Read DK Goel Class 12 Accountancy Solutions for Chapter 6 Cash Flow Statement below. These DK Goel Accountancy Class 12 solutions have been prepared based on the latest book for DK Goel Class 12 for the current academic year by expert accounts teachers at studiestoday.com. These DK Goel Class 12 Solutions help commerce students in class 12 understand accountancy and build a strong base in accounts. Students in Class 12 who study accountancy and use the DK Goel Accountancy book to understand concepts of Chapter 6 Cash Flow Statement should understand the concepts and solve practice questions and exercises given at the end of the chapter. We have provided solutions for all questions and have also provided short notes for each problem. This will help Class 12 DK Goel Accountancy students to understand the questions properly. Refer to the solutions provided below prepared by CBSE NCERT teachers
Chapter 6 Cash Flow Statement DK Goel Class 12 Solutions
Class 12 Accountancy students should read the following DK Goel Solutions for Class 12 Chapter 6 Cash Flow Statement in Standard 12. All solutions provided below can be downloaded in Pdf and are available for free. This DK Goel Book for Grade 12 Accountancy will be very useful for exams and help you to score good marks in Class 12 accountancy examinations. On our website www.studiestoday.com, we have provided solutions for all chapters given in the DK Goel Accountancy Book for Class 12.
DK Goel Solutions Chapter 6 Cash Flow Statement Class 12 Accountancy
Short Answer Questions
Question .1. For calculating ‘cash flow from operating activities’ from the given figure of ‘Net Profit’ earned during a year, how would you deal with (a) Increase in Trade Receivable, (b) Decrease in Inventory, (c) Decrease in Bills Payable, and (d) Increase in Trade Payables?
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. For calculating ‘cash flow from operating activities’ from a given figure of ‘Net Profit’ earned during a year, how would you deal with (a) the redemption of debentures, (b) decrease in outstanding expenses, (c) increase in cash balance, and (d) decrease in inventory?
Solution . 2
Question .3. Explain the method of calculating ‘Cash flows from Operating Activities’ under indirect method.
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. Prepare a format of ‘Cash Flow Statement’ under indirect method.
Solution . 4
Question .5. Classify the following into Cash flows from (i) Operating Activities, (ii) Investing Activities, and (iii) Financing Activities while preparing a Cash flow statement under direct method:
(a) Purchase of Fixed Assets;
(b) Issue of Share Capital;
(c) Payment of Income Tax;
(d) Payment of Divided;
(e) Payment of Interest;
(f) Sale of Long-term Investments;
(g) Interest Received;
(h) Dividend Received;
(i) Repayment of Long-term Loans.
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. For each of the following transactions, calculate the resulting cash flow and state the nature of cash flow viz., operating, investing and financing.
(a) Acquired machinery for Rs. 2,50,000 paying 20% down and executing a bond for the balance payable.
(b) Paid Rs. 2,50,000 to acquire shares in Informa Tech. and received a dividend of Rs. 50,000 after acquisition.
(c) Sold machinery of original cost Rs. 2,00,000 with an accumulated depreciation of Rs. 1,60,000 for Rs. 60,000.
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. Identify the following transactions as belonging to (i) Opening, (ii) Investing, (iii) Financing Activity and (iv) Cash Equivalents:
1. Interest paid
2. Interest paid on long-term loans by
(a) Finance Company
(b) Non-finance Company
3. Interest received
4. Interest received on Investments by a bank
5. Interest received in investments by a manufacturing company
6. Dividend received
7. Dividend received by a Mutual Fund Company
8. Purchase of Investments
9. Purchases of Investments by a finance Company
10. Purchases of Investment by a non-finance company
11. Bank Balance
12. Short-term deposit in banks
13. Bank Overdraft
14. Marketable Securities
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. Classify the following activities into (i) Operating Activities, (ii) Investing Activities and (iii) Financing Activities in case of (a) a Financing Enterprise and (b) a Manufacturing Enterprise:
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.
