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Sample Questions - Cash Flow Statement | Crash Course of Accountancy - Class 12 - Commerce PDF Download

                                                    Cash Flow Statement

Time – 50 mins

M.M. - 30

Q1. The Goodwill of X ltd. increased from 2, 00,000 in 2013-14 to 3, 50,000 in 2014-15. What will be its treatment while preparing Cash Flow Statement for the year ended 31st March 2015? (1 mark)

Q2. Kartik Mutuals, a mutual fund company, provides you the following information: 31st March 2013 31st March 2014 Proposed Dividend 20,000 15,000 Additional Information: Equity Share Capital raised during the year 3,00,000 10% bank loan repaid was 1,00,000 Dividend received during the year was 20,000 Find out the cash flow from financing activities. (1 mark)

Q3. Prepare Cash Flow Statement from the following Balance sheets and Additional information:

Particulars

31/03/2013

31/03/2012

Equity and Liabilities

Shareholders Fund

Share Capital

Reserves and Surplus

Non Current Liabilities

10% Debentures

Current Liabilities

Trade payables

6.30.000

3.08.000

1,00,000

1.80.000

5.60.000

1.82.000

1.50.000

32.000

Total

12,18,000

9,24,000

Assets

Non Current Assets

Fixed Assets :

Plant

Current Assets

Inventories

Trade Receivables

Cash And Cash Equivalents

3.92.000

98.000

6.30.000

98.000

2,80,000

1.40.000

4.20.000

84.000

Total

12,18,000

9,24,000

Additional Information:

(i) An old machinery having book value of Rs. 72,000(accumulated depreciation was Rs. 30,000) was sold for Rs. 56,000.
(ii) Depreciation provided on machinery during the year was Rs. 28,000. (6 mark)

Q4. Calculate cash flow from financing activities:
Equity and liabilities                                                              2012             2011
10% debentures                                                                       20,0000       40,0000
Equity shares                                                                           60,0000       10,0000
15% preference shares                                                            50,0000       10,0000
Public deposits                                                                         12,0000        15,0000
Proposed dividends                                                                  15,000          25,000
Additional info:
a. Debentures were redeemed at a premium of 10%.
b. Additional preference shares were issued on 1stjuly 2011 at premium of 10%.
c. Provide dividends on preference shares up to date.
d. Shares were issued at a premium of 10% and under writing commission paid was Rs. 10000.
e. Dividend on equity shares made during the year was Rs. 40000. (6 mark)

Q5. Calculate cash flow from investing activities clearly preparing the ledger accounts:
Assets                                                                          2010                             2011

Goodwill                                                                     1,00,000                      3,00,000

Patents                                                                        2,80,000                     1,60,000

Machinery                                                                  10,20,000                    12,40,000
10% Long-term investment                                     60,000                         1,60,000
Investment in land                                                    1,00,000                      1,00,000
Shares in Fufu ltd. 1,00,000 1,00,000 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 theyear was Rs. 1,40,000.
(c) On March 31, 2007, 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, 2011.
(d) Fufu 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. (8 mark)

Q6. Prepare a Cash Flow Statement from the following Balance Sheet of Shuchi Diamonds Ltd:
Balance Sheet of Shuchi Diamonds Ltd. as at 31st March, 2014

Particular

Note

31 st

31st



2014(Rs.)

2013 (Rs.

I. Equity and Liabilities

1. Shareholders' Funds




(a) Share Capital


40,00,000

34,00,000

(b) Reserves and Surplus

2. Non-Current Liabilities

1

6,00,000

8,00,000

Long-term Borrowings

2

4,00,000

2,00,000

3. Current Liabilities




(a) Trade Payables


1,00,000

2,00,000

(b) Other Current Liabilities

3

1,00,000

80,000

Total


52,00,000

46,80,000

I. ASSET

1S. Non-Current Assets




(a) Fixed Assets




(i) Tangible Assets

4

16,00,000

18.00,000

(i i) Intangible Assets


12,00,000

10,00,000

(b) Non-current Investments


6,00,000

5,00,000

2. Current Assets




(a) Inventories


2,00,000


(b) Trade Receivables


6,00,000

5,00,000

(c) Cash and Cash Equivalents


10,00,000

8,80,000

Total


52,00,000

46,80,000

Notes to accounts

Particulars


31st

31st



2014 ('f)

2013{Rs.)

1. Reserves and Surplus




Surplus, i.e., Balance in Statement of Profit and Loss


6,00,000

8,00,000

2. Long-term Borrowings




9% Debentures


4,00,000

2,00,000

3. Other Current Liabilities




Outstanding Expenses


1,00,000

80,000

4. tangible Assets



18,00,000

Machinery


16,00,00

0


Additional Information:
• tax paid during the year was Rs. 40,000. • A Machine costing Rs. 50,000 (depreciation provided thereon Rs. 30,000) was sold for Rs. 10,000 during the year. (8 mark)

The document Sample Questions - Cash Flow Statement | Crash Course of Accountancy - Class 12 - Commerce is a part of the Commerce Course Crash Course of Accountancy - Class 12.
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FAQs on Sample Questions - Cash Flow Statement - Crash Course of 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 cash inflows and outflows of a company during a specific period. It shows how cash is generated and used by the company, including 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 assess a company's ability to generate cash, its liquidity position, and its overall financial health. It provides insights into the company's cash inflows and outflows, allowing investors, creditors, and other stakeholders to evaluate its ability to meet financial obligations, undertake new investments, and generate sustainable cash flows.
3. How is a cash flow statement prepared?
Ans. A cash flow statement is prepared using the indirect method or the direct method. In the indirect method, the net income of the company is adjusted for non-cash expenses and changes in working capital to arrive at the net cash provided by operating activities. In the direct method, all cash receipts and cash payments are directly reported, including cash received from customers, cash paid to suppliers, and cash paid for operating expenses.
4. What are the three main sections of a cash flow statement?
Ans. The three main sections of a cash flow statement are operating activities, investing activities, and financing activities. The operating activities section includes cash flows from the company's core business operations, such as cash received from customers and cash paid to suppliers. The investing activities section includes cash flows from buying or selling long-term assets, such as property, plant, and equipment. The financing activities section includes cash flows from raising or repaying capital, such as issuing or repurchasing stocks or bonds.
5. How can a negative cash flow affect a company?
Ans. A negative cash flow can affect a company in several ways. It may indicate that the company is not generating enough cash to cover its expenses and meet its financial obligations. This can lead to liquidity problems and an inability to pay suppliers, employees, or creditors. It may also restrict the company's ability to invest in growth opportunities or undertake necessary capital expenditures. In extreme cases, continuous negative cash flow can result in financial distress or bankruptcy.
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