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NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce PDF Download

Numerical Questions:
Question 5: Compute cash from operations from the following figures:
(i) Profit for the year 2016-17 is a sum of Rs. 10,000 after providing for depreciation of Rs. 2,000.
(ii) The current assets of the business for the year ended March 31, 2016 and 2017 are as follows:

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce
Answer:

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce 
Question 6: From the following Particulars of Bharat Gas Limited, calculate Cash Flows from Investing Activities. Also show the workings clearly preparing the ledger accounts:
NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

Notes1Tangible assets = Machinery
 2Intangible assets = Patents

Notes

 

Figures of current year

Figures of previous year

 

 

 

1. Tangible Assets

 

 

Machinery

12,40,000

10,20,000

2. Intangible Assets  

   

   

Goodwill

3,00,000

1,00,000

Patents

1,60,000

2,80,000

   

4,60,000

3,80,000

3. Non-current Investments  

   

   

10% long term investments  

1,60,000

60,000

Investment in land  

1,00,000

1,00,000

Shares of Amartex Ltd.  

1,00,000

1,00,000

   

3,60,000

2,60,000

Additional Information:
(a) Patents were written-off to the extent of Rs. 40,000 and some Patents were sold at a profit of Rs. 20,000.
(b) A Machine costing Rs. 1,40,000 (Depreciation provided thereon Rs. 60,000) was sold for Rs. 50,000. Depreciation charged during the year was Rs. 1,40,000.
(c) On March 31, 2016, 10% Investments were purchased for Rs. 1,80,000 and some Investments were sold at a profit of Rs. 20,000. Interest on Investment was received on March 31, 2017.
(d) Amartax Ltd. paid Dividend @ 10% on its shares.
(e) A plot of Land had been purchased for investment purposes and let out for commercial use and rent received Rs. 30,000.
Answer:

Cash Flow from Investing Activities

Particulars

Amount

Rs

Amount

Rs

Cash Inflow

 

 

 

Proceeds from Sale of Patents

1,00,000

 

 

Proceeds from Sale of Machinery

50,000

 

 

Proceeds from Sale of 10% Long-term Investment

1,00,000

 

 

Interest received on 10% Long-term Investment

6,000

 

 

Dividend Received from Amartax Ltd.

10,000

 

 

Rent Received

30,000

2,96,000

Cash Outflow

 

 

 

Purchase of Goodwill

(2,00,000)

 

 

Purchase of Machinery

(4,40,000)

 

 

Purchase of 10% Long-term Investment

(1,80,000)

(8,20,000)

Net Cash used in Investing Activities

 

(5,24,000)

 

 

 

 

 

 NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

 NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

Question 7:  From the following Balance Sheet of Mohan Ltd. Prepare cash flow Statement:
Balance Sheet of Mohan Ltd.
as at 31 Mar. 2016 and 31 Mar. 2017
 

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

Notes
NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce
Additional Information:
Machine Costing Rs. 80,000 on which accumulated depreciation was Rs. 50,000 was sold for Rs. 20,000.
Answer:
 NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

 NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

Question 8:  From the following Balance Sheets of Tiger Super Steel Ltd., prepare Cash Flow Statement:
NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

 Notes on Accounts
NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

Answer:

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

Working Notes:

1.

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

2.

Net Profit before Tax

3,600

Profit and Loss Account

12,800

Less:

Provision for Tax

16,400

 

 

 

Note: As per the solution, the Net Cash from Operating Activities, net Cash from Investing Activities and Net Cash from Financing Activities are Rs 56,000, Rs (60400) and Rs 8,800 respectively. However, as per the answer given in the book, the Net Cash from Operating Activities, net Cash from Investing Activities and Net Cash from Financing Activities are Rs 34,800, Rs (50,400) and Rs 20,000 respectively.

Page No. 287
Question 9: From the following information, prepare cash flow statement:
Additional Information:

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

Additional Information: 
Depreciation Charge on Plant amount to Rs. 80,000.
Answer:
NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce 
Working Note:

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce 

Question 10: From the following Balance Sheet of Yogeta Ltd., prepare cash flow statement:
NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

Notes to Accounts
NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

Additional Information:
Net Profit for the year after charging Rs. 50,000 as Depreciation was Rs. 1,50,000. Dividend paid on Share was Rs. 50,000, Tax Provision created during the year amounted to Rs. 60,000.
Answer:NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

Working Notes:
1.

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

2.

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

Question 11: Following is the Financial Statement of Garima Ltd., prepare cash flow statement.

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

Notes to Accounts

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

Additional Information:

  1. Interest paid on Debenture Rs 600
  2. Dividend paid during the year Rs 4,000
  3. Depreciation charged during the year Rs 32,000

Answer:
NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

Working Notes:

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

Question 12: From the following Balance Sheet of Computer India Ltd., prepare cash flow statement.NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

Notes to Accounts

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

Additional Information:
Interest paid on Debenture Rs. 600
Answer:

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce

The document NCERT Solution (Part - 3) - Cash Flow Statement | Accountancy Class 12 - Commerce is a part of the Commerce Course Accountancy Class 12.
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FAQs on NCERT Solution (Part - 3) - Cash Flow Statement - Accountancy Class 12 - Commerce

1. What is a cash flow statement?
Ans. A cash flow statement is a financial statement that provides information about the inflow and outflow of cash in a company over a specific period of time. It shows how cash is generated and used by the company, including cash from operating activities, investing activities, and financing activities.
2. Why is a cash flow statement important?
Ans. A cash flow statement is important because it helps in assessing the financial health and stability of a company. It provides valuable insights into the company's ability to generate cash, meet its financial obligations, and invest in future growth. It also helps in identifying any potential cash flow problems and enables better financial decision-making.
3. What is the difference between cash flow statement and income statement?
Ans. The cash flow statement and income statement are two different financial statements that serve different purposes. While the income statement shows the company's revenues, expenses, and net income or loss over a specific period, the cash flow statement focuses on the cash generated and used by the company during the same period. The cash flow statement provides information about the actual cash inflows and outflows, while the income statement includes non-cash items such as depreciation and amortization.
4. How is a cash flow statement prepared?
Ans. A cash flow statement is prepared by analyzing the company's financial transactions and categorizing them into three main sections: operating activities, investing activities, and financing activities. The cash inflows and outflows in each category are then calculated, and the net cash flow for the period is determined. This information is then presented in a structured format, following the guidelines provided by accounting standards.
5. What are the limitations of a cash flow statement?
Ans. While a cash flow statement is a useful tool for financial analysis, it does have some limitations. These include the fact that it only focuses on cash transactions and does not consider non-cash items, such as changes in the value of assets or liabilities. Additionally, the cash flow statement may not capture all the relevant cash flows, especially if there are complex financial transactions or significant non-cash activities. It is important to consider these limitations when using the cash flow statement for decision-making purposes.
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