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T.S. Grewal solutions for Class 12 Accountancy chapter 4 - Cash Flow Statement

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T.S. Grewal T S Grewal Class 12 Accountancy - Analysis Of Financial Statements

T S Grewal Class 12 Accountancy - Analysis Of Financial Statements - Shaalaa.com

Chapter 4: Cash Flow Statement

Exercise

Chapter 4: Cash Flow Statement Exercise Exercise solutions [Pages 89 - 123]

Exercise | Q 1 | Page 89

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

(a) Cash Sale of Goods (b) Cash Received against Revenue from Services rendered
 
(c) Cash Purchase of Goods (d) Cash Paid against Services Taken
(e) Patents Purchased (f) Marketable Securities
(g) Bank Overdraft (h) Proceeds from Issue of Debentures
(i) Purchase of Shares (j) Repayment of Long-term Loan
(k) Commission Received (l) Redemption of Debentures
(m) Interest on Debentures (n) Interest on Investments
(o) Income Tax Paid (p) Income Tax Paid on Gain of Sale of Asset
(q) Cash Received from Debtors (r) Cash Paid to Creditors
Exercise | Q 2 | Page 90

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.

Exercise | Q 3 | Page 90

State which of the following would result in inflow/outflow or no flow of Cash and Cash Equivalents:
(a) Sale of Fixed Assets, Book Value ₹ 1,00,000 at a profit of ₹10,000.
(b) Sale of goods against cash.
(c) Purchase of machinery for cash.
(d) Purchase of Land and Building for ₹10,00,000. Consideration paid by issue of debentures.
(e) Issued fully paid Bonus Shares.
(f) Cash withdrawn from bank.
(g) Payment of Interim Dividend.
(h) Proposed Dividend.

Exercise | Q 4 | Page 90

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.

Exercise | Q 5 | Page 90

Following are the extracts from the Balance Sheet of MAH Ltd. as at 31st March, 2019

Particular

31st March

2019

(₹)

31st March

2018

(₹)

Surplus, i.e., Balance in Statement of Profit and Loss

10,00,000

5,00,000

Dividend Payable

50,000

Additional Information: Proposed Dividend for the years ended 31st March, 2018 and 2019 are ₹ 4,00,000 and ₹ 5,00,000 respectively.
Prepare the Note to show Net Profit before Tax and Extraordinary Items.

Exercise | Q 6 | Page 91

Following is the extract from the Balance Sheet of Zee Ltd.

Particular

31st March

2019

(₹)

31st March

2018

(₹)

Equity Share Capital

8,00,000

8,00,000

10% Preference Share Capital 6,00,000 6,00,000
Surplus i.e., Balance in Statement of Profit and Loss 7,20,000 4,00,000
Unpaid Dividend

20,000

Additional Information:
(i) Proposed dividend on equity shares for the year 2017-18 and 2018-19 are ₹ 1,60,000 and ₹ 2,00,000 respectively.
(ii) An Interim Dividend of ₹ 40,000 on Equity Shares was paid.
Calculate Net Profit before Tax and Extraordinary Items.

Exercise | Q 7 | Page 91

Calculate Net Profit before Tax and Extraordinary Items of Premier Sales Ltd. from its Balance Sheet as at 31st March, 2019 :

Particulars

Note No.

31st March, 2019

(₹)

31st March, 2018

(₹)

I. EQUITY AND LIABILITIES      

1. Shareholders' Funds

     

(a) Share Capital

 

5,00,000 5,00,000

(b) Reserves and Surplus
(Surplus, i.e.,Balance in Statement of Profit and Loss)

  2,00,000 1,45,000

2. Current Liabilities

     

(a) Trade Payables

  90,000 50,000

(b) Other Current Liabilities

  20,000 10,000

(c) Short-term Provisions

1

50,000 30,000

Total

  8,60,000 7,35,000
II. ASSETS      

1. Non-Current Assets

     

(a) Fixed Assets

  4,50,000 4,00,000

(b) Non-Current Investments

  50,000 1,50,000

2. Current Assets

  2,60,000 1,85,000

Total

  8,60,000 7,35,000

Notes to Accounts

Particulars

31st March, 2019

(₹)

31st March, 2018

(₹)

I. Short-term Provisions    

Provision for Tax

50,000 30,000

Additional Information:
(i) Proposed Dividend for the years ended 31st March, 2018 and 2019 are ₹ 50,000 and ₹ 75,000 respectively.
(ii) Interim Dividend paid during the year was ₹ 10,000.

Exercise | Q 8 | Page 92

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

Surplus, i.e., Balance in Statement of Profit and Loss (Opening) 1,00,000
Surplus, i.e., Balance in Statement of Profit and Loss (Closing) 3,36,000
Dividend paid in the current year 72,000
Interim Dividend Paid during the year 90,000
Transfer to Reserve 1,00,000
Provision for Tax for the current year 1,50,000
Refund of Tax 3,000
Loss due to Earthquake 2,00,000
Insurance Proceeds from Earthquake disaster settlement
Exercise | Q 9 | Page 92

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

 
Net Profit before Tax and Extraordinary Items 4,47,000
Depreciation on Machinery 84,000
Interest on Borrowings 16,800
Goodwill Amortised 18,600
Loss on Sale of Furniture 18,000
Premium on Redemption of Preference Shares 6,000
Gain (Profit) on Sale of Investments 12,000
Interest and Dividend Received on Investments 27,600
Exercise | Q 10 | Page 92

From the following Balance Sheet of Double Tree Ltd. as at 31st March, 2019 and additional information, calculate Operating Profit before Working Capital Changes: 

Particulars

Note No.

31st March, 2019

(₹)

31st March, 2018

(₹)

I. EQUITY AND LIABILITIES      

1. Shareholders' Funds

     

(a) Share Capital

 

5,00,000 5,00,000

(b) Reserves and Surplus

1 6,70,000 5,00,000

2. Current Liabilities

     

(a) Trade Payables

  60,000 50,000

(b) Other Current Liabilities (Outstanding Expenses)

  20,000 15,000

(c) Short-term Provisions (Provision for Tax)

 

1,00,000 90,000

Total

  13,50,000 11,55,000
II. ASSETS      

1. Non-Current Assets

     

(a) Fixed Assets (Tangible)

  7,50,000 7,30,000

(b) Non-Current Investments

  2,50,000 3,00,000

2. Current Assets

  3,50,000 1,25,000

Total

  13,50,000 11,55,000

Notes to Accounts

Particulars

31st March, 2019

(₹)

31st March, 2018

(₹)

I. Reserve and Surplus    

General Reserve

5,00,000 4,00,000

Surplus, i.e., Balance in Statement of Profit and Loss

1,70,000 1,00,000

 

6,70,000 5,00,000

Additional Information: Depreciation for the year was ₹75,000.

Exercise | Q 11 | Page 93

Calculate Cash Flow from Operating Activities from the following details:

Particulars 31st March, 2019 (₹) 31st March, 2018 (₹)
Surplus, i.e.,Balance in Statement of Profit and Loss 80,000 60,000
Trade Receivables 25,000 31,000
Provision for Depreciation 40,000 30,000
Inventories 80,000 60,000
Outstanding Rent 12,000 21,000
Goodwill 30,000 38,000
Prepaid Insurance 1,000 2,000
Trade Payables (Creditors) 13,000 19,000
Exercise | Q 12 | Page 93

Compute Cash Flow from Operating Activities from the following information:

Particulars

Net Profit after Provision for Tax and Payment of Dividend 2,15,000
Provision for Tax 45,000
Final Dividend paid during the year 50,000
Depreciation 25,000
Loss on Sale of Machinery 10,000
Patents Amortised 30,000
Gain on Sale of Land 70,000
Income Tax Refund 30,000


         

Exercise | Q 13 | Page 93

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

Particulars

(₹)
Depreciation on Fixed Assets 40,000
Goodwill Amortised 20,000
Gain on Sale of Land 90,000
Appropriation of Profit towards General Reserve 60,000

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

Particulars

Closing Balance (₹) Opening Balance (₹)
Trade Payables 50,000 75,000
Trade Receivables 75,000 60,000
Prepaid Expenses 10,000 18,000
Exercise | Q 14 | Page 94

Grand Hospitality Ltd., reported Net Profit after Tax of ₹ 6,40,000 for the year ended 31st March, 2019. The relevant extract from Balance Sheet as at 31st March, 2019 is:

Particulars

31st March, 2019 (₹) 31st March, 2018 (₹)
Inventories 1,15,000 1,25,000
Trade Receivables 1,50,000 1,10,000
Prepaid Expenses 20,000 6,000
Trade Payables 1,10,000 80,000
Provision for Tax 20,000 15,000

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, 2019. Calculate Cash Flow from Operating Activities.

