Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Following is the Balance Sheet of Fine Products 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 — Equity Share Capital | 3,50,000 | 3,00,000 | |
| (b) Reserves and Surplus | 1 | 57,000 | 38,000 |
| 2. Current Liabilities | |||
| (a) Trade Payables | 53,000 | 35,000 | |
| (b) Other Current Liabilities | 6,000 | 8,000 | |
| (c) Short-term Provisions | 2 | 32,000 | 28,000 |
| Total | 4,98,000 | 4,09,000 | |
| II. ASSETS | |||
| 1. Non-Current Assets | |||
| (a) Fixed Assets: (i) Tangible Assets | 3 | 2,48,000 | 2,00,000 |
| (ii) Intangible Assets (Goodwill) | 40,000 | 50,000 | |
| (b) Non-Current Investments | 35,000 | 10,000 | |
| 2. Current Assets | |||
| (a) Inventories | 39,000 | 57,000 | |
| (b) Trade Receivables | 1,08,000 | 75,000 | |
| (c) Cash and Bank Balance | 28,000 | 17,000 | |
| Total | 4,98,000 | 4,09,000 | |
Notes to Accounts: (1) Reserves and Surplus — General Reserve: 30,000/20,000; Surplus: 27,000/18,000; Total: 57,000/38,000. (2) Short-term Provisions — Provision for Tax: 32,000/28,000. (3) Tangible Fixed Assets — Land and Building: 57,000/1,10,000; Plant and Machinery: 1,91,000/90,000; Total: 2,48,000/2,00,000.
Note: Proposed dividends on equity for the years ended 31st March, 2024 and 2025 are ₹39,000 and ₹45,000 respectively.
You are required to prepare a Cash Flow Statement for the year ended 31st March, 2025.
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 (27,000 − 18,000) | 9,000 | |
| Items to be Added: | ||
| General Reserve (30,000 − 20,000) | 10,000 | |
| Goodwill Written Off (50,000 − 40,000) | 10,000 | |
| Provision for Taxation (closing balance) | 32,000 | |
| Proposed Dividend (for the year ended 31st March, 2024, approved and paid during the current year) | 39,000 | 91,000 |
| Operating Profit before Working Capital Changes | 1,00,000 | |
| Less: Increase in Trade Receivables (1,08,000 − 75,000) | (33,000) | |
| Less: Decrease in Other Current Liabilities (8,000 − 6,000) | (2,000) | |
| Add: Decrease in Inventories (57,000 − 39,000) | 18,000 | |
| Add: Increase in Trade Payables (53,000 − 35,000) | 18,000 | 1,000 |
| Cash Generated from Operations | 1,01,000 | |
| Less: Tax Paid (opening Provision for Tax balance) | (28,000) | |
| Net Cash Flow from Operating Activities | 73,000 | |
| B. Cash Flow from Investing Activities | ||
| Purchase of Non-Current Investments (35,000 − 10,000) | (25,000) | |
| Purchase of Plant & Machinery (1,91,000 − 90,000) | (1,01,000) | |
| Sale of Land & Building, at book value (1,10,000 − 57,000) | 53,000 | |
| Net Cash Used in Investing Activities | (73,000) | |
| C. Cash Flow from Financing Activities | ||
| Dividend Paid | (39,000) | |
| Proceeds from Issue of Share Capital (3,50,000 − 3,00,000) | 50,000 | |
| Net Cash Flow from Financing Activities | 11,000 | |
| D. Net Increase in Cash and Cash Equivalents (A + B + C) | ||
| Net Increase in Cash and Cash Equivalents | 11,000 | |
| Add: Cash and Cash Equivalents at the beginning of the period | 17,000 | |
| Cash and Cash Equivalents at the end of the period | 28,000 | |
Note: Since Proposed Dividend appears only in supplementary information (not as its own Balance Sheet line), it is not yet a recognised liability when proposed; the amount actually approved and paid during the current year is the PRIOR year’s proposed figure (₹39,000), consistent with treatment used elsewhere in this chapter for the same data pattern.
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.43 - 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.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "T.S. Grewal Class 12 Vol 3 Chapter 5 Q.43 - Cash Flow Statement" instantly.