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cbse 12th Standard Accountancy Cash Flow Statement Important Questions And Answers Study Material - QB365 Set C

Published on: 25/10/2025

Question Set C

cbse 12th Standard Accountancy Cash Flow Statement Important Questions And Answers Study Material - QB365

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Std: 12th Standard CBSE - Accountancy

chapter: Cash Flow Statement - Important Questions And Answers

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Questions:

The profit of X Ltd. was Rs. 1,00,000 after considering the following items :
(a) Depreciation provided on Fixed Tangible Assets Rs. 20,000
(b) Patents written off Rs. 10,000
(c) Loss on sale of Furniture Rs. 1,000
(d) Provision for Taxation Rs. 1,60,000
(e) Transfer to General Reserve Rs. 14,000
(f) Profit on sale of Fixed Tangible Assets (Machinery) Rs. 6,000.
The following additional information is available to you:

Items	31.03.2014 Rs.	31.03.2015 Rs.
Trade Receivables	44,000	47,000
Trade payables	36,000	42,000
Prepaid Expenses	400	600

Items

31.03.2014

Rs.

31.03.2015

Rs.

Trade Receivables

44,000

47,000

Trade payables

36,000

42,000

Prepaid Expenses

400

600

Calculate cash flows from operating activities.

Following particulars are extracted from notes to accounts to the Balance Sheets of Varun Ltd. as on 31.03.2013 and 31.03.2014. Prepare a Cash Flow Statement.

Particulars	31.03.2014 Rs.	31.03.2013 Rs.
I. Equity and liabilities
Share Capital	1,50,000	1,25,000
Balance in Statement of Profit and Loss	75,000	60,000
Bank Loan	20,000	-
Bills Payable	35,000	20,000
Trade Payables	45,000	20,000
Total	3,25,000	2,55,000
II. Assets
Fixed Assets-Tangible	30,000	20,000
Non-current Investments	10,000	15,000
Inventory	1,20,000	87,000
Trade Receivables	90,000	98,000
Cash and Cash Equivalents	75,000	35,000
Total	3,25,000	2,55,000

Additional Information :
(i) During the year 2013-2014, Rs. 15,000 depreciation was charged on fixed tangible assets.
(ii) Company has paid Rs. 12,000 interim dividend during the year.

Following particulars are extracted from notes to accounts to the Balance Sheets of Vijaya Ltd. as on 31-03-2011 and 31-03-2015. Prepare a Cash Flow Statement.

Particulars	31.03.2015 Rs.	31.03.2014 Rs.
I. Equity and liabilities
Share Capital	1,30,000	90,000
Surplus in Statement of Profit and Loss	29,000	18,000
General Reserve	55,000	30,000
Trade Payables	22,000	17,400
Total	2,36,000	1,55,400
II. Assets
Fixed Assets - Tangible	1,66,000	93,400
Inventories	26,000	22,000
Trade Receivables	39,000	36,000
Cash and Cash Equivalents	5,000	4,000
Total	2,36,000	1,55,

Note : Bracket denotes minus items.
Additional Information :
(i) Depreciation charged on fixed tangible assets for the year 2014-2015 was Rs. 20,000.
(ii) Income Tax Rs. 5,000 has been paid in advance during the year.

(i) From given notes to accounts and cash flow statement of Radhika Ltd. Complete the missing figures.

Particulars	31.03.2014 Rs.	31.03.2015 Rs.
1. Share Capital :
Equity Share Capital	3,00,000	4,00,000
Preference Share Capital	1,50,000	1,00,000
Total	4,50,000	5,00,000
2. Reserves and Surplus :
General Reserve	40,000	70,000
Balance in Statement of Profit and Loss	30,000	48,000
Total	70,000	1,18,000
3. Short-term Provisions :
Provision for Taxation	40,000	50,000
Proposed Dividend	42,000	50,000
Total	82,000	1,00,000
4. Fixed Assets - Tangible :	2,00,000	1,70,000
Building	2,00,000	1,70,000
Plant	80,000	2,00,000
Total	2,80,000	3,70,000

(ii)
Dr. Building A/c Cr.

