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

Published on: 25/10/2025

Question Set D

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:

Following Particular are taken from note to accounts to the Balance Sheets of Vijay Ltd. as on 31.03.2014 and 31.03.2015. Prepare a Cash Flow Statement.

Particulars	31.03.2015 Rs.	31.03.2014 Rs.
I. Equity and liabilities
Share Capital	10,00,000	7,50,000
Reserves and Surplus (Balance in Statement of Profit and Loss)	1,50,000	Nil
Current lianilities :
Trade Payables	2,00,000	1,50,000
Short-term Provisions (Proposed Dividend)	1,00,000	50,000
Total	14,50,000	9,50,000
II. Assets
Fixed Assets-Tangible	9,00,000	6,00,000
Current Assets	5,50,000	3,50,000
Total	14,50,000	9,50,000

Additional Information :
(i) During the year, Rs. 50,000 depreciation was charged on fixed tangible assets.
(ii) A piece of machinery included in fixed assets, costing Rs. 10,000 in which depreciation charged was Rs. 4,000 sold for Rs. 5,000

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.

Prepare a Cash Flow Statement from the following Balance Sheet of XYZ Ltd:
Balance Sheet of XYZ Ltd. as at 31^stMarch, 2015

Particulars	31.03.2015 Rs.	31.03.2014
I. Equity and liabilities
1. Shareholders' Funds :
(a) Share Capital	20,00,000	17,00,000
(b) Reserve and Surplus (Profit and Loss Balance)	3,00,000	4,00,000
2. Share Application money pending allotment	-	-
3. Non-current Assets :
Long Term Borrowings	3,00,000	2,00,000
4. Current Liabilities
Trade Payables	50,000	25,000
Total	26,50,000	23,25,000

II. Assets
1. Non-current Assets :
(a) Fixed Assets
(i) Tangible Assets	8,00,000	9,00,000
(ii) Intangible Assets	5,00,000	2,00,000
(b) Non-current Investment	3,00,000	4,00,000
2. Current Assets :
(a) Inventories	4,00,000	5,00,000
(b) Trade receivables	1,50,000	1,25,000
(c) Cash and Cash Equivalents	5,00,000	2,00,000
Total	26,50,000	23,25,000

Additional Information:
During the year a piece of machinery of book value of Rs. 40,000 was sold for Rs. 30,000. The company paid interest Rs. 36,000 on long term borrowings. Depreciation of Rs. 1,00,000 was provided on Tangible Assets during the year.

From the following Balance Sheets of a company, calculate the Cash Flows from Operating Activities :

Particulars	31.03.2015 Rs.	31.03.2014 Rs.
I. Equity and liabilities
1. Shareholders' Funds :
(a) Share Capital	60,000	60,000
(B) Reserves and Surplus (Balance in Statement of Profit and Loss)	50,000	30,000
2. Non-Current Liabilities :
Long-term Borrowings (6% Debentures)	8,000	70,000
3. Current Liabilities :
Trade Payables	50,000	60,000
Other Current Liabilities (Outstanding Expenses)	45,000	50,000
Total	2,85,000	2,70,000
II. Assets
1. Non-Current Assets :
(a) Fixed Assets-Tangible	1,40,000	1,50,000
(b) Non-Current Investment	30,000	20,000
2. Current Assets :
(a) Inventories	45,000	30,000
(b) Trade receivables	40,000	30,000
(c) Cash and Cash Equivalents	30,000	20,000
Total	2,85,000	2,70,000

The following information has been extracted from the books of Pure Con Company. Using the information, calculate the Cash Flows from Investing Activities :

Particulars	Rs.
Land purchased during the year	6,00,000
Non-current Investment purchased	2,90,000
Purchase of Fixed Tangible Assets (Machinery)	4,00,000
Sale of Fixed Tangible Assets (building)	5,20,000
Sale of Non-current Investment	1,50,000
Sale of Fixed Tangible Assets (machinery)	1,70,000
Receipt for permission of use of patent	90,000
Interest received on debentures held as investments	30,000
Dividend received on shares as investments	50,000

(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

Give one difference between an investing activity and financing activity.

While preparing Cash Flow Statement what type of activity is payment of cash to acquire debentures by an investment company.

What is meant by 'Cash from operating activities'?

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Answers Key:

Net Cash from Operating Activities Rs. 1,51,000; Net Cash used in Investing Activities (Rs. 3,51,000); Net Cash from Financing Activities Rs. 2,00,000.
[Hint: Purchase of fixed tangible assets Rs. 3,56,000]

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].

Operating Profit before working capital change Rs. 46,000, Net Cash from Operating Activities Rs. 1,46,000, Net Cash used in investing Activities (Rs.
2,10,000), Net Cash in flow Finacing Activities (Rs. 3,6,4000).
[Hints : (i)Loss on sale of fixed assets Rs. 10,000 purchased of fixed tangible assets Rs. 40,000, Purchase of fixed intangible side asset Rs. 3,00,000.]

Net cash used in Operating Activities Rs. 60,000
[Hint. (i) Decrease in fixed assets, table is created.
(ii) Interest on long term borrowers = Rs. 80 m \(\times\) 6/100 \(\times\) h = Rs. 4800.

Net cash used in Investing Activities (Rs. 2,80,000)

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.

Investing activity is related to purchase and sale of long-term assets (or non-current assets) while financing activity is related to activity that result in change in capital and borrowings of the entity.

Payment of cash to acquire debentures by an investing company is an operating activity.

'Cash from operating activities' are the principal revenue producing activities of the enterprise and other activities, that are not investing or financing activities