Transcription
Good evening everyone. Good evening, good evening, good evening. Jai Shri Krishna. How are you all? Everybody, quickly tell me, can you hear my voice? Oh, can you see me properly? Is the audio-video clear? Please confirm once quickly. Today is going to be our last class on Cash Flow Statement. What did we do in the last three classes? Let me tell you quickly. I hope all the students who attended all the previous three classes are here, right? You must have attended, absolutely. So, in the first class, we finished Investing Activities. In the second, Financing. And yesterday, we did Operating. And what are we going to do today? Today, we are going to do many questions on it. We will do questions today. We will prepare the entire Cash Flow Statement. And at the end, I am going to give you a CBSE paper. We will solve the question on Cash Flow from the CBSE sample paper for the current 2023-24 session. This will give you a lot of confidence. So, tell me quickly, are all the students ready? We, the students who have joined the class, I just want you to stay with me until the end, right? Come, sit comfortably for an hour and a half to two hours, learn, and you will enjoy it. Give me a thumbs up quickly, all of you, that yes sir, we are ready and we will have fun. So, this was our Operating, which we did yesterday. Very good notes I had made, and we had shared these notes. [Music] We will analyze each and every item to see what its treatment should be, right? What will we do if it appears in another question? So, come quickly. Look, what is your first question? In the first question, you only have to prepare Operating, right? First, let's prepare Operating, and then in the next question, we will discuss all three activities. Look, first of all, what does it say? From the following information, calculate, sir, Net Cash Flow from Operating Activities. Correct? So, how to approach the question? Sir, how to solve it? We will understand slowly. I have told you the five steps for Operating Activity, so we are going to solve all five steps. Absolutely. Okay, so listen carefully. When you get a question, what do you need to do? Sir, you first need to deal with the adjustments given in the question, right? Yes sir, always deal with them first. Whose treatment? Sir, your adjustments. Yes. So, we will start with the adjustments. Yes sir, yes. So, first, let's come to number one. What is adjustment number one for you? It says, "During the year, additional debentures were issued at par on first October, and bank loan was repaid on the same date." So, what is it saying? Look, look. Come. In the information given to you, you will see what? Sir, you have debentures. Do you see them? And second, you have an 8% bank loan. Yes, absolutely. So, it says, look, these debentures you see are my opening balance, everybody. Okay? And this is your closing balance. So, you will see that your debentures are increasing here. Are they increasing or not? Absolutely increasing, sir. From 375,000 to 375,000 to 650, 650, they are increasing. So, the question is telling you that you issued them on October 1st. Tell me, why is the date important here? We had learned why the date is important in the case of debentures and loans. Because, because, because we have to calculate interest. Very good, those who said interest. Yes sir. So, first of all, let's talk about interest. Interest on debentures, everybody. Yes. Interest on debentures. So, tell me, tell me, yes sir. Now, if I have to calculate interest, I have also taught you how to calculate interest in the financing class. First of all, look, what is the opening balance? Sir, the opening balance is 375,000. Yes. For how many months did it remain? Like we calculate interest on capital, similarly, we also calculate interest on debentures. So, this opening balance of 375, for how many months did it remain? Sir, until October 1st, because after October 1st, the balance changed. So, from April to October, is it 6 months? Yes sir, yes. Absolutely, absolutely, it is six months. So, if I calculate the interest, how will I calculate it? Friends, I will calculate 375,000. 375,000. Yes. And what is the interest on debentures? 8%. Yes. So, 8% for 6 months. After this, what happened? After this, you issued some debentures. Did you issue some debentures? Yes. You issued them. Now, tell me, now how many debentures do you have? Now your debentures have become ₹5,000,000. Sir, how many debentures have become? 650. So, now will you pay interest on the entire 650,000? Yes. So, on 650,000, we will pay 8% interest. Absolutely. And for 6 months. Yes. For the next 6 months. Tell me quickly, yes or no? Yes. If I calculate this, which I am doing, then how much will it be? According to me, it will be 15,000. How much did it come to? 15,000. Yes sir. 15,000 plus plus plus 68 divided by 2, 26,000. So, tell me, tell me, what will happen to this total interest of 41,000 that you are getting? Why did we calculate it like this, just for fun? What will happen to this interest of 41,000 that you calculated? So, there will be two treatments for it, both of which we need to discuss. Brother, we need to learn here. Okay? So, the first treatment, all students know. What is the first treatment? The first treatment is that sir, this is our financing activity. If I am paying interest, should I deduct it in financing activity? Yes, we should deduct it. Minus it. Everybody, say yes or no. Sir, the interest we have to pay on borrowings is financing. So, we will deduct this in financing. Second, because, because sir, this is our expense, our expense. So, did you deduct it from profit? Absolutely deducted. And is this non-operating? It is not operating. It is not operating. So, what will I do? Sir, because it is non-operating, at the time of operating, I will add it back. Yes, we will add it back at the time of operating. We will do it now. Yes. We will do it now. Everybody, yes or no? Tell me quickly. Those who are saying to increase the volume, brother, how much more should we increase the volume? One second, wait. Increase the volume, brother. How much more should we increase the volume? One second, wait. The volume is too high. Check your phone. Yes. Okay. After this, come quickly, everyone. This is our debenture. Yes. Come quickly, there are many questions. Now, let's talk about what? Sir, bank loan. Interest on bank loan. Yes. Interest on bank loan. Come, come, come. Sneha, I explained to you in the financing class. You were not present in the financing class. If the date was not given, we would calculate interest on the opening balance. Just. Interest on bank loan. Yes. Interest on bank loan. Now, tell me, tell me, everyone. Yes sir. This bank loan you see, how much is it at the beginning? 125,000. How much is it at the beginning? Sir, how much is it at the beginning? Sir, 125,000. Okay? And after that, how much did it become? Sir, ₹1 lakh. Right? Sir, how much did it become? ₹1 lakh. Yes. ₹1 lakh. Yes. So, you repaid the bank loan. Okay? And when did you repay it? On October 1st. So, at the beginning, what is your balance? 125,500. So, I will pay interest on 125,000. Until when? Until October 1st. Until October 1st, the bank loan was 125,000, and the interest rate on the bank loan is also 8%. So, will this also be for 6 months? Yes. Absolutely correct. This will also be for 6 months. Plus, plus, plus. Now, how much is your bank loan? ₹1 lakh, because you repaid 255,000. So, now the bank loan you have left is ₹1 lakh. Okay? I will pay interest on 1 lakh. Yes. I will pay on 1 lakh at 8% for the next 6 months. Tell me quickly, how much is this coming to? Sir, this will come to 5,000. This is 5,000. Okay? Plus, on 1 lakh at 8%, this is 4,000. Tell me quickly, all students, tell me, is this 9,000 coming? Everybody? Yes. The same treatment will apply to this as we did for interest on debentures. So, this is my first working note. Once all the adjustments are done, then we will do the question in a jiffy. Okay? Come, come, come. Come, brother, come quickly. Okay? Now, look carefully, listen to me. Come, come, look. What does it say after this? After this, it says, "Dividend on equity shares 8% paid on opening balance." Sir, what did it say? It said that you paid 8% dividend on the opening balance of equity shares. Now, there is something to discuss here. Okay? What is your opening balance of equity? 125,000. Okay? So, sorry, 112,000. You paid 8% on this. So, how much did you pay? Sir, you paid 900. 