TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement

Read TS Grewal Accountancy Class 12 Solution Chapter 5 Cash Flow Statement 2023 2024. Students should study TS Grewal Solutions Class 12 Accountancy available on Studiestoday.com with solved questions and answers. These chapter-wise answers for Class 12 Accountancy have been prepared by expert teachers of Grade 12. These TS Grewal Class 12 Solutions have been designed as per the latest accountancy TS Grewal Book for Class 12 and if practiced thoroughly can help you to score good marks in standard 12 Accounts class tests and examinations.

Class 12 Accounts Chapter 5 Cash Flow Statement TS Grewal Solutions

TS Grewal Solutions for Chapter 5 Cash Flow Statement Class 12 Accounts have been provided below based on the latest TS Grewal Class 12 book. The answers have been prepared based on the latest 2023 2024 book for the current academic year. TS Grewal Solutions Class 12 will help students to improve their concepts and easily solve accountancy questions for Class 12. Class 12 Grewal solutions should be revised regularly as more practice will help you get a better rank and easily solve more questions.

Chapter 5 Cash Flow Statement TS Grewal Class 12 Solutions

About this chapter: TS Grewal Class 12 Chapter 5 Cash Flow Statement explains about the various ways by which a cash flow statement of a company can be prepared. The chapter explains about the basic concepts of cash flow statement and the importance and process of preparing it and how to utilise it. Students will be able to understand the relationship between the cash flow statements and various other financial statements and how to interpret the statement properly. The questions in the exam will provide details about various cash transactions which a company does and the students will be required to prepare a cash flow statement. It is important for the students to understand the basic concepts of the topic as this will help them to understand the cash flow situation of a company. Once you have understood all the topics given in this chapter you should solve the questions which have been given at the end of the chapter and match your answers with the solutions which have been provided by our teachers. Please refer to the section below to access all the answers to various questions.

Solutions for T.S. Grewal's Analysis of Financial Statements
Textbook for CBSE Class 12
TS Grewal Solutions Class 12 Accountancy
Chapter 5 Cash Flow Statement 

Question 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 Longterm 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 on Sale of Asset (q) Cash Received from Debtors (r) Cash Paid to Creditors. 
Answer:
 
(i) Operating Activities:-
 
(a) Cash Sale of Goods
(b) Cash Received against Revenue from Services rendered
(c) Cash Purchases of goods
(d) Cash paid against Services Taken
(k) Commission Received
(o) Income Tax Paid
(q) Cash Received from Debtors
(r) Cash paid to Creditors
 
(ii) Investing Activities:-
 
(e) Patents Purchased
(i) Purchases of Shares
(n) Interest on Investments
(p) Income Tax Paid in Gain on Sale of Asset
 
(iii) Financing Activities:
 
(g) Bank Overdraft
(h) Proceeds from issue of Debentures
(j) Repayment of Long-term Loan
(l) Repayment of Debentures
(m) Interest on Debentures
(iv) Cash and cash equivalents
(f) Marketable Securities
 
Question 2. Classify the following transactions as Operating Activities for a financial company and a nonfinancial 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.
Answer:
The following transactions are classified as Operating Activities for a financial company:
(a) Purchase of Shares on a Stock Exchange
(b) Dividend received on Shares
(c) Loan Given
(d) Loan Taken
(f) Interest on Borrowings
There is no transactions are classified as Operating Activities for a non-financial company.
 
Question 3. State which of the following would result in inflow/outflow or no flow of Cash and Cash Equivalents:
 
(a) Sale of Fixed Assets, Book Value Rs. 1,00,000 at a profit of Rs. 10,000.
(b) Sale of goods against cash.
(c) Purchase of machinery for cash.
(d) Purchase of Land and Building for Rs. 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) Proposed Dividend.
Answer:
The following would result in inflow of Cash and Cash Equivalents:-
(a) Sale of Fixed Assets, Book Value Rs. 1,00,000 at a profit of Rs. 10,000.
(b) Sale of goods against cash.
 
The following would result in outflow of Cash and Cash Equivalents:-
(c) Purchase of Machinery of cash.
(g) Payment of interim Dividend.
 
