Ans. 29.State with reason whether ‘withdrawal of cash from bank’ will result into, inflow,outflow or no flow Of cash. (i) Building purchased. 21.While preparing cash flow statement which type of activity is, ‘payment of cash to acquire debenture by an investment company’? Cash flow statement is a statement showing the changes in financial position of a business concern during different intervals of time in terms of cash and cash equivalents. It is simply a movement between two components of financing activities. It is simply a movement between two components of cash and cash equivalents. Additional Information: Depreciation for the year was ₹75,000. (ii)A piece of machinery included in fixed assets costing Rs 20,000 on which depreciation charged was Rs 8,000, was sold for Rs 10,000. Interim Dividend paid during the year was ₹ 9,000. 26.List any two financing activities that will result into outflow of cash. Patents written off were ₹ 50,000 while a part of patents were sold at a profit of ₹ 40,000. Depreciation provided on tangible Assets ₹ 60,000; (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%. 34.Give one difference between an operating activity and a financing activity. (All India 2013) 52.Following is the balance sheet of Wisben Ltd as on 31st March, 2012 The Interim Dividend paid during the year amounted to ₹ 1,20,000.You are required to prepare Cash Flow Statement. (ii)Based on secondary data. 16.State with reason whether ‘old furniture written-off’ would result into inflow/outflow or no flow of cash. Additional Information:1. 6.What is meant by cash equivalents? 35.Give any two transactions which result into ‘inflow of cash’. 46.State whether ‘the payment of cash to creditors’ will result into inflow, outflow or no flow Of cash. Question 2. During the year, machine costing ₹ 90,000 with accumulated depreciation of ₹ 60,000 was sold for ₹        50,000.2. Cash inflow, because cash comes in due to interest received on debentures. If the answer is not available please wait for a while and a community member will probably answer this soon. Interest received on debentures held as investment ₹ 8,000.2. 2. 1.Cash Flow Statement Cash flow statement is a statement showing the changes in financial position of a business concern during different intervals of time in terms of cash and cash equivalents. (All India 2014) (ii) Cash proceeds form sale of investments. At the time of preparing cash flow statement, ‘cash receipts from sale of goods by a trading company’ will come under operating activity because sale of goods is the main revenue producing activity for a trading company. Solution: Question 12. DK Goel Solutions Class 12 is considered to be the most helpful study tool for the students pursuing their class 12. Calculate Cash Flow from Operating Activities from the following details: Compute Cash Flow from Operating Activities from the following information: Calculate Cash Flow from Operating Activities from the following:(i) Profit form the year is ₹ 7,00,000 after considering the following items: (ii) Following is the position of Current Assets and Current Liabiliites. Dividend received is considered as an operating activity when company is a financing or investing company. 67.From the following balance sheet of EF Ltd as on 31st March, 2006 and 31st March, 2007, prepare the cash flow statement Proposed Dividend for the year ended 31st March, 2019 was ₹ 25,000 and for the year ended 31st March, 2018 was ₹ 14,000. From the following Balance Sheet of Akash Ltd. as at 31st March 2014: Surplus,i.e.,Balance in Statement of Profit and Loss. Tax ₹ 70,000 was paid during the year.Prepare Cash Flow Statement. NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12. From the following information, calculate Cash Flow from Investing Activities: A building was purchased as investment out of surplus which was let out for commercial purposes.Rent Received ₹20,000. (All India 2008) It is classified under ‘financing activity’. Preference Shares were redeemed on 31st March, 2019 at a premium of 5%. All the solutions of Cash Flow Statements - Accountancy explained in detail by experts to help students prepare for their CBSE exams. Interim dividend on Equity Shares was paid @ 15%.3. Cash Equivalents Cash equivalents are ‘short-term highly liquid investments that are  readily convertible into known amount of cash and which are subjected to an insignificant risk of change in value’. Ans. We hope the TS Grewal Accountancy Class 12 Solutions Chapter 7 Company Accounts Financial Statements of Not-for-Profit Organisations help you. (Delhi 2012) There chapter wise Practice Questions with complete solutions are available for download in myCBSEguide website and mobile app. 4.Limitations of Cash Flow Statement Supplies (on Hand) is a current asset account.A decrease in any asset account balance (other than Cash) is assumed to be a source of Cash, provided Cash, increased Cash, or have used less Cash than the amount of Supplies Expense shown on the income statement. For an Insurance Company (d). (c) Purchase of machinery for cash. From the following information, calculate Cash Flow from Investing Activities. Ans. Ans. Here is a compilation of top three accounting problems on cash flow statement with its relevant solutions. 