90,000 you paid. But, but, but, but. Yes, I explained one thing to you. What did I explain? If you are paying any dividend on equity shares, whether it is a final dividend, an interim dividend, any dividend, it will definitely be paid to preference shareholders, whether there is something mentioned for preference shareholders in the question or not. Yes. Absolutely correct. The point is understood. Okay. Now, look, sir, for preference shareholders. Sir, for preference shareholders, you have an adjustment, and what is that adjustment? "Preference shares were redeemed at par at the end of the year." Now, you will see that at the beginning, how many preference shares were there? Sir, at the beginning, you had ₹50,000 worth of preference shares. How much? ₹50,000. Okay? And after that, how many did you have? You had sir, ₹1 lakh. Yes. So, on what will you pay dividend? Sir, on the opening balance. Yes. Even if this was not written, we would still pay on the opening balance. Yes. Absolutely correct. So, you will pay only 5% dividend on 750,000 to preference shareholders. Absolutely. Which will come to how much? It will come to 375,000, everybody. Yes or no? Yes. Sir, how much will it come to? 375,000. Yes. Absolutely correct. Ishika, intermediate is not starting now, brother. Everybody. Is the point understood? Okay. Now, after this, after this, look. Sir, this third adjustment is remaining. Which adjustment is it? Income tax. Here, you are given the opening and closing balance of Provision for Tax. Here it is. Provision for Tax. Here is the closing balance of Provision for Tax. Here is, sir, your opening balance. Yes. Did I teach you how to prepare the account for Provision for Tax in yesterday's class? All students will say yes or no. Did I teach it or not? Tell me, honestly. What are we going to prepare here? Sir, the account for Provision for Tax. Come, come, come. Ishika, brother, this is a 12th-grade class, right? C.A. Intermediate classes, I cannot suggest them to you right now. I will take a separate class for that. Look here quickly. Yes. Some students don't understand. Look here. Look here. So, what does this mean? Sir, 0000. You have an opening balance. You prepared 112,500 in the current year. And at the end, the closing balance is ₹1 lakh. So, is what you paid 62,500? Everybody. You prepared it in the current year, meaning you deducted it from the Profit and Loss. Yes sir. This is the expense for the current year. Yes. I explained this to you yesterday with logic. Sir, it comes in step one of operating. Yesterday's class, those students who watched it, I guarantee that you will not have any difficulty in operating. And what you paid, so this comes in our operating. Sir, in step number five, which I calculate at the end. Yes. I calculate it at the end. My step number four or five, whatever it is, we take it there. Yes. We take it there. Is the point understood? Okay. This is done. Yes. This is done. Tell me, brother, tell me, have I prepared all the working notes? Yes. Now, let's come to what? Sir, now let's come to our main working note. Now I will start my answer. I will start the answer. Come. Which working note? Sir, now I have to prepare the first working note for operating. Absolutely. And what is that working note? Profit before tax and extraordinary items. Today, in the questions we will do, everything will become clear to you. Profit, yes sir, before tax. Okay? And extraordinary items. Extraordinary items. Yes. Now, tell me one thing. I told you two things to teach you this step. What did I tell you? That first, you need to see whether the question gives you the balance of surplus or the question gives you net profit. Tell me, brother, will the surplus one apply or the net profit one? Sir, you have to apply the surplus one here. Which one to apply? Sir, the surplus one. Yes. The surplus one. Because the question gives surplus. Everybody, yes or no? What is given in the question? Surplus is given. Yes. Absolutely correct. So, tell me. Oh, I will show you. Maybe some students are new today and are thinking, sir has not taught, he is just talking. Look here, look here. Look at the notes, brother. Just a second. Look, sir, this was our first step. Yes. The first step was, what if net profit is given, and what if surplus is given? In surplus, there is just a separate treatment for two things, which is what? Sir, which is your dividend and your general reserve. Yes. Absolutely correct. Everybody, yes or no? Yes. The point is correct. So, come quickly, come quickly. Here, what did I write? First of all, first of all, I wrote here, in the first step, closing minus opening balance of surplus. Sir, closing minus opening balance of surplus. Now, in this question, there is a special thing. What? Many students make mistakes even in calculating closing minus opening. What are you saying? Oh, look here, look here, quickly, look. Everybody. Say yes or no. Sir, what is the opening? The opening is -350,000. Yes. Absolutely correct. So, what will you do? You will do 375,000. Yes, many students have difficulty with this. 3 lakh. Yes, 75,000. What is the closing? 375 minus. Now, you have to subtract minus. Minus minus will become plus. Minus. After that, you have -350. So, that means minus minus will become plus? Yes. Absolutely correct. All right. 375 + 350. Did this become 725? Yes. Absolutely correct. Sir, how much did it become? 725,000. Which I have written here. Very good. 725,000. Is the point understood? Yes or no? Now, what do I need to give? I need to deal with two things first. One is your dividend, one is your general reserve. Tell me, was there a dividend here? Oh, absolutely. Sir, 100%. Let's do it slowly. We will do it slowly. Yes. We will do it slowly. Yes. So, first of all, let's come to dividend. On what will we come? Dividend. Dividend on equity shares. If you follow the process slowly, it will be done. Dividend on equity shares. Yes. Absolutely correct. So, tell me, on equity shares, had you already calculated the dividend? Had you calculated it? Yes, we had calculated it. How much was it? Sir, on our equity shares, the dividend was 90,000. Yes. Sir, 90,000 dividend. Correct. Correct. Absolutely correct. Everybody, yes or no? Yes. Did I write the dividend? Absolutely. After this, after this, dividend on preference shares. Dividend on. Yes sir. Preference shares. Did you also have to give dividend to preference shares? Sir, absolutely. Come, come, come. Dividend on preference shares. How much is it? 375,000 for preference shares. 375,000. Correct. Correct. Everybody, yes or no? Yes. Did I write the dividend? Absolutely. Now, after this, the second thing is, general reserve. Check. Check. Check. Is there any general reserve here? Oh, there is. Oh, there is. There is. There is. Look, look, look at the general reserve, brother. Look here. General Reserve. Yes sir. Now, what is general reserve? Sir, your opening.
Here is the English translation of the provided Hindi text:
How much is ₹ lakh in the opening? 3 lakh, sir. How much in the closing? 375. Does this mean that in the current year, you would have taken out 75,000 from profits and put it into reserves? Yes, everybody, listen to this. If it's 3 lakh and 375, then your 75,000 is what? Transfer to General Reserve. Correct. Come, Transfer to General Reserve. I have written it here. Do it with me quickly. Transfer to, yes sir, General Reserve. Yes sir, yes. Now, Yuvraj has asked, what about the security premium? This means Yuvraj hasn't seen the financing class. Tell me, beta, have I taught you security premium properly? Yes, I have taught it. But the problem is, you don't watch the classes. 75,000. Everybody. As sure. No. Do you understand what we are talking about? Yes, we understand. Now tell me, what happens after this? Sir, after I do all this, my net profit comes. Say yes or no. Sir, after doing all this, does my net profit come? Yes, net profit has come. Now what do I need to do? I need to do my tax treatment, which I would have calculated for the current year. Sir, provision for tax, which would have been made for the current year. Provision for tax. Sir, provision for tax. Yes sir, provision for tax. Of the current year. Yes, of the current year. So, I told you that the provision for tax you made in the current year is how much? Sir, 112,500. How much, sir? 112,500. Yes, absolutely correct. So, 112,500. Very good. After this. After this, what else was there? Sir, there was also your income tax refund. Everybody, Ishika, this is my last request to you, beta. Okay, I am not going to discuss that matter here, right? We will do it in some other video when we talk about CA Foundation. Otherwise, I will have to remove you unnecessarily. Listen to me carefully, quickly. Is there any income tax refund here? Is there any income tax refund, everybody? Sir, no. Is there any extraordinary item? I don't see any. If you remember the items that I explained to you yesterday, then there will be no problem. Sir, neither of those two are there. Yes, neither of those two are there. This means, this means, sir, that your profit before tax has come. How much has it come? 725 + 90 = 37500. 