of writing off loss on issue of debenture on:

1. Cash Flow from Operating Activities, and
2. Cash Flow from Financing Activity?

Following is the Extract of the Balance Sheets of Mediquity Ltd.:

While preparing the Cash Flow Statement of Mediquity Ltd. for the year 2025–26, state with reason the effect of changes in the amount of debtors on the cash from operating activities of the company vis-a-vie its net operations before working capital changes.

Read the following information of Hylex Ltd., and answer the questions that follow:

Additional information:

During the year 2025-26, the company:

1. Issued bonus shares to the shareholders at the beginning of the year in the ratio of 1 : 4 (that is, 1 bonus share for every 4 shares held) by capitalising the Securities Premium.
2. Purchased office equipment for ₹ 2,40,000; payment made by issuing 20,000 Equity shares of ₹ 10 each to the vendor and the balance in cash.
3. Paid ₹ 4,000 for interim dividend.
4. The interest on all borrowings was ₹ 16,000, out of which the amount paid till the end of the year was ₹ 12,500.
5. Dividend of ₹ 15,000 proposed in the year 2024-25 was declared and paid.
6. Paid underwriting commission of ₹ 10,000.

1. How many bonus shares have been issued by the company to the shareholders?
2. What is the company’s Net Profit before Tax?
3. What is the Cash from Operating Activities of the company before tax paid?
4. What is Hydrogen Ltd.’s inflow/outflow of cash from Financing Activities?
5. Give the inflow/outflow of cash from Investing Activities, if any.
6. The Board of Directors of Hydrogen Ltd. proposed a dividend of ₹ 30,000 at the end of the year 2025-26.

State with reason the disclosure/non-disclosure of this dividend proposed in the Cash Flow Statement of the company for the year 2025-26.

Tata Motors Ltd. is the pioneers and leading manufacturer of cars. Having an impressive past of 50 years in the industry, it is keen to perform and assures a promising future. It has strong hold not only in domestic market but also in international market. During the previous year, there were many times when they faced inadequacy in cash. As a result, finance manager has been relieved from service and a new appointment has been made. The new finance manager has asked the assistant finance manager to compute some of the items of Cash Flow Statement for the year. So that he would be able to do planning for the cash management.

Notes to Accounts

Additional Information: Tax Paid during the year was ₹ 1,00,000.

Based on the above information, answer the following questions of the Finance Manager:

1. Provision for Tax made during the year is ______.
   1. ₹ 1,40,000
   2. ₹ 1,00,000
   3. ₹ 1,50,000
   4. ₹ 1,10,000
2. Net Profit Before Tax is ______.
   1. ₹ 3,40,000
   2. ₹ 3,00,000
   3. ₹ 3,10,000
   4. ₹ 3,60,000
3. Operating Profit before Working Capital Changes is ______.
   1. ₹ 4,30,000
   2. ₹ 4,40,000
   3. ₹ 4,70,000
   4. ₹ 4,90,000
4. Net Effect of Changes in Working Capital is ______.
   1. ₹ 70,000
   2. ₹ 80,000
   3. (₹ 80,000)
   4. (₹ 70,000)
5. Cash Flow from Operating Activities is ______.
   1. ₹ 2,50,000
   2. ₹ 2,90,000
   3. ₹ 3,10,000
   4. ₹ 2,60,000
6. Cash Flow from (or Used in) Investing Activities is ______.
   1. Outflow of ₹ 5,30,000
   2. Inflow of ₹ 20,000
   3. Outflow of ₹ 2,80,000
   4. Inflow of ₹ 3,20,000
7. Cash Flow from (or Used in) Financing Activities is ______.
   1. Inflow of ₹ 2,00,000
   2. Inflow of ₹ 1,00,000
   3. Inflow of ₹ 3,00,000
   4. Inflow of ₹ 3,20,000

Identify the following transactions as belonging to (i) Operating, (ii) Investing, (iii) Financing Activities, and (iv) Cash Equivalents:

1. Cash sale of goods
2. Cash received against revenue from services rendered
3. Cash purchase of goods
4. Cash paid against services taken
5. Patents purchased
6. Marketable securities
7. Bank overdraft
8. Proceeds from issue of debentures
9. Purchase of shares
10. Repayment of long-term loan
11. Commission received
12. Redemption of debentures
13. Interest on debentures
14. Interest on investments
15. Income tax paid
16. Income tax paid on gain of sale of asset
17. Cash received from debtors
18. Cash paid to creditors
19. Bank balance
20. Dividend received
21. Salaries and wages paid
22. Dividend paid
23. Debentures purchased
24. Loan advanced
25. Sale of fixed assets
26. Rent received by a company whose main business is manufacturing
27. Short-term deposits in banks
28. Goodwill written off
29. Buy-back of equity shares
30. Payment of share issue expenses
31. Discount allowed to customers
32. Discount received from suppliers
33. Increase in the balance of cash credit
34. Repayment of short-term loan
35. Proceeds from short-term borrowings
36. Rent received by a company whose main business is real estate business

Classify the following transactions as Operating Activities for a financial company and a non-financial company:
(a) Purchase of Shares on a Stock Exchange.
(b) Dividend received on Shares.
(c) Dividend paid on Shares.
(d) Loans given.
(e) Loans taken.
(f) Interest paid on borrowings.

State which of the following would result in inflow/outflow or no flow of Cash and Cash Equivalents:

1. Sale of Fixed Assets, Book Value ₹ 1,00,000 at a profit of ₹ 10,000.
2. Sale of goods against cash.
3. Purchase of machinery for cash.
4. Purchase of Land and Building for ₹ 10,00,000. Consideration paid by issue of debentures.
5. Issued fully paid Bonus Shares.
6. Cash withdrawn from bank.
7. Payment of Interim Dividend.
8. Proposed Dividend.
9. Purchase of Goods on Credit.
10. Sale of Goods costing ₹ 2,00,000 for ₹ 1,80,000 for cash.
11. Purchase of a fixed asset on a long-term deferred payment basis.
12. Issue of shares against purchase of fixed asset.
13. Cash received from a Trade Receivable ₹ 48,000, discount allowed: ₹ 2,000.
14. Sale of fixed asset (book value ₹ 3,00,000) for ₹ 2,00,000 for cash.
15. Old Furniture (book value ₹ 60,000) written off.
16. Bill Receivable endorsed to creditors.
17. Discount of ₹ 5,000 received while making payment to a creditor of ₹ 50,000.
18. Cash deposited into Bank.
19. Sale of Marketable Securities for cash.
20. Sale of Long-term Investments for cash.
21. Conversion of Debentures into Shares.
22. Declaration of Dividend.
23. Receipt of Interest on Investment.
24. Receipt of Dividend.
25. Decrease in Cash Credit.

For each of the following transactions, calculate the resulting Cash Flow and state the nature of Cash Flow, i.e., whether it is Operating, Investing or Financing:
(a) Acquired machinery for ₹2,50,000 paying 20% by cheque and executing a bond for the balance payable.

(b) Paid ₹2,50,000 to acquire shares in Informa Tech Ltd. and received a dividend of ₹50,000 after acquisition.

(c) Sold machinery of original cost of ₹2,00,000 with an accumulated depreciation of ₹1,60,000 for ₹60,000.

Following is the extract from the Balance Sheet of King Ltd. as at 31st March, 2026:

Additional Information: Proposed Dividend for the years ended 31st March, 2025 and 2026 are ₹ 8,00,000 and ₹ 10,00,000 respectively.

Prepare the Note to show Net Profit before Tax and Extraordinary Items.

Following is the extract from the Balance Sheet of Kinder Joy Ltd.:

Additional Information:

1. Proposed dividends on equity shares for the years 2024-25 and 2025-26 are ₹ 1,60,000 and ₹ 2,00,000, respectively.
2. An Interim Dividend of ₹ 40,000 on Equity Shares was paid.

Calculate Net Profit before Tax and Extraordinary Items.

Hint: Dividend on preference shares is paid if dividend is paid on equity shares. Since dividend is paid (Proposed for 2024–25) on Equity Shares, dividend on Preference Shares must have been paid. Therefore, Preference Dividend of ₹ 60,000, i.e., 10% of ₹ 6,00,000 will also be added to determine net profit before Tax and Extraordinary Items.

Additional Information:

Interim Dividend of ₹ 2,00,000 was paid on Equity Shares on 1st November, 2025.

