Class 12 Account: Cash Flow Statement | TS Grewal

This post explains how to prepare a cash flow statement, a key topic in Class 12 Accountancy, using a pre-board exam question as an example. Perfect for students studying TS Grewal and preparing for their board exams!

Class 12 account ts Grewal question


Question: Balance Sheet of Ram Ltd.

Given below is the balance sheet:

Particulars Note No. 31st March 2024 31st March 2023
Share Capital 1 10,00,000 8,00,000
Reserve and Surplus 2 4,00,000 (1,00,000)
Long-term Borrowings 3 9,00,000 9,00,000
Short-term Borrowings 4 2,40,000 1,00,000
Fixed Assets (Tangible) 5 20,00,000 14,42,000
Cash and Cash Equivalents - 1,80,000 1,20,000

Steps to Solve

  1. Identify changes in working capital, such as inventory and receivables.
  2. Calculate cash flows for:
    • Operating Activities: Start with net profit and adjust for non-cash expenses like depreciation.
    • Investing Activities: Include purchases of assets or investments.
    • Financing Activities: Record changes in capital or borrowings.

Solution

1. Cash Flow from Operating Activities: ₹7,78,000

2. Cash Flow from Investing Activities: (₹6,13,000)

3. Cash Flow from Financing Activities: ₹2,32,000

Net Cash Flow: ₹1,97,000

By following these steps, you can easily solve similar TS Grewal Class 12 Accountancy questions for your board exams.

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