75500. Sir, say it quickly, everybody. Is my, is my this 104000 coming? Is it, everybody, everybody? 104000. Yes, well done. Now what do I need to do? Now I need to present this in the cash flow statement. I have prepared my format beforehand. I wanted to save time. I prepared the format from the beginning. So, what do I need to write first? Sir, first of all, this is my cash flow from operating activity, right? So, I will write it first. What am I making? I am making cash flow from operating activity. Format, pay attention. If there is a problem with the format, there will be a big problem. Cash flow from operating activity. Yes sir, cash flow from operating activity. Okay. And the first step in this, I have already calculated it. Absolutely calculated it. Which was, sir, which was my, your net profit before tax. Net profit before tax and extraordinary item. Do it the way it is done in the format. In the exam, net profit. Yes sir, before, before tax and extraordinary item. Tax and extraordinary. Sir, extraordinary item. Yes sir, yes. And write in brackets, what? Working note number. Sir, working note number. Yes, absolutely correct. How much is it? 10400. So, I have written here, what? Sir, 10400. After this, tell me what I need to do. Sir, after this, it's the turn of non-operating, sir, non-operating, non-cash items. Is it their turn? Absolutely, it's their turn. So, we will add, what will we add? Non-operating, non-cash items. Tell me, can my interest on debentures come here? Absolutely, it can come. The interest on debentures you have calculated, is it a non-operating item? Absolutely correct. So, interest on debentures, for which I did the working, how much did it come? 41000. So, I wrote 41000 here in the inner column. 41000. Yes sir, yes. Okay. After that, after that, sir, comes interest on bank loan. The interest I calculated on the bank loan, I have written it here. Interest on bank loan. Absolutely correct. How much, sir? 9000. Yes. And what else comes? Depreciation, amortization of goodwill. So, quickly look at the working notes and notes to accounts. Are they the same? No, beta. Come quickly, look here, look here. Is there any depreciation here? I don't think so. Is there any amortization of goodwill? Sir, I don't think so either. Oh, I don't see anything else either. Is there anything else, everybody? Oh, say it quickly, quickly. Sir, I don't see anything. Yes, nothing at all. This means, this means, sir, can I add 50000 here? 50000 will be added. Absolutely correct. So, I have added 50000 here. All the students will tell me now, what do I call the answer that is going to come? Everybody, say it quickly, quickly. Yes, beta, Bhavi, you can show it. Say it quickly. What do I call the answer that will come? 10900. What will we call this 10900? Very good. Yes, Shobhit, what you wrote in short form. Oh ho ho, just don't write that in the exam. Okay. Sir, operating profit. Operating profit before working capital changes. What do we call it? Operating profit before, yes sir, working capital changes. Working, yes sir, capital changes. Working capital changes. Correct, everybody? Yes or no? Yes. So, now what do I need to do? Now I need to understand working capital. Beta, working capital, I explained it to you yesterday in a very awesome way in yesterday's class. I hope you remember. You just need to keep what in mind? Debtors. Say yes or no. Sir, I need to keep debtors in mind. Debtors are decreasing, meaning money is coming in, meaning, sir, decrease in debtors is plus. Besides this, everything will be the opposite. Yes, absolutely correct. Yesterday, I also told you the way to remember it and the logic. Okay, let's first look at current assets and current liabilities. Where are you? Where are you? Sir, here are trade payables. Is trade payable my current liability? Absolutely, it is a current liability. Is current liability increasing? It is increasing. Think calmly. Sir, decrease in current assets is plus, so will I do the opposite? So, will increase in current liability be plus? Yes. Oh, I explained this to you. If in case, if in case, if, if, if you are a new student. Yes sir. So, I explained it to you very simply yesterday. If you haven't seen yesterday's class, please go and watch it. Okay. So, what am I going to do with the increase in current liability? Sir, I am going to add the increase in current liability. So, I will simply write here, what? Add increase in trade payables. No need to write too much. Increase in, yes sir, trade payables. Increase in trade payables. How much is it, Deepika? The logic for this, beta, I explained it for half an hour yesterday. You go and check. We cannot repeat it today. Today we have come to do questions. Otherwise, our syllabus will be completed. 250000. Yesterday, I explained it with proper logic. Watch yesterday's class. 240000. 250. Yes sir, 250. After this, do you see anything else? Sir, after this, we see trade receivables and inventories. Both are given together. Sir, trade receivables and inventories. Yes sir, trade receivables and inventories. Tell me, is current asset increasing? Oh, decrease in current asset is plus, so what will be increase in current asset? Sir, it will be minus. So, 13 lakh minus 1150. Will I subtract 150? Oh, easy, easy, easy. Less, less. Yes sir. What did I say? Increase in, increase in trade receivables and inventories. Wow, it's so much fun. Sir, this seems very easy to us. Trade receivables, yes sir, and inventory. Will I subtract 150000? Yes, I have to subtract it. I have subtracted it. So, what is the net amount? 1 lakh. I need to add 1 lakh. Quickly, tell me, quickly. Once, tell me, how much have I got? Is it 90000? Yes. And what do we call this 90000? I need it in the comment section. This 1190 I got, beta, general reserve, I have added it. Prince, here it is, here it is. See, 75000 done in the first step. Yes sir. Cash generated from operations. What a thing. What a thing. Fantastic. Cash generated. Correct. From operations. Sir, cash generated from operations. Correct. After this, what is left? After this, sir, you need to pay tax. Which is our income tax. Sir, is it operating? Yes, it is operating. So, we need to subtract the income tax payment. Whatever income tax you have paid. Income tax paid. And for this too, I have made, I have made a working note. So, income tax paid. For this too, there is a working note number. Put it. And how much income tax did you pay? 62500. So, I have subtracted this. Okay. Because there is no extraordinary item in this. Yes sir. So, will this be my answer? Akhilesh, beta, I am also missing CA Foundation classes a lot. What can we do? Okay, we have to move forward, right? 11, 11, 27500. 11, 27500. Yes sir, yes. Tell me, is this my answer? Oh, oh, oh. It's so much fun, sir. This was very easy. What will we call this? Cash flow. Because my answer is coming in plus. Sir, my answer is coming in plus. Yes, it's coming in plus. Cash flow from operating activity. From operating activity. Yes, absolutely correct. Tell me, this was an easy question. We will gradually increase the level. Quickly, tell me, is this entire question completely clear? Everybody. Has everyone completed this question? Can we move forward? Say yes, sir. Okay, I will move. Now, the next question we are going to do, friends, in that next question, we will make the entire cash flow statement. What are you saying? Yes. Meaning, we will make operating, investing, financing together. Absolutely correct. And it's a good question. So, the next question on your computer screen is this. Come, brother, come. Quickly, come. Quickly, come. Okay. Look, the question is in front of you. Yes sir, the question is in front of you. And there are quite a few adjustments in the question. And it's a quite good question. Why is it a good question? We will see why. Look, come. Example. Yes sir. Following is the summarized balance sheet of... Adjustments. Investments costing 24000. Investments costing 24000. 