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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
From the following information, calculate Cash Flow from Operating Activities and Investing Activities:
| Particulars | 31st March, 2024 (₹) | 31st March, 2025 (₹) |
|---|---|---|
| Surplus, i.e., Balance in Statement of Profit and Loss | 1,00,000 | 4,00,000 |
| Provision for Tax | 30,000 | 30,000 |
| Trade Payables | 40,000 | 1,50,000 |
| Current Assets (Inventories and Trade Receivables) | 4,60,000 | 5,20,000 |
| Fixed Assets (Net) | 3,25,000 | 3,92,000 |
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.
Cash Flow Statement
| I. Cash Flow from Operating Activities | ||
| Particulars | Amount (₹) | Amount (₹) |
|---|---|---|
| Net Profit as per Statement of Profit and Loss (4,00,000 − 1,00,000) | 3,00,000 | |
| Add: Provision for Tax | 30,000 | |
| Net Profit before Tax and Extraordinary Items | 3,30,000 | |
| Add: Depreciation on Fixed Assets | 80,000 | |
| Add: Loss on Sale of Fixed Assets | 8,000 | 88,000 |
| Operating Profit before Working Capital Changes | 4,18,000 | |
| Add: Increase in Trade Payables (1,50,000 − 40,000) | 1,10,000 | |
| Less: Increase in Current Assets (5,20,000 − 4,60,000) | (60,000) | |
| Cash Generated from Operations | 4,68,000 | |
| Less: Tax Paid | (30,000) | |
| Cash Flow from Operating Activities | 4,38,000 | |
| II. Cash Flow from Investing Activities | ||
| Proceeds from Sale of Fixed Assets | 32,000 | |
| Payment for Purchase of Fixed Assets (WN) | (1,87,000) | |
| Cash Used in Investing Activities | (1,55,000) | |
Working Note: Fixed Assets Account
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Balance b/d | 3,25,000 | By Bank A/c (Sale, 1,05,000 − 65,000 − 8,000) | 32,000 |
| To Bank A/c (Purchase, balancing figure) | 1,87,000 | By Statement of Profit and Loss (Loss) | 8,000 |
| By Depreciation A/c | 80,000 | ||
| By Balance c/d | 3,92,000 | ||
| Total | 5,12,000 | Total | 5,12,000 |
Working Note: Provision for Tax Account — Opening 30,000 + Tax Provided during the year 30,000 − Tax Paid 30,000 = Closing 30,000 (Provision unchanged during the year, so the Provision for Tax add-back and the Tax Paid deduction are equal, giving no net effect on this year’s figures beyond confirming both are ₹30,000).
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.30 - Cash Flow Statement", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 5 - Cash Flow Statement.
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