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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
From the following Balance Sheet of Young India Ltd., prepare a Cash Flow Statement:
Balance Sheet of Young India Ltd. as at 31st March, 2025
| Particulars | Note No. | 31st March, 2025 (₹) | 31st March, 2024 (₹) |
|---|---|---|---|
| I. EQUITY AND LIABILITIES | |||
| 1. Shareholders’ Funds | |||
| (a) Share Capital | 2,50,000 | 2,00,000 | |
| (b) Reserves and Surplus — Surplus, i.e., Balance in Statement of Profit and Loss | 1,83,000 | 82,000 | |
| 2. Non-Current Liabilities — Long-term Borrowings: 15% Debentures | 80,000 | 50,000 | |
| 3. Current Liabilities | |||
| (a) Trade Payables | 1,50,000 | 1,10,000 | |
| (b) Other Current Liabilities | 12,000 | 20,000 | |
| Total | 6,75,000 | 4,62,000 | |
| II. ASSETS | |||
| 1. Non-Current Assets | |||
| (a) Fixed Assets (Tangible) | 2,74,000 | 1,17,000 | |
| (b) Non-Current Investments | 68,000 | 55,000 | |
| 2. Current Assets | |||
| (a) Inventories | 2,06,000 | 1,50,000 | |
| (b) Trade Receivables | 32,000 | 70,000 | |
| (c) Cash and Cash Equivalents | 95,000 | 70,000 | |
| Total | 6,75,000 | 4,62,000 | |
Cash Flow Statement for the year ended 31st March, 2025
| A. Cash Flow from Operating Activities | ||
| Particulars | Amount (₹) | Amount (₹) |
|---|---|---|
| Profit as per Statement of Profit and Loss (1,83,000 − 82,000) | 1,01,000 | |
| Add: Interest on Debentures | 7,500 | |
| Operating Profit before Working Capital Changes | 1,08,500 | |
| Less: Increase in Inventories (2,06,000 − 1,50,000) | (56,000) | |
| Add: Increase in Trade Payables (1,50,000 − 1,10,000) | 40,000 | |
| Less: Decrease in Other Current Liabilities (20,000 − 12,000) | (8,000) | |
| Add: Decrease in Trade Receivables (70,000 − 32,000) | 38,000 | |
| Cash Generated from Operations | 1,22,500 | |
| Net Cash Flow from Operating Activities | 1,22,500 | |
| B. Cash Flow from Investing Activities | ||
| Purchase of Fixed Assets (2,74,000 − 1,17,000) | (1,57,000) | |
| Purchase of Investments (68,000 − 55,000) | (13,000) | |
| Net Cash Used in Investing Activities | (1,70,000) | |
| C. Cash Flow from Financing Activities | ||
| Proceeds from Issue of Equity Share Capital (2,50,000 − 2,00,000) | 50,000 | |
| Proceeds from Issue of 15% Debentures (80,000 − 50,000) | 30,000 | |
| Interest on Debentures (15% of 50,000) | (7,500) | |
| Net Cash Flow from Financing Activities | 72,500 | |
| D. Net Increase in Cash and Cash Equivalents (A + B + C) | ||
| Net Increase in Cash and Cash Equivalents | 25,000 | |
| Add: Cash and Cash Equivalents at the beginning of the period | 70,000 | |
| Cash and Cash Equivalents at the end of the period | 95,000 | |
Note: It has been assumed that the new Debentures (₹30,000) were issued at the end of the accounting period; therefore, interest on Debentures is computed only on the opening balance of ₹50,000.
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.40 - 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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