24000 were sold during the year for 25500. You are given investments. Listen to me carefully now. Here, here is my question to you. Will you answer it? It says, investments costing 24000 sold for 25500. Yes. Tell me, beta, tell me. You have non-current investments. You also have current investments. So, this adjustment that is given to you, what is it for? Non-current or current? By default, sir, by default, what will I assume? Say it quickly, quickly. Sir, by default, we will assume it is for non-current, because I would have sold it. Yes, absolutely correct. Okay. If nothing is given, then you have to assume non-current. So, I will have to make, what? Sir, I will have to make its account. For whichever asset you are given an adjustment, you will make its account. Absolutely, you will make it. So, come, brother, come. Quickly, come. Non-current investment account. Non-current investment account. Yes, sir, yes. It will be a lot of fun. We have made this. All students will prepare the format. Beta, if I am spending so much time on the format, there is only one reason: you should not do it without a format. Okay. We have made this. Absolutely made it. So, what do we need to do first? Sir, first of all, we need to write the opening balances. To balance brought down. Your investments. To balance brought down. How much is it? To balance brought down. Write it quickly. So, balance brought down is 150000 and closing is 180. So, 150000 is your opening balance. Okay. And your closing balance is, sir, 180000. 180000. Absolutely correct. No problem. Yes sir, no problem. Now look, what does the adjustment say? The adjustment says that investments, the cost of which was 2000000. Everybody. The price at which I sold it. Yes sir. I wrote it in by bank. Yes. By bank. Now, did I make a profit of 1500 here? Say yes or no. Sir, I sold it for 25500. So, did I make a profit of 1500? Gain on sale. Yes, absolutely. So, tell me, tell me, will I write here? To gain on sale. Yes. Why does it come here? I have also told you the logic for this. At the time of investing activity. Gain on sale. 1500. Yes sir, absolutely correct. Everybody. Yes or no? Did we do this? Besides this, you are not given anything. Besides this, you are not given anything. So, now, if I want to balance this account, which I am doing. 25500 + 1880. So, this is coming to 25000. 25500. Yes, absolutely correct. -150. -1500. Sir, there is some balancing figure of 54000 here. Come on, brother, come. Quickly tell me. If there is a balancing figure on the debit side, what will you assume? You will assume something, right? What will we assume? To bank account. Sir, this means you have done, this means you have purchased. Yes, absolutely correct. To bank account. Everybody. Yes or no? Purchase. Yes, purchase. Now, listen to me carefully. Where and how will we treat this account? Come. Yes. Come, come, come. So, first of all, let's talk about, sir, first of all, let's talk about whatever you sold or bought. This will directly go to investing activity. No problem with this. Sir, you sold this, so we will add it in investing. And you bought this, so we will subtract it in investing. No problem with this. Yes, no problem with this. Oh, but, but, sir, this gain on sale that you see, gain on sale, what will we do with it? Now, the gain on sale, you would have added it to your profit when you calculated your net profit. So, it would have been added to the profit. But this is non-operating. So, when calculating operating, I will subtract it. Yes, sir, this will be subtracted when calculating operating. Absolutely subtracted. I have just written this for your reference. Don't write it in the exam. Yes, everybody. Yes. So, our non-current investment, our first adjustment is covered. Congratulations. Yes, we will understand all of them in detail. You will understand. After this, sir, comes the second. Again, the second adjustment is given to you for what? Provision for tax made during the year. Everybody. What is the important thing here? Made during the year. So much provision for tax you have made. Sir, look, look, what is written? Provision for tax made during the year. Yes sir. So, beta, what does made during the year mean? It means you have made this much in the current year. So, is this talking about the profit and loss item? Yes. You would have taken out this much provision from profits. Correct. You would have subtracted it from profits. Now, provision for tax is given to you. Absolutely given. This is your closing balance. This is your opening balance. So, will we also have to make the provision for tax account, friends? Absolutely correct. Come, come, come. I have made this. Provision for tax account. Provision for tax account. Make it, make it quickly. All students will make it with me. Those students who have come here to study. See, there are some students who leave the class in the middle. I really feel very bad. Like, how can you leave the class in the middle? If you have come to study, just because it's a free class online, that's wrong. Either don't come. See, brother, see. Everybody. Made it. Absolutely made it. Okay. And after that, what is it? Sir, after that, it is the opening and closing balance. How much is it? Opening is, opening is, opening, oh, okay, listen. I guess I wrote this wrong. I think I wrote this wrong, right? 225000 will come. Sir, won't this be too much? 2000. I was also thinking, beta, that won't this be too much? No problem, beta. Now what can we do? The question has given it, so let's not doubt the question. By balance brought down. I was also thinking this seems too much to me. No problem. 225000. Whatever it is, let's do it. 22000. To balance carried down. To balance carried down. It's only 30000, sir. What is it? Only 30000. Yes sir, absolutely correct. Okay. Now, what you made in the current year, sir, what you made in the current year. By profit and loss. By statement of P&L. Yes sir, absolutely correct. How much is it? It is, sir, 27000. Yes sir, 27000. Everybody. Yes sir, absolutely correct. And now what will we do? Whatever my balancing figure will come. To bank account. Yes or no? Say it quickly. Yes. Okay. Aniket, what are we doing now, beta? What do you think? Are we just passing time? - 30000 = 222000. How much is it, sir? 2 lakh. Yes sir, 22000. Yes, absolutely correct. This is done. Yes, this is done. Well done. Oh, say yes or no. Say it quickly. So, now, if we understand its treatment, its treatment, what will happen? What you made in the current year. This will come in the first step of my operating. In which step? That what you took out from profits, you will add it back. And this, this you will pay this time. So, it will be subtracted at the end of operating. It will be subtracted at the end. Everybody. Is it clear up to here? Okay, come quickly to the third adjustment. Now, let's come to fixed assets, which you were waiting for. Come. Oh, sorry. Come, brother, come. Quickly, come. Quickly. Third adjustment. Yes sir, third adjustment. What is written in the third adjustment? Third, it is written, everybody. You are told, during the year, during the year. Okay. A part of the fixed assets costing 30000 was sold for 36000. And this profit you made, you have put it in profit and loss. Obviously. So, what do I need to do first? This fixed asset that I have, do I also need to prepare its account? Everybody. Yes or no? Sir, I have to. Absolutely, absolutely, I have to. So, come quickly. Working note number three. As I said, you will have to make many working notes in this question. Working note number three. So, I have made this. What, sir? I have made fixed assets account. Fixed, yes sir, asset account. Make it, make it quickly. Yes, surface assets account. Yes sir, yes. Okay. We will make this quickly. Made it.
