[CBSE] Q. 1 Solution of Cash Flow Statement TS Grewal Class 12 2022-23

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Are you looking for the solution of Question number 1 of the Cash Flow Statement of TS Grewal Book 2022-23 session?

Question number 1 of the Cash Flow Statement is a practical one.

Solution of Question Number 1 of Cash Flow Statement of TS Grewal Book 2021-22 Class 12

Question – 1

Identify the transactions as belonging to i) Operating Activities, ii) Investing Activities, iii) Financing Activities and iv) Cash and Cash Equivalents:

Solution:-

a) Cash Sale of Goods:- It is the Operating Activities as it is the principal revenue activity of the business.

b) Cash Received against Revenue from services rendered:- It is the operating activities as it is the principal revenue activity of the business.

c) Cash Purchase of goods:- It is the Operating Activities as it is the principal activity of the business.

d) Cash Paid against services taken:- It is the operating activity as it is the principal activity of the business.

e) Patents Purchased:- It is the Investing activities as selling and purchasing assets are the investing activities of the firm.

f) Marketable Securities:- Marketable securities are the Cash equivalents as it anytime can be readily converted into cash on demand.

g) Bank Overdraft:- It is the loan taken to finance the business activities. It is considered a financing activity.

h) Proceeds from issue of debentures:- It is a loan raised from the public. It is considered a financing activity.

i) Purchase of shares:- Issue of shares is the financing activity.

j) Repayment of long term loan:- Financing Activity.

k) Commission Received:- Operating Activity

l) Redemption of Debentures:- Financing Activity

m) Interest on Debentures:- Financing Activity

n) Interest on Investments:- Investing Activity

o) Income Tax Paid:- Operating Activity

p) Income paid on gain(profit) on sale of assets:- Investing Activity

q) Cash received from debtors:- Operating Activity

r) Cash paid to creditors:- Operating Activity

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Anurag Pathak

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