Ncert Solution For Class 12 Accountancy Chepter 6 Cash Flow Statement
NUMERICAL QUESTION
1. 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 the indirect approach.
2. From the information given below you are required to calculate the cash paid for the inventory:
| Particulars | (Rs) |
| Inventory in the beginning | 40,000 |
| Credit Purchases | 1,60,000 |
| Inventory in the end | 38,000 |
| Trade payables in the beginning | 14,000 |
| Trade payables in the end | 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 original cost Rs 2,00,000 with an accumulated depreciation of Rs 1,60,000 for Rs 60,000.
4. The following is the Profit and Loss Account of Yamuna Limited:
Statement of Profit and Loss of Yamuna Ltd,
for theYear ended March 31, 2017
| Particulars | Note No | Amount (Rs) |
| l) Revenue from operations | 10,00,000 | |
| ll) Expenses | ||
| Cost of Materials | 1 | 50,000 |
| Purchases of stock-in-trade | 5,00,000 | |
| Other Expenses | 2 | 3,00,000 |
| Total Expenses | 8,50,000 | |
| lll) Profit befor tax (l-ll) | 1,50,000 |
Additional information:
(i) Trade receivables decrease by Rs 30,000 during the year.
(ii) Prepaid expenses increase by Rs 5,000 during the year.
(iii) Trade payables increase by Rs 15,000 during the year.
(iv) Outstanding expenses payable increased by Rs 3,000 during the year.
(v) Other expenses included depreciation of Rs 25,000.
Compute net cash from operations for the year ended March 31, 2017 by the indirect method.
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:
| Particular | March 31, 2016 (Rs) | March 31, 2017 (Rs) |
| Trade Receivables | 14,000 | 15,000 |
| Provision for Doubtful Debts | 1,000 | 1,200 |
| Trade Payables | 13,000 | 15,000 |
| Inventories | 5,000 | 8,000 |
| Other Current Assets | 10,000 | 12,000 |
| Expenses payable | 1,000 | 1,500 |
| Prepaid Expenses | 2,000 | 1,000 |
| Accrued Income | 3,000 | 4,000 |
| Income received in advance | 2,000 | 1,000 |
6. 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 of Bharat Gas Ltd.
as on 31 Mar. 2016 and 31 Mar. 2017
| Particulars | Note No. | Figures as the end of 2017 (Rs) | Figures as at the end of reporting 2016 (Rs) |
| II) Assets | |||
| 1. Non-current Assets | |||
| a) Fixed assets | |||
| i) Tangible assets | 1 | 12,40,000 | 10,20,000 |
| ii) Intangible assets | 2 | 4,60,000 | 3,80,000 |
| b) Non-current investments | 3 | 3,60,000 | 2,60,000 |
Notes
1. tangible assets = Machinery
2. Intangible assets = Patents
Notes to accounts:
| Figures of current year | Figures of previous year | |
| 1. Tangible Assets | ||
| Machinery | 12,40,000 | 10,20,000 |
| 2. Intangible Assets | ||
| Goodwill | 3,00,000 | 1,00,000 |
| Patents | 1,60,000 | 2,80,000 |
| 4,60,000 | 3,80,000 | |
| 3. Non-current Investments | ||
| 10% long term investments | 1,60,000 | 60,000 |
| Investment in land | 1,00,000 | 1,00,000 |
| Shares of Amartex Ltd. | 1,00,000 | 1,00,000 |
| 3,60,000 | 2,60,000 | |
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 the year was Rs. 1,40,000.
(c) On March 31, 2016, 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, 2017.
(d) Amartax 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.