The following would result in no flow of Cash and Cash Equivalents:
(d) Purchase of Land and Building for Rs. 10,00,000. Consideration paid by issue of debentures.
(e) Issue fully paid Bonus Shares.
(f) Cash withdrawn from bank.
(h) Proposed Dividends.
 
Question 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 Rs. 2,50,000 paying 20% by cheque and executing a bond for the balance payable.
(b) Paid Rs. 2,50,000 to acquire shares in Informa Tech Ltd. and received a dividend of Rs. 50,000 after acquisition.
(c) Sold machinery of original cost of Rs. 2,00,000 with an accumulated depreciation of Rs. 1,60,000 for Rs. 60,000.
Answer:
(a) 20% payment by cheque that of Rs. 2,50,000 is Rs. 50,000 is an outflow of funds and an investing Activity due to purchases of machinery.
(b) Payment of Rs. 2,50,000 to acquire shares in informa Tech Ltd. is an Investing Activity and an out flow of cash. Whereas dividend received is an inflow of cash and an investing Activity. So the net outflow of cash due to investing Activity is Rs. 20,00,000.
(c) Sale of machinery for Rs. 60,000 is an inflow of cash due to investing activity. The cost price and accumulated depreciation has nothing to do with cash movement.
 

Question 5. Following are the extracts from the Balance Sheet of MAH Ltd. as at 31st March, 2019:

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021

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

Answer: 

Following is the Note to show Net Profit before Tax and Extraordinary items of MAH Ltd. for the year ended 31st March.

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-

 

Question 6. Following is the extract from the Balance Sheet of Zee Ltd.:

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A

Additional Information:

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

(ii) An Interim Dividend of Rs. 40,000 on Equity Shares was paid.

Calculate Net Profit before Tax and Extraordinary Items.

Answer: 

Following is the Note to show Net Profit before Tax and Extraordinary items of Zee Ltd. for the year ended 31st March.

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A1

 

Question 7. Calculate Net Profit before Tax and Extraordinary Items of Premier Sales Ltd. from its Balance Sheet as at 31st March, 2019:

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A2

Additional Information: 

(i) Proposed Dividend for the years ended 31st March, 2018 and 2019 are Rs. 50,000 and Rs. 75,000 respectively. 

(ii) Interim Dividend paid during the year was Rs. 10,000. 

Answer: 

Following is the Note to show Net Profit before Tax and Extraordinary items of Premier Sales Ltd. for the year ended 31st March.

 TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A4

 

Question 8. From the following information, calculate Net Profit before Tax and Extraordinary Items:

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A5

Answer: 

Following is the Note to show Net Profit before Tax and Extraordinary items of

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A6

 

Question 9. From the following information, calculate Operating Profit before Working Capital Charges:

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A7

Answer: 

Calculation of the Opening Profit before Working Capital Change

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A8

 

Question 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:

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A9

Additional Information: Depreciation for the year was Rs. 75,000.

Answer: 

Calculate of the Operating Profit before Working Capital Changes of Double Tree Ltd. for the year ended 31st March

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A10

 

Question 11. Calculate Cash Flow from Operating Activities from the following details:

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A11

Answer: 

 TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A13
 

Question 12. Calculate Cash Flow from Operating Activities from the following details:

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A14

Answer: 

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A15

 

Question 13. Calculate Cash Flow from Operating Activities from the following:

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A16

Answer: 

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A17
 
 

Question 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:

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A18

Depreciation charged on Plant and Machinery Rs. 55,000, insurance claim received Rs. 50,000, gain (profit) on sale of investment Rs. 20,000 appeared in the Statement of Profit and Loss for the year ended 31st March, 2019. Calculate Cash Flow from Operating Activities.

Answer: 

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A19

 

Question 15. Calculate Cash Flow from Operating Activities from the following information:

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A20

Answer: 

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A21 
 

Question 16. Following information is related to ABC Ltd.:

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A22
TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A23

Answer: 

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A24

Point of Knowledge:- 

Alternate Method (Direct Method)

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A25

 

Question 17. Compute Cash Flow from Operating Activities from the following:

 TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A26

An asset costing Rs. 40,000 having book value of Rs. 28,000 was sold for Rs. 36,000.

