[CBSE] Q1 Cash Flow Statement TS Grewal Solutions Class 12 Accountancy 2024-25

Welcome to CommerceNinja’s handwritten solutions for TS Grewal’s Class 12 Cash Flow Statement.

Our expertly crafted notes break down complex cash flow concepts into clear, manageable steps, ensuring you grasp both preparation and interpretation.

Designed to align perfectly with your curriculum, these solutions are ideal for exam preparation and enhancing your understanding of accounting.

Explore our detailed explanations and annotations to master the cash flow statement and boost your confidence in this essential area of accounting. Happy studying!

ANSWER:

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

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

c) Cash Purchase of Goods:- It is the Operating Activity 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 activity of the firm, as selling and purchasing assets are the investing activities of the firm.

f) Marketable Securities:- Marketable securities are cash equivalents that 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:- The 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

More TS Grewal Class 12 Accountancy Solutions For Cash Flow Statement

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