7. From the following Balance Sheet of Mohan Ltd., prepare cash flow Statement:
Balance Sheet of Mohan Ltd.,
as at 31st March 2016 and 31 March 2017
| Particulars | Note No. | March 31, 2017 (Rs) | March 31, 2016 (Rs) |
| I) Equity and Liabilities | |||
| 1. Shareholders’ Funds | |||
| a) Equity share capital | 3,00,000 | 2,00,000 | |
| b) Reserves and surplus | 2,00,000 | 1,60,000 | |
| 2. Non-current liabilities | |||
| a) Long-term borrowings | 1 | 80,000 | 1,00,000 |
| 3. Current liabilities | |||
| Trade payables | 1,20,000 | 1,40,000 | |
| Short-term provisions | 2 | 70,000 | 60,000 |
| Total | 7,70,000 | 6,60,000 | |
| II) Assets | |||
| 1. Non-current assets | |||
| Fixed assets | 3 | 5,00,000 | 3,20,000 |
| 2. Current assets | |||
| a) Inventories | 1,50,000 | 1,30,000 | |
| b) Trade receivables | 4 | 90,000 | 1,20,000 |
| c) Cash and cash equivalents | 5 | 30,000 | 90,000 |
| Total | 7,70,000 | 6,60,000 |
Notes to accounts:
| 2017 | 2016 | |
| 1. Long-term borrowings | ||
| Bank Loan | 80,000 | 1,00,000 |
| 2. Short-term provision | ||
| Proposed dividend | 70,000 | 60,000 |
| 3. Fixed assets | 6,00,000 | 4,00,000 |
| Less: Accumulated Depreciation | 1,00,000 | 80,000 |
| (Net) Fixed Assets | 5,00,000 | 3,20,000 |
| 4. Trade receivables | ||
| Debtors | 60,000 | 1,00,000 |
| Bills receivables | 30,000 | 20,000 |
| 90,000 | 1,20,000 | |
| 5. Cash and cash equivalents Bank | 30,000 | 90,000 |
Additional Information:
Machine Costing Rs. 80,000 on which accumulated depreciation was Rs. 50,000 was sold for Rs. 20,000.
8. From the following Balance Sheets of Tiger Super Steel Ltd., prepare Cash Flow Statement:
| Particulars | Note No. | March 31, 2017 (Rs) | March 31, 2016 (Rs) |
| I) Equity and Liabilities | |||
| 1. Shareholders’ Funds | |||
| a) Share capital | 1 | 1,40,000 | 1,20,000 |
| b) Reserves and surplus | 2 | 22,800 | 15,200 |
| 2. Current Liabilities | |||
| a) Trade payables | 3 | 21,200 | 14,000 |
| b) Other current liabilities | 4 | 2,400 | 3,200 |
| c) Short-term provisions | 5 | 28,400 | 22,400 |
| Total | 2,14,800 | 1,74,800 | |
| II) Assets | |||
| 1. Non-Current Assets | |||
| a) Fixed assets | |||
| i) Tangible assets | 6 | 96,400 | 76,000 |
| ii) Intangible assets | 18,800 | 24,000 | |
| b) Non-current investments | 14,000 | 4,000 | |
| 2. Current Assets | |||
| a) Inventories | 31,200 | 34,000 | |
| b) Trade receivables | 43,200 | 30,000 | |
| c) Cash and Cash Equivalents | 11,200 | 6,800 | |
| Total | 2,14,800 | 1,74,800 |
Notes to accounts:
| 2017 | 2016 | |
| 1. Share Capital | ||
| Equity share capital | 1,20,000 | 80,000 |
| 10% Preference share capital | 20,000 | 40,000 |
| 1,40,000 | 1,20,000 | |
| 2. Reserves and surplus | ||
| General reserve | 12,000 | 8,000 |
| Balance in statement of profit and loss | 10,800 | 7,200 |
| 22,800 | 15,200 | |
| 3. Trade payables | ||
| Bills payable | 21,200 | 14,000 |
| 4. Other current liabilities | ||
| Outstanding expenses | 2,400 | 3,200 |
| 5. Short-term provisions | ||
| Provision for taxation | 12,800 | 11,200 |
| Proposed dividend | 15,600 | 11,200 |
| 28,400 | 22,400 | |
| 6. Tangible assets | ||
| Land and building | 20,000 | 40,000 |
| Plant | 76,400 | 36,000 |
| 96,400 | 76,000 |
Additional Information:
Depreciation Charge on Land & Building Rs 20,000, and Plant Rs 10,000 during the year.