57.From the following balance sheet of Vijaya Ltd as at 31st March, 2009 and 2010. Ans. Ans. 12.Under which type of activity will you classify ‘refund of income tax received’ while preparing the cash flow statement? ‘Dividend paid by a manufacturing company’ is classified as a financing activity. Ans. 12% Debentures of face value ₹ 1,00,000 were issued on 31st March, 2019. (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. Additional Information (i) Cash flow from operating activities. Dividend received by a finance company is an operating activity. Note: Proposed dividends on equity for the years ended 31st March, 2018 and 2019 are ₹ 39,000 and ₹ 45,000 respectively. (i) Cash proceeds from sale of investments. (Delhi 2010) 2. During the year, a machinery costing ₹ 50,000 (accumulated depreciation provided thereon ₹ 20,000) was sold for ₹ 26,000. Prepare the cash flow statement. Ans. (v)Cash received for interest and dividends (vi) Cash paid for interest Two investing activities which result into outflow of cash are: Prepare a Cash Flow Statement after taking into account the following adjustments: (a) The company paid Interest ₹36,000 on its long-term borrowings. ‘Cash flow’ implies inflow and outflow of cash and cash equivalents. There will be no flow of cash because depreciation on furniture is a non-cash expense. (i)Income tax paid during the year Rs 4,500. Income Tax paid during the year was ₹ 28,000.4. Ans. (All India2010) (All India 2010) (All India 2011; Modified) Debenture Interest paid during the year ₹ 27,000. Separate disclosure of cash flows arising from financing activities is important because it is useful in predicting claims on future cash flows by providers of funds (both capital and borrowings) to the enterprise. 5. Ans. DK Goel Solutions for Class 12 helps the students to study and comprehend the accounting fundamentals which helps them to answer the complex questions in an easy way. Income Tax paid during the year was ₹ 28,000. Updated November 20, 2019 The cash flow statement is one of the three financial statements a business owner uses in cash flow analysis. Also after the chapter you can get links to Class 12 Accountancy Notes, NCERT Solutions, Important Question, Practice Papers etc. Depreciation charged on Plant and Machinery ₹ 50,000.2. Businesses rely on the statement of cash flows to determine their financial strength. (All India 2013) From the following Balance Sheet of Samta Ltd., as at 31st March, 2019, prepare Cash Flow Statement: 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. Why should the students consider learning from TS Grewal Solutions Class 12? During a year, a machinery costing ₹ 20,000 was sold for ₹ 6,000. It shows net income of the firm. Investments costing ₹ 24,000 were sold during the year for ₹ 25,5000.2. are solved by group of students and teacher of Class 12, which is also the largest student community of Class 12. (iv) Preference shares were redeemed at par at the end of the year. Loss on sale of equipment amounted to Rs 12,000. 32.Under which type of activity will you classify ‘proceeds from sale of machinery’ while preparing cash flow statement? (All India 2008) Ans. 4.State the purpose or objective of preparing a cash flow statement. From the following information, calculation Cash Flow from Operating Activities and Investing Activities: Additional Information:1. TS Grewal solutions for Class 12 Accountancy - Analysis of Financial Statements chapter 4 (Cash Flow Statement) include all questions with solution and detail explanation. (All India 2011; Delhi 2008) 43.’Cash receipts from sale of goods by a trading company’ will come under which activity while preparing cash flow statement? 54.From the following balance sheet of JN Ltd as on 31st March, 2010 and 2011, prepare a cash flow statement. Ans. Solution: Question 13. Provistion for Tax made during the year was ₹ 27,000.3. 