Exercise | Q 15 | Page 94

Calculate Cash Flow from Operating Activities from the following information.

Particular

31st March

2017

(Rs)

Net Profit (Difference between Closing and Opening Balance of Surplus, i.e., Balance in Statement of Profit and Loss)

8,00,000

Final Dividend paid in the year 1,10,000
Compensation for Natural Disaster credited to Statement of Profit and Loss 75,000
Depreciation 1,50,000
Loss on Sale of Investment 30,000
Gain (Profit) on Sale of Land 90,000
Provision for Tax 1,10,000
Dividend Received 20,000
Decrease in Current Assets (Other than Cash and Cash Equivalents) 40,000
Increase in Current Liablilities 70,000
Decrease in Current Liabilities 10,000
Increase in Current Assets (Other than Cash and Cash Equivalents) 60,000
Income Tax Refund 10,000
Income Tax Paid

1,20,000

Exercise | Q 16 | Page 94

Following information is related to ABC Ltd.:
STATEMMENT OF PROFIT AND LOSSfor the year ended 31st March, 2019

Particulars

Note No.

(₹)

I. Revenue from Operations (Net Sales)

  30,00,000
II. Other Income 1 45,000

III. Total Revenue (I + II)

  30,45,000
IV. Expenses :    

(a) Purchases of Stock-in-Trade

  23,03,000

(b) Change in Inventories of Stock-in-Trade

2 (16,000)

(c) Depreciation and Amortisation Expenses

  1,85,000

(d) Other Expenses

3 3,29,000

Total Expenses

  28,01,000
V. Profit before Tax (III − IV)   2,44,000

VI. Less: Provision for Tax

  64,000

VII. Profit after Tax (V – VI)

  1,80,000

Notes to Accounts

Particulars

1. Other Income  
(a) Dividend Received

5,000

(b) Gain (Profit) on Sale of Plant

40,000

 

45,000

2. Change in Inventories of Stock-in-Trade  
Opening Inventories

2,84,000

Less: Closing Inventories

3,00,000

 

(16,000)

3. Other Expenses  
(a) Office Expenses

58,000

(b) Selling Expenses

2,35,000

(c) Loss on Sale of Assets

36,000

 

3,29,000

 

Other Information: Balance as on
31st March, 2019 (₹)
Balance as on 31st March, 2018 (₹)
Trade Payables 2,78,000 2,50,000
Trade Receivables 4,52,000 4,15,000
Inventories 3,00,000 2,84,000
Office Expenses Outstanding ... 5,000
Selling Expenses Outstanding 25,000 22,000

Calculate Cash Flow from Operating Activities.

Exercise | Q 17 | Page 95

Compute Cash Flow from Operating Activities from the following:

Particulars

Closing Balances (₹) Opening Balances (₹)
Surplus, i.e., Balance in Statement of Profit and Loss 65,000 60,000
Trade Receivables:    

Debtors

67,000 1,02,000

Bills Receivable

1,03,000 62,000
General Reserve 2,37,000 2,02,000
Provision for Depreciation 30,000 20,000
Outstanding Expenses 12,000 30,000
Goodwill 70,000 80,000

An asset costing ₹ 40,000 having book value of ₹ 28,000 was sold for ₹ 36,000.

Exercise | Q 18 | Page 95

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.

Exercise | Q 19 | Page 96

Compute Cash Flow from Operating Activities from the following:
(i) Profit for the year ended 31st March, 2019 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, 2018 and 2019 are as follows:

Particular

31st March
2018

(₹)

31st March
2019

(₹)
Trade Receivables 14,000 15,000

Provision for Doubtful Debts

1,000 1,200

Trade Payables

13,000 15,000
Inventories 5,000 8,000
Other Current Assets 10,000 12,000
Expenses Payables 1,000 1,500
Prepaid Expenses 2,000 1,000
Accrued Income 3,000 4,000
Income Received in Advance

2,000

1,000
Exercise | Q 20 | Page 96

Calculate Cash Flow from Operating Activities from the following information:
INCOME STATEMENT (STATEMENT OF PROFIT AND LOSS)for the year ended 31st March, 2019

Particulars

Note No.

(₹)

I. Revenue from Operations (Sales)  

5,98,000

II. Other Income

1

19,500

III. Total Revnue (I + II)  

6,17,500

IV. Expenses :    

Cost of Materials Consumed

 

4,00,000

Change in Inventories of Finished Goods and Work-in-Progress

2

15,000

Employee Benefit Expenses

 

1,05,000

Depreciation and Amortisation Expenses

 

15,000

Other Expenses

3

20,000

Total Expenses

 

5,55,000

V. Profit before Tax (III − IV)  

62,500

VITax @ 30%  

18,750

VII. Profit after Tax (V − VI)  

43,750

Notes to Accounts

Particulars

1. Other Income  

Rent

15,000

Gain (Profit) on Sale of Machinery

2,500

Interest on Debentures held as Investments

2,000

 

19,500

Changes in Inventories of Finished Goods and Work-in-Progress  
(a) Finished Goods  

Opening Inventories

37,500

Less: Closing Inventories

25,000

Sub-Total

12,500
(b) Work-in-Progress  

Opening Inventories

22,500

Less: Closing Inventories

20,000

Sub-Total

2,500

Total (a + b)

15,000

2. Other Expenses  

Office Expenses

12,500

Selling Expenses

6,000

Loss on Sale of Furniture

1,500

 

20,000

 

Current Assets and Current Liabilities

As on 31st March,
2019 (₹)

As on 1st April,
2018 (₹)

Trade Receivables

25,000

20,000

Trade Payables

32,500

35,000

Outstanding Expenses

8,000

5,000

Prepaid Expenses

5,000

3,500

Exercise | Q 21 | Page 97

Mars Ltd. has Plant and Machinery whose written down value on 1st April, 2017 was ₹9,60,000 and on 31st March, 2018 was ₹10,50,000. Depreciation for the year was ₹35,000. In the beginning of the year, a part of plant was sold for ₹45,000 which had a written down value of ₹30,000.
Calculate Cash Flow from Investing Activities

Exercise | Q 22 | Page 97

From the following details. calculate Cash Flow from Investing Activities

Particulars

Closing (₹) Opening (₹)
Machinery (At Cost) 10,00,000 9,50,000
Accumulated Depreciation 1,50,000 1,10,000
Patents 2,00,000 3,00,000

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.

Exercise | Q 23 | Page 97
Welprint Ltd. has given the following information:
Machinery as on 1st April, 2018 50,000
Machinery as on 31st March, 2019 60,000
Accumulated Depreciation on 1st April, 2018 25,000
Accumulated Depreciation on 31st march, 2019 15,000

During the year, a machine costing ₹ 25,000 (accumulated depreciation thereon ₹ 15,000) was sold for ₹ 13,000. Calculate Cash Flow from Investing Activities on the basis of the above information.

Exercise | Q 24 | Page 97

From the following details. Calculate Cash Flow from Investing Activities

Particulars

31st March,
2019 (₹)
31st March,
2018 (₹)
Investment in 10% Debentures 10,00,000 5,00,000
Land and Building 15,00,000 9,00,000

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.

Exercise | Q 25 | Page 98

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

   
Purchase of Machine 2,50,000 Purchase of Investments 1,60,000
Purchase of Goodwill 1,00,000 Sale of Patents 40,000
Sale of Machine 35,000 Interest and Dividend Received 10,000
Sale of Investment 50,000    

A building was purchased as investment out of surplus which was let out for commercial purposes.
Rent Received ₹20,000.

Exercise | Q 26 | Page 98

From the following Balance Sheet of Combiplast Ltd. for the year ended 31st March, 2019 and additional information, calculate Cash Flow from Investing Activities:

Particulars

Note No.