Answer: 

 TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A27

 

Question 18. Charles Ltd. earned a profit of Rs. 1,00,000 after charging depreciation of 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 expenses a decrease of Rs. 2,000.

Ascertain Cash Flow from Operating Activities.

Answer: 

 TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A28

 

Question 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:

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A29

Answer: 

 TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A30
 
 

Question 20. Calculate Cash Flow from Operating Activities from the following information:

 TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A31
TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A32

Answer: 

TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021-A33

Q21. Mars Ltd. has Plant and Machinery whose written down value on 1st April, 2017 was Rs. 9,60,000 and on 31st March, 2018 was Rs. 10,50,000. Depreciation for the year was Rs. 35,000. In the beginning of the year, a part of plant was sold for Rs. 45,000 which had a written down value of Rs. 30,000.
Calculate Cash Flow from Investing Activities.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement

Q22. From the following details. Calculate Cash Flow from Investing Activities.

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-1

Additional Information:
During the year, machine costing Rs. 90,000 with accumulated depreciation of Rs. 60,000 was sold for Rs. 50,000. Patents written off were Rs. 50,000 while a part of patents were sold at a profit of Rs. 40,000.

Answer:
Calculation of the amount of Cash Flow from Investing Activities:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-2

Q23. Welprint Ltd. has given the following information:
                                                                                                 Rs.
Machinery as on 1st April, 2018                                        50,000
Machinery as on 31st March, 2019                                   60,000
Accumulated Depreciation on 1st April, 2018                 25,000
Accumulated Depreciation on 31st March, 2019            15,000
During the year, a machine costing Rs. 25,000 (accumulated depreciation thereon Rs. 15,000) was sold for Rs. 13,000. Calculate Cash Flow from Investing Activities on the basis of the above information.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-3

Q24. From the following details. Calculate Cash Flow from Investing Activities

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-4

Additional Information:
1. Half of the investment held in the beginning of the year were sold at 10% profit.
2. Depreciation on Land and Building was Rs. 50,000 for the year.
3. Interest received on investments Rs. 75,000.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-5

Q25. From the following information, calculate Cash Flow from Investing Activities:

A building was purchased as investment out of surplus which was let out for commercial purposes. Rent Received Rs. 20,000.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-7

Q26. From the following Balance Sheet of Combiplast Ltd. for the year ended 31st March, 2019 and additional information, calculate Cash Flow from Investing Activities:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-8

Additional Information: During the year the company sold machinery at Book Value of Rs. 1,50,000.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-9

Q27. From the following information, calculate Cash Flow from Investing Activities

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-10

Additional Information:
1. Depreciation charged on Plant and Machinery Rs. 50,000.
2. Plant and Machinery with a Book Value of Rs. 60,000 was sold for Rs. 40,000.
3. Land was sold at a profit of Rs. 60,000.
4. No investment was sold during the year.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-11

Q28. From the following extracts of a company, calculate Cash Flow from Investing Activities:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-12

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-13

Point of Knowledge:-
Note 1- It has been assumed that investments have been sold at the end of the accounting year.
Note 2- Interest received on Investments = 10% of Rs. 2,00,000 – Rs. 6,000 = Rs. 14,000

Q29. Calculate Cash Flow from Investing Activities from the following information:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-14

Additional Information:
1. A piece of land was purchased as an investment out of surplus. It was let out for commercial purpose and the rent received was Rs. 20,000.
2. Dividend received from Damodar Ltd. @ 12%.
3. Patents written off to the extent of Rs. 20,000. Some patents were sold at a profit of Rs. 10,000.
4. A machine costing Rs. 80,000 (depreciation provided thereon Rs. 30,000) was sold for Rs. 35,000. Depreciation charged during the year was Rs. 70,000.
5. During the year 12% investments were purchased for Rs. 1,00,000 and some investments were sold at a profit of Rs. 10,000. Interest on investments for the year was duly received.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-15