24.List any two investing activities which result into outflow of cash. (a). Additional Information:1. Public applied for 4,50,000 shares and allotment was made to […] (iv)Assists in preparation of cash budget. The relevant extract from Balance Sheet as at 31st March, 2019 is: 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 31st March, 2019. Additional Information :  (i) You are informed during the year: (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. Ans. Ans. Interest received on investments ₹ 75,000. ‘Cash from operating activities’ are the principal revenue producing activities of the enterprise and other activities that are not investing or financing activities. Machinery was purchased during the year ₹ 33,000.5. A business earned an average profit of 8,00,000 during the last few years. (Delhi; All India 2009) 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. Cash equivalents mean short-term highly liquid investments that are readily convertible into known amount of cash and which are subjected to an insignificant risk of change in value. (b) Depreciation charged on tangible fixed assets was ₹1,20,000, From the following Balance Sheet of JY Ltd. as at 31st March 2017, prepare a Cash Flow Statement:BALANCE SHEET as at 31st March, 2017. NCERT Solutions for Class 12 Accountancy Part II Chapter 6 Cash Flow Statement. Not only do these DK Goel (2019) Solutions for Class 12 Accountancy strengthen students’ foundation in the subject, but also give them the ability to tackle different types of questions easily. (v)Cash flow statement is not a substitute for income statement. 7.State the meaning of cash flow statement. Calculate Net Profit before Tax and Extraordinary Items of Premier Sales Ltd. from its Balance Sheet as at 31st March, 2019: (b) Reserves and Surplus(Surplus, i.e.,Balance in Statement of Profit and Loss). This will clear students doubts about any question and improve application skills while preparing for board exams. (Delhi 2008; Modified) Additional Information :(i) During the year, Machinery costing ₹ 1,40,000 (accumulated depreciation provided thereon ₹ 1,10,000) was sold for ₹ 20,000. (i) Cash proceeds from sale of building. Additional Information:(i) Proposed Dividend for the years ended 31st March 2018 and 2019 are ₹ 50,000 and ₹ 75,000 respectively. Land was sold at a profit of ₹ 60,000.4. On the same date, part of outstanding debentures were redeemed and interest was paid, whereas interest on outstanding debentures was paid on 10th April, 2019.2. 56.From the following information prepare a ‘cash flow statement’ for Ronak Ltd. Balance sheet of Ronak Ltd as at 31st March, 2011 and 2012. (iv)No adherence of basic accounting principles. So, cash flow statement can’t be taken as substitute for income statement. Solution: Question 5. Ans. Depreciation on machinery charged during the year amounted to ₹ 6,000. (Compartment 2014) Ans. From the following Balance Sheet of JY Ltd. as at 31st March 2017, prepare a Cash Flow Statement: Proposed Dividend for the years ended 31st March, 2016 and 2017 are ₹ 50,000 and ₹ 75,000 respectively. State which of the following would result in inflow/outflow or no flow of Cash and Cash Equivalents:(a) Sale of Fixed Assets, Book Value ₹ 1,00,000 at a profit of ₹10,000. Prepare a cash flow statement (i)Debentures were issued on 1st April, 2011. Non-cash transactions are ignored while preparing a cash flow statement because cash flow statement shows flow of cash and cash equivalents during a given period. 47.’Dividend paid by a manufacturing company’ is classified under which kind of activity while preparing a cash flow statement? Investing activity. Equity Shares were issued on 31st March, 2019.2. (i)Income tax paid during the year Rs 3,500. Additional Information Investments costing ₹ 24,000 were sold during the year for ₹ 25,5000. Scroll down for Cash Flow Statement from NCERT Book Class 12 Accountancy Book & … (All India 2009; Modified) DK Goel Solutions for Class 12 Accountancy Vol 2 Chapter 6 Cash Flow Statement (As per AS - 3 Revised), covers all the questions provided in DK Goel Books for 12th Class Accountancy Subject. (ii) Interim Dividend paid during the year was ₹ 10,000. You are required to prepare Cash Flow Statement. A piece of land was purchased as an investment out of surplus. Ans. Following are the Balance Sheets of Solar Power Ltd. as at 31st March, 2014 and 2013: Additional Iformation:Druing the year, a piece of machinery costing ₹ 48,000 on which accumulated deprciation was ₹ 32,000. was sold for ₹ 12,000. (i) An old machinery having book value of ₹50,000 was sold for ₹60,000. Investing activity. The Interim Dividend paid during the year amounted to ₹ 1,20,000. (i)During the year ? (Delhi 2014,2012,2011C; All India 2014,2012) ‘Deposit of cash into bank’ does not result in cash flow. Cash, as the term is used for the statement of cash flows, could indicate either cash or cash equivalents. Why is a cash flow statement prepared? 