9. From the following information, prepare cash flow statement:
| Particulars | Note No. | 31st March 2015 (Rs) | 31st March 2014 (Rs) |
| I) Equity and Liabilities | |||
| 1. Shareholders’ Funds | |||
| a) Share capital | 7,00,000 | 5,00,000 | |
| b) Reserves and surplus | 4,70,000 | 2,50,000 | |
| 2. Non-current Liabilities | |||
| (8% Debentures) | 4,00,000 | 6,00,000 | |
| 3. Current Liabilities | |||
| a) Trade payables | 9,00,000 | 6,00,000 | |
| Total | 24,70,000 | 19,50,000 | |
| II) Assets | |||
| 1. Non-current assets | |||
| a) Fixed assets | |||
| i) Tangible | 7,00,000 | 5,00,000 | |
| ii) Intangible-Goodwill | 1,70,000 | 2,50,000 | |
| 2. Current assets | |||
| a) Inventories | 6,00,000 | 5,00,000 | |
| b) Trade Receivables | 6,00,000 | 4,00,000 | |
| c) Cash and cash equivalents | 4,00,000 | 3,00,000 | |
| Total | 24,70,000 | 19,50,000 |
Additional Information:
Depreciation Charge on Plant amount to Rs. 80,000.
10. From the following Balance Sheet of Yogeta Ltd., prepare cash flow statement:
| Particulars | Note No. | 31st March 2017 (Rs) | 31st March 2016 (Rs) |
| I) Equity and Liabilities | |||
| 1. Shareholders’ Funds | |||
| a) Share capital | 1 | 4,00,000 | 2,00,000 |
| b) Reserves and surplus-Surplus | 2,00,000 | 1,00,000 | |
| 2. Non-current Liabilities | |||
| a) Long-term borrowings | 2 | 1,50,000 | 2,20,000 |
| 3. Current Liabilities | |||
| a) Short-term borrowings | 1,00,000 | – | |
| (Bank overdraft) | |||
| b) Trade payables | 70,000 | 50,000 | |
| c) Short-term provision | 50,000 | 30,000 | |
| (Provision for taxation) | |||
| Total | 9,70,000 | 6,00,000 | |
| II) Assets | |||
| 1. Non-current assets | |||
| a) Fixed assets | |||
| i) Tangible | 7,00,000 | 4,00,000 | |
| 2. Current assets | |||
| a) Inventories | 1,70,000 | 1,00,000 | |
| b) Trade Receivables | 1,00,000 | 50,000 | |
| c) Cash and cash equivalents | – | 50,000 | |
| Total | 9,70,000 | 6,00,000 |
Notes to Accounts
| Particulars | 31st March 2017 (Rs) | 31st March 2016 (Rs) |
| 1. Share capital | ||
| a) Equity share capital | 3,00,000 | 2,00,000 |
| b) Preference share capital | 1,00,000 | – |
| 4,00,000 | 2,00,000 | |
| 2. Long term borrowings | ||
| Long-term loan | – | 2,00,000 |
| Long-term Rahul | 1,50,000 | 20,000 |
| 1,50,000 | 2,20,000 |
Additional Information:
Net Profit for the year after charging Rs. 50,000 as Depreciation was Rs. 1,50,000. Dividend paid on Share was Rs. 50,000, Tax Provision created during the year amounted to Rs. 60,000.