Made it. Okay. Now look, the thing is, the thing is, to balance brought down, sir. To, yes, balance, balance brought down. Fixed asset's opening balance, fixed asset's opening balance, how much is it? How much is it? ₹ lakh. And the closing is 960. Sir, the opening is 12 lakh and the closing is 960. Yes, absolutely correct. By balance carry down, 960. Now, let's come to the adjustments, beta, because that's what we need to do. What do the adjustments say? What do the adjustments say? The adjustment says, sir, listen carefully. During the year, what does the adjustment say? During the year, a part of the fixed assets costing 30,000. Yes. Sold for 36,000. Just stop here. What did it say? It says, look, there's a fixed asset of 30,000. You sold it for 36,000. So again, do I know what I need to put where? Absolutely, sir. Absolutely, absolutely. So, what did I write here? By bank account. What did I write? By bank account. Will 36,000 come here? 36,000. Did you make a gain of 6,000? Everybody, yes or no? Did I make a gain of 6,000 here? Say yes or no. So, the gain of 6,000, you have put it in profit and loss. Absolutely, yes. To gain on sale. To gain on sale, 6,000. Yes, absolutely correct. Apart from this, there is nothing in the question. Oh, is there anything in the question? Sir, there is nothing at all. So, if I go to balance this account, practically, I have to give it, Anushka, beta, I don't know. 12 lakh plus 6,000. 12,60,000. Yes, absolutely correct. This is your 12,60,000. All right. Tell me, where is my balancing figure coming? Oh my god, sir. The balancing figure is coming here, 2,10,000. Can anyone tell me what this balancing figure on the credit side can be? Sir, on the credit side. If it comes on the debit side, it's purchase. We all know that purchase is on the debit side. But what is on the credit side? Oh, isn't something missing in this account? Oh, what is missing? Depreciation is missing. What is missing? Depreciation. Yes. This balancing figure of mine has come as depreciation. Well done, everybody. Yes or no? So, here we have made the fixed asset account. So, look at its treatment. Sir, what you sold and bought. You haven't bought anything. Whatever you sold, yes, sir. This will go into investing. Depreciation is a non-cash expense, sir. We deduct non-cash expenses at the time of operating. Absolutely correct. The gain, we add back non-cash expenses during operating. Yes, absolutely. Oh, the children said why wasn't the sale included? The information about the sale is already given, isn't it? Oh, the sale is already given. Yes. So, we won't consider the sale again. You are already given the sale of 36,000. Should we consider the sale again? No, we cannot consider the sale again. So, what will we consider? Depreciation. Right. Okay. After that, after that, the gain on sale is my non-operating income. Again, I will deduct it from operating. We will do it now, and it will become even clearer. Don't worry. First, we will make a working note. Absolutely, we will. So, up to my third point, it's done. It's done. Absolutely done. Come on, brother. Up to third, we are done. Up to third, we are done. If the sale was not given, then we would have considered it as a sale. Listen to me. It won't be like that. If the sale is not given, then you will be given depreciation. So, depreciation will be given. Then, whatever my balancing figure comes, I will consider it as a sale. Okay. Now, look at this. The fourth one is, sir. The fourth one is interest paid during the year, 120. This is easy. You are just given the dividend. Yes, dividend is given. Okay. No problem. Tell me, tell me, am I ready to make the first note for my operating activities? Everybody, yes or no? Yes. Am I ready to make the first working note for operating? Yes, absolutely correct. The first step is this. My working note, sir, is working note number four. And what do we call it? We call it, sir, profit before tax and extraordinary item. What do we call it? Profit. Yes, sir. The children have already calculated it. What a thing. Before tax and extraordinary item. Now, what do I need to look at first? First, I need to see whether I am given net profit or surplus. Many things depend on that. Tell me, beta, tell me, are you given surplus here? Yes. It's very big, man. What am I given? Surplus is given. Yes, sir. Surplus is given. Opening and closing balance of surplus are given. Surplus is given. So, it means I will also have to treat dividend and general reserve. I explained the logic to you yesterday. Okay. So, come on. The difference between closing and opening balance is how much? 2,04,000. 1,68,000. 36,000 is the difference, right? 36,000 is the difference in your surplus. So, I quickly wrote it here. Come on, sir. Closing minus closing minus opening balance of surplus. Opening balance of surplus. Yes. How much, sir? 36,000. Right, everybody? Yes. Now tell me, are you given dividend? Absolutely given. Given in the question. Sir, are we given dividend? Absolutely given. So, I have added the dividend because I am given the dividend. Interim dividend is given. Absolutely. 1,20,000. So, I have added the dividend. Now, tell me about general reserve. We will have to look at it. Come on, come on. Let's look at general reserve. If you look at general reserve carefully, the opening balance is ₹2,00,000. Sir, the closing balance is 93,000. So, have you transferred 30,000 from profit? Absolutely, you have transferred. So, we will add 30,000 here as well. Absolutely, we will add. Add transfer to general reserve. Transfer to. Yes, sir. General reserve. Oh, wow, wow. 30,000. Okay. Now comes the tax. So, tax is given to you. Absolutely given. Provision for tax for the current year, which I made from profit and loss, will be added. It will be added, sir. Provision for tax you made, 27,000. 27,000. There is no extraordinary item. So, I don't see anything else. Tell me, what will be the answer? Many children have told me 2,00,000. Let's confirm it once. 36, 120, 20, 30, and 27. What a thing. What a thing. Sir, 2,13,000. 2,000. Yes, sir. Yes. Okay. No problem. Now, what is the turn? Sir, now it's time to make the cash flow statement. The entire statement. From beginning to end. From beginning to end, we are going to make the statement. Sir, absolutely, absolutely, absolutely going to make it. Right, everybody? Come on, come on, come on. Let's come quickly and prepare the statement. So, the very first thing I am going to make is, what is it? Now, here we will write A. Cash flow from operating activities. Look at the entire format. What to do? One more column. Yes. You can make one more column in the inner section if you want. Otherwise, I will just write it like this. No problem with that. Okay. Cash flow from. Cash flow from operating activity. Operating activity. Correct. Yes. I will use short forms in some places, but you should not. Don't let it be that you say, sir, you also did it. Okay. Don't do that. Yes. Don't do that. So, the very first thing I have written here is, the very first thing I have written here is, profit before tax. Profit before tax and extraordinary item. Tax and extraordinary. Extraordinary item. Come on, brother. Whatever working note you have made, sir, working note you have made, which one? Four. Make sure that you mention that working note number. Okay. Yes. How much did it come, sir? 2,13,000. 2,000. Yes, sir. Yes. Okay. No problem. Now, everything will come in the inner column. Okay. Yes. Whatever things you need to add, add them quickly. Add. Now, listen to me carefully. Yes, sir. Whatever non-cash expenses, non-operating expenses, all of them will come. Yes. All of them will come, one by one. One by one. Yes, sir. You sold fixed assets. Yes, absolutely sold. Now, in fixed assets, depreciation came. Yes. 21,000. Will that come here? Absolutely. Depreciation on fixed assets. Depreciation on fixed assets. Correct. Working note number three. Sir, working note number three. Correct. How much was it? 2, 21,000. So, you have added 21,000. No problem. Yes. No problem. Was there anything else? Tell me, sir. This is the gain. Yes, there is a gain in both. The gain will be deducted. Everyone. Yes, sir. And anything else will come? Look at what comes. Interest comes here. Will your interest come, everybody? Come here. Come here. I need to ask you a question. Are you given long-term borrowings in the question? Are you given long-term borrowings? Look here. I will zoom it. Yes, it is given. It's zero at the beginning. Okay. And in your closing, it's 81,000. And you are not given any dates or anything. So, tell me, will I take interest here? Will I take interest? The answer is no. Because I assume something here, and that assumption is that if no date is given, it must have happened at the end of the year. So, the loan you have taken must have been taken at the end of the year. So, you had no loan for the whole year. Yes. No loan at all. So, we will not take any interest. Yes. No interest will be taken. Oh, that was the thing. Yes. That was the thing. So, this means there are no other expenses. So, whatever needs to be done, it needs to be deducted. Sir, whatever needs to be done, it needs to be deducted. Yes. It needs to be deducted. And what needs to be deducted? Again, your gain. Gain on sale of fixed assets. Gain on sale of fixed assets. You calculated it. Absolutely calculated it. Okay. Deducting. Yes, deducting. Gain on sale of fixed assets, which you calculated as 6,000. So, we will deduct 6,000. You sold investments. You also made a gain there. You did. You did. 1,500 gain was there. Gain on sale of investments. Sir, gain on sale of investments. Correct. How much? 1,500. Tell me, what should I call what comes after solving this? What name should I give it? Yes. 2,13,000. Yes, sir. Plus 21,000 minus 6,000 minus minus 1,500. This is coming as 4,15,000. And what do we call this? Sir, we have to name it. 4,00,000. Yes, sir. 15,000. 