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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Following information is related to ABC Ltd.:
Statement of Profit and Loss for the year ended 31st March, 2025
| Particulars | Note No. | Amount (₹) |
|---|---|---|
| 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:
1. Other Income
| (a) Dividend Received | 5,000 |
| (b) Gain (Profit) on Sale of Plant | 40,000 |
| Total | 45,000 |
| 2. Change in Inventories of Stock-in-Trade | |
| Opening Inventories | 2,84,000 |
| Less: Closing Inventories | 3,00,000 |
| Total | (16,000) |
| 3. Other Expenses | |
| (a) Office Expenses | 58,000 |
| (b) Selling Expenses | 2,35,000 |
| (c) Loss on Sale of Assets | 36,000 |
| Total | 3,29,000 |
Other Information:
| Particulars | 31st March, 2025 (₹) | 31st March, 2024 (₹) |
|---|---|---|
| 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.
Cash Flow from Operating Activities
| Particulars | Amount (₹) | Amount (₹) |
|---|---|---|
| Profit as per Statement of Profit and Loss | 1,80,000 | |
| Add: Tax Expense | 64,000 | |
| Profit before Taxation | 2,44,000 | |
| Items to be Added: | ||
| Loss on Sale of Assets | 36,000 | |
| Depreciation and Amortisation Expenses | 1,85,000 | 2,21,000 |
| 4,65,000 | ||
| Items to be Deducted: | ||
| Dividend Received | (5,000) | |
| Gain (Profit) on Sale of Plant | (40,000) | (45,000) |
| Operating Profit before Working Capital Changes | 4,20,000 | |
| Less: Decrease in Current Liabilities — Office Expenses Outstanding | (5,000) | |
| Add: Increase in Current Liabilities | ||
| Trade Payables | 28,000 | |
| Selling Expenses Outstanding | 3,000 | 31,000 |
| Less: Increase in Current Assets | ||
| Trade Receivables | (37,000) | |
| Inventories | (16,000) | (53,000) |
| Cash Generated from Operations | 3,93,000 | |
| Less: Tax Paid | (64,000) | |
| Net Cash Flow from Operating Activities | 3,29,000 | |
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.19 - 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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