31st March, 2019

(₹)

31st March, 2018

(₹)

I. EQUITY AND LIABILITIES

     

1. Shareholders' Funds

 

   

(a) Share Capital

  7,50,000 5,00,000

(b) Reserves and Surplus

  10,00,000 8,50,000

2. Current Liabilities

 

4,50,000 3,50,000

Total

  22,00,000 17,00,000
II. ASSETS      

1. Non-Current Assets

     

(a) Fixed Assets−Tangible Assets

1 12,00,000 12,00,000

(b) Non-Current Investments

  5,00,000 3,00,000

2. Current Assets

     

(a) Trade Receivables

  3,00,000 1,10,000

(b) Cash and Cash Equivalents

  2,00,000 90,000

Total

  22,00,000 17,00,000

Notes to Accounts

Particulars

31st March, 2019

(₹)

31st March, 2018

(₹)

I. Tangible Assets    

Land

3,00,000 3,00,000

Building

4,00,000 4,00,000

Plant and Machinery

5,00,000 5,00,000

 

12,00,000 12,00,000

Additional Information:During the year the company sold machinery at Book Value of ₹ 1,50,000.

Exercise | Q 27 | Page 98

From the following information, calculate Cash Flow from Investing Activities

Particular

31st March,
2019

(₹)

31st March,
2018

(₹)
Plant and Machinery 10,00,000 8,50,000
Investment (Long-term) 1,00,000 40,000
Land (At Cost)

1,00,000

2,00,000

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.

Exercise | Q 28 | Page 99

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

Particular

31st March,

2019

(₹)

31st March,

2018

(₹)
Goodwill

75,000

1,00,000
Patents 1,00,000 75,000
Land 90,000 1,00,000
Furniture 2,46,000 21,000
Plant and Machinery (Net) 2,00,000 2,00,000
10% Investments 1,80,000 2,00,000
Accrued Interest on Investments

6,000

...
Exercise | Q 29 | Page 99

Calculate Cash Flow from Investing Activities from the following information:
 

Particular

31st March,
2019

(₹)

31st March,
2018

(₹)
Investment in Land

3,00,000

3,00,000
Shares in Damodar Ltd. 1,50,000 1,50,000
12% Long-term Investments 80,000 50,000
Plant and Machinery 7,50,000 6,00,000
Patents 70,000 1,00,000
Goodwill

1,50,000

1,00,000

Additional Information:
1. A piece of land was purchased as an investment out of surplus. It was let out for commercial purpose 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.

Exercise | Q 30 | Page 100

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

Particulars

31st March,
2019 (₹)
31st March,
2018 (₹)
Machinery (At cost) 5,50,000 5,00,000
Accumulated Depreciation 1,70,000 1,00,000

During the year, a machinery costing ₹ 50,000 (accumulated depreciation provided thereon ₹ 20,000) was sold for ₹ 26,000.

Exercise | Q 31 | Page 100

From the following particulars, calculate Cash Flow from Investing Activities

Particulars

Purchased (₹) Sold (₹)
Machinery 6,20,000 2,00,000
Investments 2,40,000 80,000
Goodwill 1,00,000 ...
Patents ... 1,50,000

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.

Exercise | Q 32 | Page 100

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

  1st April,
2018 (₹)
31st March,
2019 (₹)
Long-term Loan 2,00,000 2,50,000

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

Exercise | Q 33 | Page 100

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

Particulars

31st March,
2019

(₹)

31st March,
2018

(₹)
Equity Share Capital

10,00,000

9,00,000
Securities Premium Reserve 2,60,000 2,50,000
12% Debentures

1,00,000

1,50,000

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

Exercise | Q 34 | Page 101

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

Particulars

31st March,

2019

(₹)

31st March,

2018

(₹)
Equity Share Capital

5,25,000

4,00,000
10% Preference Share Capital 4,00,000 5,50,000
Securities Premium Reserve 2,25,000 1,00,000
12% Debentures

4,00,000

3,00,000

Additional Information:
1. Equity Shares were issued on 31st March, 2019.
2. Interim dividend on Equity Shares was paid @ 15%.
3. Preference Shares were redeemed on 31st March, 2019 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, 2019.

Exercise | Q 36 | Page 101

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

Particulars

31st March 2019
(₹)

31st March 2018
(₹)

Machinery (At cost)

50,000

40,000
Accumulated Depreciation 12,000 10,000
Capital 35,000 30,000
Bank Loan

...

10,000

During the year, a machine costing ₹ 10,000 was sold at a loss of ₹ 2,000. Depreciation on machinery charged during the year amounted to ₹ 6,000.

Exercise | Q 36 | Page 101

From the following information, calculation Cash Flow from Operating Activities and Investing Activities:

Particular

31st, March,

2018, (₹)

31st, March,

2019, (₹)

Surplus, i.e., Balance in Statement of Profit and Loss

2,50,000

10,00,000

Provision for Tax

75,000

75,000

Trade Payables

1,00,000

3,75,000

Current Assets (Trade Receivables and Inventories)

11,50,000

13,00,000

Fixed Assets (Tangible)

21,25,000

23,30,000

Accumulated Depreciation

10,62,500

11,00,000

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.

Exercise | Q 37 | Page 102

XYZ. Ltd. provided the following information, calculate Net Cash Flow from Financing Activities:

Particular

31st March,

2019 (₹)

31st March,

2018  (₹)

Equity Share Capital 12,00,000 10,00,000
12% Debentures

2,00,000

1,00,000

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 captialising reserve.

Exercise | Q 38 | Page 102

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

Particular

31st March

2019

(₹)

31st March

2018

(₹)
Equity Share Capital

13,75,000

11,25,000
5% Preference Share Capital 5,00,000 7,50,000
General Reserve 3,75,000 3,00,000
Surplus i.e., Balance in Statement of Profit and Loss 3,75,000 (3,50,000)
Securities Premium Reserve 25,000 ...
Provision for Tax 1,00,000 50,000
Non-current Liabilities (8% Debentures) 6,50,000 3,75,000
Short-term Borrowings (8% Bank Loan) 1,00,000 1,25,000
Trade Payables 5,00,000 2,50,000
Trade Receivables and Inventories

13,00,000

11,50,000

Additional Information:
(i) During the year additional debentures were issued at par on 1st October and Bank Loan was repaid on the same date.
(ii) Dividend on Equity Shares @ 8% was paid on Opening Balance.
(iii) Income tax ₹ 1,12,500 has been provided during the year.
(iv) Preference shares were redeemed at par at the end of the year.

Exercise | Q 39 | Page 103

From the following information, prepare Cash Flow Statement:

Particulars

(₹)

Opening Cash and Bank Balances

1,50,000

Closing Cash and Bank Balances 1,70,000
Decrease in Stock 80,000
Increase in Bills Payable 1,20,000
Sale of Fixed Assets 3,00,000
Repayment of Long-term Loan 5,00,000
Net Profit for the Year

20,000

Exercise | Q 40 | Page 103

From the following Balance Sheet of Young India Ltd., prepare Cash Flow Statement:
 BALANCE SHEET OF YOUNG INDIA LTD.as at 31st March, 2019

Particular

Note No.

31st March, 2019 (₹)

31st March, 2018 (₹)

I. EQUITY AND LIABILITIES      

1. Shareholders' Funds

     

(a) Share Capital

 

2,50,000

2,00,000

(b) Reserves and Surplus: Surplus, i.e., Balance in Statement of Profit and Loss

 

1,83,000

82,000

2. Non-Current Liabilities

 

   

Long-term Borrowings:

 

   

15% Debentures

 

80,000

50,000

3. Current Liabilities

 

   

(a) Trade Payables

 

1,50,000

1,10,000

(b) Other Current Liabilities

 

12,000

20,000

Total

 

6,75,000

4,62,000

II. ASSETS      

1. Non-Current Assets

     

(a) Fixed Assets (Tangible)

 

2,74,000

1,17,000

(b) Non-Current Investments

 

68,000

55,000

2. Current Assets

 

   

(a) Inventories

 

2,06,000

1,50,000

(b) Trade Receivables

 

32,000

70,000

(c) Cash and Cash Equivalents

 

95,000

70,000

Total

 

6,75,000

4,62,000

Exercise | Q 41 | Page 104

Following is the Balance Sheet of Fine Products Ltd. as at 31st March, 2019

Particulars

Note No.