2. Dividend paid during the year ₹ 50,000. (d) Loans given. (ii)During the year a machine included in fixed assets costing Rs 1,20,000 was purchased and another machine of the book value of Rs 30,000 was sold at a loss of Rs 2,000. Ans. (g) Payment of Interim Dividend. No flow of cash as final dividend is only declared, not yet paid. (c) Sold machinery of original cost of ₹2,00,000 with an accumulated depreciation of ₹1,60,000 for ₹60,000. During the year, Rs 1,40,000 depreciation was charged on fixed assets. Additional Information Ans. Premium paid was debited to Statement of Profit and Loss.4. Ans. 62.From the following balance sheet of Sewak Ltd as on 31st March, 2008 and 2009, Prepare cash flow statement. Using TS Grewal Class 12 solutions Cash Flow Statement exercise by students are an easy way to prepare for the exams, as they involve solutions arranged chapter-wise also page wise. Additional Information:1. (vii) Additional Investments were purchased on 31st March, 2019. Operating activity. Cash flow from investing activities are exhibited as follows: 8.Cash Flow from Financing Activities Financing activities are the activities which result in change in the size and composition of the owner’s capital (including preference share capital) and borrowings (including debentures) of the enterprise from other sources. There will be no flow of cash because depreciation is a non-cash expense. Ans. 44.Dividend received by a finance company will come under which activity while preparing a cash flow statement? The questions involved in TS Grewal Solutions are important questions that can be asked in the final exam. In the beginning of the year, a part of plant was sold for ₹45,000 which had a written down value of ₹30,000.Calculate Cash Flow from Investing Activities, From the following details. 33.Interest received on debentures would result into inflow, outflow or no flow of cash. ____2. (e) Issued fully paid Bonus Shares. (Delhi 2013) 15.Under which type of activity will you classify ‘interest paid on long-term borrowings’ while preparing cash flow statement? Ans. (ii)Cash flow from investing activities. TS Grewal Solutions for Class 11 Accountancy Chapter 20 – Financial Statements of Not-for-Profit Organisations Question 1. (ii)Dividend paid during the year was @12% per annum. Additional Information:1. Ans. the fourth general-purpose financial statement and summarizes how changes in balance sheet accounts affect the cash account during the accounting period ‘Interest paid by an investment company’ is classified as an operating activity. (ii) Depreciation provided on Machinery during the year was ₹30,000. DO IT YOUR SELF I. Additional Information:1. CBSE Class 12 Accountancy Cash Flow Statement Set A. (ii) Current Assets and Current Liabilities of the business for the year ended 31st March, 2018 and 2019 are as follows: Calculate Cash Flow from Operating Activities from the following information:INCOME STATEMENT (STATEMENT OF PROFIT AND LOSS)for the year ended 31st March, 2019, Change in Inventories of Finished Goods and Work-in-Progress, Interest on Debentures held as Investments, Mars Ltd. has Plant and Machinery whose written down value on 1st April, 2017 was ₹9,60,000 and on 31st March, 2018 was ₹10,50,000. (c). 59.From the following balance sheet and additional information of Good Wood Co, you are required to prepare the cash flow statement as per AS-3 (Revised). 11.State with reason whether ‘purchase of fixed asset on long-term deferred payment’ would result in inflow, outflow or no flow of cash. Commission and royalty received is an operating activity. (All India 2011) Ans. During the year, a piece of machinery of the book value of Rs 80,000 was sold for Rs 65,000. You are required to prepare Cash Flow Statement for the year ended 31st March, 2019. You can have precise and clear solutions to difficult problems too. (ii) machine with a net book value of ₹ 10,000 (Accumulated Depreciation ₹ 40,000) was sold for ₹ 2,000.Prepare Cash Flow Statement. From the following Balance Sheet of SRS Ltd. and the additional information as on 31st March, 2016, prepare a Cash Flow Statement: SRS Ltd.BALANCE SHEET as 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. 13.When does the flow of cash take place? Payment of cash to repurchase outstanding capital stock – it is also a financing activity. Ans. 7.Cash Flow from Investing Activities As per AS-3, investing activities are the acquisition and disposal of the long-term assets and other investments, not included in cash equivalents. Concepts covered in Class 12 Accountancy - Analysis of Financial Statements chapter 4 Cash Flow Statement are Concept of Cash Flow Statement, Benefits of Cash Flow Statement, Cash and Cash Equivalents, Classification of Activities for the Preparation of Cash Flow Statement, Ascertaining Cash Flow from Operating Activities, Ascertainment of Cash Flow from Investing and Financing Activities, Preparation of Cash Flow Statement. (All India 2011; Delhi 2011 C) Following is the extract from the Balance Sheet of Zee Ltd. Additional Information:(i) Proposed dividend on equity shares for the year 2017-18 and 2018-19 are ₹ 1,60,000 and ₹ 2,00,000 respectively. Provistion for Tax made during the year was ₹ 27,000. 1. (Delhi 2009c) (ii)A piece of machinery included in fixed assets costing Rs 10,000, on which depreciation Compute Cash Flow from Operating Activities from the following: An asset costing ₹ 40,000 having book value of ₹ 28,000 was sold for ₹ 36,000. 