NCERT solutions for अकाउंटेंसी कंपनी अकाउंट्स एण्ड एनालिसिस ऑफ फाइनेंशियल स्टेटमेंट्स [अंग्रेजी] कक्षा १२ chapter 6 - Cash Flow Statement [Latest edition]

Classify the following activities into operating activities, investing activities, financing activities, cash equivalents.

If the net profits earned during the year is Rs. 50,000 and the amount of debtors in the beginning and the end of the year is Rs. 10,000 and Rs. 20,000 respectively, then the cash from operating activities will be equal to Rs. ______.

If the net profits made during the year are Rs. 50,000 and the bills receivable have decreased by Rs. 10,000 during the year, then the cash flow from operating activities will be equal to Rs. ______.

Expenses paid in advance at the end of the year are ______ the profit made during the year.

An increase in accrued income during the particular year is ______ the net profit.

Goodwill amortised is ______ the profit made during the year for calculating the cash flow from operating activities.

For calculating cash flow from operating activities, provision for doubtful debts is ______ the profit made during the year.

While computing cash from operating activities, indicate whether the following items will be added or subtracted from the net profit. If not to be considered, write NC

From the following particulars, calculate cash flows from investing activities:

Interest received on debentures held as investment Rs. 60,000

Dividend received on shares held as investment Rs. 10,000

A plot of land had been purchased for investment purposes and was let out for commercial use, and rent received Rs. 30,000.

From the following Information, calculate cash flows from investing and financing activities:

In the year 2017, a machine costing Rs. 2,00,000 was sold at a profit of Rs. 1,50,000. Depreciation charged on the machine during the year 2015 amounted to Rs. 2,50,000.

What is a Cash Flow Statement?

How are the various activities classified as per AS-3 (revised) while preparing a cash flow statement?

State the objectives of the cash flow statement.

Short Answer Question

What are the objectives of preparing cash flow statement?

Short Answer Question:

State the meaning of the term: Cash Equivalents

What is meant by ‘Cash Flows’?

Prepare a format for cash flow from operating activities.

State clearly what would constitute the operating activities for each of the following of enterprises:

1. Hotel
2. Film production house
3. Financial enterprise
4. Media enterprise
5. Steel manufacturing unit
6. Software development business unit
7. Real Estate Business
8. Cotton Textile Mill.

Short Answer Question

“The nature/type of enterprise can change altogether the category into which a particular activity may be classified.” Do you agree? Illustrate your answer.

Long Answer Question

Describe the procedure to prepare Cash Flow Statement.

Long Answer Question

Describe"Indirect" method of ascertaining Cash Flow from Operating Activities.

Long Answer Question

Explain the major Cash Inflow and outflows from investing activities.

Long Answer Question

Explain the major Cash Inflows and outflows from financing activities.

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 operating activities by the indirect approach.

From the information given below you are required to calculate the cash paid for the inventory:

For each of the following transactions, calculate the resulting cash flow and state the nature of cash flow, viz., operating, investing, and financing.

1. Acquired machinery for ₹ 2,50,000, paying 20% by cheque and executing a bond for the balance payable.
2. Paid ₹ 2,50,000 to acquire shares in Informa Tech., and received a dividend of ₹ 50,000 after acquisition.
3. Sold machinery of original cost ₹ 2,00,000 with an accumulated depreciation of ₹ 1,60,000 for ₹ 60,000.

The following is the Profit and Loss Account of Yamuna Limited:

Additional information:

1. Trade receivables decrease by Rs 30,000 during the year.
2. Prepaid expenses increase by Rs 5,000 during the year.
3. Trade payables increase by Rs 15,000 during the year.
4. Outstanding expenses payable increased by Rs 3,000 during the year.
5. Other expenses included a depreciation of Rs 25,000. 

Compute net cash from operations for the year ended March 31, 2017 by the indirect method.

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:

From the following particulars of Bharat Gas Limited, calculate Cash Flows from Investing Activities. Also, show the workings clearly, preparing the ledger accounts:

Notes:

1. Tangible assets = Machinery 
2. Intangible assets = Patents

Notes to accounts:

Additional Information:

1. Patents were written off to the extent of Rs. 40,000, and some Patents were sold at a profit of Rs. 20,000.
2. 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.
3. 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 investments was received on March 31, 2017.
4. Amartax Ltd. paid Dividend @ 10% on its shares.
5. A plot of Land had been purchased for investment purposes and let out for commercial use, and rent received Rs. 30,000.

From the following Balance Sheet of Mohan Ltd., prepare a cash flow Statement:

Notes to accounts:

Additional Information:

Machine Costing Rs. 80,000, on which accumulated depreciation was Rs. 50,000, was sold for Rs. 20,000. A 9% bank loan of Rs. 20,000 was repaid on March 31, 2017. The proposed dividend for the year 2015-16 was Rs. 60,000.

From the following Balance Sheets of Tiger Super Steel Ltd., prepare a Cash Flow Statement:

Notes to accounts:

Additional Information:

*Proposed dividend for 2016-17 is Rs. 15,600 and for 2015-16 is Rs. 11,200.

Depreciation Charge on Land & Building Rs. 20,000, and Plant Rs. 10,000 during the year. Proposed dividend for 2016-17 Rs. 15,600 and for 2015-16 Rs. 11,200.

From the following information, prepare cash flow statement:

Additional Information:

Depreciation Charge on Plant amount to Rs. 80,000.

From the following Balance Sheet of Yogeta Ltd., prepare cash flow statement:

Notes to Accounts -

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. 8% loan was repaid on March 31, 2017 and an additional 9% loan of Rs. 1,30,000 was obtained from Rahul on April 01, 2016.

The following is the Balance sheet of Garima Ltd. Prepare a cash flow statement.

Notes to Accounts

Additional Information:

1. Depreciation charged during the year Rs. 32,000.

From the following Balance Sheet of Computer India Ltd., prepare a cash flow statement.

Notes to Accounts:

Additional Information:

Proposed dividend for the year 2015-16 is Rs. 2,50,00,000