JAIN COMMERCE CLASSES

Date : 13-10-2024 STD 12 Commerce Accountancy Total Marks : 136

CASH FLOW STATEMENT

* questions of 4 marks each. [52]

1. From the following extracts of a company, calculate Cash Flow from Investing
Activities:
Particulars 31st March, 20158 ₹ 31st March, 2017 ₹
Goodwill
Patents 75,000 1,00,000
Land 1,00,000 75,000
Furniture 90,000 1,00,000

S
Plant and Machinery 2,46,000 21,000

SE
(Net) 2,00,000 2,00,000

AS
10% Investments 1,80,000 2,00,000
Accrued Interest on 6,000 ……….
CL
Investments

2. Calculate Cash Flow from Operating Activities from the following:

CE

i. Profit for the year is ₹ 7,00,000 after considering the following items:
ER

Particulars ₹
MM

Depreciation on Fixed Assets

40,000
Goodwill Amortised
20,000
Gain onSale of Land
CO

90,000
Appropriation of Profit towards
60,000
General Reserve
N

ii. Following is the position of Current Assets and Current Liabilities:

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Closing Opening
Particulars
Balance (₹) Balance (₹)
Trade Payables 50,000 75,000
Trade Receivables 75,000 60,000
Prepaid Expenses 10,000 18,000

3. From the following particulars, calculate Cash Flow from Investing Activities:
Particulars Purchased ₹ Sold ₹

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 Machinery 6,20,000 2,00,000
Investments 2,40,000 80,000
Goodwill 1,00,000 ….
Patents …… 1,50,000
Additional Information:
1. Interest received on debentures held as investment ₹ 8,000.
2. Interest paid on debentures issued ₹ 20,000.
3. Dividend received on shares held as investment ₹ 20,000.
4. Dividend paid on Equity Share Capital ₹ 30,000.
5. A plot of land was purchased out of the surplus funds for investment
purposes and was let out for commercial use. Rent received ₹ 50,000
during the year.

S
4. Compute Cash Flow from Operating Activities from the following information:

SE
Particulars ₹

AS
Net Profit after Provision for Tax nd
2,15,000
Payment of Dividend
CL
45,000
Provision for Tax
50,000
Final Dividend paid during the year
CE

25,000
Depreciation
10,000
ER

Loss on Sale of Machinery

30,000
Patents Amortised
MM

70,000
Gain on Sale of Land
30,000
Income Tax Refund
CO

5. From the following information, calculate Cash Flow from Investing Activities:
₹ ₹
N

Purchase of Purchase of
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Machine 2,50,000 Investments

1,50,000
Purchase of 1,00,000 Sale of Patents
40,000
Goodwill 35,000 Interest and
10,000
Sale of Machine 50,000 Dividend Received
Sale of Investment
A building was purchased as investment out of surplus which was let out for
commercial purposes. Rent received ₹ 20,000.
6. What is Cash Flow Statement? Discuss its main uses and limitations.

7. From the following information, calculate Cash Flow from Investing Activities:
Particulars 31st March, 2018 ₹ 31st March, 2017 ₹

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 Investment in 10%
10,00,000 5,00,000
Debentures
15,00,000 9,00,000
Land and Building
Additional Information:
1. Half of the investments held in the beginning of the year were sold at
10% profit.
2. Depreciation on Land and Building was ₹ 50,000 for the year.
3. Interest received on investments ₹ 75,000.
8. From the following extracts of Balance Sheets of Exe Ltd., calculate Cash Flow
from Financing Activities:

S
SE
AS
CL
CE
ER

Additional information:
1. Equity Shares were issued on 31st March, 2018.
MM

2. Interim dividend on Equity Shares was paid @ 15%.

3. Preference Shares were redeemed on 31st March, 2018 at a
CO

premium of 5%. Premium paid was debited to Statement of Profit and

Loss.
N

4. 12% Debentures of face value ₹ 1,00,000 were issued on 31st March,

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2018.
9. From the following information, calculate Cash Flow from Investing Activities:
Particulars Closing ₹ Opening ₹
Machinery (At Cost)
10,00,000 9,50,000
Accumulated
1,50,000 1,10,000
Depreciation
2,00,000 3,00,000
Patents
Additional Information:
i. During the year, machine costing ₹ 90,000 with accumulated
depreciation of ₹ 60,000 was sold for ₹ 50,000.

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 ii. Patents written off were ₹ 50,000 while a part of patents were sold at
a profit of ₹ 40,000.
10. From the following information, calculate Cash Flow from Investing Activities:
Particulars 31st March, 2018 ₹ 31st March, 2017 ₹
Plant and Machinery 10,00,000 8,50,000
Investment (Long-term) 1,00,000 40,000
Land (At cost) 1,00,000 2,00,000
Additional Information:
1. Depreciation charged on Plant and Machinery ₹ 50,000.
2. Plant and Machinery with a Book Value of ₹ 60,000 was sold for ₹
40,000.
3. Land was sold at a profit of ₹ 60,000.

S
4. No investment was sold during the year.