31st March, 2019

(₹)

31st March, 2018

(₹)

I. EQUITY AND LIABILITIES :      

1. Shareholders' Funds

     

(a) Share Capital: Equity Share Capital

 

3,50,000

3,00,000

(b) Reserves and Surplus

1

57,000

38,000

2. Current Liabilities : 

     

(a) Trade Payables

 

53,000

35,000

(b) Other Current Liabilities

 

6,000

8,000

(c) Short-term Provisions

2

32,000

28,000

Total  

4,98,000

4,09,000

II. ASSETS :      

1. Non-Current Assets :

     

(a) Fixed Assets:

     

(i) Tangible Assets

3

2,48,000

2,00,000

(ii) Intangible Assets (Goodwill)

 

40,000

50,000

(b) Non-Current Investments

 

35,000

10,000

2. Current Assets :

     

(a) Inventories

 

39,000

57,000

(b) Trade Receivables

 

1,08,000

75,000

(c) Cash and Bank Balance

 

28,000

17,000

Total  

4,98,000

4,09,000

Notes to Accounts

Particulars

31st March, 2019

(₹)

31st March, 2018

(₹)

1. Reserves and Surplus    

General Reserve

30,000

20,000

Surplus, i.e.,Balance in Statement of Profit and Loss

27,000

18,000

 

57,000

38,000

2. Short-term Provisions    

Provision for Tax

32,000

28,000

3. Tangible Fixed Assets    

Land and Building

57,000

1,10,000

Plant and Machinery

1,91,000

90,000

 

2,48,000

2,00,000

Note: Proposed dividends on equity for the years ended 31st March, 2018 and 2019 are ₹ 39,000 and ₹ 45,000 respectively. You are required to prepare Cash Flow Statement for the year ended 31st March, 2019.

Exercise | Q 42 | Page 105

Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheet of Libra Ltd. as at 31st March, 2013 and 31st March 2012:

Particulars

Note No.

31st March, 2013

(₹)

31st March, 2012

(₹)

I. EQUITY AND LIABILITIES      

1. Shareholders' Funds

     

(a) Share Capital

  8,00,000 6,00,000

(b) Reserves and Surplus

1 4,00,000 3,00,000

2. Non-Current Liabilities

     

Long-term Borrowings

  1,00,000 1,50,000

3. Current Liabilities

     

(a) Trade Payables

  40,000 48,000

Total

  13,40,000 10,98,000
II. ASSETS      

1, Non-Current Assets

     

(a) Fixed Assets:

     

Tangible Assets

  8,50,000 5,60,000

(b) Non-Current Investments

  2,32,000 1,60,000

2. Current Assets

     

(a) Current Investments

  50,000 1,34,000

(b) Inventories

  76,000 82,000

(c) Trade Receivables

  38,000 92,000

(d) Cash and Cash Equivalents

  94,000 70,000

Total

  13,40,000 10,98,000

Notes to Accounts

Particulars

31st March, 2013

(₹)

31st March, 2012

(₹)

I. Reserves and Surplus    

Surplus, i.e., Balance in Statement of Profit and Loss

4,00,000 3,00,000
Exercise | Q 43 | Page 106

Following are the Balance Sheets of Solar Power Ltd. as at 31st March, 2014 and 2013:

Solar Power Ltd.
BALANCE SHEET

Particulars

Note No.

31st March, 2014

(₹)

31st March, 2013

(₹)

I. EQUITY AND LIABILITIES      

1. Shareholders' Funds

     

(a) Share Capital

 

24,00,000 22,00,000

(b) Reserves and Surplus

1 6,00,000 4,00,000

2. Non-Current Liabilities

     

Long-term Borrowings

  4,80,000 3,40,000
3. Current Liabilities      

(a) Trade Payables

  3,58,000 4,08,000

(b) Short-term Provisions

 

1,00,000 1,54,000

Total

  39,38,000 35,02,000
II. ASSETS      

1. Non-Current Assets

     

Fixed Assets:

     

(i) Tangible Assets

2 21,40,000 17,00,000

(ii) Intangible Assets

3 80,000 2,24,000

2. Current Assets

     

(a) Current Investments

  4,80,000 3,00,000

(b) Inventories

  2,58,000 2,42,000

(c) Trade Receivables

  3,40,000 2,86,000

(d) Cash and Cash Equivalents

  6,40,000 7,50,000

Total

  39,38,000 35,02,000

 Notes to Accounts

Particulars

31st March, 2014

(₹)

31st March, 2013

(₹)

1. Revenue and Surplus

Surplus, i.e.,Balance in Statement of Profit and Loss

6,00,000 4,00,000
2. Tangible Assets    

Machinery

25,40,000 20,00,000

Less: Accumulated Deprciation

(4,00,000) (3,00,000)
  21,40,000 17,00,000
3Intangible Assets    

Goodwill

80,000 2,24,000

Additional Iformation:
Druing the year, a piece of machinery costing ₹ 48,000 on which accumulated deprciation was ₹ 32,000. was sold for ₹ 12,000. Prepare Cash Flow Statement.

Exercise | Q 44 | Page 107

Following is the Balance Sheet of Mevanca Limited as at 31st March, 2017:
Mevanca Limited BALANCE SHEET as at 31st March, 2017:

Particulars

Note No.

31st March, 2017

(₹)

31st March, 2016

(₹)

I. EQUITY AND LIABILITIES

     

1. Shareholders' Funds

     

(a) Share Capital

 

3,00,000

1,00,000

(b) Reserves and Surplus

1

25,000

1,20,000

2. Non-Current Liabilities

     

Long-term Borrowings

2

80,000

60,000

3. Current Liabilities

     

(a) Trade Payables

 

6,000

20,000

(b) Short-term Provisions

3

68,000

70,000

Total

 

4,79,000

3,70,000

II. ASSETS

     

1. Non-Current Assets

     

Fixed Assets

4

3,36,000

1,92,000

2. Current Assets

     

(a) Inventories

 

67,000

60,000

(b) Trade Receivables

 

51,000

65,000

(c) Cash and Cash Equivalents

 

25,000

49,000

(d) Other Current Assets

 

4,000

Total

 

4,79,000

3,70,000

 Notes to Accounts

Particulars

31st March, 2017

(₹)

31st March, 2016

(₹)

1. Reserves and Surplus

   

Surplus, i.e.,Balance in Statement of Profit and Loss

25,000

1,20,000

 

25,000

1,20,000

2. Long-term Borrowings

   

10% Long-term Loan

80,000

60,000

 

80,000

60,000

3. Short-term Provisions

   

Provision for Tax

68,000

70,000

 

68,000

70,000

4. Fixed Assets

   

Machinery

3,84,000

2,15,000

Accumulated Depreciation

(48,000)

(23,000)

 

3,36,000

1,92,000

Additional Information :
(i) Additional loan was taken on 1st July, 2016.
(ii) Tax of ₹ 53,000 was paid during the year.
Prepare Cash Flow Statement.

Exercise | Q 45 | Page 108

From the following Balance Sheet of Kumar Ltd. as at 31st March, 2019, prepare Cash Flow Statement

Particulars

Note No.

31st March, 2019

(₹)

31st March, 2018

(₹)

I. EQUITY AND LIABILITIES      

1. Shareholders' Funds

     

(a) Share Capital

1 16,00,000 10,40,000

(b) Reserves and Surplus,

2 5,50,000 2,60,000

2. Non-Current Liabilities

     

  Long-term Borrowings:

     

    9% Debentures

  4,00,000 6,00,000

3. Current Liabilities

     

  Trade Payables

  4,50,000 1,00,000

Total

  30,00,000 20,00,000
II. ASSETS      

1. Non-Current Assets

     

  Fixed Assets

  20,00,000 15,00,000

2. Current Assets

     

 (a) Inventories

  3,00,000 2,00,000

 (b) Trade Receivables

  2,00,000 1,00,000

 (c) Cash and Cash Equivalents

  5,00,000 2,00,000

Total

  30,00,000 20,00,000

Notes to Accounts

Particulars

31st March, 2019

(₹)

31st March, 2018

(₹)

1. Share Capital    

    Equity Share Capital

15,00,000 10,00,000

    7% Preference Share Capital

1,00,000 40,000
  16,00,000 10,40,000
2. Reserves and Surplus    

    General Reserve

4,00,000 60,000

    Surplus, i.e., Balance in Statement of Profit and Loss

1,50,000 2,00,000
  5,50,000 2,60,000

Additional Information:
1. During a year, a machinery costing ₹ 20,000 was sold for ₹ 6,000.
2. Dividend paid during the year ₹ 50,000.

Exercise | Q 46 | Page 109

Following was the Balance Sheet of M.M. Ltd. as at 31st March, 2015

Particulars Note No.