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-16

Q30. From the following information, calculate Cash Flow from Investing Activities:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-17

During the year, a machinery costing Rs. 50,000 (accumulated depreciation provided thereon Rs. 20,000) was sold for Rs. 26,000.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-18

Q31. From the following particulars, calculate Cash Flow from Investing Activities:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-19

Additional Information:
1. Interest received on debentures held as investment Rs. 8,000.
2. Interest paid on debentures issued Rs. 20,000.
3. Dividend received on shares held as investment Rs. 20,000.
4. Dividend paid on Equity Share Capital Rs. 30,000.
5. A plot of land was purchased out of the surplus funds for investment purposes and was let out for commercial use. Rent received Rs. 50,000 during the year.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-20

Q32. From the following information, calculate Cash Flow from Financing Activities:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-21

During the year, the company repaid a loan of Rs. 1,00,000.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-22

Q33. From the following information, calculate Cash Flow from Financing Activities:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-23

Additional Information: Interest paid on debentures Rs. 18,000.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-24

Working Note:-
(i) Equity Share Capital Issued = Rs. 10,00,000 – Rs. 9,00,000 = Rs. 1,00,000
(ii) Securities Premium collected on issue of Shares and Securities = Rs. 2,60,000 – Rs. 2,50,000 = Rs. 10,000
(iii) 12% Debentures = Rs. 1,00,000 – Rs. 1,50,000 = Rs. (50,000)

Q34. From the following extracts of Balance Sheet of Exe Ltd., calculate Cash Flow from Financing Activities:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-25

Additional Information:
1. Equity Shares were issued on 31st March, 2019.
2. Interim dividend on Equity Shares was paid @ 15%.
3. Preference Shares were redeemed on 31st March, 2019 at a premium of 5%. Premium paid was debited to Statement of Profit and Loss.
4. 12% Debentures of face value Rs. 1,00,000 were issued on 31st March, 2019.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-26

Working Note:-
(i) Equity Share Capital                      5,25,000 - 4,00,000 = 1,25,000
(ii) 10% Preference Share Capital     4,00,000 - 5,50,000 = (1,50,000)
(iii) Securities Premium Reserve       2,25,000 - 1,00,000 = 1,25,000
12% Debenture                                 4,00,000 - 3,00,000 = 1,00,000

Q35. From the following information, calculate Cash Flow from Investing and Financing Activities:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-27

During the year, a machine costing Rs. 10,000 was sold at a loss of Rs. 2,000. Depreciation on machinery charged during the year amounted to Rs. 6,000.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-28

Q36. From the following information, calculation Cash Flow from Operating Activities and Investing Activities:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-29

Additional Information:
1. A machine having book value of Rs. 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.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-30

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-31

Q37. XYZ. Ltd. provided the following information, calculate Net Cash Flow from Financing Activities:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-32

Additional Information:
1. Interest paid on debentures Rs. 19,000.
2. Dividend paid in the year Rs. 50,000.
3. During the year, XYZ Ltd. issued bonus shares in the ratio of 5 : 1 by capitalising reserve.

Answer:

Q38. From the following information, calculate Net Cash Flow from Operating Activities and Financing Activities:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-34

Additional Information:
(i) During the year additional debentures were issued at par on 1st October and Bank Loan was repaid on the same date.
(ii) Dividend on Equity Shares @ 8% was paid on Opening Balance.
(iii) Income tax Rs. 1,12,500 has been provided during the year.
(iv) Preference shares were redeemed at par at the end of the year.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-35

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-36

Q39. From the following information, prepare Cash Flow Statement:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-37

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-38

Q40. From the following Balance Sheet of Young India Ltd., prepare Cash Flow Statement:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-39

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-40

Q41. Following is the Balance Sheet of Fine Products Ltd. as at 31st March, 2019:

Note: Proposed dividends on equity for the years ended 31st March, 2018 and 2019 are Rs. 39,000 and Rs. 45,000 respectively. You are required to prepare Cash Flow Statement for the year ended 31st March, 2019.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-42

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-43

Q42. Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheet of Libra Ltd. as at 31st March, 2013 and 31st March 2012:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-44

