[CBSE] Q. 45 Cash Flow Statement TS Grewal Class 12 2026-27

Solution of Question number 45 of the Cash Flow Statement of TS Grewal Book 2026-27 session

Following was the Balance Sheet of M.M. Ltd as at 31st March, 2023:

Particulars	31st March, 2026 (₹)	31st March, 2025 (₹)
I. EQUITY AND LIABILITIES
Shareholder’s Funds (a) Share Capital (b) Reserves and Surplus	5,00,000 2,00,000	4,00,000 (50,000)
Non-Current Liabilities Long-term Borrowings	4,50,000	4,50,000
Current Liabilities (a) Short-term Borrowings (b) Short-term Provisions	1,50,000 70,000	1,00,000 90,000
Total	13,70,000	9,90,000
II. ASSETS
Non-Current Assets (a) Property, Plant and Equipment and Intangible Assets: (i) Property, Plant and Equipment (ii) Intangible Assets (b) Non-Current Investments	10,03,000 20,000 1,00,000	7,20,000 30,000 75,000
Current Assets (a) Current Investments (b) Inventories (c) Cash and Cash Equivalents	50,000 1,07,000 90,000	60,000 45,000 60,000
Total	13,70,000	9,90,000

Particulars	31st March, 2023 (₹)	31st March, 2022 (₹)
Reserves and Surplus Surplus, i.e., Balance in Statement of Profit & Loss	2,00,000	(50,000)
	2,00,000	(50,000)
Long-term Borrowings 12% Debentures	4,50,000	4,50,000
	4,50,000	4,50,000
Short-term Borrowings Current Maturities of Long-term Debts (12% Debentures) Bank Overdraft	– 1,50,000	50,000 50,000
	1,50,000	1,00,000
Short-term Provisions Provision for Tax	70,000	90,000
	70,000	90,000
Property, Plant and Equipment Machinery Less: Accumulated Depreciation	12,03,000 (2,00,000)	8,21,000 (1,01,000)
	10,03,000	7,20,000
Intangible Assets Goodwill	20,000	30,000
	20,000	30,000
Inventories Stock-in-Trade	1,07,000	45,000
	1,07,000	45,000

Additional Information:

12% Debentures were redeemed on 31st March, 2023.
Tax ₹ 70,000 was paid during the year.

Prepare Cash Flow Statement.

[Ans.: Cash Flow from Operating Activities = ₹ 3,37,000; Cash Used in Investing Activities = ₹ 4,07,000; Cash Flow from Financing Activities = ₹ 90,000; Net Increase in Cash and Cash Equivalents = ₹ 20,000.]