Question 36 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 36 Chapter 5 of +2-B
Question No.36 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution


Question 36 Chapter 5 of +2-B


Cash Flow from Financing Activities

36. From the following information, calculation Cash Flow from Operating Activities and Investing Activities:

Particulars31st March, 2018 Rs31st March, 2019 Rs 
Surplus, i.e., Balance in Statement of Profit and Loss50,00040,000
Provision for Tax12,00010,000
Trade Payables35,00030,000
Current Assets (Trade Receivables and Inventories)10,000
Fixed Assets (Tangible)  
Accumulated Depreciation  

\Additional Information:

  1. A machine having book value of 1,00,000 Depreciation provided thereon Rs 1,62,500 was sold at a loss of Rs 20,000.
  2. Tax paid during the year Rs 75,000.


The solution of Question 36 Chapter 4 of +2-B: –



Cash Flow From for the year ended 31st March, 2019
I. Cash Flow from Financing Activities  
Net Profit as per Statement of Profit & Loss7,50,000 
Add: Provision for Tax75,000 
Net Profit before Tax and Extraordinary Items 8,25,000
Items to be Added  
Add: Depreciation charged during the year5,000 
Add: Loss on Sale of Machine10,000 
Net Profit before working Capital changes 10,45,000
Add: Increase in Current Liabilities2,75,000 
Add: Increase in Trade Payables1,50,000 
Net Profit before Tax 11,70,000
Less: Tax Paid during the year 75,000
Net Cash Flow from Financing Activities 10,95,000
II. Cash flow from Investing Activities
Sale of Machine80,000 
Less: Purchase of Fixed Asset4,67,500 
Cash used in Investing Activities


Machinery Account
To Balance b/d21,25,000By Accumulated Depreciation A/c*1,62,500
To Bank A/c (Purchase) (Bal. Fig.)4,67,500By Bank A/c (Sale)80,000
  By Loss on Sale (Profit and Loss A/c)20,000
  By Balance c/d23,30,000
 25,92,500 25,92,500


Accumulated Depreciation Account*
To Machinery A/c (Bal. Fig.)1,62,500By Balance b/d10,62,500
To Balance c/d11,00,000 By Profit and Loss A/c (Dep. charged during the year)2,00,000
 12,62,500 12,62,500

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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication


Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements


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