8. Dividend paid to Shareholders.
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. Classify the following transactions as (i) Operating Activities, (ii) Investing Activities, (iii) Financing Activities, and (iv) Cash and Cash Equivalents:
1. Purchase of Shares.
2. Buy-back of Equity Shares.
3. Payment of Share issue expenses.
4. Discount allowed to Customers.
5. Discount received from Suppliers.
6. Increase in balance of Cash Credit.
7. Repayment of Long-term Loan.
8. Repayment of Short-term Loan.
9. Proceeds from Short-term Borrowings
10. Dividend paid on Preference Shares.
11. Short-term deposits in Bank.
12. Rent received by a Company whose main business in Real Estate Business.
13. Rent received by a Company whose main business in manufacturing.
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. State which of the following would result in inflow/outflow of Cash or Cash Equivalents:
1. Purchases of Goods on Credit.
2. Sale of Goods costing Rs. 20,000 for Rs. 15,000 for cash.
3. Purchases of a fixed asset on long-term deferred payment basis.
4. Issue of shares against purchase of fixed assets.
5. Cash received from a Trade Receivable Rs. 10,000 discount allowed Rs. 1,000.
6. Sale of Fixed assets (book value Rs. 25,000) for Rs. 20,000 for cash.
7. Old Furniture (book value Rs. 10,000) written off.
8. Bill Receivable endorsed to trade payables.
9. Discount of Rs. 2,000 received while making payment to a creditor of Rs. 20,000.
10. Cash deposited into Bank.
11. Sale of Marketable Securities for cash.
12. Sale of Long-term Investments for cash.
13. Converting of Debentures into Shares.
14. Declaration of Dividend.
15. Payment of Dividend.
16. Receipt of Interest on Investment.
17. Receipt of Dividend.
Solution . 4 Statement showing the effect of transactions on Cash and Cash Equivalents:
Question .5. State which of the following would result in inflow, outflow or no flow of cash:
1. A long-term loan from a bank.
2. Repayment of long-term loan.
3. Payment of interest on loan.
4. Conversion of debentures into preference shares.
5. Interest received on investments.
6. Interest due on dentures.
7. Receipt of accrued interest.
8. Purchase of securities of a company.
9. Buy-back of Equity Shares.
10. Purchase of Goodwill.
11. Goodwill written off.
12. Patents written off.
Solution . 5 Statement showing the effect of transactions on Cash and Cash Equivalents:
Question .6. (A) Calculate ‘Cash from operating activities’ from the following balances:-
Solution . 6 (A)
Question .6. (B) Calculate ‘Cash from operating activities’ from the following figures:
Solution . 6 (B)
Question .7. Calculate ‘Cash from operating activities’ from the following:-
Solution . 7
Question .8. On March 31st, 2018 Ramesh and Co. indicated a profit of Rs. 1,25,000, after considering the following:
Solution . 8
Question .9. (A) Narula Ltd. earned a profit of Rs. 2,00,000 after charging or crediting the following items:-
Solution . 9 (A)
Question .9. (B) Calculate net-cash flows from operating activities from the following information:
Solution . 9 (B)
Question .10. Z Ltd. made a profit of Rs. 20,00,000 after charging Depreciation Rs. 1,50,000, writing off preliminary expenses of Rs. 10,000 and loss on sale of assets Rs. 30,000. The other information available to you is as follows:
At the end of the year Trade Payables showed an increase of Rs. 45,000; Trade Receivables an increase of Rs. 53,000; Prepaid Expenses decrease of Rs. 2,000; and Outstanding Expenses decrease of Rs. 10,000.
Ascertain cash flow from operating activities.
Solution . 10
Question .11. (A) Calculate ‘Cash from Operating activities’ from the following figures:-
Solution . 11 (A)
Question .11. (B) Calculate ‘Cash from operating activities’ from the following:-
Solution . 11 (B)
Question .11. (C) From the following figures calculate ‘cash from operating activities’:
Solution . 11 (C)
Question .11. (D) Calculate ‘cash from operating activities’ from the following:-
(i) Profit for the year amounted to Rs. 50,000 after providing for depreciation of Rs. 20,000.
(ii) Following is the position of current assets and current liabilities:-
Solution . 11 (D)
Question .12. Calculate ‘Cash from operating activities’ from the following:-
Solution . 12
Question .13. Following is the position of Current Assets and Current Liabilities of X ltd.:-
The company incurred a loss of Rs. 37,000 during the year. Calculate ‘Cash from operating activities’.