28.Name any two investing activities that result into inflow of cash. ‘Conversion of debentures into equity shares’ does not result in cash flow. The detailed, step-by-step solutions will help you understand the concepts better and clear your confusions, if any. Cash Budget Analysis and Variances The information contained in this document is intended to familiarise teachers and learner with topics indicated above. 2. Ans. (All India 2012; Modified) These solutions for Class 12 are outlined keeping in mind the current CBSE syllabus, hence possessing a great chance of appearing in the board examinations. Chapter 1: Financial Statements of a Company, Chapter 2: Tools of Financial Statement Analysis-Comparative Statements and Common-Size Statements, Class 12 Accountancy - Analysis of Financial Statements, CBSE Previous Year Question Paper With Solution for Class 12 Arts, CBSE Previous Year Question Paper With Solution for Class 12 Commerce, CBSE Previous Year Question Paper With Solution for Class 12 Science, CBSE Previous Year Question Paper With Solution for Class 10, Maharashtra State Board Previous Year Question Paper With Solution for Class 12 Arts, Maharashtra State Board Previous Year Question Paper With Solution for Class 12 Commerce, Maharashtra State Board Previous Year Question Paper With Solution for Class 12 Science, Maharashtra State Board Previous Year Question Paper With Solution for Class 10, CISCE ICSE / ISC Board Previous Year Question Paper With Solution for Class 12 Arts, CISCE ICSE / ISC Board Previous Year Question Paper With Solution for Class 12 Commerce, CISCE ICSE / ISC Board Previous Year Question Paper With Solution for Class 12 Science, CISCE ICSE / ISC Board Previous Year Question Paper With Solution for Class 10, (b) Cash Received against Revenue from Services rendered, (p) Income Tax Paid on Gain of Sale of Asset, Surplus, i.e., Balance in Statement of Profit and Loss (Opening), Surplus, i.e., Balance in Statement of Profit and Loss (Closing), Insurance Proceeds from Earthquake disaster settlement, Net Profit before Tax and Extraordinary Items, Premium on Redemption of Preference Shares, Interest and Dividend Received on Investments, Net Profit after Provision for Tax and Payment of Dividend, Appropriation of Profit towards General Reserve, Net Profit (Difference between Closing and Opening Balance of Surplus, i.e., Balance in Statement of Profit and Loss), Compensation for Natural Disaster credited to Statement of Profit and Loss, Decrease in Current Assets (Other than Cash and Cash Equivalents), Increase in Current Assets (Other than Cash and Cash Equivalents), Accumulated Depreciation on 1st April, 2018, Accumulated Depreciation on 31st march, 2019, Current Assets (Trade Receivables and Inventories), Surplus i.e., Balance in Statement of Profit and Loss. 41.When is interest received considered as financing activity? 37.Give one transaction which may result into outflow of cash and one which may result into no flow of cash. From the following particulars, calculate Cash Flow from Investing Activities. No flow of cash because no cash is involved in this transaction. (All India 2011) Cash flow represents only net cash inflow or outflow of cash. TS Grewal Solutions for Class 11 and 12 act as a great means of preparation and revision. (e) Loans taken. (b) Paid ₹2,50,000 to acquire shares in Informa Tech Ltd. and received a dividend of ₹50,000 after acquisition. (All India 2013) 1. Following are the Balance Sheets of Krishtec Ltd. for the years ended 31st March 2012 and 2011: (b) Reserves and Surplus (Surplus, i.e., Balance in Statement of Profit and Loss), Prepare a Cash Flow Statement after taking into account the following adjustments:(a) The company paid Interest ₹36,000 on its long-term borrowings. There is no flow of cash because purchase of goods on credit will not affect cash. or (All India 2010) 45.State whether ‘conversion of debentures into equity shares’ by a financing company will result into inflow, outflow or no flow of cash? Analysis of Financial Statements 8. (Delhi 2008) 12% Debentures were redeemed on 31st March, 2015. Ans. Important Questions for CBSE Class 12 Accountancy Cash Flow Statement. Is separate disclosure of cash the largest student community of Class 12, which is also financing... Written exams Solutions to score more in exam flows are inflows and of! The ratio of 5: 1 by captialising reserve were issued on 31st,! Is an investing activity TRUE/FALSE ____1 Answers for Class 11 and 12 refund of Tax... ) helpful in formulation of business is 10 %.3 users access to a profuse of. Income for the year with a Book value of ₹ 20,000.2 during a,... Not a substitute for income statement precise and clear your confusions, any! 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