Class 12 Accountancy

Chapter 6 Solutions — Cash Flow Statement

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Solutions

Overview

Step-by-step NCERT solutions for Cash Flow Statement (Chapter 6, CBSE Class 12 Accountancy) — every question and answer worked out in full, not just the final result. You can also read the Cash Flow Statement textbook chapter.

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What these solutions cover

All 24 questions in Cash Flow Statement are solved in the PDF. Here's what's inside, exercise by exercise:

Short & Long Answer Questions

What is a Cash flow statement?
How are the various activities classified (as per AS-3 revised) while preparing cash flow statement?
State the objectives of cash flow statement.
What are the objectives of preparing cash flow statement?
5.
State the meaning of the terms:
- (i) Cash Equivalents,
- (ii) Cash flows.
Prepare a format of cash flow from operating activities.
7.
State clearly what would constitute the operating activities for each of the following enterprises:
- (i) Hotel
- (ii) Film production house
- (iii) Financial enterprise
- (iv) Media enterprise
- (v) Steel manufacturing unit
- (vi) Software development business unit.
"The nature/type of enterprise can change altogether the category into which a particular activity may be classified." Do you agree? Illustrate your answer.
Describe the procedure to prepare Cash Flow Statement.
Describe "Indirect" method of ascertaining Cash Flow from operating activities.
Explain the major Cash Inflows and outflows from investing activities.
Explain the major Cash Inflows and outflows from financing activities.

Numerical Questions

Anand Ltd., arrived at a net income of Rs. 5,00,000 for the year ended March 31, 2017. Depreciation for the year was Rs. 2,00,000. There was a profit of Rs. 50,000 on assets sold which was transferred to Statement of Profit and Loss account. Trade Receivables increased during the year Rs. 40,000 and Trade Payables also increased by Rs. 60,000. Compute the cash flow from operating activities by…
From the information given below you are required to calculate the cash paid for the inventory: Inventory in the beginning Rs. 40,000; Credit Purchases Rs. 1,60,000; Inventory in the end Rs. 38,000; Trade payables in the beginning Rs. 14,000; Trade payables in the end Rs. 14,500.
3.
For each of the following transactions, calculate the resulting cash flow and state the nature of cash flow, viz., operating, investing and financing.
- (a) Acquired machinery for Rs. 2,50,000 paying 20% by cheque and executing a bond for the balance payable.
- (b) Paid Rs. 2,50,000 to acquire shares in Informa Tech. and received a dividend of Rs. 50,000 after acquisition.
- (c) Sold machinery of…
4.
The following is the Profit and Loss Account of Yamuna Limited: Revenue from Operations Rs. 10,00,000; Cost of Materials Consumed Rs. 50,000; Purchases of Stock-in-trade Rs. 5,00,000; Other Expenses Rs. 3,00,000; Total Expenses Rs. 8,50,000; Profit before tax Rs. 1,50,000. Additional information:
- (i) Trade receivables decrease by Rs. 30,000 during the year.
- (ii) Prepaid expenses increase by Rs…
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 and current liabilities of the business for the year ended March 31, 2016 and 2015 are as follows: Trade Receivables: 14,000 / 15,000; Provision for Doubtful Debts: 1,000 / 1,200; Trade Payables: 13,000 / 15,000…
From the following particulars of Bharat Gas Limited, calculate Cash Flows from Investing Activities. Also show the workings clearly preparing the ledger accounts. Balance Sheet as on 31 March 2016 and 2017: Tangible assets (Machinery) Rs. 10,20,000 / 12,40,000; Intangible assets (Note 2 — Goodwill + Patents) Rs. 3,80,000 / 4,60,000; Non-current investments Rs. 2,60,000 / 3,60,000. Notes…
From the following Balance Sheet of Mohan Ltd., prepare cash flow Statement. Balance Sheet as at 31st March 2016 and 2017: Equity share capital 2,00,000/3,00,000; Reserves and Surplus 2,20,000/2,70,000; Long-term borrowings (9% Bank Loan) 1,00,000/80,000; Trade payables 1,40,000/1,20,000; Fixed assets (Net) 3,20,000/5,00,000; Inventories 1,30,000/1,50,000; Trade receivables 1,20,000/90,000; Cash…
From the following Balance Sheets of Tiger Super Steel Ltd., prepare Cash Flow Statement. Balance Sheet as at 31st March 2014 and 31st March 2017: Share capital (Equity 1,20,000/80,000; 10% Preference 20,000/40,000) 1,40,000/1,20,000; Reserves and surplus (GR 12,000/8,000; P&L 26,400/18,400) 38,400/26,400; Trade payables (Bills payable) 21,200/14,000; Outstanding expenses 2,400/3,200; Provision…
From the following information, prepare cash flow statement. Balance Sheet as at 31st March 2015 and 2014: Share capital 7,00,000/5,00,000; Reserve and surplus 4,70,000/2,50,000; 8% Debentures 4,00,000/6,00,000; Trade payables 9,00,000/6,00,000; Total 24,70,000/19,50,000. Tangible fixed assets 7,00,000/5,00,000; Intangible–Goodwill 1,70,000/2,50,000; Inventories 6,00,000/5,00,000; Trade…
From the following Balance Sheet of Yogeta Ltd., prepare cash flow statement. Balance Sheet as at 31st March 2017 and 2016: Share capital (Equity 3,00,000/2,00,000; Preference 1,00,000/nil) 4,00,000/2,00,000; Reserve and surplus 2,00,000/1,00,000; Long-term borrowings (8% LT loan nil/2,00,000; 9% Rahul 1,50,000/20,000) 1,50,000/2,20,000; Bank overdraft 1,00,000/nil; Trade payables 70,000/50,000…
Following is the Balance sheet of Garima Ltd., prepare cash flow statement. Balance Sheet as at 31st March 2017 and 2016: Share capital (Equity 3,00,000/2,00,000; Preference 1,40,000/80,000) 4,40,000/2,80,000; Reserve and surplus 40,000/28,000; Trade payables 1,56,000/56,000; Provision for taxation 12,000/4,000; Total 6,48,000/3,68,000. Fixed assets Tangible 3,64,000/2,00,000; Inventories…
From the following Balance Sheet of Computer India Ltd., prepare cash flow statement. (Rs. in '000) Share capital 52,000/40,000; Reserve and surplus (P&L 7,000/6,000; GR 2,500/2,000) 9,500/8,000; 10% Debentures 6,500/6,000; Short-term borrowings (Bank OD) 6,800/12,500; Trade payables 11,000/12,000; Provision for taxation 4,200/3,000; Total 90,000/81,500. Fixed assets (Gross 42,000/41,000; Less…

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