Solution . 13
Question .14. Calculate cash from operating activities from the following Balance Sheets of Himalya Ltd.
Additional Information:-
(i) Additional Debentures were issued on 1st April, 2017.
(ii) Additional Investments were made on 1st April, 2017.
Solution . 14
Question .15. Y Ltd. reported a net profit after tax of Rs. 3,10,000 for the year ended 31st March 2016. The relevant items of Balance Sheet appeared as follows:
Following item appeared on the Profit & Loss Statement for the year ended 31st March, 2016:
(i) Bad Debts written off during the year Rs. 10,000
(ii) Depreciation on Fixed assets charged during the year Rs. 34,000
Calculate the net cash flow from Operating Activities.
Solution . 15
Question .16. Calculate ‘Cash from Operating Activities’ from the following Balance Sheets:
Solution . 16
Question .17. From the following Statement of Profit & Loss for the year ended on 31st March, 2018, Calculate the amount of ‘Cash Generated from operating activities’:
Additional Information:-
Outstanding Wages Rs. 40,000
Outstanding Salaries Rs. 30,000
Prepaid Insurance Rs. 3,000
Solution . 17
Question .18. Following is the Profit and Loss Statement of Z Ltd. for the year ended 31st March, 2018:
You are required to calculate ‘cash from operating activities’.
Solution . 18
Question .19. The following is the Statement of Profit and Loss of Z Ltd. for the year ended March 31, 2018:
Additional Information:-
(i) Sundry Creditors increased by Rs. 40,000 during the year.
(ii) Sundry Debtors increased by Rs. 70,000 during the year.
(iii) Outstanding wages decreased by Rs. 10,000 during the year.
(iv) Bills Receivable decreased by Rs. 5,000 during the year.
(v) Prepaid expenses decreased by Rs. 20,000 during the year.
Compute net Cash from operation by the indirect method.
Solution . 19
Question .20. (A) From the following information, calculate ‘cash inflow from operating activities’:-
Solution . 20 (A)
Question .20. (B) From the following information calculate ‘Cash from operating activities’:
Solution . 20 (B)
Question .21. From the following particulars, calculate cash flow from investing activities:
Dividend received on shares held as Investments Rs. 10,000
Interest received on debentures held as Investments Rs. 8,000
Dividend paid on equity share capital Rs. 50,000
Solution . 21
Question .22. X Ltd. has Plant and Machinery whose written down value on 1st April, 2014 was Rs. 15,40,000 and on 31st March, 2015 was Rs. 19,10,000. Depreciation for the year was Rs. 1,50,000. In the beginning of the year, a part of plant was sold for Rs. 2,20,000 which had a written down value of Rs. 3,00,000.
Calculate Cash Flow from Investing Activities.
Solution . 22
Question .23. Calculate Cash Flows from Investing Activities from the following information:
Additional information:-
A machine costing Rs. 40,000 (depreciation provided thereon Rs. 12,000) was sold for Rs. 35,000. Depreciation charged during the year was Rs. 60,000.
Solution . 23
Question .24. From the following information, calculate the Cash Flow from Investing Activities of X Ltd.:
Additional Information:
i.) Half of the Non-Current investments held in the beginning of the year were sold at 15% profit.
ii.) Depreciation of Fixed Assets was Rs. 1,60,000 for the year.
iii.) Interest received on Non-Current investments: Rs. 50,000.
iv.) Dividend received on Non-Current investments: Rs. 20,000.
v.) Rent received: Rs. 25,000.
Solution . 24
Question .25. The balance in Plant and Machinery account and Accumulated depreciation account as on March 31, 2015 and 2016 stood as follows:
Plant and Machinery costing Rs. 12,80,000 accumulated depreciation thereon Rs, 5,30,000 was sold at a loss of Rs. 2,60,000.
You are required to:
(i) Compute the amount of plant and machinery purchased, sold and depreciation charged for the year.
(ii) How each of the item related to plant and machinery will be reported in the statement of cash flows.
Solution . 25
Question .26. From the following particulars, calculate cash from Investing Activities:
Additional Information:-
During the year:
(i) Depreciation charged on Plant and Machinery Rs. 80,000
(ii) A machine having a book value of Rs. 1,40,000 was sold for Rs. 1,50,000.