5. What will we call it? Profit from operations before working capital changes. Profit. Yes, sir. Before working capital changes. Everyone has said it. What a thing. If the calculation of PBT is not cash flow. Oh, it has to be shown separately. Before working capital changes. It does not come in the format. Working capital changes. Now, listen, brother. Now, where will our attention go? Sir, attention will go to current assets and current liabilities. Come on, brother. Come on, come on, come on. Let's talk about current assets. Tell me, should I also include cash and cash equivalents in current assets? In my working capital adjustment, yes. This cash and cash equivalent that is coming, should I also include it? Sir, what are you saying? No, no, no. Trade receivables. Yes, absolutely correct. Its opening and closing. Tell me, trade receivables are increasing. Oh, oh, sir. When current assets decrease, it's plus. So, what will increase be? Minus. 13,65,000 minus 6,30,000. Yes. 7,35,000. This will be deducted. Yes, it will be deducted. So, I wrote here. Absolutely wrote. What did I write? Sir, deduct increase in. Increase in trade receivables. Trade receivables. How much, sir? 75,000. So, you deducted 7,35,000. No problem. Come on, brother. Come on. Next. Next. What is it saying? Inventory. Inventory. Everybody. Inventory is decreasing. Decreasing, sir. Here, I guess I might have put an extra zero. Sir, 782. I put an extra zero, didn't I? Yes. Sorry, sir. This is 63,000. Everybody. Don't be fooled, beta. Use a little common sense. Right. Yes. This is 63,000. Not 63 lakh. So, 72,000 minus 63,300. So, what is this, sir? 1,49,000 is coming. Everybody. Sir, 9,000 is coming. One second, wait. We, we. I guess there is some problem with the balance sheet. Maybe there is some problem with the balance sheet. Will you wait for a second? Let me see if the balance sheet matches. 37,26,000. Just a second. Yes. Keep waiting. Keep waiting, beta. 37,26,000 minus 9,60,000 minus 1,80,000 minus 21,000 minus 13,65,000 minus 5,70,000. It's coming as 6,30,000. This is it. Everybody. Make this 6,30,000, beta. Cut this and write 6,30,000. Okay. All right. Sir, we will do 6,30,000. Yes, we will do 6,30,000. One second, man. The balance sheet has been given to me incorrectly. How can this go on? This should not happen. 7,20,000. And cut this and write 7,20,000. Okay. The figure for inventories is wrong. We will do the question based on this. Yes. Based on this, we will do the question. Tell me quickly. If your inventory is decreasing, decreasing, decreasing, decreasing, decreasing, decreasing, decreasing. Current asset, if it decreases, then we add. So, if the liability decreases, what will happen? Sir, if the liability decreases, what will happen? It will be deducted. We will go in reverse. Yes. We will deduct. So, tell me, how much will we deduct? 54,000. This, sir. Minus 4,20,000. I hope this balance sheet matches. What if there's a problem here too? Just a second. Let me check once because this balance sheet is quite tricky. 54,000. Okay. 13,50,000. 11,34,000. 81,000 plus 30,000 minus 37,26,000. 42,000. I suspected it, beta. I suspected it. I used my brain a little. Write this as 42,000. What will we write? Sir, 42,000. Yes. Because the balance sheet itself is not matching. Okay. So, change this. Yes. Change this. 54,000 minus 42,000. So, by 1,22,000, what is happening? Sir, 1,22,000. Our, what is it? Trade payables. Sir, it is decreasing by 1,22,000. Yes, it is decreasing. So, we will deduct. We will deduct. Deduct decrease in trade payables. Sir, deduct decrease in trade payables. Yes, absolutely correct. 1,02,000. Yes. What is your answer? What is your answer? Quickly, quickly, beta. Let's complete it. After this, we have to do one more question. 7,35,000 plus 90,000 minus. Is my answer coming in negative? Or is my answer coming in negative? Minus 3. Yes. 15,000. The answer is coming in negative. The answer is coming in negative. And what are we going to call this answer? We are going to call this answer, cash. Yes, sir. Generated from operations. What will we call it? Cash generated from operations. One last thing is left, which is, I need to deduct my income tax. What do I need to do? Sir, deduct. Deduct income tax paid. I need to deduct my income tax that you paid. Yes. That you paid. So, income tax paid. Yes, sir. Income tax paid. Right, everybody. So, the income tax that you paid, I have calculated it as 2,22,000. So, 2,00,000. What happened? We will deduct 2,22,000. Yes, absolutely correct. And that will be my final answer. That will be my final answer. Yes, absolutely correct. It's all in the negative, beta. So, 5,53,000. Yes, sir. 5. Yes. 3. 5. What will I call this, sir? It's coming in negative. In negative. So, I called it cash. Yes, used in operating activities. Cash used in operating activities. Tell me, beta, did you have any difficulty in doing operating activities? Did you have any difficulty? It's done easily, sir. Operating profit after. No, no, beta. Oh, what is that called? We don't call it that. We call it the format that the accounting standard has given us. No problem. Yes. Now, come quickly. Second. You can make investing if you want. Otherwise, financing. It's your wish. Generally, what do I make? I generally make investing. And in the format, it's also investing. So, here I wrote, cash flow from investing activities. Cash flow from investing activities. I think there wasn't much. It's about to finish. Investing activities. Correct. Tax paid means you are paying tax, beta. Refund means it's coming back to you. That is cash flow from investing activity. Let's complete it quickly. Look, in investing, what will come? Fixed assets. The fixed assets you sold will come here. Absolutely will come. So, sale of fixed assets is for how much? 36,000. So, first of all, I wrote that. Sale of fixed assets. Sale. Sale of. Yes. Fixed assets. Correct. Fixed assets. So, sale of fixed assets. How much, sir? This is 36,000. Will this be in plus? Absolutely correct. Say yes or no. Sir, will this be in plus? Yes, it will be in plus. So, sale of fixed assets, 36,000 came. After that, investments. Now, I have also bought investments and sold investments. What I sold is for 25,500. Sir, for 25,500. Correct. Sale of. Sir, sale of non-current investments. Non-current. Non-current investments. Correct. All right. How much? 25,500. Yes. I sold this. Absolutely.
Sold, right. What is after this, sir? After this, what is the third? Purchase. Purchase of non-current investments. I purchased. Yes, purchased. So I wrote here, purchase of non-current investments. How much did you purchase, friends? You purchased 54,000. This is also done. Oh, how easy is this? 54,000. Okay. Everybody, yes, no? Yes, absolutely correct. Okay, come on, brother, come on quickly. 36,000 + 25,500 - 54,000. How much will it be? 7,500. Tell me, all the children, tell me quickly. Is this 7,500 coming for you? Oh, say it quickly. Is 7,500 coming or not? Oh, is anyone studying here? No, not studying. 