Hint: Dividend will be paid on 10% Preference Shares since Interim Dividend is paid.

From the following information, calculate Net Profit before Tax and Extraordinary Items:

Additional Information:

Interim Dividend paid during the year: ₹ 1,80,000

Provision for Tax made during the year: ₹ 3,00,000

Refund of Tax: ₹ 6,00,000

Loss by Fire: ₹ 4,00,000

Insurance Claim Received: ₹ 2,00,000

From the following information, calculate Operating Profit before Working Capital Changes:

Calculate Cash Flow from Operating Activities from the following details:

Hint: Decrease in goodwill will be added to Net Profit before Tax while calculating Cash Flow from Operating Activities, it being Non-Cash/Non-Operating item.

Compute Cash Flow from Operating Activities from the following information:

Charles Ltd. earned a profit of ₹ 1,00,000 after charging depreciation of 20,000 on assets and a transfer to General Reserve of ₹ 30,000. Goodwill amortised was ₹ 7,000, and gain on sale of machinery was ₹ 3,000. Other information available is (changes in the value of Current Assets and Current Liabilities): trade receivables showed an increase of ₹ 3,000; trade payables an increase of ₹ 6,000; Prepaid expenses an increase of ₹ 200; and outstanding expenses a decrease of ₹ 2,000.
Ascertain Cash Flow from Operating Activities.

Calculate Cash Flow from Operating Activities from the following:
(i) Profit form the year is ₹ 7,00,000 after considering the following items:

(ii) Following is the position of Current Assets and Current Liabiliites

From the following information, calculate Cash Flow from Operating Activities:

Sunrise Ltd., reported Net Profit after Tax of ₹ 6,40,000 for the year ended 31st March, 2026. The relevant extract from Balance Sheet as at 31st March, 2026 is:

Depreciation charged on Plant and Machinery ₹ 55,000, insurance claim received ₹ 50,000, gain (profit) on sale of investment ₹ 20,000 appeared in the Statement of Profit and Loss for the year ended 31st March, 2026. Calculate Cash Flow from Operating Activities.

Compute Cash Flow from Operating Activities from the following:
(i) Profit for the year ended 31st March, 2026 is ₹ 10,000 after providing for depreciation of ₹ 2,000.
(ii) Current Assets and Current Liabilities of the business for the year ended 31st March, 2025 and 2026 are as follows:

Calculate Cash Flow from Operating Activities from the following information.

Notes to Accounts

Other Information:

Following is the Balance Sheet of Bharat Gas Ltd. as at 31.3.2023:

Balance Sheet of Bharat Gas Ltd. as at 31.3.2023

Notes to Accounts:

Adjustments: During the year a machine costing ₹ 3,00,000 on which accumulated depreciation was ₹ 45,000 was sold for ₹ 1,35,000.

Calculate 'Cash flows from Operating Activities'.

From the following information, calculate the amount of cash flow from investing activities.
Acquired machinery for ₹ 10,00,000, paying 10% immediately in cash and accepting a draft for the balance in favour of the vendor, payable after three months.

Hint: Draft (Bill Payable) does not involve cash outflow.

Mars Ltd. has Plant and Machinery whose written down value on 1st April, 2025 was ₹ 9,60,000 and on 31st March, 2026 was ₹ 10,50,000. Depreciation for the year was ₹ 35,000. In the beginning of the year, a part of the plant was sold for ₹ 45,000 which had a written-down value of ₹ 30,000.
Calculate Cash Flow from Investing Activities

From the following details. Calculate Cash Flow from Investing Activities

Additional Information:
1. Half of the investment held in the beginning of the year were sold at 10% profit.
2. Depreciation on Land and Building was ₹ 50,000 for the year.
3. Interest received on investments ₹ 75,000.

From the following details. calculate Cash Flow from Investing Activities

Additional Information:
1. During the year, machine costing ₹ 90,000 with accumulated depreciation of ₹ 60,000 was sold for ₹        50,000.
2. Patents written off were ₹ 50,000 while a part of patents were sold at a profit of ₹ 40,000.

