Question 1

Question 01 Chapter 5 of +2-B  - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 01 Chapter 5 of +2-B
1. Identify the transactions as belonging to (i) Operating Activities, (ii)Investing Activities, (iii) Financing Activities and (iv) Cash and Cash Equivalents:

(a)Cash Sale of Goods
(b) Cash Received against Revenue from Services rendered

(c) Cash Purchase of Goods
(d) Cash Paid against Services Taken

(e) Patents Purchased
(f) Marketable Securities

(g) Bank Overdraft
(h) Proceeds from Issue of Debentures

(i) Purchase of Shares
(j) Repayment of Long-term

Question 2

Question 02 Chapter 5 of +2-B  - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 02 Chapter 5 of +2-B
2. Classify the following transactions as Operating Activities for a financialcompany and a non-financial company:

(a) Purchase of Shares on a Stock Exchange.
(b) Dividend received on Shares.

(c) Dividend paid on Shares. 
(d) Loans given.

(e) Loans taken. 
(f) Interest paid on borrowings.

The solution of Question 02 Chapter 4 of +2-B: -

Items
Heads of Cash Flow Statement

Purchase of Shares on a StockExchange.
Financial Company

(b) Dividend receiv

Question 3

Question 03 Chapter 5 of +2-B  - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 03 Chapter 5 of +2-B
2. Classify the following transactions as Operating Activities for a financialcompany and a non-financial company:

(a) Sale of Fixed Assets, Book Value 1,00,000 at a profit of 10,000.

(b) Sale of goods against cash.

(c) Purchase of machinery for cash.

(d) Purchase of Land and Building for 10,00,000. Consideration paid by issue of debentures.

(e) Issued fully paid Bonus Shares.

(f) Cash withdrawn from bank.

(g) Payment of Interim Dividend.

(h) Propo

Question 4

Question 04 Chapter 5 of +2-B  - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 04 Chapter 5 of +2-B
4. For each of the following transactions, calculate the resulting Cash Flow and state the nature of Cash Flow, i.e., whether it is Operating, Investing or Financing:(a) Acquired machinery for 2,50,000 paying 20% by cheque and executing a bond for the balance payable.(b) Paid 2,50,000 to acquire shares in Informa Tech Ltd. and received a dividend of 50,000 after acquisition.(c) Sold machinery of original cost of 2,00,000 with an accumulated depreciation of 1,60,000

Question 5

Question 05 Chapter 5 of +2-B  - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 05 Chapter 5 of +2-B
Net Profit before Tax and Extraordinary Items
5. Following are the extracts from the Balance Sheet of MAH Ltd. as at 31st March, 2019:

Particulars
31st March 2019
31st March 2018

Surplus, i.e., Balance in Statement of Profit and Loss 
10,00,000
5,00,000

Dividend Payable
50,000

Additional Information: Proposed Dividend for the years ended 31st March,2018 and 2019 are 4,00,000 and 5,00,000 respectively.Prepare the Note to show Net Profit before Tax and Ex

Question 6

Question 06 Chapter 5 of +2-B  - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 06 Chapter 5 of +2-B
Net Profit before Tax and Extraordinary Items
6. Following is the extract from the Balance Sheet of Zee Ltd.:

Particulars
31st March 2019
31st March 2018

Equity Share Capital
8,00,000
8,00,000

10% Preference Share Capital
6,00,000
6,00,000

Surplus i.e., Balance in Statement of Profit and Loss
7,20,000
4,00,000

Unpaid Dividend 
20,000

Additional Information:(i) Proposed dividend on equity shares for the year 2017-18 and 2018-19 are 1,60,000 and 2,00,

Question 7

Question 07 Chapter 5 of +2-B  - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 07 Chapter 5 of +2-B
Net Profit before Tax and Extraordinary Items
7. Calculate Net Profit before Tax and Extraordinary Items of Premier Sales Ltd. from its Balance Sheet as at 31st March, 2019:

Particulars
Note No
31st March 2019
31st March 2018

I. EQUITY AND LIABILITIES

1. Shareholders' Funds

(a) Share Capital
 
5,00,000
5,00,000

(b) Reserves and Surplus (Surplus i.e., Balance in Statement of Profit and Loss)
 
2,00,000
1,45,000

2. Current Liabilities

Question 8

Question 08 Chapter 5 of +2-B  - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 08 Chapter 5 of +2-B
Net Profit before Tax and Extraordinary Items
8. From the following information, calculate Net Profit before Tax andExtraordinary Items:

Particulars
Rs

Surplus, i.e., Balance in Statement of Profit and Loss Opening
1,00,000

Surplus, i.e., Balance in Statement of Profit and Loss Closing
3,36,000

Dividend paid in the current year 
72,000

Interim Dividend Paid during the year
90,000

Transfer to Reserve
1,00,000

Provision for Tax for the current year
1,5

Question 9

Question 09 Chapter 5 of +2-B  - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 09 Chapter 5 of +2-B
Calculation of Operating Profit before Working Capital Changes
9. From the following information, calculate Operating Profit before Working Capital Changes:

