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12th CBSE Accountancy Cash Flow Statement Model Question Paper

Published on: 20/08/2019

Cash Flow Statement

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Std: 12th Standard CBSE - Accountancy

chapter: - Model Question paper

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Questions:

Generic 6

2 x 6 = 12

Following particulars are extracted from notes to accounts to the Balance Sheets of Vijaya Ltd. as on 31-03-2011 and 31-03-2015. Prepare a Cash Flow Statement.

Particulars	31.03.2015 Rs.	31.03.2014 Rs.
I. Equity and liabilities
Share Capital	1,30,000	90,000
Surplus in Statement of Profit and Loss	29,000	18,000
General Reserve	55,000	30,000
Trade Payables	22,000	17,400
Total	2,36,000	1,55,400
II. Assets
Fixed Assets - Tangible	1,66,000	93,400
Inventories	26,000	22,000
Trade Receivables	39,000	36,000
Cash and Cash Equivalents	5,000	4,000
Total	2,36,000	1,55,

Note : Bracket denotes minus items.
Additional Information :
(i) Depreciation charged on fixed tangible assets for the year 2014-2015 was Rs. 20,000.
(ii) Income Tax Rs. 5,000 has been paid in advance during the year.

The profit of X Ltd. was Rs. 1,00,000 after considering the following items :
(a) Depreciation provided on Fixed Tangible Assets Rs. 20,000
(b) Patents written off Rs. 10,000
(c) Loss on sale of Furniture Rs. 1,000
(d) Provision for Taxation Rs. 1,60,000
(e) Transfer to General Reserve Rs. 14,000
(f) Profit on sale of Fixed Tangible Assets (Machinery) Rs. 6,000.
The following additional information is available to you:

Items	31.03.2014 Rs.	31.03.2015 Rs.
Trade Receivables	44,000	47,000
Trade payables	36,000	42,000
Prepaid Expenses	400	600

Items

31.03.2014

Rs.

31.03.2015

Rs.

Trade Receivables

44,000

47,000

Trade payables

36,000

42,000

Prepaid Expenses

400

600

Calculate cash flows from operating activities.

Generic 3

3 x 3 = 9

State one objective of cash flow statement.

Which values are reflected by a business in preparing a cash flow statement?

State the purpose of preparing a 'cash flow statement'.

1 Marks

1 x 1 = 1

Give one transaction which may result into outflow of cash and one which may result into no flow of cash.

Generic 8

3 x 8 = 24

From the following Balance Sheets of Ranjan Ltd. prepare Cash Flow Statement:

Liabilities	2001	2002	Assets	2001	2002
Equity Share Capital	1,50,000	2,00,000	Goodwill	36,000	20,000
12% Pre. Share Capita	75,000	50,000	Building	80,000	60,000
General Reserve	20,000	35,000	Plant	40,000	1,00,000
Profit and Loss A/c	15,000	24,000	Debtors	1,19,000	1,54,500
Creditors	37,500	49,500	Stock	10,000	15,000
		Cash	12,500	9,000
	2,97,500	2,58,500		2,97,500	3,58,500

Depreciation charged on plant was Rs. 10000 and building Rs.60000.

Flow the folowing balance sheet calculate cash flow from operating.

Calculate cash flow from operating activities from the following information.

Particulars	Amt(Rs.)
Net Profit (After provision for tax Rs.6,12,000)	28,12,000
Proposed Dividend	4,84,000
Above Net Profit is Determined after Following Credits and Debits
Credits
(i) Profit on Sale of Machinery	70,000
(ii) Dividend Received on Investments	60,000
Debits
(i) Depreciation	5,60,000
(ii) Loss on Sale of Investments	1,20,000
Decrease or Increase in Current Assets and Current Liabilities is as follows
Decrease in Current Assets (Other than cash and cash equivalents)	40,000
Increase in Current Liabilities	6,04,000
Increase in Current Assets (Other than cash and cash equivalents)	12,00,000
Decrease in Current Liabilities	2,56,000
Other Information
Income Tax Paid	4,72,000
Refund of Income Tax Received	12,000

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Answers Key:

Generic 6

2 x 6 = 12

Net Cash from Operation Activities Rs. 53,600; Net Cash used in Investing Activities (Rs. 92,600); Net Cash from Finacing Activities Rs. 40,000.
[Hint. Purchase of fixed tangible assets Rs. 92,600].

Operating Profit before working capital changes Rs. 2,99,000; Net Cash from Operating Activities Rs. 3,01,800.

Generic 3

3 x 3 = 9

Helpful for short planning, for preparing cash budget.

Values reflected by a business in preparing cash flow statement are:
(i) Respect for law Business shows respect for law by preparing cash flow statement.
(ii) Cash management Business works towards better cash management by preparing cash flow statement.
(iii) Proactive approach Cash flow statement helps in anticipating future cash flows in advance and thus enables proactive attitude towards possible future contingencies.

