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Accountancy · 2025 · 6 marks
CBSE 2025 · Region 6 · Set 2 · Q34
From the following Balance Sheet of Bose Ltd. as at 31st March, 2024, calculate 'Cash Flows from Operating Activities'. Balance Sheet of Bose Ltd. as…
From the following Balance Sheet of Bose Ltd. as at 31st March, $\displaystyle 2024$, calculate 'Cash Flows from Operating Activities' . Balance Sheet of Bose Ltd. as at 31st March, $\displaystyle 2024$ Note $\displaystyle 31.03.2024$ $\displaystyle 31.03.2023$ Particulars No. ( ) ( ) I Equity and Liabilities : 1. Shareholders' Funds (a) Share Capital $\displaystyle 37,00,000$ $\displaystyle 25,00,000$ (b) Reserves and Surplus $\displaystyle 1$ $\displaystyle 5,00,000$ $\displaystyle 12,00,000$ $\displaystyle 2$ Non-Current Liabilities Long term borrowings $\displaystyle 2$ $\displaystyle 20,00,000$ $\displaystyle 18,00,000$ 3. Current Liabilities (a) Short term borrowings $\displaystyle 6,00,000$ $\displaystyle 5,50,000$ (b) Trade Payables $\displaystyle 5,00,000$ $\displaystyle 3,50,000$ Total $\displaystyle 73,00,000$ $\displaystyle 64,00,000$ II Assets : 1. Non-Current Assets (a) Property, Plant and Equipment and Intangible Assets (i) Property, Plant and Equipment $\displaystyle 3$ $\displaystyle 45,00,000$ $\displaystyle 41,00,000$ (ii) Intangible Assets $\displaystyle 4$ $\displaystyle 3,00,000$ $\displaystyle 5,00,000$ 2. Current Assets (a) Current Investments $\displaystyle 5,00,000$ $\displaystyle 2,00,000$ (b) Inventories $\displaystyle 8,00,000$ $\displaystyle 10,00,000$ (c) Trade Receivables $\displaystyle 10,00,000$ $\displaystyle 2,00,000$ (d) Cash and Cash equivalents $\displaystyle 2,00,000$ $\displaystyle 4,00,000$ Total $\displaystyle 73,00,000$ $\displaystyle 64,00,000$ Notes to Accounts : Note $\displaystyle 31.3.2024$ $\displaystyle 31.3.2023$ Particulars No. ( ) ( ) $\displaystyle 1$ Reserves and Surplus (i.e. Balance in the Statement of Profit and Loss) $\displaystyle 5,00,000$ $\displaystyle 12,00,000$ $\displaystyle 2$ Long Term Borrowings $\displaystyle 20,00,000$ $\displaystyle 18,00,000$ $\displaystyle 10$% Debentures $\displaystyle 3$ Property, Plant and Equipment $\displaystyle 50,00,000$ $\displaystyle 44,00,000$ Plant and Machinery Less : Accumulated Depreciation $\displaystyle 5,00,000$ $\displaystyle 3,00,000$ $\displaystyle 45,00,000$ $\displaystyle 41,00,000$ $\displaystyle 4$ Intangible Assets Goodwill $\displaystyle 3,00,000$ $\displaystyle 5,00,000$ Additional Information : (i) A piece of machinery costing ₹ $\displaystyle 4,00,000$ on which accumulated depreciation was $\displaystyle 3,00,000$ was sold at a loss of $\displaystyle 70$,000. (ii) $\displaystyle 10$% Debentures of $\displaystyle 2,00,000$ were issued on 31.3.2024.
Marking-scheme solution
Calculation of Cash Flows from Operating Activities:
Particulars Amount(₹)
Net Profit before Tax and Extraordinary Items ($\displaystyle 7,00,000$)
Add: Non-Cash & Non-Operating Items:
Depreciation on Machinery $\displaystyle 5,00,000$
Goodwill written off $\displaystyle 2,00,000$
Interest on $\displaystyle 10$% debentures $\displaystyle 1,80,000$
Loss on sale of Machinery $\displaystyle 70,000$ $\displaystyle 9,50,000$
Operating Profit before Working Capital Changes $\displaystyle 2,50,000$
Add: Increase in Current Liabilities
& Decrease in Current Assets
Increase in Trade Payables $\displaystyle 1,50,000$
Decrease in Inventories $\displaystyle 2,00,000$
Less: Decrease in Current Liabilities
& Increase in Current Assets
Increase in Trade Receivables ($\displaystyle 8,00,000$) ($\displaystyle 4,50,000$)
Cash generated from operations ($\displaystyle 2,00,000$)
Less: Tax paid NIL
Net cash used in operating activities ($\displaystyle 2,00,000$)
Working notes:
Dr. Accumulated Depreciation A/c Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Plant and Machinery A/c $\displaystyle 3,00,000$ By Balance b/d $\displaystyle 3,00,000$
To Balance c/d $\displaystyle 5,00,000$ By Statement of Profit & Loss $\displaystyle 5,00,000$
$\displaystyle 8,00,000$ $\displaystyle 8,00,000$
Dr. Plant and Machinery A/c Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Balance b/d $\displaystyle 44,00,000$ By Accumulated Depreciation A/c $\displaystyle 3,00,000$
By Bank A/c $\displaystyle 30,000$
To Bank A/c $\displaystyle 10,00,000$ By Statement of Profit & Loss- $\displaystyle 70,000$
(Balancing figure) Loss on sale of machinery
By Balance c/d $\displaystyle 50,00,000$
$\displaystyle 54,00,000$ $\displaystyle 54,00,000$
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CBSE Class 12 Accountancy past-paper question from the 2025 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.