# Test: Cash Flow Statements- Case Based Type Questions

## 12 Questions MCQ Test Accountancy Class 12 | Test: Cash Flow Statements- Case Based Type Questions

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Attempt Test: Cash Flow Statements- Case Based Type Questions | 12 questions in 24 minutes | Mock test for Commerce preparation | Free important questions MCQ to study Accountancy Class 12 for Commerce Exam | Download free PDF with solutions
QUESTION: 1

Solution:

QUESTION: 2

### Read the following information and answer the questions that follow:Following are the opening and closing balances of Jayesh Ltd.:Additional information: During the year :(a) Depreciation charged on Plant and Machinery was ₹ 36,000.(b) A machine having a book value of ₹ 20,000 was sold for ₹ 16,000.(c) Patents having a book value of ₹ 80,000 were sold for ₹ 1,10,000.Q. What amount of machinery was purchased?

Solution: The amount of machinery purchased was ₹76,000.
QUESTION: 3

### Read the following information and answer the questions that follow:Following are the opening and closing balances of Jayesh Ltd.:Additional information: During the year :(a) Depreciation charged on Plant and Machinery was ₹ 36,000.(b) A machine having a book value of ₹ 20,000 was sold for ₹ 16,000.(c) Patents having a book value of ₹ 80,000 were sold for ₹ 1,10,000.Q. What amount of Sales proceeds of Plant and Machinery will be added/subtracted?

Solution:

QUESTION: 4

Following are the opening and closing balances of Jayesh Ltd.:

During the year :

(a) Depreciation charged on Plant and Machinery was ₹ 36,000.

(b) A machine having a book value of ₹ 20,000 was sold for ₹ 16,000.

(c) Patents having a book value of ₹ 80,000 were sold for ₹ 1,10,000.

Q. What amount of patents will be added/subtracted to get the cash flow from investment?

Solution:

QUESTION: 5

X Ltd. made a profit of ₹ 5,00,000 after consideration of the following items :

(i) Goodwill written off 5,000

(ii) Depreciation on Fixed Tangible Assets 50,000

(iii) Loss on Sale of Fixed Tangible Assets (Machinery) 20,000

(iv) Provision for Doubtful Debts 10,000

(v) Gain on Sale of Fixed Tangible Assets (Land) 7,500

Q. Which of the following items will adjust to Net Profit before Tax?

Solution: It is a non-operating item. Non-operating income is the portion of an organization's income that is derived from activities not related to its core business operations. It can include items such as dividend income, profits, or losses from investments, as well as gains or losses incurred by foreign exchange and asset write-downs.
QUESTION: 6

X Ltd. made a profit of ₹ 5,00,000 after consideration of the following items :

(i) Goodwill written off 5,000

(ii) Depreciation on Fixed Tangible Assets 50,000

(iii) Loss on Sale of Fixed Tangible Assets (Machinery) 20,000

(iv) Provision for Doubtful Debts 10,000

(v) Gain on Sale of Fixed Tangible Assets (Land) 7,500

Q. What will be the amount of Trade payables added to get the Cash flow from operations?

Solution: ₹51,000 − ₹30,000 = ₹21,000
QUESTION: 7

X Ltd. made a profit of ₹5,00,000 after consideration of the following items :

(i) Goodwill written off 5,000

(ii) Depreciation on Fixed Tangible Assets 50,000

(iii) Loss on Sale of Fixed Tangible Assets (Machinery) 20,000

(iv) Provision for Doubtful Debts 10,000

(v) Gain on Sale of Fixed Tangible Assets (Land) 7,500

Q. How will goodwill written off be adjusted in the cash flow statement?

Solution: It is a non-cash item and should not form a part of cash flow.
QUESTION: 8

X Ltd. made a profit of ₹ 5,00,000 after consideration of the following items :

(i) Goodwill written off 5,000

(ii) Depreciation on Fixed Tangible Assets 50,000

(iii) Loss on Sale of Fixed Tangible Assets (Machinery) 20,000

(iv) Provision for Doubtful Debts 10,000

(v) Gain on Sale of Fixed Tangible Assets (Land) 7,500

Q. What amount of Trade Receivables will be subtracted from the Cash flow Statement to get Cash flow from operations?

Solution: ₹78,800 − ₹52,000 = ₹26,800
QUESTION: 9

Krishika an alumni of IIM Ahmedabad initiated her startup Krishika Ltd. in 2018. The profits of Krishika Ltd. in the year 2019-20 after all appropriations was ₹ 31,25,000. This profit was arrived after taking into consideration the following items:

Q. Operating profit before working capital changes will be ₹ _______ .

Solution: Operating profit before Working Capital changes = Net Profit before tax − Gain on sale of Fixed tangible assets + Goodwill written off

= ₹ 44,37,500 − ₹ 12,50,000 + ₹ 7,80,000

= ₹ 39,67,500

QUESTION: 10

Krishika an alumni of IIM Ahmedabad initiated her startup Krishika Ltd. in 2018. The profits of Krishika Ltd. in the year 2019-20 after all appropriations was ₹ 31,25,000. This profit was arrived after taking into consideration the following items:

Q. Cash flow from Operating Activities will be ₹ ___________.

Solution: Cash flow from Operating Activities = Cash from Operating Activities before tax – Tax paid

= ₹ 35,57,500 − ₹ 4,37,500 = ₹ 31,20,000

QUESTION: 11

Krishika an alumni of IIM Ahmedabad initiated her startup Krishika Ltd. in 2018. The profits of Krishika Ltd. in the year 2019-20 after all appropriations was ₹ 31,25,000. This profit was arrived after taking into consideration the following items:

Q. Net Profit before Tax will be ₹ ____________.

Solution: Net Profit before Tax = Profit after all Appropriations + Provision for Taxation + Transfer to General Reserve = ₹ 31,25,000 + ₹ 4,37,000 + ₹ 8,75,000

= ₹ 44,37,500

QUESTION: 12