The following information has been extracted from the books of Lata Ltd.:

Additional Information:

1. During the year, a piece of machinery costing ₹ 1,40,000 on which accumulated depreciation was ₹ 90,000, was sold at a gain of ₹ 10,000.
2. Depreciation charged during the year amounted to ₹ 2,90,000. Calculate Cash Flows from Investing Activities.

From the following extracts of a company, calculate Cash Flow from Investing Activities:

Additional Information: Investment is sold at book value on 31st March, 2026.

Hints:

1. Since investment is sold at book value, there is neither gain (profit) nor loss.
2. Interest received on Investments = 10% of ₹ 2,00,000 − ₹ 6,000 = ₹ 14,000.

From the following information, calculate Cash Flow from Investing Activities

Additional Information:
1. Depreciation charged on Plant and Machinery ₹ 50,000.
2. Plant and Machinery with a Book Value of ₹ 60,000 was sold for ₹ 40,000.
3. Land was sold at a profit of ₹ 60,000.
4. No investment was sold during the year.

From the following particulars, calculate Cash Flow from Investing Activities

Additional Information:
1. Interest received on debentures held as investment ₹ 8,000.
2. Interest paid on debentures issued ₹ 20,000.
3. Dividend received on shares held as investment ₹ 20,000.
4. Dividend paid on Equity Share Capital ₹ 30,000.
5. A plot of land was purchased out of the surplus funds for investment purposes and was let out for commercial use. Rent received ₹ 50,000 during the year.

Property, Plant and Equipment (Net): Closing ₹ 31,75,000, Opening ₹ 25,50,000. During the year, a machine costing ₹ 3,50,000 (Depreciation provided thereon ₹ 1,50,000) was sold for ₹ 1,25,000. Depreciation charged for the year was ₹ 3,50,000.A machine costing ₹ 75,000 was purchased by issue of equity shares of 10 each at a premium of 20%. Net profit Before Tax and Extra-ordinary Items ₹ 2,50,000.

How will these items be shown while preparing Cash Flow Statement?

Calculate Cash Flow from Investing Activities from the following information:

Additional Information:
1. Part of land was purchased as an investment out of surplus. It was let out for commercial purposes, and the rent received was ₹ 20,000.
2. Dividend received from Damodar Ltd. @ 12%.
3. Patents written off to the extent of ₹ 20,000. Some patents were sold at a profit of ₹ 10,000.
4. A machine costing ₹ 80,000 (depreciation provided thereon ₹ 30,000) was sold for ₹ 35,000. Depreciation charged during the year was ₹ 70,000.
5. During the year 12% investments were purchased for ₹ 1,00,000 and some investments were sold at a profit of ₹ 10,000. Interest on investments for the year was duly received.

Additional Information:

1. Depreciation of ₹ 80,000 was provided and a machine costing ₹ 1,05,000 (Depreciation provided thereon ₹ 65,000) was sold at a loss of ₹ 8,000.
2. Tax paid during the year ₹ 30,000.

Additional Information:

1. A machine having book value of ₹ 1,00,000 (Depreciation provided thereon ₹ 1,62,500) was sold at a loss of ₹ 20,000.
2. Tax paid during the year ₹ 75,000.

From the following information, calculate Cash flow from Operating Activities.

Additional Information:

Proposed Dividend for the year ended March 31, 2023 and March 31, 2024 was ₹ 1,50,000 and ₹ 1,80,000 respectively.

From the following information, calculate the Cash from Investing Activities.

Additional Information:

1. Machinery costing ₹ 50,000 (Book Value ₹ 40,000) was lost by fire and insurance claim of ₹ 32,000 was received.
2. Depreciation charged during the year was ₹ 3,50,000.
3. A part of Machinery costing ₹ 2,50,000 was sold at a loss of ₹ 20,000.

Notes to Accounts

During the year, the company repaid a loan of ₹ 1,00,000.

Hint:

From the following information, calculate Cash Flow from Financing Activities:

Additional Information: 
Interest paid on debentures ₹ 18,000.

Jalco. Ltd. provided the following information; calculate Net Cash Flow from Financing Activities:

Additional Information:
1. Interest paid on debentures ₹ 19,000.
2. Dividend paid in the year ₹ 50,000.
3. During the year, XYZ Ltd. issued bonus shares in the ratio of 5 : 1 by capitalising reserve.

