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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Compute Cash Flow from Operating Activities from the following:
(i) Profit for the year ended 31st March, 2025 is ₹10,000 after providing for depreciation of ₹2,000.
(ii) Current Assets and Current Liabilities of the business for the years ended 31st March, 2024 and 2025 are as follows:
| Particulars | 31st March, 2024 (₹) | 31st March, 2025 (₹) |
|---|---|---|
| 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 Payable | 1,000 | 1,500 |
| Prepaid Expenses | 2,000 | 1,000 |
| Accrued Income | 3,000 | 4,000 |
| Income Received in Advance | 2,000 | 1,000 |
Cash Flow from Operating Activities
| Particulars | Amount (₹) | Amount (₹) |
|---|---|---|
| Profit as per Statement of Profit and Loss | 10,000 | |
| Add: Depreciation | 2,000 | |
| Operating Profit before Working Capital Changes | 12,000 | |
| Less: Increase in Current Assets | ||
| Accrued Income | (1,000) | |
| Inventories | (3,000) | |
| Other Current Assets | (2,000) | |
| Trade Receivables | (1,000) | |
| Less: Decrease in Current Liabilities | ||
| Income Received in Advance | (1,000) | |
| Add: Increase in Current Liabilities | ||
| Expenses Payable | 500 | |
| Provision for Doubtful Debts | 200 | |
| Trade Payables | 2,000 | |
| Add: Decrease in Current Assets | ||
| Prepaid Expenses | 1,000 | (4,300) |
| Net Cash Flow from Operating Activities | 7,700 |
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.17 - 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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