(₹)

(₹)

I. EQUITY AND LIABILITIES      

1. Shareholders' Funds

     

(a) Share Capital

  5,00,000 4,00,000

(b) Reserves and Surplus

1 2,00,000 (50,000)

2. Non-Current Liabilities

     

Long-term Borrowings

2 4,50,000 5,00,000

3. Current Liabilities

     

(a) Short-term Borrowings

3 1,50,000 50,000

(b) Short-term Provisions

4 70,000 90,000

Total      Total Expenses

  13,70,000 9,90,000
II. ASSETS      

1. Non-Current Assets

     

(a) Fixed Assets:

     

(i) Tangible Assets

5 10,03,000 7,20,000

 (ii) Intangible Assets

6 20,000 30,000

(b) Non-Current Investments

  1,00,000 75,000

2. Current Assets

     

(a) Current Investments

  50,000 60,000

(b) Inventories

7 1,07,000 45,000

(c) Cash and Cash Equivalents

  90,000 60,000

Total

  13,70,000 9,90,000

Notes to Accounts :

Particular

31st March 2015

(₹)

31st March 2014

(₹)

1.

Reserves and Surplus    

 

Surplus, i.e., Balance in Statement of Profit and Loss

2,00,000

(50,000)

 

 

2,00,000

(50,000)

2.

Long-term Borrowings

 

 

 

12% Debentures

4,50,000

5,00,000

 

 

4,50,000

5,00,000

3.

Short-term Borrowings

 

 

 

Bank Overdraft

1,50,000

50,000

 

 

1,50,000

50,000

4.

Short-term Provisions

 

 

 

Provision for Tax

70,000

90,000

 

 

70,000

90,000

5.

Tangible Assets

 

 

 

Machinery

12,03,000

8,21,000

 

  Less: Accumulated Depreciation

(2,00,000)

(1,01,000)

 

 

10,03,000

7,20,000

6.

Intangible Assets

 

 

 

Goodwill

20,000

30,000

 

 

20,000

30,000

7.

Inventories

 

 

 

Stock-in-Trade

1,07,000

45,000

 

 

1,07,000

45,000

Additional Information:
1. 12% Debentures were redeemed on 31st March, 2015.
2. Tax ₹ 70,000 was paid during the year.
Prepare Cash Flow Statement.

Exercise | Q 47 | Page 110

The Balance Sheet of Virendra Paper Ltd. as at 31st March, 2019 is given below:

Particulars

Note No.

31st March, 2019

(₹)

31st March, 2018

(₹)

I. EQUITY AND LIABILITIES      

1. Shareholders' Funds

     

  (a) Share Capital

  7,20,000 6,00,000

  (b) Reserves and Surplus:

     

     Surplus i.e., Balance in Statement of Profit and Loss

  4,80,000 3,75,000

2. Non-Current Liabilities

     

Long-term Borrowings:

     

   10% Debentures

  2,70,000 4,50,000

3. Current Liabilities

     

  Trade Payables

  1,20,000 90,000

Total

  15,90,000 15,15,000
II. ASSETS      

1. Non-Current Assets

     

  Fixed Assets (Tangible)

1 7,50,000 7,20,000

2. Current Assets

     

(a) Inventories

  3,60,000 4,20,000

(b) Trade Receivables

  3,00,000 2,25,000

(c) Cash and Cash Equivalents

  1,80,000 1,50,000

Total

  15,90,000 15,15,000

Notes to Accounts

Particulars

31st March, 2019

(₹)

31st March, 2018

(₹)

1. Fixed Assets (Tangible)

 

 

   

Land

 

 

2,40,000

3,00,000

 

31st March,

31st March,

   
 

2019 (₹)

2018 (₹)

   

Plant and Machinery

7,50,000

6,00,000

   

Less:Accumulated Depreciation

2,40,000

1,80,000

   
 

5,10,000

4,20,000

5,10,000

4,20,000

 

 

 

7,50,000

7,20,000

Additional Information:
1. Interim Dividend of ₹75,000 has been paid during the year.
2. Debenture Interest paid during the year ₹ 27,000.
You are required to prepare Cash Flow Statement.

Exercise | Q 48 | Page 111

Following are the Balance Sheets of Krishtec Ltd. for the years ended 31st March 2012 and 2011:

Particulars

Note No.

31st March, 2012

(₹)

31st March, 2011

(₹)

I. EQUITY AND LIABILITIES      

1. Shareholders' Funds

     

(a) Share Capital

  12,00,000 8,00,000

(b) Reserves and Surplus (Surplus, i.e., Balance in Statement of Profit and Loss)

  3,50,000 4,00,000

2. Non-Current Liabilities

     

Long-term Borrowings

  4,40,000 3,50,000

3. Current Liabilities

     

(a) Trade Payables

  60,000 50,000

Total

  20,50,000 16,00,000
II. ASSETS      

1, Non-Current Assets

     

Fixed Assets:

     

  Tangible Assets

  12,00,000 9,00,000

2. Current Assets

     

(a) Inventories

  2,00,000 1,00,000

(b) Trade Receivables

  3,10,000 2,30,000

(c) Cash and Cash Equivalents

  3,40,000 3,70,000

Total

  20,50,000 16,00,000

Prepare a Cash Flow Statement after taking into account the following adjustments:
(a) The company paid Interest ₹36,000 on its long-term borrowings.
(b) Depreciation charged on tangible fixed assets was ₹1,20,000

Exercise | Q 49 | Page 111

From the following Balance Sheet of JY Ltd. as at 31st March 2017, prepare a Cash Flow Statement:
BALANCE SHEET as at 31st March, 2017

Particular

Note No.

31st March, 2017 ()

31st March, 2016 ()

I. EQUITY AND LIABILITIES

     

1. Shareholders' Funds

     

(a) Share Capital

 

5,00,000

5,00,000

(b) Reserves and Surplus

1

1,00,000

(25,000)

2. Non-Current Liabilities

     

Long-term Borrowings

2

2,50,000 1,50,000

3. Current Liabilities

     

(a) Short-term Borrowings

3

1,50,000

1,10,000

(b) Short-term Provisions

4

1,25,000

75,000

Total

 

11,25,000

8,00,000

II. ASSETS

     

1. Non-Current Assets

     

Fixed Assets–Tangible

5

6,00,000

4,50,000

2. Current Assets

     

(a) Trade Receivables

 

2,75,000

2,25,000

(b) Cash and Cash Equivalents

 

50,000

25,000

(c) Short-term Loans and Advances

 

2,00,000

1,00,000

Total

 

11,25,000

8,00,000

Notes to Accounts

Particular

31st March,

2017

()

31st March,

2016

()

1.

Reserves and Surplus

   
 

Surplus, i.e., Balance in Statement of Profit and Loss

1,00,000

(25,000)

   

1,00,000

(25,000)

2.

Long-term Borrowings

   
 

10% Debentures

2,50,000

1,50,000

   

2,50,000

1,50,000

3.

Short-term Borrowings

   
 

Bank Overdraft

1,50,000

1,00,000

   

1,50,000

1,00,000

4.

Short-term Provisions

   
 

Provision for Tax

1,25,000

75,000

   

1,25,000

75,000

5.

Tangible Assets

   
 

Machinery

7,37,500

5,25,000

 

Accumulated Depreciation

(1,37,500)

(75,000)

   

6,00,000

4,50,000

 Note: Proposed Dividend for the years ended 31st March, 2016 and 2017 are ₹ 50,000 and ₹ 75,000 respectively.
Additional Information: 
₹ 1,00,000, 10% Debentures were issued on 31st March, 2017.

Exercise | Q 50 | Page 112

Prepare Cash Flow Statement from the following Balance Sheet:

Particulars

Note No.

31st March, 2013

(₹)

31st March, 2012

(₹)

I. EQUITY AND LIABILITIES      

1. Shareholders' Funds

     

(a) Share Capital

  6,00,000 5,00,000

(b) Reserves and Surplus

1 4,00,000 2,00,000

2. Current Liabilities

     

(a) Trade Payables

  2,80,000 1,80,000

Total

  12,80,000 8,80,000
II. ASSETS      

1, Non-Current Assets

     

(a) Fixed Assets:

     

Plant and Machinery

  5,00,000 3,00,000

2. Current Assets

     

(a) Inventories

  1,00,000 1,50,000

(b) Trade Receivables

  6,00,000 4,00,000

(c) Cash and Cash Equivalents

  80,000 30,000

Total

  12,80,000 8,80,000

Notes to Accounts

Particulars

31st March, 2013

(₹)

31st March, 2012

(₹)

I. Reserves and Surplus    

Surplus, i.e., Balance in Statement of Profit and Loss

4,00,000 2,00,000

Additional Information:
(i) An old machinery having book value of ₹50,000 was sold for ₹60,000.
(ii) Depreciation provided on Machinery during the year was ₹30,000.