Hint: Increase in Equity Share Capital by ₹ 2,00,000 by issue of bonus shares will not be shown under Cash Flow from Financing Activities because cash is not transacted. It is Capitalisation of Reserves.

From the following extracts of Balance Sheet of Exe Ltd., calculate Cash Flow from Financing Activities:

Additional Information:
1. Equity Shares were issued on 31st March, 2026.
2. Interim dividend on Equity Shares was paid @ 15%.
3. Preference Shares were redeemed on 31st March, 2026 at a premium of 5%. Premium paid was debited to Statement of Profit and Loss.
4. 12% Debentures of face value ₹ 1,00,000 were issued on 31st March, 2026

Hint: Dividend on 10% Preference Shares will be paid on Opening Balance.

Additional Information:

1. Depreciation charged on Plant and Machinery was ₹ 50,000.
2. Plant and Machinery of book value ₹ 60,000 was sold for ₹ 40,000.
3. Land was sold at a gain of ₹ 60,000.
4. Preference Shares were redeemed on 31st March, 2026 at a premium of 5%.
5. Dividend on Equity Shares and Preference Shares for the year ended 31st March, 2025 was Nil and for the year ended 31st March, 2026, Proposed Dividend on Equity Shares was 10%.
6. Fresh issue of Equity Shares was on 1st April, 2025.

Hint: Dividend on 10% Preference Shares will not be paid because Proposed Dividend on both Equity and Preference Shares in the year ended 31st March, 2025 was nil.

From the following Balance Sheet of Young India Ltd., prepare Cash Flow Statement:

BALANCE SHEET OF YOUNG INDIA LTD. as at 31st March, 2026

Hint: Interest paid on debentures `₹ 7,500 (i.e., ₹ 50,000 × 15/100)` is Financing Activity. In the absence of a date of issue, it is assumed that the additional 15% Debentures were issued at the end of the current accounting year.]

Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheet of Nidhi Ltd. as at 31st March, 2026

Notes to Accounts

Hint: Cash and Cash Equivalents:

Balance Sheet of Bright Ltd. as at 31st March, 2026 is as follows:

Notes to Accounts

Following is the Balance Sheet of Fine Products Ltd. as at 31st March, 2026

Notes to Accounts

Note: Proposed dividends on equity for the years ended 31st March, 2025 and 2026 are ₹ 39,000 and ₹ 45,000 respectively.

You are required to prepare Cash Flow Statement for the year ended 31st March, 2026.

Mevanca Limited

BALANCE SHEET as at 31st March, 2026

Notes to Accounts

1. Additional loan was taken on 1st July, 2025.
2. Tax of ₹ 53,000 was paid during the year.

Following was the Balance Sheet of M.M. Ltd. as at 31st March, 2026

Notes to Accounts :

Additional Information:
1. 12% Debentures were redeemed on 31st March, 2026.
2. Tax ₹ 70,000 was paid during the year.
Prepare Cash Flow Statement.

From the following Balance Sheet of Midee Ltd. as at 31st March, 2026, prepare Cash Flow Statement:

Additional Information:

(i) During the year, Machinery costing ₹ 1,40,000 (accumulated depreciation provided thereon ₹ 1,10,000) was sold for ₹ 20,000.

(ii) During the year, Non-current Investments costing ₹ 80,000 were sold at a profit of ₹ 16,000.

(iii) Debentures were issued on 31st March, 2026.

Hint: Net Profit before Tax and Extraordinary Items: ₹ 2,00,000.

Notes to Accounts

Additional Information:

Notes to Accounts:

Additional Information:

Following is the summarised Balance Sheet of Philips India Ltd. as at 31st March 2026:

Notes to Accounts

Additional Information:
1. Investments costing ₹ 24,000 were sold during the year for ₹ 25,500.
2. Provistion for Tax made during the year was ₹ 27,000.
3. During the year, a part of the Fixed Assets costing ₹ 30,000 was sold for ₹ 36,000. The rofits were included in the Statement of Profit and Loss.
4. The Interim Dividend paid during the year amounted to ₹ 1,20,000.
You are required to prepare Cash Flow Statement.

Hints:

1.