(iii) Patents having a book value of Rs. 60,000 were sold for Rs. 45,000.
Solution . 26
Question .27. (A) D.K. Ltd. provides you the following information:-
Non-Current Investments as on 31-03-2017 Rs. 1,20,000
Non-Current Investments as on 31-03-2018 Rs. 40,000
During the year 2018, the company sold 80% of its original investments at a profit of 20% on book value. Calculate sources and uses of cash.
Solution . 27 (A)
Question .27. (B) X Ltd. provides you the following information:
Non-Current Investments as on 31-03-2017 Rs. 50,000
Non-Current Investments as on 31-03-2018 Rs. 60,000
During the year 2018, X Ltd. purchased investments costing Rs. 25,000 and sold some investments at a loss of 20% on book value. Calculate sources of cash.
Solution . 27 (B)
Question .28. From the following information, calculate cash flow from investing activities:
Additional Information:-
(i) Depreciation charged on Plant and Machinery Rs. 72,000.
(ii) Plant and Machinery with a book value of Rs. 1,20,000 was sold for Rs. 75,000
(iii) Investments were purchased for Rs. 3,00,000. Some investments were sold at a loss of Rs. 10,000. Interest received on investments during the year Rs. 15,000.
(iv) Land was sold at a profit of Rs. 80,000.
Solution . 28
Question .29. Calculate Cash Flows from financing activities from the following particulars:
Additional Information:
(i) Equity Shares were issued at a premium of 2%.
(ii) 8% Preference Shares were redeemed at a premium of 2%.
(iii) 9% Debentures were issued at a discount of 1% and 7% debentures were redeemed at a premium of 5%.
(iv) Underwriting commission on Equity Shares was paid @ 2.5% on issue price.
(v) Interest paid on 7% debentures Rs. 7,000.
(vi) Dividend paid on preference shares Rs. 8,000.
Solution . 29
Question 30. Calculate Cash flows from financing activities from the following particulars:
Additional Information:-
(i) New shares and debentures were issued on March 31, 2018.
(ii) Dividend on preference shares was paid.
(iii) Proposed Dividend on Equity Share Capital was:
For 31st March, 2018 @ 15%
For 31st March, 2018 @ 20%
(iv) Preference shares were redeemed on March 31, 2018 at a premium of 4%. Premium on redemption was provided out of profit.
Solution . 30
Question 31. From the following Balance Sheet of Enclotek Ltd. as at 31st March and the additional information provided calculate (i) Cash from ‘Operating Activities’ and (ii) cash from ‘Financing Activities’.
Additional Information:-
(i) Depreciation provided on Fixed Assets Rs. 60,000.
(ii) Preference shares were redeemed at a premium of 5% on 31st March, 2018.
(iii) Additional debentures were issued on 1st October, 2017.
(iv) Proposed divided on equity share capital for previous year ended 31st March, 2017 was paid @ 18%.
Solution . 31
Question 32. Sony Ltd. provides you the following information. Calculate Cash flows from financing activities:
Additional Information:-
(i) During the year 2017-18, Sony Ltd. issued bonus shares in the ratio of 4:1 by capitalising reserve.
(ii) 10% debentures were redeemed on 1 Jan., 2018 at a premium of 5%.
(iii) Preference Dividend paid Rs. 8,000.
(iv) Dividend received on investments Rs. 10,000.
Solution . 32
Question 33. From the following information, Calculate:
(i) Cash Flows from Investing Activities, and
(ii) Cash Flow from Financing Activities.
Additional Information:-
(i) During the year a machine costing Rs. 1,50,000 was sold at a loss of Rs. 44,000. Depreciation on Plant and Machinery charged during the year amounted to Rs. 80,000.
(ii) Interest paid on Bank Overdraft amounted to Rs. 28,000.
(iii) Debentures were redeemed on 1st October 2017 at a premium of 4%.
Solution . 33
Question 34. Prepare a Cash-Flow Statement from the following Balance Sheets of Nilgiri Tea Ltd.:-
Solution . 34
Interest paid on debentures amounted to Rs. 9,000.
