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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Calculate Cash Flow from Operating Activities from the following details:
| Particulars | 31st March, 2025 (₹) | 31st March, 2024 (₹) |
|---|---|---|
| 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 |
| Particulars | Amount (₹) | Amount (₹) |
|---|---|---|
| Profit as per Statement of Profit and Loss (80,000 − 60,000) | 20,000 | |
| Items to be Added: | ||
| Depreciation (Provision for Depreciation: 40,000 − 30,000) | 10,000 | |
| Goodwill written off (30,000 − 38,000) | 8,000 | 18,000 |
| Operating Profit before Working Capital Changes | 38,000 | |
| Add: Decrease in Current Assets | ||
| Trade Receivables (31,000 − 25,000) | 6,000 | |
| Prepaid Insurance (2,000 − 1,000) | 1,000 | |
| Less: Increase in Current Assets | ||
| Inventories (80,000 − 60,000) | (20,000) | |
| Less: Decrease in Current Liabilities | ||
| Outstanding Rent (21,000 − 12,000) | (9,000) | |
| Trade Payables (19,000 − 13,000) | (6,000) | (28,000) |
| Cash Generated from Operations | 10,000 | |
| Less: Tax Paid | Nil | |
| Net Cash Flow from Operating Activities | 10,000 |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Vol 3 Chapter 5 Q.11 - Cash Flow Statement", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 5 - Cash Flow Statement.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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