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

Question:51

Following is the summarised Balance Sheet of Philips India Ltd. as at 31st March 2018:
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce

Additional Information:

1. Investments costing ₹ 24,000 were sold during the year for ₹ 25,5000.

2. Provistion for Tax made during the year was ₹ 27,000.

3. During the year, a part of the Fixed Assets costing ₹ 30,000 was sold for ₹ 36,000. The profits were included in the Statement of Profit and Loss.

4. The Interim Dividend paid during the year amounted to ₹ 1,20,000.

You are required to prepare Cash Flow Statement.
Solution:
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce

Question:52
From the following Balance Sheet, prepare Cash Flow Statement: 
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce

Additional Information: 

1. Proposed Dividend for the year ended 31st March, 2019 was  25,000 and for the year ended 31st March, 2018 was  14,000. 2. Interim Dividend paid during the year was  9,000. 

3. Income Tax paid during the year was  28,000. 

4. Machinery was purchased during the year  33,000. 

5. Depreciation to be charged on machinery  14,000 and building  10,000.
Solution:
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce 

Question:53
From the following Balance Sheet of Akash Ltd. as at 31st March 2014:
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce

Additional Information :  

(i) Tax paid during the year amounted to ₹ 16,000.

(ii) machine with a net book value of ₹ 10,000 (Accumulated Depreciation ₹ 40,000) was sold for ₹ 2,000.

Prepare Cash Flow Statement.
Solution:
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce

Question:54

From the following Balance Sheet of SRS Ltd. and the additional information as on 31st March, 2016, prepare a Cash Flow Statement:
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce

Additional Information:

(i) ₹50,000, 12% Debentures were issued on 31st March, 2016.

(ii) During the year, a piece of machinery costing ₹40,000, on which accumulated depreciation was ₹20,000, was sold at a loss of ₹5,000.
Solution:
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce

Question:55

From the following Balance Sheet of Mishi Ltd. as at 31st March, 2019, prepare Cash Flow Statement:
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce 
Cash Flow Statement (Part - 3) | Accountancy Class 12 - CommerceAdditional Information : 

i. During the year, Machinery costing  1,40,000 accumulated depreciation provided thereon 1, 10, 000 was sold for  20,000. 
ii. During the year, Non-current Investments costing  80,000 were sold at a profit of  16,000. 
Solution:
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce

Question:56
From the following Balance Sheet and information of Sun Ltd., prepare Cash Flow Statement: 
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce

ii A machine with a book value of  90,000 was sold for  50,000; 

iii Depreciation charged during the year  60,000; 

iv Debentures were issued on 1st April, 2018; 

v Investments were purchased on 31st March, 2019; 

vi Preference shares were redeemed on 31st December,2018; 

vii An interim dividend @ 15% was paid on equity shares on 31st December, 2018; viii Fresh equity shares were issued at a premium of 5% on 31st March, 2019.
Solution:
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce 
Question:57

From the following Balance Sheet and information of Volvo Ltd., prepare Cash Flow Statement: 
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce
Cash Flow Statement (Part - 3) | Accountancy Class 12 - CommerceCash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce
ii A machine with a book value of 20,000 was sold for 12,500; 

iii Depreciation charged during the year was 35,000; 

iv Preference shares were redeemed on 31st March, 2018 at a premium of 5%; v An Interim dividend of 5,000 was paid on equity shares on 31st March, 2019 out of General Reserve; 

vi Fresh equity shares were Issued on 31st March, 2019; and 

vii Additional Investments were purchased on 31st March, 2019.
Solution:
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce

Question:58

From the following Balance Sheet of Samta Ltd., as at 31st March, 2019, prepare Cash Flow Statement: 
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce

Additional Information :  
i During the year a piece of machinery costing  60,000 on which depreciation charged was  20,000 was sold at 50% of its book value. Depreciation provided on tangible Assets  60,000; 

ii Income tax  45,000 was provided; 

iii Additional Debentures were issued at par on 1st October, 2018 and Bank Loan was repaid on the same date; 

iv At the end of the year Preference Shares were redeemed at a premium of 5%.
Solution:
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce 

Question:59

Prepare Cash Flow Statement from the following: 

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

Question:60
From the following Balance Sheet as at 31st March, 2019 and Statement of Profit and Loss for the year ended 31st March, 2019 of RSB Ltd. and additional information, prepare Cash Flow Statement:  

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

Additional Information: 

i. Additional debentures were issued on 1st October, 2018 of 5,00,000. On the same date, part of outstanding debentures were redeemed and interest was paid, whereas interest on outstanding debentures was paid on 10th April, 2019. 

ii. Board of Directors proposed dividend in both the years @ 10%. 

iii. Interim Dividend of  1,00,000 was paid during the year. 

iv. A fixed asset with original cost of 1,00,000, on which depreciation till date was provided of  80,000 was sold at a profit of  10,000.
Solution:
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce
Cash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce
Cash Flow Statement (Part - 3) | Accountancy Class 12 - CommerceCash Flow Statement (Part - 3) | Accountancy Class 12 - Commerce 

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

1. What is a cash flow statement and why is it important?
Ans. A cash flow statement is a financial statement that shows the inflow and outflow of cash in a business over a specific period. It provides information about the company's ability to generate cash and its cash management practices. It is important because it helps in analyzing the liquidity, solvency, and overall financial health of a business.
2. What are the three main components of a cash flow statement?
Ans. The three main components of a cash flow statement are operating activities, investing activities, and financing activities. Operating activities include the cash flows from the core operations of the business, such as sales, purchase of inventory, and payment of expenses. Investing activities include the cash flows from the buying and selling of long-term assets, such as property, plant, and equipment. Financing activities include the cash flows related to the company's capital structure, such as issuing or repurchasing stocks, borrowing or repaying loans.
3. How is the cash flow statement different from the income statement?
Ans. The cash flow statement and the income statement are different in terms of their focus and the information they provide. The income statement shows the company's profitability by reporting its revenues, expenses, and net income for a specific period. On the other hand, the cash flow statement focuses on the cash flows and provides information about the sources and uses of cash during the same period. While the income statement is based on accrual accounting, the cash flow statement is based on actual cash transactions.
4. How can a positive cash flow be a sign of financial stability?
Ans. A positive cash flow indicates that a company is generating more cash inflows than cash outflows. This can be a sign of financial stability as it shows that the company has sufficient cash to meet its obligations, such as paying suppliers, employees, and creditors. It also suggests that the company is effectively managing its working capital and has the ability to invest in growth opportunities. However, it is important to analyze the components of cash flow and consider other financial metrics to assess the overall financial health of a business.
5. How can a cash flow statement help in making investment decisions?
Ans. A cash flow statement provides valuable information for making investment decisions. By analyzing the cash flows from operating activities, investors can assess the company's ability to generate cash from its core operations. Positive cash flows from operating activities indicate a healthy business model and sustainable cash generation. Additionally, the cash flows from investing activities provide insights into the company's investment in assets, which can indicate expansion or growth plans. Lastly, the cash flows from financing activities show the company's capital structure and its financing activities, which can impact its financial stability and risk profile.
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