Question 35. (A) Following is the Balance Sheet of Rahul & Co. for two years. Prepare Cash Flow Statement:-
Solution . 35 (A)
Question 35. (B) Following are the Balance Sheets of Fast Foods Ltd.:
Interest paid on Mortgage loan amounted to Rs. 18,000.
You are required to prepare a Cash-flow Statement.
Solution . 35 (B)
Question 36. Following are the Balance Sheet of Krishtec Ltd. as at 31st March 2018 and 2017:
Prepare a Cash Flow Statement after taking into account the following adjustments:
(a) The company paid interest Rs. 36,000 on its long term borrowings.
(b) Depreciation charged on tangible fixed assets was Rs. 1,20,000.
Solution . 36
Question 37. (A) Following are the Balance Sheets of Quick Gains Ltd.:-
Additional Information:
31st March 2018 31st March 2017
(1) Contingent Liability
Proposed Dividend 28,000 20,000
(2) Interest Paid on long-term borrowings amounted to Rs. 8,000.
You are required to prepare a Cash flow Statement.
Solution . 37 (A)
Question 37. (B) Prepare a Cash Flow Statement from the following Balance Sheet of Garden Honey Ltd.:-
Debentures were redeemed on 1st April, 2017.
Solution . 37 (B)
Question 38. From the following Balance Sheet of Ajanta Limited as at March 31, 2017, prepare a cash Flow Statement:
Additional Information:-
(a) During the year 2016-17, a machinery costing Rs. 50,000 and accumulated depreciation thereon Rs. 15,000 was sold for Rs. 32,000.
(b) 9% Debentures Rs. 80,000 were issued on April 1, 2016.
Solution . 38
Question 39. Prepare ‘Provision for Income Tax Account’ from the following information’s for preparing Cash Flow Statements:
Additional Information:
During the year Income Tax paid was Rs. 2,30,000
Solution . 39
Question 40. Prepare ‘Provision for Income Tax Account’ from the following information’s for preparing Cash Flow Statements:
Additional Information:
Provision for Income tax made during the year 2018 was Rs. 1,70,000.
Solution . 40
Question 41. From the following Balance Sheets of Vivek Ltd. prepare Cash Flow Statements:
Additional Information:
(i) Depreciation charged on Plant was Rs. 30,000 and on Building Rs. 50,000.
(ii) Income Tax paid during the year amounted to Rs. 25,000
Solution . 41
Question 42. From the following Balance Sheet of Tarun Fashions Ltd., prepare a Cash Flow Statement:-
Additional Information:-
31.03.2018 31.03.2017
(i) Proposed Dividend 15,000 12,000
(ii) Depreciation of Rs. 10,000 was provided on Plant and Machinery.
(iii) Gain on sale of a part of Building Rs. 25,000.
(iv) Debentures were redeemed on 1st April, 2017.
(v) Provision for Tax made during the year Rs. 50,000.
Solution . 42
Question 43. (A) Prepare a Cash-Flow Statement from the following Balance Sheet of Dry Fruits Ltd.:-
Additional Information:-
(i) Interest paid on mortgage loan amounted to Rs. 14,100.
(ii) Interim Dividend paid during the year Rs. 20,000.
(iii) Machinery costing Rs. 40,000 (accumulated depreciation thereon being Rs. 18,000) was sold for Rs. 5,000.
Solution . 43 (A)
Question 43. (B) Prepare a Cash-Flow statement from the following:-
Additional Information:-
i. During the year, company sold 60% of its original non-current investments at a profit of 25%.
ii. Depreciation provided during the year was Rs. 35,000.
Solution . 43 (B)
Question 44. (A) Prepare a Cash-Flow statement from the following Balance Sheet of ONIDA Ltd:-
Additional Information:-
(1) Debentures were issued on 1st October 2017. Interest has paid-up to date.
(2) Machinery whose original cost was Rs. 50,000 (accumulated depreciation thereon being Rs. 27,000) was sold for Rs. 35,000.
(3) Depreciation on Machinery charged during the year Rs. 15,000.
(4) Interim Dividend paid during the year was @ 15% on share capital.
Solution . 44 (A)
Question 44. (B) From the following Balance Sheets of X Ltd. you are required to prepare cash flow statement.
Additional Information:-
(i) Interim Dividend paid during the year Rs. 60,000.
(ii) Land was sold at a profit of Rs. 30,000.