11. Following is the Financial Statement of Garima Ltd., prepare cash flow statement.
| Particulars | Note No. | 31st March 2017 (Rs) | 31st March 2016 (Rs) |
| I) Equity and Liabilities | |||
| 1. Shareholders’ Funds | |||
| a) Share capital | 1 | 4,40,000 | 2,80,000 |
| b) Reserve and surplus-Surplus | 2 | 40,000 | 28,000 |
| 2. Current Liabilities | |||
| a) Trade payables | 1,56,000 | 56,000 | |
| c) Short-term provisions | 12,000 | 4,000 | |
| (Provision for taxation) | |||
| Total | 6,48,000 | 3,68,000 | |
| II) Assets | |||
| 1. Non-current assets | |||
| a) Fixed assets | |||
| i) Tangible | 3,64,000 | 2,00,000 | |
| 2. Current assets | |||
| a) Inventories | 1,60,000 | 60,000 | |
| b) Trade receivables | 80,000 | 20,000 | |
| c) Cash and cash equivalents | 28,000 | 80,000 | |
| d) Other current assets | 16,000 | 8,000 | |
| Total | 6,48,000 | 3,68,000 | |
Notes to Accounts
| Particulars | 31st March 2017 (Rs) | 31st March 2016 (Rs) |
| 1. Share capital | ||
| a) Equity share capital | 3,00,000 | 2,00,000 |
| b) Preference share capital | 1,40,000 | 80,000 |
| 4,40,000 | 2,80,000 | |
| 2. Reserve and surplus | ||
| Surplus in statement of profit and loss at the beginning of the year | 28,000 | |
| Add: Profit of the year | 16,000 | |
| Less: Dividend | 4,000 | |
| Profit at the end of the year | 40,000 |
Additional Information:
1. Interest paid on Debenture Rs 600
2. Dividend paid during the year Rs 4,000
3. Depreciation charged during the year Rs 32,000
12. From the following Balance Sheet of Computer India Ltd., prepare cash flow statement.
| Particulars | Note No. | 31st March 2017 (Rs) | 31st March 2016 (Rs) |
| I) Equity and Liabilities | |||
| 1. Shareholders’ Funds | |||
| a) Share capital | 50,000 | 40,000 | |
| b) Reserves and surplus-Surplus | 1 | 3,700 | 3,000 |
| 2. Non-Current Liabilities | |||
| 10% Debentures | 6,500 | 6,000 | |
| 3. Current Liabilities | |||
| a) Short-term borrowings | 2 | 6,800 | 12,500 |
| b) Trade payables | 11,000 | 12,000 | |
| c) Short-term provisions | 3 | 10,000 | 8,000 |
| Total | 88,000 | 81,500 | |
| II) Assets | |||
| 1. Non-current assets | |||
| a) Fixed assets | 4 | 25,000 | 30,000 |
| 2. Current assets | |||
| a) Inventories | 35,000 | 30,000 | |
| b) Trade receivables | 24,000 | 20,000 | |
| c) Cash and cash equivalents-cash | 3,500 | 1,200 | |
| d) Other current assets-prepaid exp. | 500 | 300 | |
| Total | 88,000 | 81,500 |
Notes to Accounts
| Particulars | 31st March 2017 (Rs) | 31st March 2016 (Rs) | |
| 1. | Reserve and surplus | ||
| (i) Balance in statement of profit and loss | 1,200 | 1,000 | |
| (ii) General reserve | 2,500 | 2,000 | |
| 3,700 | 3,000 | ||
| 2. | Short-term borrowings | ||
| Bank Overdraft | 6,800 | 12,500 | |
| 3. | Short-term provisions | ||
| (i) Provision for taxation | 4,200 | 3,000 | |
| (ii) Proposed dividend | 5,800 | 5,000 | |
| 10,000 | 8,000 | ||
| 4. | Fixed Assets: | ||
| Fixed Assets | 40,000 | 41,000 | |
| Less: Accumulated Depreciation | (15,000) | (11,000) | |
| 25,000 | 30,000 |
Additional Information:
Interest paid on Debenture Rs. 600
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