7,500. Yes, because it is coming in plus, so what did I say? I called it cash flow from investing activity. Sir, this is cash flow. Yes, from positive, investing activity. Yes, do you understand? Yes, I understand. Okay, now come, sir, to the last activity. Oh my, sir, the last activity. Yes, absolutely correct. After this, what is it, sir? Cash flow. Cash flow. From financing activity. We, cash flow from financing. Financing activity. Correct. Okay, come on quickly. Come on. Investing, financing. Will less be added? Less added. I didn't understand. Come on, brother, come on quickly. Now we come, sir, to what? Now we come to financing. Now see, what will happen in financing? In financing, first of all, your share capital. Right? Tell me, is there any change in share capital? Oh, no, right? What was 13,50,000 earlier, is it still 13,50,000? Yes, absolutely correct. Okay, then comes, sir, what? Then comes long-term borrowing. What comes, sir? Long-term borrowing. You took a loan. Yes, you took a loan. So this will come in your financing. Absolutely, it will come. So come, come, come. Come to financing, come quickly. Yes, sir, you took a loan, 10% mortgage loan. Right? So what did I write here? I wrote here, sir, first of all, the first point. Yes, the first point. What did I write, sir? Proceeds from. Proceeds means cash inflow happened for you. Right? Proceeds from 10% mortgage loan. 10%. Yes, sir. Mortgage. Mortgage loan. Yes, loan you took. Oh, how much loan did you take? You took a loan of 8,100. Besides this, you will remember that you paid a dividend. You paid an interim dividend. Everybody, yes, sir. That will come in your financing. So interim paid. Interim paid. What a thing. What a thing. Your first full, complete flow question is about to end. How much did you pay? Sir, we paid 1,20,000. Right? So you paid 1,20,000, so you showed it as minus here. 1,20,000. Well done, sir. This is done. This is done as soon as it started. So 6,90,000 is your answer. Yes, absolutely correct. Now listen to me carefully. After this, what do we have to do, sir? After this, what do we have to do? First of all, what do I have to calculate? First of all, the flow of all three activities that you have done, we have to add and subtract them. Meaning, what is my net flow? What do I call it? Net flow. Yes. So I write it here. What do I write, sir? I write here, point D. And what do we denote it by, sir? We denote it by, sir, by net increase. Net. Yes. Increase in cash and cash equivalents. Sir, net increase in cash and cash equivalents means how much was your net flow? Yes, your net flow will come. Absolutely, it will come. So look carefully. Yes, sir. 6,90,000 + 75. I will write it here in brackets. A + B + C. A + B + C. Yes, absolutely correct. We will add all three. Yes, we will add all three. So 6,90,000 + 7,500 + Oh, sorry, minus 5,53,500. Tell me, is this 1,44,000 coming? Is this 1,44,000 coming? Say yes or no. Anita ji, the working note is part of your answer. Yes or no. Yes. Now look, this is the cash flow in my entire year. Okay, now after this, what is my next step, sir? Look carefully, listen to me. Is it correct or wrong? How will I know? I will see what was my cash balance at the beginning of the year. Yes, and what was the cash balance at the end. Correct. The difference between those two is the cash flow. So what do I do? Whatever my flow is, what will I do with this, sir? I will add my opening balance. Okay, meaning I will add. What? Opening cash and cash equivalents. Sir, opening cash and cash equivalents. Now many children will make a mistake here. Sir, what is my opening balance? Let's see. Come on, come on, come on. Will all the children answer me in yes or no? Is my opening balance at the beginning of the year 4,30,000? Is it, sir? This cash balance that is given to you. Yes, 4,30,000. Is it 4,30,000? Aha, sir, no. Why? Because you forgot that current investments are also part of cash equivalents. Yes, absolutely correct. So the opening balance will come by adding these two. It will come by adding these two. So 4,30,000 + 1,77,000. How much will this be? Sir, this will be 4,47,000. Correct. Okay. So 4,30, 4,30 + 17 + 17. Don't forget. Oh, don't forget. 4,47,000. Now tell me, what should this be equal to? Sir, this should be equal to my closing balance. To what? Closing balance. Yes, that at the beginning, at the beginning, my cash balance was this much. For the whole year, my flow was this much. At the end, my balance is this much left. If it matches, 1,44,000 + 4,47,000. Yes, if this 5,91,000 is your closing balance, then your answer is correct. Otherwise, your answer is unfortunately wrong. Check. Come on, let's check. Okay. So you have 5,70,000. Yes, + 21,000. Tell me, beta, is 570 + 21 equal to 591? Is it? Oh, it's correct. Closing. Yes. Cash and cash equivalents. Closing cash and cash equivalents. Correct answer is correct. Congratulations. Congratulations. Yes, sir. Yes, the answer is correct. It came on one page, which is a good thing. Wow, neat and clean on one page. Quickly tell me, did you understand the whole question? This was our first question that we did completely, full-fledged. Sir, that is 57,000. Oh, there is one zero missing, beta. There is a big problem with this balance sheet. It's a question from your book, and there's a problem with it. 570. Kirti, search once on YouTube for "Premium on Redemption of Debentures" and my name. There is a proper video of 17 minutes on this topic. You can check it. Everyone, quickly tell me, did you understand? Yes. Shall I show you a question from your board's sample paper? Come on. Now it's time, sir, to see the question from the board's sample paper. CBSE Sample Paper 2023-2. Yes, let's see what kind of question CBSE asked. Did they ask something difficult? Okay, come on. All right, quickly, come on. Quickly, come on. Karan, in advanced accounts, cash flow is a bit higher level. Otherwise, the basics are the same. Okay. Look, look, listen to me carefully. First of all, what will we see? First of all, we will see the adjustments. First of all, what are we going to check, sir? First of all, we will check the adjustments. Yes, absolutely correct. Tell me, did they also see the same first adjustment? Yes, tax provided during the year. Okay, quickly tell me, Anadi, beta, there is nothing like that. It's just practice of the question. Yes, quickly tell me, sir, this adjustment is the same. See, you are given the opening balance of provision for tax. Correct. You are given, sir, the closing balance. Yes, absolutely. Oh, these two are the same. Yes, these two are the same. You are going to do this question yourself. I will just explain it to you. Okay? Yes, okay. All right, sir, all right. So can you easily treat it? Yes, we can easily treat it. We just did it. After this, after this, after this, you are told depreciation charged on plant and machinery is 1,20,000. Now depreciation is given. Absolutely given. Okay, and you are given property, plant and equipment. You have the opening balance of property, plant and equipment. All right, sir. You have the closing balance. Yes, sir. Can you calculate depreciation and put depreciation and find the balancing figure? Say yes or no. Everybody, quickly tell me, will your property, plant and equipment account be easily made? According to me, it will be made. Opening balance, closing balance, depreciation. We have done all questions like this in investing. Okay. All right, all right, all right. Okay, now listen to me carefully, sir. The third point is a good point. A good point. Yes, a good point. What does the third point say? Third point says non-current investments. Costing 30,000 sold for 40,000 during the year. Tell me, did we do a similar adjustment in our previous question? Sir, didn't we do a question like this? Yes, sir, we did a question exactly like this. That non-current investment costing 30,000 was sold for 40, but but after this line, it says gain on sale of investments credited to capital reserve. What does this mean? It says the gain on sale, you have put it in capital reserve. Now, all the children listen to me carefully. Here you are gaining 10,000. Yes, and 10,000. Here you are gaining 10,000. Yes. Normally, what do you do? Normally, you put this gain in the profit and loss account. Say yes or no. Sir, do you normally put a gain of 10,000 in the profit and loss account? Absolutely, you do. But it says that I did not put it in the profit and loss account at all. Yes. Oh, say yes or no. Sir, absolutely correct. So what does it mean? What does it mean? You transferred it to capital reserve. Yes. Its treatment. What is going to happen? Listen carefully. What do I do? I explained profit and loss to you yesterday. I am saying again and again, if you have watched yesterday's operating video, then you will not make a mistake. Listen, generally, if this was not given, sir, if this capital reserve line was not given, then what would we do? Then I would normally show the gain of 10,000 as less in operating, as I did in the previous question. Everybody understood. The logic behind this was that because you have added this gain to your profit, this profit that is given to you, 1,30,000, this is already added in it. Yes, but this is not operating, this is non-operating, so I subtracted it. Now tell me one thing. If you have not added this profit, this gain of 10,000, to your profit and loss account at all, then what does it