The purposes of preparing a cash flow statement are:
(i) To ascertain the specific sources (i.e. operating/investing/financing activities) from which cash and cash equivalents are generated by an enterprise.
(ii) To ascertain the specific uses (i.e operating/investing/financing activities) for which cash and cash equivalents are used by an enterprise.
(iii) To ascertain the net change in cash and cash equivalents indicating the difference between sources and uses from or by three activities between the dates of two subsequent years of balance sheets.

1 Marks

1 x 1 = 1

Outflow of cash Purchase of investments
No flow of cash Cash deposited into the bank

Generic 8

3 x 8 = 24

CASH FLOW STATEMENT
for the year ended 31st December,2002
particulars's		Rs.	Rs.
A	Cash Flow from Operating Activities

B.	Net Profit before tax:
	closing Balanced of Profit and Loss A/c
	Closing Balance of Profit and Loss A/C	24,000
	Add: Transfer to General reserve	15,000
		39,000
	Less: opening Balance Of Profit and Loss A/c	15,000
	Net Profit before tax and extradionary items
	Adjustment for:
	Add: Depreciation on Plant	10,000
	Depreciation on Building	60,000
	Goodwill written off	16,000	86,000
	Operating Profit before working capital changes		1,10,000
	Adjustment for:
	Increase in creditors	12,000
	Increase in Debtors	(35,500)
	Increase in stock	(5,000)	(28,500)
	Net Cash from operating activities (A)`		81,500
B	Cash Flow from Investing Activities
	Purchase of Plant (Note 2)	(70,000)
	Purchase of Building (Note 1)	(40,000)
	Net cash used in investing activities (B)		(1,10,000)
C.	Cash Flow from financing Activities
	Issue of Equity Shares	50,000
	Redemption of 12% Preference Shares	(25,000)
	Net Cash from financing activities (C)		25,000
	Net decrease in cash and cash
	Equivalents (A+B+C)		(3,500)
	Cash and cash equivalents at the begining of the year		12,500
	Cash and cash equivalents at the close of the year		9,000

Working Notes

Dr BUILDING ACCOUNT Cr
Pariticular	Rs.	Particulars	Rs.
To Balance b/d	80,000	By Depreciation A/c	60,000
To Bank A/c	70,000	By,Balance c/d	60,000
	1,20,000		1,20,000

Dr PLANT ACCOUNT Cr
Particular	Rs.	Particulars	Rs.
To Balance b/d	40,000	By,Depreciation A/c	10,000
To Bank A/c	70,000	By Balance c/d	1,00,000
	1,10,000		1,10,000

Particulars	Amt(Rs.)	Amt9Rs.)	Particulars	Amt(Rs.)	Amt(Rs.)
Liablities	2,007	2008	Assests	2007	2,008
Creditors	31,200	39,000	csh in hand	7,800	3,120
Bills payable	33,600	7,800	cash in hand	9,800	3,680
Income received in advance	40,000	50,000	Short term investments	15,600	10,800
outstanding salaries	20,000	20,200	Investments	62,400	46,800
10% Debentures	93,600	1,24,800	Inventory	46,800	70,200
equity share capital	80,000	80,000	Debtors	39,000	46,800
profit and loss	30,000	62,400	Bills receivable	7,800	15,600
General Reserve	16,800	31,200	Fixed assests	1,56,000	2,18,400
	3,45,200	4,15,400		3,45,200	4,15,400

solution

Particular	Amount	Amount
Net ProfitBefore Tax and Extradinary items
(profit+Transfer to general reserve)
(Rs.32,000+Rs.14,400)	46,800
Adjustments
items to be added
Interest on depentures	9,360
Operating profit before working capital chnges		56,16
Adjustments related to Current assests andlibilities
Add: Increase in Current liabilities
Income Received in advance	10,000
outstanding salaries	200	18,000
Less:Increase in Current liabilities
Bills payable	(25,800)
Net Cash From Operating Activities		9,360

Cash Flow from Operating Activities

Particulars		Amt(Rs.)
Net Profit after Tax		28,12,000
(+) Provision for Tax (Net of refund)(Rs.6,12,000-Rs.12,000)		6,00,000
Net Profit before Tax and Extraordinary Items		34,12,000
Adjustments for
(+) Depreciation	5,60,000
Loss on Sale of Investments	1,20,000
(-) Profit on Sale of Machinery	(70,000)
Dividend Received on Investments	(60,000)	5,50,000
Net Profit before Working Capital Changes		39,62,000
(+) Decrease in Current Assets	40,000
Increase in Current Liabilities	6,04,000	6,44,000
		46,06,000
(-) Increase in Current Assets	(12,00,000)
Decrease in Current Liabilities	(2,56,000)	(14,56,000)
Cash Flow from Operating Activities before Tax and Extraordinary Items		31,50,000
(-) Income Tax Paid (Net of refund) (Rs.4,72,000-Rs.12,000)		(4,60,000)
Cash Flow from Operating Activities		26,90,000