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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 | 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.
Cash Flow Statement for the year ended 31st March, 2025
| A. Cash Flow from Operating Activities | ||
| Particulars | Amount (₹) | Amount (₹) |
|---|---|---|
| Net Profit as per Statement of Profit and Loss (10,00,000 − 2,50,000) | 7,50,000 | |
| Add: Provision for Tax made | 75,000 | |
| Net Profit before Tax and Extraordinary Items | 8,25,000 | |
| Add: Depreciation charged during the year (WN) | 2,00,000 | |
| Add: Loss on Sale of Machine | 20,000 | |
| Operating Profit before Working Capital Changes | 10,45,000 | |
| Add: Increase in Trade Payables (3,75,000 − 1,00,000) | 2,75,000 | |
| Less: Increase in Current Assets (13,00,000 − 11,50,000) | (1,50,000) | |
| Cash Generated from Operations | 11,70,000 | |
| Less: Tax Paid during the year | (75,000) | |
| Cash Flow from Operating Activities | 10,95,000 | |
| B. Cash Flow from Investing Activities | ||
| Purchase of Fixed Asset (WN) | (4,67,500) | |
| Sale of Machine (1,00,000 − 20,000) | 80,000 | |
| Cash Used in Investing Activities | (3,87,500) | |
Working Note: Accumulated Depreciation Account
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Fixed Assets A/c (Depreciation on Machine Sold) | 1,62,500 | By Balance b/d | 10,62,500 |
| To Balance c/d | 11,00,000 | By Statement of Profit and Loss (Depreciation charged during the year, balancing figure) | 2,00,000 |
| Total | 12,62,500 | Total | 12,62,500 |
Working Note: Fixed Assets Account
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Balance b/d | 21,25,000 | By Accumulated Depreciation A/c | 1,62,500 |
| To Bank A/c (Purchase, balancing figure) | 4,67,500 | By Statement of Profit and Loss (Loss) | 20,000 |
| By Bank A/c (Sale, 1,00,000 − 20,000) | 80,000 | ||
| By Balance c/d | 23,30,000 | ||
| Total | 25,92,500 | Total | 25,92,500 |
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.31 - 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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