WORKSHEET 1

CLASS - XII
CASH FLOW STATEMENT
Q 1. Prepare Cash Flow Statement as per AS-3 (Revised) from the following:
Particulars Note 31.3.2020 (₹) 31.3.2019 (₹)
No.
I. EQUITY AND LIABILITIES
Shareholders’ Funds:
Equity Share Capital 6,00,000 5,00,000
Reserves and Surplus 1 3,50,000 2,50,000
Non-Current Liabilities:
Long-term Borrowings - Debentures 1,50,000 1,00,000
Current Liabilities:
Trade Payables - Creditors 1,10,000 1,20,000
Short-term Provisions - Provision for tax 40,000 50,000
TOTAL 12,50,000 10,20,000
II. ASSETS
Non-Current Assets:
Property, Plant & Equipment and Intangible Assets
Plant & Equipment - Machinery 7,00,000 6,00,000
Non-Current Investments 1,20,000 1,00,000
Current Assets:
Current Investments 1,00,000 -----
Trade Receivables - Debtors 2,00,000 1,70,000
Cash and Cash Equivalents 1,30,000 90,000
TOTAL 12,50,000 10,20,000

Notes to Accounts:
Note Particulars 31.3.2020 31.3.2019
No. (₹) (₹)
1. Reserves and Surplus
Surplus, i.e., Balance in Statement of Profit and Loss 3,50,000 2,50,000
2,50,000 2,50,000
Additional Information:
(a) ₹ 60,000 depreciation has been provided on machinery during the year 2019-20.
(b) ₹ 45,000 was paid as tax during the year.
Sol. CASH FLOW STATEMENT as per AS-3 (Revised)
for the year ended 31st March, 2020
PARTICULARS ₹ ₹
A. Cash Flow from Operating Activities
Net Profit before Tax (Working 1) 1,35,000
Add: Depreciation 60,000
Operating Profit before Working Capital changes 1,95,000 1,95,000
Add: Decrease in Current Assets & Increase in Current Liabilities NIL
Less: Increase in Current Assets & Decrease in Current Liabilities
Trade Payables - Creditors (1,20,000 - 1,10,000) 10,000
Trade Receivables - Debtors (2,00,000 - 1,70,000) 30,000 (40,000)
Cash generated from operations 1,55,000
Less: Tax paid (45,000)
Cash Flow from Operating Activities 1,10,000
B. Cash Flow from Investing Activities
Purchase of Plant & Equipment - Machinery (7,00,000 - 6,00,000) (1,00,000)
Purchase of Non-Current Investments (1,20,000 - 1,00,000) (20,000)
Cash used in Investing Activities (1,20,000)
C. Cash Flow from Financing Activities
Proceeds from issue of equity shares (6,00,000 - 5,00,000) 1,00,000
Proceeds from issue of Long-term Borrowings - Debentures 50,000
(1,50,000 - 1,00,000)
Cash Flow from Financing Activities 1,50,000
D. Net Increase in Cash and Equivalents (A+B+C) 1,40,000
Add: Opening Cash and Equivalents 90,000
Closing Cash and Equivalents 2, 30,000
Represented by:
Current Investments - 1,00,000
Cash and Cash Equivalents - 1,30,000 2,30,000
WORKING 1: CALCULATION OF NET PROFIT BEFORE TAX
Particulars Amount (₹)
Closing Balance as per Statement of Profit and Loss 3,50,000
Less: Opening Balance as per Statement of Profit and Loss (2,50,000)
Surplus, i.e., Balance in Statement of Profit and Loss 1,00,000
Add: Appropriations
Proposed Dividend of previous year NIL
Interim Dividend paid in current year NIL
Transfer to General Reserves NIL
Provision for Tax / Tax Provided during current year/ Tax Made 35,000
- WORKING 2
Net Profit before Tax 1,35,000

WORKING 2:
Dr. PROVISION FOR TAX ACCOUNT Cr.
Particulars Amount (₹) Particulars Amount (₹)
To Bank A/c - tax paid 45,000 By balance b/d 50,000
To balance c/d 40,000 By Statement of Profit and Loss 35,000
- current year’s provision
(balancing figure)
85,000 85,000

Q 2. From the following information, calculate Net Cash Flow from:

(a) Operating Activities and
(b) Investing Activities.
PARTICULARS 31/03/2022 31/03/2023
(₹) (₹)
Surplus, i.e., Balance in Statement of Profit and Loss 2,50,000 10,00,000
Provision for Tax 75,000 75,000
Trade Payables 1,00,000 3,75,000
Current Assets (Trade Receivables and Inventories) 11,50,000 13,00,000
Property, Plant and Equipment 21,25,000 23,30,000
Accumulated Depreciation 10,62,500 11,00,000
Additional Information:
1. A machinery having a net book value of ₹ 1,00,000 (Depreciation provided thereon ₹ 1,62,500) was sold
at a loss of ₹ 20,000.
2. Tax paid during the year ₹ 75,000.
Sol. CASH FLOW STATEMENT as per AS-3 (Revised)
for the year ended 31st March, 2023
PARTICULARS ₹
A. Cash Flow from Operating Activities
Net Profit before Tax (Note 1) 8,25,000
Add: Depreciation (Note 2) 2,00,000
Loss on sale of machinery 20,000
Operating Profit before Working Capital changes 10,45,000
Add: Increase in Current Liabilities
Trade Payables 2,75,000
13,20,000
Less: Increase in Current Assets (Trade Receivables and Inventories) (1,50,000)
Cash generated from operations 11,70,000
Less: Tax paid (75,000)
Cash Flow from Operating Activities 10,95,000
B. Cash Flow from Investing Activities
Sale of machinery (Note 2) 80,000
Purchase of machinery (Note 2) (4,67,500)
Cash used in Investing Activities (3,87,500)