Exercise | Q 51 | Page 113

Following is the summarised Balance Sheet of Philips India Ltd. as at 31st March 2018:

Particulars

Note No.

31st March, 2018

(₹)

31st March, 2017

(₹)

I. EQUITY AND LIABILITIES      

1. Shareholders' Funds

     

(a) Share Capital

  13,50,000 13,50,000

(b) Reserves and Surplus

1 11,34,000 10,68,000

2. Non-Current Liabilities

     

Long-term Borrowings:
10% Mortgage Loan

  8,10,000 ...

3. Current Liabilities

     

(a) Trade Payables (Creditors)

  4,20,000 5,04,000

(b) Short-term Provisions:

     

      Provision for Tax

  30,000 2,25,000

Total

  37,26,000 31,47,000
II. ASSETS      

1, Non-Current Assets

     

(a) Fixed Assets (Tangible)

  9,60,000 12,00,000

(b) Non-Current Investments

  1,80,000 1,50,000

2. Current Assets

     

(a) Current Investments

  21,000 17,000

(b) Inventories

  63,30,000 7,82,000

(c) Trade Receivables

  13,65,000 6,30,000

(c) Cash and Cash Equivalents

  5,70,00 4,30,000

Total

  37,26,000 31,47,000
       

Notes to Accounts

Particulars

31st March, 2018

(₹)

31st March, 2017

(₹)

I. Reserves and Surplus    

General Reserve

9,30,000 9,00,000

Surplus, i.e., Balance in Statement of Profit and Loss

2,04,000 1,68,000

 

11,34,000 10,68,000
     

Additional Information:
1. Investments costing ₹ 24,000 were sold during the year for ₹ 25,5000.
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.

Exercise | Q 52 | Page 114

From the following Balance Sheet, prepare Cash Flow Statement:

Particulars

Note No.

31st March, 2019

(₹)

31st March, 2018

(₹)

I. EQUITY AND LIABILITIES      

1. Shareholders' Funds

     

  (a) Share Capital

  2,50,000 2,00,000

  (b) Reserves and Surplus,

1 90,600 80,500

2. Current Liabilities

     

  (a) Short-term Borrowings: Bank Loan

  ... 70,000

  (b) Trade Payables

  1,35,200 1,50,000

  (c) Short-term Provisions: Provision for Tax

  35,000 30,000

Total      Total Expenses

  5,10,800 5,30,500
II. ASSETS      

1. Non-Current Assets

     

Fixed Assets:

     

(i) Tangible Assets

2 3,59,000 3,50,000

(ii) Intangible Assets: Goodwill

  5,000 ...

2. Current Assets

     

 (a) Inventories

  74,000 1,00,000

 (b) Trade Receivables

  64,200 80,000

 (c) Cash and Cash Equivalents

  8,600 500

Total

  5,10,800 5,30,500

Notes to Accounts

Particulars

31st March, 2019

(₹)

31st March, 2018

(₹)

I. Reserves and Surplus    

   General Reserve

60,000 50,000

    Surplus, i.e., Balance in Statement of Profit and Loss

30,600 30,500

 

90,600 80,500
2. Tangible Assets    

     Land and Building

1,90,000 2,00,000

     Plant and Machinery

1,69,000 1,50,000
  3,59,000 3,50,000

Additional Information:
1. Proposed Dividend for the year ended 31st March, 2019 was ₹ 25,000 and for the year ended 31st March, 2018 was ₹ 14,000.
2. Interim Dividend paid during the year was ₹ 9,000.
3. Income Tax paid during the year was ₹ 28,000.
4. Machinery was purchased during the year ₹ 33,000.
5. Depreciation to be charged on machinery ₹ 14,000 and building ₹ 10,000.

Exercise | Q 53 | Page 115

From the following Balance Sheet of Akash Ltd. as at 31st March 2014:

Particulars

Note No.

31st March, 2014

(₹)

31 March, 2013

(₹)

I. EQUITY AND LIABILITES

1. Shareholders' Funds

     

(a) Share Capital

 

15,00,000

14,00,000

(b) Reserves and Surplus

1

2,50,000

1,10,000

2. Non-Current Liabilities

     

Long-term Borrowings

 

2,00,000

1,25,000

3. Current Liabilities

     

(a) Short-term Borrowings

2

12,000

10,000

(b) Trade Payables

  15,000 83,000

(c) Short-term Provisions

3

18,000

11,000

Total

 

19,95,000

17,39,000

II. ASSETS

     

1. Non-Current Assets

     

Fixed Assets:

     

(i) Tangible Assets

4

18,60,000

16,10,000

(ii) Intangible Assets

5 50,000 30,000

2. Current Assets

     

(a) Current Investments

 

8,000

5,000

(b) Inventories

  37,000 59,000

(c) Trade Receivables

 

26,000

23,000

(d) Cash and Cash Equivalents

 

14,000

12,000

Total

 

19,95,000

17,39,000

 

Notes to Accounts :
Particulars 31st March, 2014 (₹) 31st March, 2013 (₹)
1. Reserves and Surplus    

Surplus,i.e.,Balance in Statement of Profit and Loss

2,50,000 1,10,000
2. Short-term Borrowings :    

Bank Overdraft

12,000 10,000
3. Short-term Provisions    

Provision for Tax

18,000 11,000
4. Tangible Assets :    

Machinery

20,00,000 17,00,000

Less: Accumulated Depreciation

(1,40,000) (90,000)
  18,60,000 16,10,000
5. Intangible Assets    

Patents

50,000 30,000

Additional Information :  
(i) Tax paid during the year amounted to ₹ 16,000.
(ii) machine with a net book value of ₹ 10,000 (Accumulated Depreciation ₹ 40,000) was sold for ₹ 2,000.
Prepare Cash Flow Statement.

Exercise | Q 54 | Page 116

From the following Balance Sheet of SRS Ltd. and the additional information as on 31st March, 2016, prepare a Cash Flow Statement:

SRS Ltd.
BALANCE SHEET as on 31st March, 2016

Particulars

Note No.

31st March, 2016

(₹)

31st March, 2015

(₹)

I. EQUITY AND LIABILITIES      

1. Shareholders' Funds

     

(a) Share Capital

  4,50,000 3,50,000

(b) Reserves and Surplus

1 1,25,000 50,000
2. Non-Current Liabilities      

Long-term Borrowings

2 2,25,000 1,75,000

3. Current Liabilities

     

(a) Short-term Borrowingst

3 75,000 37,500

(b) Shrot-term Provisions

4 1,00,000 62,500

Total

  9,75,000 6,75,000
II. ASSETS      

1, Non-Current Assets

     

(a) Fixed Assets:

     

(i) Tangible

5 7,32,500 4,52,500

(ii) Intangible

6 50,000 75,000

(b) Non-current Investments

  75,000 50,000

2. Current Assets

     

(a) Current Investments

  20,000 35,000

(b) Inventories

7 61,000 36,000

(c) Cash and Cash Equivalents

  36,500 26,500

Total

  9,75,000 6,75,000

Notes to Accounts

Particular

31st March 2016

(₹)

31st March 2015

(₹)

1.

Reserves and Surplus    

 

Surplus, i.e., Balance in Statement of Profit and Loss

1,25,000

50,000

2.

Long-term Borrowings

 

 

 

12% Debentures

2,25,000

1,75,000

3.

Short-term Borrowings

 

 

 

Bank Overdraft

75,000

37,500

4.

Short-term Provisions

 

 

 

Provision for Tax

1,00,000

62,500

5.

Tangible Assets

 

 

 

Machinery

8,37,500

5,22,500

 

Accumulated Depreciation

(1,05,000)

(70,000)

 

 

7,32,500

4,52,500

6.

Intangible Assets

 

 

 

Goodwill

50,000

75,000

7.

Inventories

 

 

 

Stock-in-Trade

61,000

36,000

Additional Information:
(i) ₹50,000, 12% Debentures were issued on 31st March, 2016.
(ii) During the year, a piece of machinery costing ₹40,000, on which accumulated depreciation was ₹20,000, was sold at a loss of ₹5,000.

Exercise | Q 55 | Page 117

From the following Balance Sheet of Mishi Ltd. as at 31st March, 2019, prepare Cash Flow Statement:

Particulars

Note No.