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-45

Q43. Following are the Balance Sheets of Solar Power Ltd. as at 31st March, 2014 and 2013:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-46

Additional Information:
During the year, a piece of machinery costing Rs. 48,000 on which accumulated depreciation was Rs. 32,000 was sold for Rs. 12,000. Prepare Cash Flow Statement.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-47

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-48

Q44. Following is the Balance Sheet of Mevanca Limited as at 31st March, 2017:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-50

Additional Information:
(i) Additional loan was taken on 1st July, 2016.
(ii) Tax of Rs. 53,000 was paid during the year.
Prepare Cash Flow Statement.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-51

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-52

Q45. From the following Balance Sheet of Kumar Ltd. as at 31st March, 2019, prepare Cash Flow Statement:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-53

Additional Information:
1. During a year, a machinery costing Rs. 20,000 was sold for Rs. 6,000.
2. Dividend paid during the year Rs. 50,000.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-54

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-55

Q46. Following was the Balance Sheet of M.M. Ltd. as at 31st March, 2015:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-56

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-57

Additional Information:
1. 12% Debentures were redeemed on 31st March, 2015.
2. Tax Rs. 70,000 was paid during the year.
Prepare Cash Flow Statement.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-58

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-59

Q47. The Balance Sheet of Virendra Paper Ltd. as at 31st March, 2019 is given below:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-60

Additional Information:
1. Interim Dividend of Rs. 75,000 has been paid during the year.
2. Debenture Interest paid during the year Rs. 27,000.
You are required to prepare Cash Flow Statement.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-61

Q48. Following are the Balance Sheets of Krishtec Ltd. for the years ended 31st March 2012 and 2011:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-62

Prepare a Cash Flow Statement after taking into account the following adjustments:
(a) The company paid Interest Rs. 36,000 on its long-term borrowings.
(b) Depreciation charged on tangible fixed assets was Rs. 1,20,000.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-63

Q49. From the following Balance Sheet of JY Ltd. as at 31st March 2017, prepare a Cash Flow Statement:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-64

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-65

Note: Proposed Dividend for the years ended 31st March, 2016 and 2017 are Rs. 50,000 and Rs. 75,000 respectively.
Additional Information: Rs. 1,00,000, 10% Debentures were issued on 31st March, 2017.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-66

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-67

Q50. Prepare Cash Flow Statement from the following Balance Sheet:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-68

Additional Information:
(i) An old machinery having book value of Rs. 50,000 was sold for Rs. 60,000.
(ii) Depreciation provided on Machinery during the year was Rs. 30,000.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-70

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-71

Q51. Following is the summarised Balance Sheet of Philips India Ltd. as at 31st March 2018:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-72

Additional Information:
1. Investments costing Rs. 24,000 were sold during the year for Rs. 25,000.
2. Provision for Tax made during the year was Rs. 27,000.
3. During the year, a part of the Fixed Assets costing Rs. 30,000 was sold for Rs. 36,000. The profits were included in the Statement of Profit and Loss.
4. The Interim Dividend paid during the year amounted to Rs. 1,20,000.
You are required to prepare Cash Flow Statement.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-73

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-74

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-75

Q52. From the following Balance Sheet, prepare Cash Flow Statement:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-76

Additional Information:
1. Proposed Dividend for the year ended 31st March, 2019 was Rs. 25,000 and for the year ended 31st March, 2018 was Rs. 14,000.
2. Interim Dividend paid during the year was Rs. 9,000.
3. Income Tax paid during the year was Rs. 28,000.
4. Machinery was purchased during the year Rs. 33,000.
5. Depreciation to be charged on machinery Rs. 14,000 and building Rs. 10,000.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-77

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-78

Q53. From the following Balance Sheet of Akash Ltd. as at 31st March 2014:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-79

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-80

Additional Information:  
(i) Tax paid during the year amounted to Rs. 16,000.
(ii) Machine with a net book value of Rs. 10,000 (Accumulated Depreciation Rs. 40,000) was sold for Rs. 2,000.
Prepare Cash Flow Statement.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-81