SE
11. From the following information, calculate Cash Flow from Investing Activities:

AS
Particulars 31st March, 2018 ₹
CL 31st March, 2017 ₹
Machinery (At cost) 5,50,000 5,00,000
Accumulated Depreciatio
1,70,000 1,00,000
CE

n
During the year, a machinery costing ₹ 50,000 (accumulated depreciation₹
ER

20,000) was sold for ₹ 26,000.

MM
CO
N
JA I

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12. Compute Cash Flow from Operating Activities from the following:

S
SE
AS
CL
CE
ER
MM

Additional information: during the year, apart of machinery ₹ 50,000

(accumulated depreciation thereon ₹ 40,000) was sold for ₹ 5,000.
13. Grand Hospitality Ltd., reported Net Profit after Tax of ₹ 6,40,000 for the year
CO

ended 31st March,2018. The relevant extract from Balance Sheet as at 31st
March, 2018 is:
N

31st March, 2018 31st March,

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Particulars
₹ 2017 ₹
Inventories 1,15,000 1,25,000
Trade Receivables 1,50,000 1,10,000
Prepaid Expenses 20,000 6,000
Trade Payables 1,10,000 80,000
Provision for Tax 20,000 15,000
Depreciation charged on Plant and Machinery ₹ 55,000, insurance claim
received 50,000, gain (profit) on sale of investment ₹ 20,000 appeared in the
Statement of Profit and Loss for the year ended 31 st March, 2018. Calculate
Cash Flow from Operating Activities

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 [84]
* questions of 6 marks each.

14. The following are the summarised Balance Sheets of X Ltd. as at 31st March,
2018 and 2017:

S
SE
AS
CL
CE
ER
MM
CO
N
JA I

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 Notes:

S
SE
Additional Information:
AS
CL
1
Contingent Liability 31.3.2018 31.3.2017
.
CE

₹ ₹
ER

Proposed Dividend 30,000 25,000

2
MM

Provision for tax made ₹ 30,000.

.
3Additional debentures amounting to ₹ 5,000 were issued on 1st Oct. 2017.
CO

. Interest on debentures has been paid up-to date.

You are_required to prepare a statement of Cash-Flow.
N

15. From the following Balance Sheets of XLtd., you are required to prepare Cash
JA I

Flow Statement.

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 S
SE
AS
CL
CE
ER
MM
CO

Notes:
1. Short-term Borrowings: 31.3.2018 31.3.2017
Bank Overdraft 88,000 66,000
N

2. Short-term Provision
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Taxation Provision 34,000 26,000

3 Tangible Assets:
Land 1,50,000 2,00,000
Plant 2,25,000 3,00,000
3,75,000 5,00,000
Additional Information:
1. Interim Dividend paid during the year ₹ 60,000
2. Land was sold at a profit of ₹ 30,000
3. Plant costing ₹ 20,000 was sold during the year at a loss of ₹ 8,000.
16. From the following Balance Sheet and information of XYZ Ltd., prepare Cash
Flow Statement:

Page 8
 S
SE
AS
CL
CE
ER
MM
CO

Notes
N

to accounts:
JA I

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 S
SE
AS
CL
CE
ER
MM
CO

You
are informed that during the year:
i.
N

31st March,
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Proposed Dividend: 31st March, 2018

2017
Equity Share Capital Nil Nil
Preference Share Capital 10% 10%
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, 2017.
v. Investments were purchased on 31st March, 2018
vi. Preference shares were redeemed on 31st December, 2017
vii. An interim dividend @ 15% was paid on equity shares on 31st
December, 2017.

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 viii. Fresh equity shares were issued at a premium of 5% on 31st March,
2018
17. From the following Balance Sheets of Samta Ltd. as at 31.3.2018 and
31.3.2017 prepare a Cash Flow Statement:

S
SE
AS
CL
CE
ER

Additional Information:
1
MM

Contingent Liability: 31.3.2018 31.3.2017

.
₹ ₹
CO

Proposed Dividend 2,00,000 1,00,000

2
During the year ₹ 80,000 depreciation was charged on fixed tangible assets.
N

.
JA I

3A piece of machinery included in fixed tangible assets costing ₹ 20,000 on

. which depreciation charged was ₹ 8,000, was sold fort ₹ 10,000.

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18. Following are the Balance Sheets of Quick Gains Ltd.

S
SE
AS
CL
CE
ER
MM
CO
N

Notes:
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Additional Information:

Page 12
 1 31st March,
Contingent Liability 31st March, 2018
. 2017
₹ ₹
Proposed Dividend 28,000 20,000
2 Interest paid on long-term borrowings amounted to ₹
. 8,000.
You are required to prepare a Cash-Flow Statement.
19. Following are the Balance Sheet of XY Ltd. as at 31st March, 2018 and 2017:

S
SE
AS
CL
CE
ER
MM
CO
N
JA I

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 Notes:

S
SE
Additional Information:
Contingent Liability: 31.3.2018 31.3.2017

AS ₹ ₹
CL
Proposed Dividend 20,200 11,200
You are required to prepare a Cash Flow Statement
CE