(iii) Plant costing Rs. 20,000 was sold during the year at a loss of Rs. 8,000.
Solution . 44 (B)
Question 45. From the following Balance Sheet of Vijaya Ltd. as at 31.03.2018 and 31.03.2017 prepare a cash flow statement.
Additional Information:-
(i) Depreciation on Fixed Asses for the year 2017-2018 was Rs. 14,700.
(ii) An interim dividend Rs. 7,000 has been paid to the shareholders during the year.
Solution . 45
Question 46. The Balance Sheets of X Ltd. as at 31st March 2018 and 31st March 2017 were as follows:
(ii) Depreciation charge during the year on Plant and Machinery amounted to Rs. 80,000.
(ii) Machinery costing Rs. 80,000 (Book value Rs. 30,000) was sold at a loss of 40% on book value.
Prepare Cash Flow Statement.
Solution . 46
Question 47. Following are the Balance Sheets of Rishi Ltd. as at 31st March, 2018 and 31st March, 2017:
Additional Information:-
(i) New public deposits were accepted on 1st January, 2018.
(ii) Machinery costing Rs. 2,00,000 on which depreciation charged was Rs. 70,000 was sold for Rs. 1,50,000.
(iii) New machinery purchased during the year amounted to Rs. 4,00,000.
(iv) Non-Current Investments were sold at profit of 25%.
Prepare Cash Flow Statement.
Solution . 47
Question 48. From the following Balance Sheet of XY Ltd. prepare a Cash-Flow Statement for the year ended 31st March, 2018:
Additional Information:-
(i) Depreciation of Rs. 30,000 has been charged on machinery.
(ii) Non-Current Investments costing Rs. 30,000 were sold for Rs. 40,000 at the end of the year.
(iii) New debentures were issued on 1st Oct. 2017
(iv) During the year share issued expenses amounted to Rs. 10,000 and these were written off from statement of Profit and loss.
Solution . 48
Question 49. From the following Balance Sheet of Som Ltd. as 31st March, 2018 and 31st March 2017 prepare a Cash Flow Statement:
Additional Information:-
(i) During the year, a machinery costing Rs. 70,000 was sold for Rs. 15,000.
(ii) Interim Dividend paid on equity share capital during the year Rs. 24,000.
Solution . 49
Question 50. Prepare Cash Flow Statement from the following Balance Sheet of Mr. Kapoor as at 31st March…
Additional Information:-
(a) There was neither any drawing nor any capital addition during the year.
(b) There was no purchase/sale of fixed assets,
Solution . 50
Question 51. Summarised Balance Sheet of Surya Vanaspati Ltd. as at 31st March, 2014 and 2013 are:
Additional Information:-
1. Non-Current Investments costing Rs. 20,000 were sold during the year 2013-14 at a profit of 20%.
2. Tax paid during the year was Rs. 62,000.
3. During the year, part of fixed assets costing Rs. 40,000 was sold for Rs. 50,000 and the profit was included in the Statement of Profit and Loss.
4. An Interim Dividend @ 12% was paid during the year.
Solution . 51
Question 52. Following was the Balance Sheet of Sreshtha Ltd. as at 31st March, 2018.
Prepare a Cash Flow Statement after taking into account the following adjustment:
During the year, a piece of machinery costing Rs. 30,000 on which accumulated depreciation was Rs. 6,000, was sold for Rs. 20,000.
Solution . 52
Question .53. From the following information, calculate Cash Flow from Operating Activities:
(i) A piece of machinery costing Rs. 50,000 on which depreciation of Rs. 20,000 had been charged was old for Rs. 10,000. Depreciation charged during the year was Rs. 18,000.
(ii) Income Tax Rs. 23,000 was paid during the year.
(iii) Interim Dividend paid during the year was Rs. 36,000.
Solution . 53
Question .54. Prepare a Cash-Flow Statement from the information given below:-
Solution . 54
Question .55. The Balance Sheet of A Ltd. as at 31st March, 2018 and 31st March, 2017 were as follows:
Additional Information:-
(i) Depreciation written off in fixed assets was Rs. 18,000.
(ii) Interest paid on Long-term Borrowing amounted to Rs. 3,000.
(iii) Income tax of Rs. 15,000 has been paid.