mean? It means I will not subtract it in operating. Do you understand the logic? Brother, if I have not put this gain of 10,000 in my profit and loss account at all, have not added it to my profit, then I will not subtract it in operating. That's all. Nothing else. That's all. That's its only treatment. That you should not consider it in operating. Oh, everybody. Yes. Will not be considered in operating activities. Understood? Will not be. Yes. Considered. Considered. Yes. In operating activity. Tell me quickly, everyone. Akshara, beta, all the classes are happening on the application. Didn't understand. Repeat it once. Oh, beta, listen to me carefully. Everybody. Yes. So it means you have to take it. Watch yesterday's class. Oh, yesterday's class was amazing. Listen carefully. Where is my profit and loss? Here it is. Yes, tell me, does this look familiar? Sneha, it will not be shown anywhere. No, it will not be shown anywhere. Okay. Listen to me carefully. Does this look familiar? Absolutely, it does. So what did you do here? What did you do to find your profit? Yes, I told you that you add non-operating income. Yes. To your profit. Non-operating income. Correct. Absolutely correct. That's why to find operating profit, what do I do? I subtract it. Look here. I subtracted it to find operating profit. Look further. We subtracted. Non-operating income. When I was finding my operating profit, finding my operating profit, what did I do, sir? I subtracted it. Gain on sale of assets. I subtracted it. Why did I subtract it? Because I had added it to profit. Beta, if I am not adding this gain to profit now, have I added this gain of 10,000 to profit? I have not. So I will not subtract it in operating. That's the logic. Understand the logic. If you memorize, then see, CBSE has given a question that children who memorize the format will never be able to solve. Simple as that. Oh, investing. Again, the same thing. Tell me, cash flow comes in investing. Okay, let's do this. Let's make a non-current investment account. I am working so hard to explain the concept. You are not ready to understand. Non-current. Yes. Investment account. Come on, come on, come on. If I make a non-current investment account, can I make it? I'll make it. It's a very simple concept. Nothing. I have made it here. Okay, made it. Made it. Okay, sir. No problem. No problem. Yes, sir. Now listen to me carefully, everyone. Okay. Here I wrote opening balance. To balance brought down. What did I write, sir? To balance brought down. Non-current investments. Come on. Sir, where is non-current investment? Where is it? Here it is. So the opening balance is 50,000. Yes, opening is 50, and closing is 90. Come on. So I wrote 50,000 here. Correct. And wrote 90,000 in closing. By balance carried down. How much, sir? 90,000. Correct. 90,000. Okay. Now listen to me carefully, everyone. Okay. See, what are you told? You sold investments for 40,000. For how much, sir? 40,000. So here what will come? By bank account. Sir, by bank account. 40,000. So by bank 40. Yes. You gained 10,000. You know where the gain is to be written. But here the gain has been transferred to capital reserve. Not to profit and loss. So to capital reserve. How much? 10,000. That's it. Yes. That's it. Now, whatever your balancing figure is, sir, what is my balancing figure? 90, 40, 130. 90, 40, 130. Correct. And your balancing figure is 70,000. Oh, how much is it? Tell me. Everyone. Sir, it's 70. Yes, it's 70. So 70,000. Wait. 70,000 is what, sir? Balancing figure. Yes or no. Don't do it, beta. Why will capital reserve be added? Absolutely not. To. Yes. Bank account. Sir, to bank account. Yes, to bank account. Okay. This is your. 1,30,000. Now listen to me carefully, everyone. In this question, whatever treatments are to be done. First of all, wherever your bank account is coming. Tell me, where will this go? Sir, wherever this bank account is coming, from your non-current investment, where will it go? Sir, it will go there, right? In investing. Both of these will go in investing. Yes, there should be no doubt about this. This also went into investing, and this also went into investing. Yes. Besides this, beta, no other treatment will happen. You have transferred the profit to capital reserve. Right? There is no cash flow happening anyway. Sir, there will be no treatment for this 10,000. Yes. There will be no treatment at all. In non-current investment, that's all that needs to be done. Yes. That's all that needs to be done. Understand the logic. Tell me quickly, did you understand? Everybody. And if it was, I would have shown it as less from profit. That's it. Say quickly. Say quickly. Clear? Definitely. Yes or no. Okay. So this was ours. After that, look. After that. Yes, sir. The last adjustment is additional debentures. You issued them on March 31st. Now why is this given to you? It is given to you because the debentures you issued here, sir, the debentures issued, beta, cash inflow happened. Sneha, the cash inflow that happened, beta, is 40,000. I am putting it in investing. The cash inflow of 400 that happened, does it include 10,000 profit? Think a little. Investment of 30,000, sir. Selling for 40. So selling at a profit of 10,000. So its cash inflow will be 40. So 40 went into my investing. That's it. Nikhil, beta, watch yesterday's class first. Okay. Why will I add to net profit? When it is said that it was transferred to capital reserve, then it was transferred to capital reserve. Right. Now come on. Listen to me carefully. Listen carefully to me, sir. Here you are told that there are debentures of 1 lakh. Okay. Debentures of 1 lakh. And in closing, there are 1.5 lakh. So you issued an additional 50,000 at the end of the year. This means the interest you have to calculate, 10%, will be calculated only on 1 lakh. Because the remaining 50,000 happened at the end of the year. Yes. That's all. Tell me, is there anything else you see in this question? Oh, there is nothing. Everything else is done. Everybody, quickly tell me, see, listen, I will show you one thing. Here you are given capital reserve. Do you see it? Capital reserve. Opening balance is 5,00,000. Yes, sir. Closing is 60,000. Tell me, how did this become 60,000? Your opening is 50, and your closing is 60. How did this happen? Oh, that's what you transferred 10,000 from the profit of investments. It is showing here. Yes, it is showing. There is no cash flow in this. No. Ignore this completely. There is nothing in this. Yes. There is nothing in this. Nothing to do. Yes. So your homework today is that you have to practice this question. Trust me, I'm not kidding. If you have attended the class for all four days, sir, if you have attended the class for all four days, you will do this question like this. Yes, like this. Understood, everybody? If so, from my side, the cash flow statement, sir, is finished. Finished. Yes, Aditi, I have done it. If it was profit and not capital reserve, we have already done it. Everybody, yes or no. Yes. So cash flow statement, sir, day number four, this was ours. Sir, cash flow statement done. Yes, done. I hope if you have attended the class for four days, then your understanding of the cash flow statement has increased a bit, right? Okay. Ayush, you can check the video. It was a great, fantastic, fantastic class. Tomorrow we are going to do our next chapter. Yes, absolutely correct. We. Okay. Those who are saying, sir, tell us the schedule. Schedule, beta, I have already put it on YouTube. Yes, absolutely correct. Okay. So accounting ratios, we will do tomorrow. Accounting ratios. I have given you three days for this. So accounting ratios will run for three days. 12th, 13th, and 14th. So in three days, we will try to complete accounting ratios. But I just need one small help from you. Share this video as much as possible, and in the comments, tell me and write. What should I write, sir? That cash flow statement is 100% complete. If you think it is complete. Right, everybody? We will meet tomorrow at 7 o'clock. Yes, 7 o'clock. Like the video, share it with friends, comment, do whatever you feel like. Otherwise, we will keep studying. As I told you, I will complete the majority of the chapters for you in January. Beta, the class timing cannot be changed right now. The class timing will remain the same. Right, everybody? Bye-bye. Bye-bye. Thank you so much. Bye, everybody. Take care. Let's meet tomorrow. Yes, let's meet tomorrow. Nice class. I will not do it, beta. I only teach 12th. I only teach accounts. Only accounts. Bye-bye.