31st March, 2019

(₹)

31st March, 2018

(₹)

I. EQUITY AND LIABILITIES      

1. Shareholders' Funds

     

(a) Share Capital

  16,00,000 12,00,000

(b) Reserves and Surplus

1 6,60,000 4,40,000

2. Non-Current Liabilities

     

  Long-term Borrowings (10% Debentures)

  3,20,000 2,00,000

3. Current Liabilities

     

(a) Short-term Borrowing (Bank Loan)

  80,000 1,10,000

(b) Trade Payables

  1,50,000 1,80,000

Total      Total Expenses

  28,10,000 21,30,000
II. ASSETS      

1. Non-Current Assets

     

 (a) Fixed Assets−Tangible

2 19,00,000 12,10,000

 (b) Non-Current Investments

  2,70,000 2,00,000

2. Current Assets

     

  (a) Current Investments

  1,60,000 80,000

  (b) Trade Receivables

  1,80,000 4,00,000

  (c) Cash and Cash Equivalents

3 3,00,000 2,40,000

Total

  28,10,000 21,30,000

  

Notes to Accounts :

Particulars

31st March,

2019

(₹)

31st March,

2018

(₹)

1. Reserves and Surplus :

   

Securities Premium Reserve

20,000

...

General Reserve

3,00,000

2,40,000

Surplus i.e., Balance in the Statement of Profit and Loss

3,40,000

2,00,000

 

6,60,000

4,40,000

2. Fixed Assets−Tangible

   

Machinery (Cost)

21,40,000

14,00,000

Less: Accumulated Depreciation

2,40,000

1,90,000

 

19,00,000

12,10,000

3. Cash and Cash Equivalents

   

Cash in Hand

1,40,000

1,10,000

Bank Balance

1,60,000

1,30,000

 

3,00,000

2,40,000

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.

Exercise | Q 56 | Page 118

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

Particulars

Note No.

31st March, 2019

(₹)

31st March, 2018

(₹)

I. EQUITY AND LIABILITIES      

1. Shareholders' Funds

     

(a) Share Capital

1 7,00,000 6,00,000

(b) Reserves and Surplus

2 4,10,000 2,00,000

2. Non-Current Liabilities

     

Long-term Borrowings: 
10% Debentures

  3,00,000 2,00,000

3. Current Liabilities

     

(a) Trade Payables

  1,40,000 60,000

Total

  15,50,000 10,60,000
II. ASSETS      

1. Non-Current Assets

     

(a) Fixed Assets−Tangible

  7,00,000 6,00,000

(b) 10% Investments

  2,00,000 1,00,000

2. Current Assets

     

(a) Current Investments

  90,000 50,000

(b) Inventories

  2,00,000 1,00,000

(c) Trade Receivables

3 2,80,000 1,90,000

(d) Cash and Cash Equivalents

  80,000 20,000

Total

  15,50,000 10,60,000

 

Notes to Accounts :

Particulars

31st March,

2019

(₹)

31st March,

2018

(₹)

1. Share Capital

   

Equity Share Capital

5,00,000

3,00,000

10% Preference Share Capital

2,00,000

3,00,000

 

7,00,000

6,00,000

2. Reserves and Surplus

   

Securities Premium Reserve

10,000

...

Surplus i.e., Balance in Statement of Profit and Loss

4,00,000

2,00,000

 

4,10,000

2,00,000

3. Trade Receivables

   

Sundry Debtors

3,00,000

2,00,000

Less: Provision for Doubtful Debts

20,000

10,000

 

2,80,000

1,90,000

You are informed that during the year:

(i) Proposed Dividend: 31st March, 2019 31st March, 2018
  Equity Share Capital Nil Nil
  Preference Share Capital 10% 10%

(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, 2018;
(v) Investments were purchased on 31st March, 2019;
(vi) Preference shares were redeemed on 31st December,2018;
(vii) An interim dividend @ 15% was paid on equity shares on 31st December, 2018;
(viii) Fresh equity shares were issued at a premium of 5% on 31st March, 2019.

Exercise | Q 57 | Page 119

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

Particulars

Note No.

31st March, 2019

(₹)

31st March, 2018

(₹)

I. EQUITY AND LIABILITIES      

1. Shareholders' Funds

     

(a) Share Capital

1 2,25,000 2,50,000

(b) Reserves and Surplus

2 1,27,500 50,000

2. Non-Current Liabilities

     

Long-term Borrowings: 10% Debentures

  1,00,000 50,000

3. Current Liabilities

     

(a) Trade Payables

  72,500 35,000

(b) Other Current Liabilities−Premium on Redemption of Preference Shares

  2,500 5,000

Total

  5,27,500 3,90,000
II. ASSETS      

1, Non-Current Assets

     

(a) Fixed Assets−Tangible

  3,10,000 2,55,000

(b) Non-Current Investments (10% Investments)

  40,000 15,000

2. Current Assets

     

(a) Current Investments

  5,000 4,000

(b) Inventories

  45,000 50,000

(c) Trade Receivables

3 92,500 45,000

(d) Cash and Cash Equivalents

4 35,000 21,000

Total

  5,27,500 3,90,000

Notes to Accounts

Particulars

31st March, 2019

(₹)

31st March, 2018

(₹)

1. Share Capital

   

    Equity Share Capital

1,75,000

1,50,000

    12% Preference Share Capital

50,000

1,00,000

 

2,25,000

2,50,000

2. Reserves and Surplus

   

    General Reserve

10,000

15,000

    Surplus, i.e., Balance in Statement of Profit and Loss

1,17,500

35,000

 

1,27,500

50,000

3. Trade Receivables

   

     Sundry Debtors

1,00,000

50,000

  Less:Provision for Doubtful Debts

7,500

5,000

 

92,500

45,000

4. Cash and Cash Equivalents

   

    Cash in Hand

12,500

6,000

    Cash in Bank

22,500

15,000

 

35,000

21,000

Additional Information :  
(i) You are informed during the year:

Proposed Dividend

31st March, 2019

(₹)

31st March, 2018

(₹)

Equity Share Capital NIL NIL
Preference Share Capital 12% 12%

(ii) A machine with a book value of ₹20,000 was sold for ₹12,500;
(iii) Depreciation charged during the year was ₹35,000;
(iv) Preference shares were redeemed on 31st March, 2018 at a premium of 5%;
(v) An Interim dividend of ₹5,000 was paid on equity shares on 31st March, 2019 out of General Reserve;
(vi) Fresh equity shares were Issued on 31st March, 2019; and
(vii) Additional Investments were purchased on 31st March, 2019.

Exercise | Q 58 | Page 120

From the following Balance Sheet of Samta Ltd., as at 31st March, 2019, prepare Cash Flow Statement:

Particulars

Note No.

31st March, 2019

(₹)

31st March,
2018

(₹)

I. EQUITY AND LIABILITIES      

1. Shareholders' Funds

     

(a) Share Capital

1 7,50,000 7,50,000

(b) Reserves and Surplus

2 3,10,000 (20,000)

2. Non-Current Liabilities

     

 Long-term Borrowings (8% Debentures)

  2,60,000 1,50,000

3. Current Liabilities

     

(a) Short-term Borrowings (8% Bank Loan)

  40,000 50,000

(b) Trade Payables

  1,20,000 1,10,000

(c) Short-term Provisions

3 50,000 40,000

Total

  15,30,000 10,80,000
II. ASSETS      

1. Non-Current Assets

     

 (a) Fixed Assets:

     

   (i) Tangible Assets (Net)

 

8,60,000

6,20,000

  (ii) Intangible Assets (Goodwill)

  15,000 40,000

(b) Non-Current Investments

  1,25,000 80,000

2. Current Assets

     

  (a) Current Investments

  5,000 15,000

  (b) Inventories

  1,95,000 1,00,000

  (c) Trade Receivables

  2,00,000 2,00,000

  (d) Cash and Cash Equivalents

  1,30,000 25,000

Total

  15,30,000 10,80,000

Notes to Accounts

Particulars

31st March, 2019

(₹)

31st March, 2018

(₹)

1. Share Capital    
    Equity Share Capital

5,50,000

4,50,000

   12% Preference Share Capital

2,00,000

3,00,000

 

7,50,000

7,50,000

2. Reserves and Surplus    
    Securities Premium Reserve

10,000

...