Prepare a Cash Flow Statement.
Solution . 55
Question .56. The following are the summarised Balance Sheets of X Ltd. as at 31st March, 2018 and 2017:
Additional Information:-
(i) Contingent Liability 31.03.2018 31.03.2017
Proposed Dividend 30,000 25,000
(ii) Provision for tax made Rs. 30,000.
(iii) Additional debentures amounting to Rs. 5,000 was issued on 1st Oct. 2017. Interest on debentures has been paid up to date.
You are required to prepare a statement of Cash Flow.
Solution . 56
Question .57. Prepare a Cash Flow Statement from the following Balance Sheet of Surya Vanaspati Ltd.:-
Additional Information:-
(i) During the year, machinery whose original cost was Rs. 50,000 was sold for Rs. 32,000.
(ii) Company charged Rs. 20,000 as depreciation on Plant and Machinery.
Solution . 57
Question .58. You are required to Prepare a Cash Flow Statement (as per AS-3) for the year 2017-18 from the following Balance Sheets:
Additional Information:-
During the year 2017-18:
(i) Building costing Rs. 75,000 was purchased.
(ii) An old building, the book value of which was Rs. 63,000, was sold at a loss of Rs. 5,000.
(iii) Tax Provided during the year was Rs. 80,000.
(iv) Proposed Dividend for the year ended 31st March, 2017 was 20% and for the year ended 31st March, 2018 was 10%.
Solution . 58
Question .59. Prepare a Cash flow statement from the following:-
Solution . 59
Question .60. From the following information, calculate Cash from operating activities:-
Solution . 60
Question .61. From the following figures, calculate Cash from operating activities:-
Solution . 61
Question .62. Calculate Cash from operating from the following:-
Solution . 62
Question .63. Following is the position of Current Assets and Current Liabilities of Z Ltd:-
The Company incurred a loss of Rs. 30,000 during the year. Calculate Cash from operating activities.
Solution . 63
Question .64. Raj Ltd. had a profit of Rs. 17,50,000 for the year ended 31.03.2016 after considering the following:
Following was the position of current assets and current liabilities of the company as at 31.03.2015 and 31. 03.2016.
Calculate cash flow from operating activities.
Solution . 64
Question .65. From the following information, calculate Cash from operating activities:-
Solution . 65
Question .66. The following balance appeared in Plant Account and Accumulated Depreciation Account in the books of Bharat Ltd.:-
Additional Information:-
Plant costing Rs. 1,45,000; accumulated depreciation thereon Rs. 70,000 was sold for Rs. 35,000.
You are required to:
(i) Compute the amount of Plant purchased, depreciation charged for the year and loss on sale of plant.
(ii) Show how each of the items related to the plant will be shown in the cash flow statement.
Solution . 66
Question .67. Calculate Cash Flow from Investing Activities from the following information:
(i) Machinery costing Rs. 5,00,000 (Book value Rs. 3,50,000) was sold at a loss of 10%.
(ii) Dividend received @ 10% from Long term Investments of Rs. 2,00,000.
(iii) Receipt for permission granted for use of Trade Mark Rs. 1,20,000.
(iv) Non-Current Investments purchased Rs. 1,75,000.
(v) Non-Current Investment costing Rs. 3,00,000 was sold at a profit of 20%.
(vi) Land was sold for Rs. 6,00,000 of which 40% is profit.
Solution . 67
Question .68. The following information has been extracted from the books of Pure Con Company. Using the information, calculate the cash flow investing Activities:
Solution . 68
Question .69. Following are the Balance Sheets of XY Ltd. as at 31st March, 2018 and 2017:-
You are required to prepare a Cash Flow Statement.
Solution . 69
Question .70. Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheets of P.S. Ltd. as at 31st March 2018 and 2017:
Debentures amounting to Rs. 20,000 were redeemed to 31st Dec., 2017. Interest on debentures has been paid regularly.
Solution . 70
Question .71. Prepare a Cash Flow Statement from the following Balance Sheet:
Additional Information:-
(i) An old machinery having book value of Rs. 42,000 was sold for Rs. 56,000.
(ii) Depreciation provided on machinery during the year was Rs. 28,000.