WORKING 1: CALCULATION OF NET PROFIT BEFORE TAX

Particulars Amount (₹)
Closing Balance as per Statement of Profit and Loss 10,00,000
Less: Opening Balance as per Statement of Profit and Loss (2,50,000)
Surplus, i.e., Balance in Statement of Profit and Loss 7,50,000
Add: Appropriations
Proposed Dividend of previous year NIL
Interim Dividend paid in current year NIL
Transfer to General Reserves NIL
Provision for Tax / Tax Provided during current year/ Tax Made 75,000

Net Profit before Tax 8,25,000

WORKING 2:
Dr. PROPERTY, PLANT AND EQUIPMENT (MACHINERY) ACCOUNT Cr.
Particulars Amount (₹) Particulars Amount (₹)
To balance b/d 21,25,000 By Provision for Depreciation A/c 1,62,500
To Bank A/c - purchase 4,67,500 By Bank A/c - sale (1,00,000 - 20,000) 80,000
(balancing figure) By Statement of Profit and Loss 20,000
- loss on sale
By balance c/d 23,30,000
25,92,500 25,92,500

WORKING 3:
Dr. PROVISION FOR DEPRECIATION ACCOUNT Cr.
Particulars Amount (₹) Particulars Amount (₹)
To Property, Plant and Equipment A/c 1,62,500 By balance b/d 10,62,500
- depreciation accumulated till date By Depreciation A/c 2,00,000
To balance c/d 11,00,000 - current year’s provision
(balancing figure) (balancing figure)
12,62,500 12,62,500

Q 3. Complete the missing information from the following:

Particulars Note 31.3.2020 (₹) 31.3.2019 (₹)
No.
I. EQUITY AND LIABILITIES
Shareholders’ Funds:
Equity Share Capital 1,30,000 90,000
Reserves and Surplus 1 85,000 50,000
Current Liabilities:
Trade Payables 22,000 17,400
TOTAL 2,37,000 1,57,400
II. ASSETS
Non-Current Assets:
Fixed Tangible Assets 1,66,000 93,400
Fixed Intangible Assets - Goodwill ----- 2,000
Current Assets:
Inventories 26,000 22,000
Trade Receivables 39,000 36,000
Cash and Cash Equivalents 6,000 4,000
TOTAL 2,37,000 1,57,400
Notes to Accounts:
Note Particulars 31.3.2020 (₹) 31.3.2019 (₹)
No.
1. Reserves and Surplus
General Reserve 55,000 30,000
Surplus, i.e., Balance in Statement of Profit and Loss 30,000 20,000
85,000 50,000
Additional Information:
(a) ₹29,400 depreciation has been provided on tangible assets during the year 2019-20.
(b) An interim dividend of ₹14,000 has been paid to the shareholders during the year.
CASH FLOW STATEMENT as per AS-3 (Revised)
for the year ended 31st March, 2020
PARTICULARS ₹
A. Cash Flow from Operating Activities
Net Profit before Tax (Note 1) ........
Add: Depreciation ........
.............................................................................. ........
Operating Profit before Working Capital changes 80,400
Add: Increase in Current Liabilities
............................................... ........
........
Less: Increase in Current Assets
Inventories ........
............................................... ........
Cash generated from operations ........
Less: Tax paid NIL
Cash Flow from Operating Activities ........
B. Cash Flow from Investing Activities
............................................... (1,02,000)
............................................... ........
C. Cash Flow from Financing Activities
............................................... ........
Payment of interim dividend ........
Cash Flow from Financing Activities ........
D. Net Increase in Cash and Equivalents (A+B+C) ........
Add: Opening Cash and Equivalents ........
Closing Cash and Equivalents ........
Sol. CASH FLOW STATEMENT as per AS-3 (Revised)
for the year ended 31st March, 2020
PARTICULARS ₹
A. Cash Flow from Operating Activities
Net Profit before Tax (Note 1) 49,000
Add: Depreciation 29,400
Goodwill written off 2,000
Operating Profit before Working Capital changes 80,400
Add: Increase in Current Liabilities
Trade Payables 4,600
85,000
Less: Increase in Current Assets
Inventories 4,000
Trade Receivables 3,000
Cash generated from operations 78,000
Less: Tax paid NIL
Cash Flow from Operating Activities 78,000
B. Cash Flow from Investing Activities
Purchase of Tangible Assets (1,02,000)
Cash used in Investing Activities (1,02,000)
C. Cash Flow from Financing Activities
Proceeds from issue of equity shares 40,000
Payment of interim dividend (14,000)
Cash Flow from Financing Activities 26,000
D. Net Increase in Cash and Equivalents (A+B+C) 2,000
Add: Opening Cash and Equivalents 4,000
Closing Cash and Equivalents 6,000