Particulars	Rs.	Particulars	Rs.
To Balance b/d	.....	By Cash A/c (Balance Figure-Sale of building)	50,000
To Statement of Profit and Loss		By Balance c/d	.....
(Gain on sale of Building)	20,000
	2,20,000		2,20,000

Particulars	Rs.	Particulars	Rs.
To Balancee b/d	.....	By Depreciation A/c	10,000
By Cash A/c (Balancing Figure-Purchase of Plant)	1,30,000	By Balance c/d	.....
	2,10,000		2,10,000

(iii) Calculation of profit before Tax :

Profit after Tax	Rs.
Add : Provision for Tax	.....
Proposed divided	.....
Amount transferred to General Reserve	.....
Profit before Tax	.....
	.....

Cash Flow Statement
for the year ended 31.03.2015

Sr. No.	Particulars	Details Rs.	Total Rs.
A.	Cash Flows form (or Used in) Operating Activities :
	Profit before Tax	.....
	Adjustment for :
	Add : Goodwill written off	25,000
	Depreciation on plant	.....
	Less : Gain on sale of Building	.....
	Operating Profit before Working Capital Changes	.....
	Add : Increase in Current Liabillities and Decrease in Current Assets :
	Trade Payables	24,000
	Less : Increase in Current Assets and Decrease in Current Liabilities :
	Inventories	82,000
	Less : Payment of Tax	.....
	Net Cash from Operating Activities	.....	.....
B.	Cash Flows from / (used in) Investing Activities :
	Sale of Building	.....
	Purchase of plant	.....
	Net Cash used in Investing Activities	.....	.....
C.	Cash Flows from / (used in) Financing Activities :
	Issue of Equity Shares	.....
	Redemption of Preference Shares	.....
	Payment of Dividend	.....
	Net Cash from Financing Activities	.....	.....

D.	Net Decrease in Cash and Cash Equivalents (A + B + C)		.....
E.	Cash and Cash Equivalents - Opening Balance		25,000
F.	Cash and Cash Equivalents - Closing Balance		18,000

What is meant by cash flow statement is prepared.

What is meant by cash equivalents ?

When does a flow of cash takes place ?

List any two items of operating activities, that are typical of and pertaining to Tyre Industry.

List any two investing activities which result into outflow of cash.

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Answers Key:

Operating Profit before working capital changes Rs. 2,99,000; Net Cash from Operating Activities Rs. 3,01,800.

Net Cash from Operating Activities Rs. 27,000; Net Cash used in Investing Activities (Rs. 20,000); Net Cash from Financing Activities Rs. 33,000
[Hint : Purchase of fixed tangible assets Rs. 25,000].

Net Cash from Operation Activities Rs. 53,600; Net Cash used in Investing Activities (Rs. 92,600); Net Cash from Finacing Activities Rs. 40,000.
[Hint. Purchase of fixed tangible assets Rs. 92,600].

Profit before Tax Rs. 1,48,000 [Profit after Tax Rs. 18,000 + Provision for Tax Rs. 50,000 + Proposed Dividend Rs. 50,000 + Amount transferred to General Reserve Rs. 30,000]. Operating profit before working capital changes Rs. 1,63,000 Net Cash from operating Activities Rs. 65,000, Net Cash used in Investment activities (Rs. 80,000), Net Cash from financing activities Rs. 8,000.

Cash flow statement is a statement that shows flow of cash and cash equivalents during a particular period, under each activity i.e. operating, investing and financing, separately.

Cash equivalents are short-term highly liquid investments that can be easily convertible into known amount of cash and which are subject to an insignificant risk of change in value. e.g., short- term marketable securities, which can be readily converted into cash, are treated as cash equivalents.

If a transaction has resulted in change in cash or cash equivalents, a flow of cash arises.

For Tyre Industry, operating activities will be (i) purchase of raw material, payment of wages, salaries and other manufacturing expenses like power, oil, factory rent etc. and (ii) sale of finished goods.

(i) Purchase of Machinery
(ii) Purchase of shares of another company etc.