20. From the following Balance Sheet and information of Volvo Ltd., prepare Cash
ER

Flow Statement:
MM
CO
N
JA I
to
JA I
N
CO
MM
ER
CE
CL
AS
SE
S

Notes
Accounts:
 S
SE
AS
CL
CE
ER
MM
CO
N
JA I

Additional Information:
i. You are informed that during the year.
31st March,
Proposed Dividend: 31st March, 2017
2018
Equity Share Capital Nil Nil
Preference Share Capital 12% 12%
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, 2018 out of General Reserve.
vi. Fresh equity shares were issued on 31st March, 2018;
vii. Additional investments were purchased on 31st March, 2018.
21. The Balance Sheets of X Ltd. as at 31st March 2018 and 31st March 2017
were as follows:

S
SE
AS
CL
CE
ER
MM
CO
N
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Notes:

Additional Information:
 1
Contingent Liability: 31.3.2018 31.3.2017
.
₹ ₹
Proposed Dividend 72,000 60,000
2 Depreciation charged during the year on Plant & Machinery amounted to ₹
. 80,000.
3 Machinery costing ₹ 80,000 (book value ₹ 30,000) was sold at a loss of 40%
. on book value.
Prepare Cash Flow Statement .
22. The following are the summarised Balance Sheets of X Ltd. as at 31st March,
2018 and 2017:

S
SE
AS
CL
CE
ER
MM
CO
N
JA I
 Notes:

S
SE
Additional Information:
AS
CL
1
Contingent Liability 31.3.2018 31.3.2017
.
CE

₹ ₹
ER

Proposed Dividend 30,000 25,000

2
MM

Provision for tax made ₹ 30,000.

.
3Additional debentures amounting to ₹ 5,000 were issued on 1st Oct. 2017.
CO

. Interest on debentures has been paid up-to date.

You are_required to prepare a statement of Cash-Flow.
N

23. From the following Balance Sheets of Tarun Fashions Ltd., prepare a Cash-
JA I

Flow Statement:
 Notes:
JA I
N
CO
MM
ER
CE
CL
AS
SE
S
 S
SE
Additional Information:
AS
CL
1.Contingent Liability: 31.3.2018 31.3.2017
₹ ₹
CE

Proposed Dividend 15,000 12,000

ER

2.Depreciation of ₹ 10,000 was provided on Plant & Machinery

3.Gain on sale of a part of Building ₹ 25,000
MM

4.Debentures were redeemed on 1st April, 2017

5.Provision for Tax made during the year ₹ 50,000
CO

24. From the following Balance Sheets of XLtd., you are required to prepare Cash
Flow Statement.
N
JA I
 S
SE
AS
CL
CE
ER
MM
CO

Notes:
1. Short-term Borrowings: 31.3.2018 31.3.2017
Bank Overdraft 88,000 66,000
N

2. Short-term Provision
JA I

Taxation Provision 34,000 26,000

3 Tangible Assets:
Land 1,50,000 2,00,000
Plant 2,25,000 3,00,000
3,75,000 5,00,000
Additional Information:
1. Interim Dividend paid during the year ₹ 60,000
2. Land was sold at a profit of ₹ 30,000
3. Plant costing ₹ 20,000 was sold during the year at a loss of ₹ 8,000.
25. From the following Balance Sheets of Samta Ltd. as at 31.3.2018 and
31.3.2017 prepare a Cash Flow Statement:
 S
SE
Additional Information:
AS
CL
1
Contingent Liability: 31.3.2018 31.3.2017
.
CE

₹ ₹
Proposed Dividend 2,00,000 1,00,000
ER

2
During the year ₹ 80,000 depreciation was charged on fixed tangible assets.
MM

.
3A piece of machinery included in fixed tangible assets costing ₹ 20,000 on
CO

. which depreciation charged was ₹ 8,000, was sold fort ₹ 10,000.

26. From the following Balance Sheet and information of XYZ Ltd., prepare Cash
N

Flow Statement:
JA I
 to
JA I
N
CO
MM
ER
CE
CL
AS
SE
S

Notes
accounts:
 S
SE
AS
CL
CE
ER
MM
CO

You
are informed that during the year:
i.
N

31st March,
JA I

Proposed Dividend: 31st March, 2018

2017
Equity Share Capital Nil Nil
Preference Share Capital 10% 10%
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, 2017.
v. Investments were purchased on 31st March, 2018
vi. Preference shares were redeemed on 31st December, 2017
vii. An interim dividend @ 15% was paid on equity shares on 31st
December, 2017.
 viii. Fresh equity shares were issued at a premium of 5% on 31st March,
2018
27. From the following Balance Sheet and information of Volvo Ltd., prepare Cash
Flow Statement:

S
SE
AS
CL
CE
ER
MM
CO
N
JA I

Notes
to Accounts:

S
SE
AS
CL
CE
ER
MM
CO
N
JA I

Additional Information:
i. You are informed that during the year.
31st March,
Proposed Dividend: 31st March, 2017
2018
Equity Share Capital Nil Nil
Preference Share Capital 12% 12%
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, 2018 out of General Reserve.
vi. Fresh equity shares were issued on 31st March, 2018;
vii. Additional investments were purchased on 31st March, 2018.
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S
SE
AS
CL
CE
ER
MM
CO
N
JA I