    General Reserve

1,50,000

1,20,000

    Surplus, i.e., Balance in Statement of Profit and Loss

1,50,000

(1,40,000)

 

3,10,000

(20,000)

4. Short-term Provisions    
    Provision for Tax

50,000

40,000

Additional Information :  
(i) During the year a piece of machinery costing ₹ 60,000 on which depreciation charged was ₹ 20,000 was sold at 50% of its book value. Depreciation provided on tangible Assets ₹ 60,000;
(ii) Income tax ₹ 45,000 was provided;
(iii) Additional Debentures were issued at par on 1st October, 2018 and Bank Loan was repaid on the same date;
(iv) At the end of the year Preference Shares were redeemed at a premium of 5%.

Exercise | Q 59 | Page 121

Prepare Cash Flow Statement from the following:

STATEMENT OF PROFIT AND LOSS
for the year ended 31st March, 2019

Particulars

Note No.

(₹)

I. Revenue from Operations
(Net Sales)

  36,00,000
II. Expenses    

    Purchases of Stock-in-Trade

  28,16,000

    Change in Inventories of Stock-in-Trade

  (65,000)

    Finance Costs

  15,000

    Depreciation and Amortisation Expenses

  80,000

    Other Expenses

  5,34,000

Total

  33,80,000
III. Profit before Tax (I − II)   2,20,000

IV. Less: Provision for Tax

  40,000

V. Profit after Tax (III − IV)

  1,80,000


as at 31st March, 2019

Particulars

Note No.

31st March, 2019

(₹)

31st March, 2018

(₹)

I. EQUITY AND LIABILITIES      

1. Shareholders' Funds

     

 (a) Share Capital

  6,00,000 5,00,000

 (b) Reserves and Surplus

1 3,00,000 1,20,000

2. Non-Current Liabilities

     

 Long-term Loan

  1,20,000 1,50,000

3. Current Liabilities

     

(a) Short-term Borrowings:
Bank Overdraft

  13,000 ...

(b) Trade Payables (Creditors)

  2,85,000 2,38,000

(c) Short-term Provision: 
Provision form Tax

  44,000 30,000

Total

  13,62,000 10,38,000
II. ASSETS      

1. Non-Current Assets

     

  Fixed Assets

  6,20,000 4,00,000

2. Current Assets

     

(a) Short-term Investments (Marketable Security)

  34,000 20,000

(b) Inventories

  3,28,000 2,63,000

(c) Trade Receivables

  3,48,000 3,10,000

(d) Cash and Cash Equivalents

2 32,000 45,000

Total

  13,62,000 10,38,000

 

Particulars

31st March, 2019

(₹)

31st March, 2018

(₹)

1. Reserves and Surplus    

    Surplus, i.e., Balance in Statement of Profit and Loss

3,00,000 1,20,000
2. Cash and Cash Equivalents    

    Cash in Hand

32,000 17,000

    Cash at Bank

... 28,000
  32,000 45,000
Exercise | Q 60 | Page 123

From the following Balance Sheet as at 31st March, 2019 and Statement of Profit and Loss for the year ended 31st March, 2019 of RSB Ltd. and additional information, prepare Cash Flow Statement:  

Particulars

Note No.

31st March, 2019

(₹)

31st March, 2018

(₹)

I. EQUITY AND LIABILITIES      
   1. Shareholders' Funds      
       (a) Share Capital  

7,50,000

5,00,000

       (b) Reserves and Surplus

1

9,50,000

3,00,000

2. Non-Current Liabilities      
    Long-term Borrowings
       (5% Debentures)
 

7,00,000

4,00,000

3. Current Liabilities      
    (a) Trade Payables  

1,10,000

90,000

    (b) Other Current Liabilities

2

39,000

25,000

    (c) Short-term Provisions
          (Provision for Tax)
 

2,60,000

2,25,000

Total

 

28,09,000

15,40,000

II. ASSETS      
     1. Non-Current Assets      
         (a) Fixed Assets – Tangible

3

6,85,000

7,45,000

         (b) Non-current Investments  

7,50,000

2,50,000

      2. Current Assets      
          (a) Current Investments  

6,74,000

95,000

          (b) Inventories  

1,00,000

2,00,000

          (c) Trade Receivables  

4,00,000

1,50,000

          (d) Cash and Cash Equivalents  

2,00,000

1,00,000

Total

 

28,09,000

15,40,000

 STATEMENT OF PROFIT AND LOSS for the year ended 31st March, 2019

Particulars

Note No.

31st March, 2019

(₹)

31st March, 2018

(₹)

I. Revenue from Operations

4

40,00,000

35,00,000

II. Other Income

5

35,000

30,000

III. Total Revenue (I + II)  

40,35,000

35,30,000

IV. Expenses:      
     Purchases of Stock-in-Trade  

27,00,000

24,70,000

     Change in Inventories of Stock-in-Trade

6

1,00,000

50,000

     Finance Cost  

27,500

20,000

     Depreciation  

40,000

45,000

     Other Expenses  

22,500

20,000

     Total Expenses  

28,90,000

26,05,000

V. Profit before Tax (III – IV)  

11,45,000

9,25,000

VI. Less: Tax  

3,45,000

2,25,000

VII. Profit after Tax (V – VI)  

8,00,000

7,00,000

  Notes to Accounts

Particular

31st March 2019

(₹)

31st March 2018

(₹)

1.

Reserves and Surplus    
  Debenture Redemption Reserve

1,00,000

1,00,000

  Surplus, i.e., Balance in Statement of Profit and Loss

8,50,000

2,00,000

   

9,50,000

3,00,000

2.

Other Current Liabilities    
  Interest on Debentures

35,000

20,000

  Outstanding Expenses

4,000

5,000

   

39,000

25,000

3.

Fixed Assets–Tangible    
  Cost

8,90,000

9,90,000

  Less: Accumulated Depreciation

2,05,000

2,45,000

   

6,85,000

7,45,000

4.

Revenue from Operations    
  Sales

42,00,000

35,75,000

  Less: Sales Return

2,00,000

75,000

   

40,00,000

35,00,000

5.

Other Income    
  Interest on Deposits

15,000

12,500

  Dividend on Investments

10,000

17,500

  Gain (Profit) on Sale of Fixed Assets

10,000

   

35,000

30,000

6.

Change in Inventories of Stock-in-Trade    
  Opening Stock

2,00,000

2,50,000

 

Less: Closing Stock

1,00,000

2,00,000

 

 

1,00,000

50,000

Additional Information:
1. Additional debentures were issued on 1st October, 2018 of ₹5,00,000. On the same date, part of outstanding debentures were redeemed and interest was paid, whereas interest on outstanding debentures was paid on 10th April, 2019.
2. Board of Directors proposed dividend in both the years @ 10%.
3. Interim Dividend of ₹ 1,00,000 was paid during the year.
4. A fixed asset with original cost of 1,00,000, on which depreciation till date was provided of ₹ 80,000 was sold at a profit of ₹ 10,000.

Chapter 4: Cash Flow Statement

Exercise

T.S. Grewal T S Grewal Class 12 Accountancy - Analysis Of Financial Statements

T S Grewal Class 12 Accountancy - Analysis Of Financial Statements - Shaalaa.com

Textbook solutions for Class 12






















T.S. Grewal solutions for Class 12 Accountancy chapter 4 - Cash Flow Statement

T.S. Grewal solutions for Class 12 Accountancy chapter 4 (Cash Flow Statement) include all questions with solution and detail explanation. This will clear students doubts about any question and improve application skills while preparing for board exams. The detailed, step-by-step solutions will help you understand the concepts better and clear your confusions, if any. Shaalaa.com has the CBSE T S Grewal Class 12 Accountancy - Analysis Of Financial Statements solutions in a manner that help students grasp basic concepts better and faster.

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Concepts covered in Class 12 Accountancy chapter 4 Cash Flow Statement are Concept of Cash Flow Statement, Benefits of Cash Flow Statement, Cash and Cash Equivalents, Classification of Activities for the Preparation of Cash Flow Statement, Ascertaining Cash Flow from Operating Activities, Ascertainment of Cash Flow from Investing and Financing Activities, Preparation of Cash Flow Statement.

Using T.S. Grewal Class 12 solutions Cash Flow Statement exercise by students are an easy way to prepare for the exams, as they involve solutions arranged chapter-wise also page wise. The questions involved in T.S. Grewal Solutions are important questions that can be asked in the final exam. Maximum students of CBSE Class 12 prefer T.S. Grewal Textbook Solutions to score more in exam.

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