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-83

Q54. From the following Balance Sheet of SRS Ltd. and the additional information as on 31st March, 2016, prepare a Cash Flow Statement:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-84

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-85

Additional Information:
(i) Rs. 50,000, 12% Debentures were issued on 31st March, 2016.
(ii) During the year, a piece of machinery costing Rs. 40,000, on which accumulated depreciation was Rs. 20,000, was sold at a loss of Rs. 5,000.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-86

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-87

Q55. From the following Balance Sheet of Mishi Ltd. as at 31st March, 2019, prepare Cash Flow Statement:

Additional Information:-
(i) During the year, Machinery costing Rs. 1,40,000 (accumulated depreciation provided thereon Rs. 1,10,000) was sold for Rs. 20,000.
(ii) During the year, Non-current Investments costing Rs. 80,000 were sold at a profit of Rs. 16,000.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-89

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-90

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-91

Q56. From the following Balance Sheet and information of Sun Ltd., prepare Cash Flow Statement:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-92

You are informed that during the year:
(i) Proposed Dividend:    31st March, 2019    31st March, 2018
Equity Share Capital    Nil    Nil
Preference Share Capital    10%    10%
(ii) A machine with a book value of Rs. 90,000 was sold for Rs. 50,000;
(iii) Depreciation charged during the year Rs. 60,000;
(iv) Debentures were issued on 1st April, 2018;
(v) Investments were purchased on 31st March, 2019;
(vi) Preference shares were redeemed on 31st December, 2018;
(vii) An interim dividend @ 15% was paid on equity shares on 31st December, 2018;
(viii) Fresh equity shares were issued at a premium of 5% on 31st March, 2019.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-93

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-94

Q57. From the following Balance Sheet and information of Volvo Ltd., prepare Cash Flow Statement:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-95

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-96

Additional Information:
(i) You are informed during the year:
Proposed Dividend:                      31st March, 2019    31st March, 2018
Equity Share Capital                           Nil                                  Nil
Preference Share Capital                   12%                               12%
(ii) A machine with a book value of Rs. 20,000 was sold for Rs. 12,500;
(iii) Depreciation charged during the year was Rs. 35,000;
(iv) Preference shares were redeemed on 31st March, 2018 at a premium of 5%;
(v) An Interim dividend of Rs. 5,000 was paid on equity shares on 31st March, 2019 out of General Reserve;
(vi) Fresh equity shares were Issued on 31st March, 2019; and
(vii) Additional Investments were purchased on 31st March, 2019.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-97

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-98

Q58. From the following Balance Sheet of Samta Ltd., as at 31st March, 2019, prepare Cash Flow Statement:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-99

Additional Information:  
(i) During the year a piece of machinery costing Rs. 60,000 on which depreciation charged was Rs. 20,000 was sold at 50% of its book value. Depreciation provided on tangible Assets Rs. 60,000;
(ii) Income tax Rs. 45,000 was provided;
(iii) Additional Debentures were issued at par on 1st October, 2018 and Bank Loan was repaid on the same date;
(iv) At the end of the year Preference Shares were redeemed at a premium of 5%.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-100

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-101

Q59. Prepare Cash Flow Statement from the following:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-102

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-103

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-104

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-105

Q60. From the following Balance Sheet as at 31st March, 2019 and Statement of Profit and Loss for the year ended 31st March, 2019 of RSB Ltd. and additional information, prepare Cash Flow Statement:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-106

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-107

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-108

Additional Information:
(i) Additional debentures were issued on 1st October, 2018 of Rs. 5,00,000. On the same date, part of outstanding debentures was redeemed and interest was paid, whereas interest on outstanding debentures was paid on 10th April, 2019.
(ii) Board of Directors proposed dividend in both the years @ 10%.
(iii) Interim Dividend of Rs. 1,00,000 was paid during the year.
(iv) A fixed asset with original cost of 1,00,000, on which depreciation till date was provided of Rs. 80,000 was sold at a profit of Rs. 10,000.

Answer:

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-109

""TS-Grewal-Solution-Class-12-Chapter-5-Cash-Flow-Statement-110