Solution . 71
Question .72. Following are the Balance Sheets of ‘X’ Co. Ltd:-
A machine costing Rs. 40,000 having book value of Rs. 25,000 was sold for Rs. 35,000 during the year. Interest paid on loan from bank amounted to Rs. 8,000. Prepare a Cash-Flow Statement.
Solution . 72
Question .73. From the following information, prepare a Cash-Flow Statement:-
Solution . 73
Question .74. From the following information’s, Prepare a cash-flow statement:
Solution . 74
Question .75. Following is the Balance Sheet of Solution ar Power Ltd. as at 31-03-2014:-
Additional Information:-
During the year a piece of machinery costing Rs. 48,000 on which accumulated depreciation was Rs. 32,000 was sold for Rs. 12,000.
Prepare Cash Flow Statement.
Solution . 75
Question .76. From the following Balance Sheets EE Ltd. as at 31.03.2018 and 31.03,2017 prepare a Cash Flow Statement:
Additional Information:-
(i) During the year machine costing Rs. 50,000 was sold for Rs. 15,000.
(ii) Interim dividend paid on equity share capital Rs. 20,000.
During the year machine costing Rs. 50,000 was sold for Rs. 15,000 and dividend paid Rs. 20,000.
Solution . 76
Question .77. From the following Balance Sheet of Samta Ltd. 31.03.2018 and 31.02.2017 prepare a Cash Flow Statement:
(ii) During the year Rs. 80,000 depreciation was charged on fixed tangible assets.
(iii) A piece of machinery included in fixed tangible assets costing Rs. 20,000 on which depreciation charged was Rs. 8,000 was sold for Rs. 10,000.
Solution . 77
Question .78. From the following Balance Sheets, prepare a Cash Flow Statement as per AS-3 (revised):
A dividend of Rs. 30,000 was paid during the year 2017-18.
Solution . 78
Question .79. From the following Balance Sheets of B.C.R. Ltd. as at 31.03.2018 and 31.03.2017 prepare a cash flow statement:
Additional Information:-
(i) Proposed Dividend for the year ended 31st March 2018 was 12% and for the year ended 31st March, 2017 was 10%.
(ii) During the year Equipment costing Rs. 1,00,000 was purchased, Loss on sale of Equipment amounted to Rs. 12,000. Rs. 18,000 depreciation was charged on Equipment.
Solution . 79
Question .80. Prepare a Cash-Flow Statement from the Balance Sheets given below:-
Additional Information:-
(i) Depreciation written off on fixed assets @ 10% on last year’s balance.
(ii) Interim Dividend paid during the year @ 10% on share capital.
(iii) Mortgage Loan was taken on 1st July 2017 @ 10% p.a. Interest has been paid upto date.
Solution . 80
Question .81. Following are the Balance Sheets of X Ltd:-
Additional Information:-
(i) A piece of machinery was sold for Rs. 8,000 during the year 2018. Its original cost was Rs. 20,000 and depreciation of Rs. 15,000 has been provided on it.
(ii) Non-Current Investments were sold at a loss of 40%.
(iii) Land was sold for Rs. 1,50,000.
(iv) Interest paid on public deposits amounted to Rs. 6,000.
You are required to prepare Cash-Flow Statement.
Solution . 81
Question .82. From the following Balance Sheets of Godrej Ltd. you are required to prepare Cash Flow Statement.
Additional Information:-
(i) Machinery whose original cost was Rs. 50,000 (accumulate depreciation thereon being Rs. 32,000) was sold for Rs. 10,000.
(ii) Depreciation on machinery charged during the year was Rs. 25,000.
(iii) Non-Current Investments costing Rs. 20,000 were sold for Rs. 32,000 during the year.
(iv) Interest paid on long-term borrowings amounted to Rs. 3,000.
Solution . 82
Question .83. Following are the Balance Sheets of Pawan Ltd:-
Additional Information:-
(i) Machinery Costing Rs. 60,000 was sold for Rs. 18,000 during the year.
(ii) Interim Dividend paid during the year Rs. 25,000.
(iii) During the year Company sold 40% of its original non-current investments at a loss of 20%.
You are required to prepare Cash-flow Statement.
Solution . 83
Question .84. You are required to prepare Cash-Flow Statement from the following information’s:-
Solution . 84