DK Goel Solutions Class 12 Accountancy Chapter 6 Cash Flow Statement

Short Answer Questions

Question .1.  

Solution . 1

(a) Increase in Trade Receivable                      Less

(b) Decrease in Inventory                                Add

(c) Decrease in Bills Payable                           Less 

(d) Increase in Trade Payables                         Add 

Question .2.   

Solution . 2

Question .3.

Solution . 3       Operating activities are the main revenue generating activities of an enterprise. As such, they include cash flows from those transactions and events which enter into the ascertainment of net profit or loss of the enterprise. Examples of Cash flows arising from operating activities are:

(a) Cash receipts from the sale of goods and rendering of services.

(b) Cash receipts from royalties, fees, commissions and other revenue.

(c) Cash receipts from Debtors and Bills Receivables.

(d) Cash receipts for purchase of goods and services.

(e) Cash payments to Creditors and Bills Payable.

(f) Cash payment of wages, salaries and other payment to employees.

(g) Cash payments or refunds of income taxes unless they can be specifically identified with financing and investing activities.

Question .4. 

Solution . 4

Question .5.    

Solution . 5

Cash from Operating Activities         :     Payment of Income Tax

Cash from Investing Activities          :     Purchase of Fixed Assets, Sale of Long-term Investments, Interest Received, Dividend Received

Cash from Financing Activities          :     Issue of Share Capital, Payment of Divided, Payment of Interest, Repayment of Long-term Loans

Question .6. 

Solution . 6

Cash used in Investing Activities      :     Rs. 50,000

Cash used in Investing Activities      :     Rs. 2,00,000

Cash from Investing Activities          :     Rs. 60,000

Numerical Questions

Question .1.    

Solution . 1

(i)       Operating Activities       :     Finance Company, Interest received on Investments by a bank, Dividend received by a Mutual Fund Company, Purchases of Investments by a finance Company.

(ii)      Investing Activities        :     Interest received, Interest received in investments by a manufacturing company, Dividend received, Purchase of Investments, Purchases of Investment by a non-finance company.

(iii)     Financing Activities        :     Interest paid, Non-finance Company, Bank Overdraft.

(iv)     Cash Equivalents            :     Bank Balance, Short-term deposit in banks, Marketable Securities.

Question .2.  

Solution . 2        

Financing Enterprise:-

(i)           Operating Activities       :              

1. Purchase of Shares of a Company.

2. Proceeds from sale of Shares.

3. Brokerage paid on purchase of Shares.

4. Loans and Advances made to third parties.

5. Dividend and interest received on Securities.

6. Salary paid to employees.

7. Interest paid on debentures.

(ii)     Financing Activities      :     8. Dividend paid to Shareholders.  

Manufacturing Enterprise:-

(i)           Operating Activities       :              

1. Purchase of Shares of a Company.

2. Proceeds from sale of Shares.

3. Brokerage paid on purchase of Shares.

4. Loans and Advances made to third parties.

5. Dividend and interest received on Securities.

(ii)           Investing Activities       :               6. Salary paid to employees.

(iii)         Financing Activities        :               7. Interest paid on debentures.

                                                                      8. Dividend paid to Shareholders. 

Question .3.      

Solution . 3        

(i)       Operating Activities       :     Discount allowed to Customers, Discount received from Suppliers, Rent received by a Company whose main business in Real Estate Business.

(ii)      Investing Activities       :     Rent received by a Company whose main business in manufacturing, Purchase of Shares

(iii)    Financing Activities        :       Buy-back of Equity Shares, Payment of Share issue expenses, Increase in balance of Cash Credit, Repayment of Long-term Loan, Repayment of Short-term Loan, Proceeds from Short-term Borrowings, Dividend paid on Preference Shares.

(iv)     Cash Equivalents           :     Short-term deposits in Bank

Question .4.  

Solution . 4    Statement showing the effect of transactions on Cash and Cash Equivalents:

Question .5.   

Solution . 5         Statement showing the effect of transactions on Cash and Cash Equivalents:

Question .6.  (A)     

Solution . 6 (A)

Question .6. (B)      

Solution . 6 (B)

Question .7.   

Solution . 7

Question .8.   

Solution . 8

Question .9. (A)     

Solution . 9 (A) 

Question .9. (B)      

Solution . 9 (B)

Question .10.   

Solution . 10

Question .11. (A)     

Solution . 11 (A)

Question .11. (B)      

Solution . 11 (B)

Question .11. (C)      

Solution . 11 (C)

Question .11. (D)       

Solution . 11 (D)

Question .12.  

Solution . 12      

Question .13.    

Solution . 13

Question .14. 

Solution . 14     

Question .15.   

Solution . 15

Question .16.    

Solution . 16       

Question .17.   

Solution . 17

Question .18.   

Solution . 18

Question .19.    

Solution . 19

Question .20. (A)     

Solution . 20 (A)

Question .20. (B)       

Solution . 20 (B)

Question .21.   

Solution . 21

Question .22. 

Solution . 22

Question .23.  

Solution . 23    

Question .24.  

Solution . 24

Question .25.   

Solution . 25

Question .26. 

Solution . 26

Question .27.  (A)     

Solution . 27 (A)

Question .27. (B)    

Solution . 27 (B)       

Question .28.   

Solution . 28

Question .29.

Solution . 29       

Question 30.    

Solution . 30

Question 31.  

Solution . 31

Question 32.   

Solution . 32

Question 33.     

Solution . 33

Question 34.     

Solution . 34       

Interest paid on debentures amounted to Rs. 9,000.

Question 35. (A)     

Solution . 35 (A)

Question 35. (B)       

Solution . 35 (B)

Question 36.   

Solution . 36

Question 37. (A)      

Solution . 37 (A)

Question 37. (B)      

Solution . 37 (B)

Question 38.    

Solution . 38

Question 39.    

Solution . 39

Question 40.  

Solution . 40       

Question 41.    

Solution . 41

Question 42. 

Solution . 42

Question 43. (A)     

Solution . 43 (A)

Question 43. (B)     

Solution . 43 (B)

Question 44. (A)         

Solution . 44 (A)

Question 44.  (B) 

Solution . 44 (B)

Question 45.    

Solution . 45       

Question 46.      

Solution . 46

Question 47.    

Solution . 47

Question 48.   

Solution . 48

Question 49.   

Solution . 49

Question 50.   

Solution . 50

Question 51.   

Solution . 51

Question 52.    

Solution . 52

Question .53.     

Solution . 53    

Question .54.    

Solution . 54       

Question .55.   

Solution . 55

Question .56.   

Solution . 56

Question .57.    

Solution . 57

Question .58.  

Solution . 58

Question .59.    

Solution . 59       

Question .60.  

Solution . 60

Question .61. 

Solution . 61

Question .62.    

Solution . 62

Question .63.    

Solution . 63

Question .64.    

Solution . 64

Question .65.    

Solution . 65

Question .66.   

Solution . 66

Question .67.    

Solution . 67

Question .68.    

Solution . 68

Question .69.  

Solution . 69       

Question .70.    

Solution . 70

Question .71.   

Solution . 71

Question .72.   

Solution . 72

Question .73.    

Solution . 73

Question .74.  

Solution . 74

Question .75.    

Solution . 75

Question .76.   

Solution . 76

Question .77.    

Solution . 77

Question .78. 

Solution . 78

Question .79.  

Solution . 79

Question .80.   

Solution . 80

Question .81.   

Solution . 81

Question .82.  

Solution . 82

Question .83.   

Solution . 83

Question .84.    

Solution . 84