Particulars
Rs

Net Profit before Tax and Extraordinary Items
4,47,000

Depreciation on Machinery
84,000

Interest on Borrowings
16,800

Goodwill Amortised
18,600

Loss on Sale of Furniture
18,000

Premium on Redemption of Preference Shares
6,000

Gain Profit on Sale of Investments
12,000

Interest a

Question 10

Question 10 Chapter 5 of +2-B  - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 10 Chapter 5 of +2-B
10. From the following Balance Sheet of Double Tree Ltd. as at 31st March, 2019 and additional information, calculate Operating Profit before Working Capital Changes:

Particulars
Note No
31st March 2019
31st March 2018

I. EQUITY AND LIABILITIES

1. Shareholders' Funds

(a) Share Capital
 
5,00,000
5,00,000

(b) Reserves and Surplus
1
6,70,000
5,00,000

2. Current Liabilities

(a) Trade Payables
 
60,000
50,000

(b) b Other Current Liabi

Question 11

Question 11 Chapter 5 of +2-B  - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 11 Chapter 5 of +2-B
11. Calculate Cash Flow from Operating Activities from the following details:

Particulars
31stMarch,2019(Rs)
31st March, 2018(Rs)

Surplus, i.e., Balance in Statement of Profit and Loss
80,000
60,000

Trade Receivables
25,000
31,000

Provision for Depreciation
40,000
30,000

Inventories
80,000
60,000

Outstanding Rent 
12,000
21,000

Goodwill
30,000
38,000

Prepaid Insurance 
1,000
2,000

Trade Payables Creditors
13,000
19,000

The solution of Ques

Question 12

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

Sarbjit Singh · Accepted Answer

Question 12 Chapter 5 of +2-B
12. Calculate Cash Flow from Operating Activities from the following details:

Particulars
Rs

Net Profit after Provision for Tax and Payment of Dividend
2,15,000

Provision for Tax
45,000

Final Dividend paid during the year 
50,000

Depreciation
25,000

Loss on Sale of Machinery
10,000

Patents Amortised 
30,000

Gain on Sale of Land
70,000

Income Tax Refund
30,000

The solution of Question 12 Chapter 4 of +2-B: -
 
Cash Flow Statement for the year

Question 13

Question 13 Chapter 5 of +2-B  - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 13 Chapter 5 of +2-B
13. Calculate Cash Flow from Operating Activities from the following:(i) Profit form the year is Rs 7,00,000 after considering the following items:

Particulars
Rs

Depreciation on Fixed Assets
2,15,000

Goodwill Amortised 
45,000

Gain on Sale of Land
50,000

Appropriation of Profit towards General Reserve
25,000

(ii) Following is the position of Current Assets and Current Liabilities.

Particulars
Opening Balance (Rs)
Closing Balance (Rs)

Trade Payab

Question 14

Question 14 Chapter 5 of +2-B  - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 14 Chapter 5 of +2-B
14. Grand Hospitality Ltd., reported Net Profit after Tax of Rs 6,40,000 for the year ended 31st March, 2019. The relevant extract from Balance Sheet as at 31st March, 2019 is:

Particulars
31st March,2019 (Rs)
31st March, 2018 (Rs)

Inventories 
1,15,000
1,25,000

Trade Receivables
1,50,000
1,10,000

Prepaid Expenses
20,000
6,000

Trade Payables
1,10,000
80,000

Provision for Tax
20,000
15,000

Depreciation charged on Plant and Machinery Rs 55,000, insura

Question 15

Question 15 Chapter 5 of +2-B  - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 15 Chapter 5 of +2-B
15. Calculate Cash Flow from Operating Activities from the following information.

Particulars
(Rs)

Net Profit (Difference between Closing and Opening Balance of Surplus, i. e. ,Balance in Statement of Profit and Loss)
8,00,000

Final Dividend paid in the year 
1,10,000

Compensation for Natural Disaster credited to Statement of Profit and Loss
75,000

Depreciation
1,50,000

Loss on Sale of Investment
30,000

Gain Profit on Sale of Land
90,000

Provision

Question 16

Question 16 Chapter 5 of +2-B  - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 16 Chapter 5 of +2-B
16. Following information is related to ABC Ltd.:

II. Other Income
1
45,000

III. Total Revenue I +II
 
30,45,000

IV. Expenses;

(a) Purchases of Stock-in-Trade
 
23,03,000

(b) Change in Inventories of Stock-in-Trade 
2
-16,000

(c) Depreciation and Amortisation Expenses
 
1,85,000

(d) Other Expenses
3
3,29,000

Total Expenses
 
28,01,000

V. Profit before Tax III −IV
 
2,44,000

VI. Less: Provision for Tax
 
64,000

VII. Profit after Tax V–VI

Question 17

Question 17 Chapter 5 of +2-B  - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 17 Chapter 5 of +2-B
17. Compute Cash Flow from Operating Activities from the following:

Particulars
Closing Balance (Rs)
Opening Balance (Rs)

Surplus, i.e., Balance in Statement of Profit and Loss
65,000
60,000

Trade Receivables:

Debtors
67,000
1,02,000

Bills Receivable
1,03,000
62,000

General Reserve 
2,37,000
2,02,000

Provision for Depreciation
30,000
20,000

Outstanding Expenses
12,000
30,000

Goodwill
70,000
80,000

An asset costing 40,000 having book value

Question 18

Question 18 Chapter 5 of +2-B  - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 18 Chapter 5 of +2-B
18. Charles Ltd. earned a profit of 1,00,000 after charging depreciation of Rs 20,000 on assets and a transfer to General Reserve of Rs 30,000. Goodwill amortised was Rs 7,000, and gain on sale of machinery was Rs 3,000. Other information available is changes in the value of Current Assets and Current Liabilities: trade receivables showed an increase of Rs 3,000; trade payables an increase of Rs 6,000; Prepaid expenses an increase of Rs 200; and outstanding expense

Question 19

Question 19 Chapter 5 of +2-B  - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 19 Chapter 5 of +2-B
19. Compute Cash Flow from Operating Activities from the following:(i) Profit for the year ended 31st March, 2019 is Rs 10,000 after providing for depreciation of Rs 2,000.(ii) Current Assets and Current Liabilities of the business for the year ended 31st March, 2018 and 2019 are as follows:

Particulars
31st March, 2018 (Rs)
31st March, 2019 (Rs)

Trade Receivables
14,000
15,000

Provision for Doubtful Debts
1,000
1,200

Trade Payables
13,000
15,000

Invento

Question 20

Question 20 Chapter 5 of +2-B  - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 20 Chapter 5 of +2-B
20. Calculate Cash Flow from Operating Activities from the following information:
INCOME STATEMENT (STATEMENT OF PROFIT AND LOSS) for the year ended 31st March, 2019

Particulars
Note No.
Rs

I. Revenue from Operations Sales
 
5,98,000

II. Other Income
1
19,500

III. Total Revenue I +II
 
6,17,500

IV. Expenses;

Cost of Materials Consumed
 
4,00,000

Change in Inventories of Finished Goods and Work-in-Progress
2
15,000

Employee Benefit Expenses
 
1,

Items	Heads of Cash Flow Statement
(a)Cash Sale of Goods.	Operating Activities
(b) Cash Received against Revenue from Services rendered.	Operating Activities
(c) Cash Purchase of Goods.	Operating Activities
(d) Cash Paid against Services Taken.	Operating Activities
(e) Patents Purchased.	Investing Activities
(f) Marketable Securities.	Cash and Cash Equivalents
(g) Bank Overdraft.	Financing Activities
(h) Proceeds from Issue of Debentures.	Financing Activities
(i) Purchase of Shares.	Investing Activities
(j) Repayment of Long-term Loan.	Financing Activities
(k) Commission Received.	Operating Activities
(l) Redemption of Debentures.	Financing Activities
(m) Interest on Debentures.	Financing Activities
(n) Interest on Investments.	Investing Activities
(o) Income Tax Paid.	Operating Activities
(p) Income Tax Paid on Gain of Sale of Asset.	Investing Activities
(q) Cash Received from Debtors.	Operating Activities
(r) Cash Paid to Creditors.	Operating Activities

(a)Cash Sale of Goods	(b) Cash Received against Revenue from Services rendered
(c) Cash Purchase of Goods	(d) Cash Paid against Services Taken
(e) Patents Purchased	(f) Marketable Securities
(g) Bank Overdraft	(h) Proceeds from Issue of Debentures
(i) Purchase of Shares	(j) Repayment of Long-term Loan
(k) Commission Received	(l) Redemption of Debentures
(m) Interest on Debentures	(n) Interest on Investments
(o) Income Tax Paid	(p) Income Tax Paid on Gain of Sale of Asset
(q) Cash Received from Debtors	(r) Cash Paid to Creditors.

T.S. Grewal 12 Class Book Keeping Part - B - T.S. Grewal - XII Solutions Chapter No. 5-Cash Flow Statement

Quick Chapter Summary & Cheat Sheet

💡 Double Entry Accounting Principles

Topics & Questions Solved:

Question 01 Chapter 5 of +2-B - T.S. Grewal 12 Class

The solution of Question 01 Chapter 4 of +2-B: -

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)

Question 02 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 03 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 04 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 05 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 06 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 07 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 08 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 09 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 10 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 11 Chapter 5 of +2-B - T.S. Grewal 12 Class

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

Question 13 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 14 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 15 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 16 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 17 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 18 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 19 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 20 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 21 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 22 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 23 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 24 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 25 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 26 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 27 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 28 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 29 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 30 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 31 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 32 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 33 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 34 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 35 Chapter 5 of +2-B - T.S. Grewal 12 Class

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

Question 37 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 38 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 39 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 40 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 41 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 42 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 43 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 44 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 45 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 46 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 47 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 48 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 49 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 50 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 51 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 52 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 53 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 54 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 55 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 56 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 57 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 58 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 59 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 60 Chapter 5 of +2-B - T.S. Grewal 12 Class

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