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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheet of Libra Ltd. as at 31st March, 2024 and 31st March, 2025:
Balance Sheet of Libra Ltd.
| Particulars | Note No. | 31st March, 2025 (₹) | 31st March, 2024 (₹) |
|---|---|---|---|
| I. EQUITY AND LIABILITIES | |||
| 1. Shareholders’ Funds | |||
| (a) Share Capital | 8,00,000 | 6,00,000 | |
| (b) Reserves and Surplus | 1 | 4,00,000 | 3,00,000 |
| 2. Non-Current Liabilities — Long-term Borrowings | 1,00,000 | 1,50,000 | |
| 3. Current Liabilities — Trade Payables | 40,000 | 48,000 | |
| Total | 13,40,000 | 10,98,000 | |
| II. ASSETS | |||
| 1. Non-Current Assets | |||
| (a) Fixed Assets — Tangible Assets | 8,50,000 | 5,60,000 | |
| (b) Non-Current Investments | 2,32,000 | 1,60,000 | |
| 2. Current Assets | |||
| (a) Current Investments | 50,000 | 1,34,000 | |
| (b) Inventories | 76,000 | 82,000 | |
| (c) Trade Receivables | 38,000 | 92,000 | |
| (d) Cash and Cash Equivalents | 94,000 | 70,000 | |
| Total | 13,40,000 | 10,98,000 | |
Note 1: Reserves and Surplus — Surplus, i.e., Balance in Statement of Profit and Loss: 4,00,000 (2025), 3,00,000 (2024).
Note: Current Investments are treated as Cash and Cash Equivalents for this Cash Flow Statement.
Cash Flow Statement for the year ended 31st March, 2025
| A. Cash Flow from Operating Activities | ||
| Particulars | Amount (₹) | Amount (₹) |
|---|---|---|
| Net Profit (4,00,000 − 3,00,000) | 1,00,000 | |
| Operating Profit before Working Capital Changes | 1,00,000 | |
| Add: Decrease in Inventories | 6,000 | |
| Add: Decrease in Trade Receivables | 54,000 | |
| Less: Decrease in Trade Payables | (8,000) | 52,000 |
| Cash Generated from Operations | 1,52,000 | |
| Net Cash Flow from Operating Activities | 1,52,000 | |
| B. Cash Flow from Investing Activities | ||
| Purchase of Tangible Assets | (2,90,000) | |
| Purchase of Non-Current Investments | (72,000) | |
| Net Cash Used in Investing Activities | (3,62,000) | |
| C. Cash Flow from Financing Activities | ||
| Issue of Share Capital | 2,00,000 | |
| Repayment of Long-term Borrowings | (50,000) | |
| Net Cash Flow from Financing Activities | 1,50,000 | |
| D. Net Decrease in Cash and Cash Equivalents (A + B + C) | ||
| Net Decrease in Cash and Cash Equivalents | (60,000) | |
| Add: Cash and Cash Equivalents at the beginning of the period (70,000 + 1,34,000) | 2,04,000 | |
| Cash and Cash Equivalents at the end of the period (94,000 + 50,000) | 1,44,000 | |
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.41 - 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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