Following is the Balance Sheet of Nidhi Ltd. as at 31st March, 2026, prepare Cash Flow Statement:

Additional Information:

1. Debentures were issued on 1st January, 2026.
2. Machinery costing ₹ 5,00,000 on which depreciation charged was ₹ 1,75,000 was sold for ₹ 3,75,000.
3. Depreciation charged during the year was ₹ 2,00,000.
4. Non-current Investments were sold at a profit of 20%.

Prepare Cash Flow Statement.

1. Patents purchased during the year was ₹ 50,000.
2. Proposed Dividend for the year ended 31st March, 2025 and 2026 was ₹ 1,50,000 and ₹ 2,00,000 respectively.
3. Interim Dividend during the year ended 31st March, 2025 and 2026 was ₹ 50,000 and ₹ 1,20,000 respectively.

From the following Balance Sheet and information of Sun Ltd., prepare Cash Flow Statement:

Notes to Accounts:

You are informed that during the year:

(ii) A machine with a book value of ₹ 90,000 was sold for ₹ 50,000;

(iii) Depreciation charged during the year ₹ 60,000;

(iv) Debentures were issued on 1st April 2025;

(v) Investments were purchased on 31st March 2026;

(vi) Preference shares were redeemed on 31st December 2025;

(vii) An interim dividend @ 15% was paid on equity shares on 31st December 2025.

(viii) Fresh equity shares were issued at a premium of 5% on 31st March 2026.

Hint: Cash and Cash Equivalents = Cash and Cash Equivalents + Current Investments.

Issue of shares for consideration other than cash will result in ______.

Which of the following will result in flow of Cash?

An investment qualifies as a cash equivalent only when it has a maturity period of ______ month(s) or less from the date of acquisition.

Cash deposit with the bank with a maturity date after two months belongs to which of the following in the cash flow statement?

Which of the following is not Cash Flow from Investing Activities?

Which of the following is not included in Cash and Cash Equivalents?

Which of the following transactions is not shown under Financing Activity?

Issue of Bonus Shares is considered a Financing Activity while preparing the Cash Flow Statement. (True/False)

Goodwill amortised is added to/deducted from the net profit before tax while preparing Cash Flow from Operating Activities.

Premium received on issue of shares is shown as ______.

Sale of Current Investment will be shown under ______.

Sale of investment by a finance company is classified as ______.

Amongst the following, 'Payment of bonus to the employees' by an insurance company is which type of activity?

In Cash Flow Statement, ‘interest paid on debentures’ will be shown as ______.

In Cash Flow Statement, match the following activities:

Select the correct answer using the codes given below:

Additional Information:

Amortisation for the year ended 31st March, 2026: ₹ 50,000.

Patents purchased during the year: ₹ 75,000.

Existing Patents were sold at a profit of ₹ 10,000.

Which of the following options is the correct inflow/outflow for Patents?

Additional Information:

Proposed Dividend in the years ended 31st March 2025 and 2026 were ₹ 7,00,000 and ₹ 6,00,000 respectively.

Which of the following options is correct as Net Profit before Tax and Extraordinary Items?

Assertion (A): Dividend paid is always shown as Financing Activity for all enterprises.

Reason (R): Cash payment of income tax is usually shown as Operating Activity.

In the context of the above two statements, which of the following is correct?

Read the following statements carefully and choose the correct alternative from the following:

Statement 1: Net proceeds from sale of machinery is shown as an inflow of Cash under Operating Activity.

Statement 2: Premium on redemption of debentures is subtracted from current year’s profit to calculate Operating Profit.

Additional Information:

1. Plant Costing ₹ 1,45,000 was sold at a loss of ₹ 40,000.
2. Depreciation amounting to ₹ 1,30,000 was provided during the current year.
3. Tax paid during the year was ₹ 30,000.

Note: Proposed Dividend for the year ended 31st March, 2025 and 2026 are ₹ 58,000 and ₹ 53,000 respectively.

Additional Information:

1. Interest paid on Debentures ₹ 6,000.
2. Depreciation charged during the year was ₹ 40,000.
3. 5,000 equity shares of ₹ 10 each were issued on 31st March, 2026; Share Issue Expenses incurred ₹ 5,000, which were written off from Statement of Profit & Loss.

You are required to prepare a Cash Flow Statement (as per AS-3) for the year 2025–26.