D. K. Goel solutions for Accountancy Volume 1 and 2 [English] Class 12 ISC chapter 13 - Cash Flow Statement [Latest edition]

From the following Balance Sheets of Diamond Limited as on 31^st March, 2013, and 31^st March, 2014, prepare a Cash Flow Statement (as per Accounting Standard 3).

Notes to Accounts:

Additional Information:

1. Depreciation charged on building ₹ 20,000.
2. A machine with a book value of ₹ 10,000 was sold for ₹ 8,000.
3. Debentures were issued on 1^st April, 2013, at a discount of 10%. The discount was written off from General Reserve.

From the following extracts of a company’s Balance Sheets, calculate Cash from Financing Activities for the year ending 31^st March, 2022:

Additional information:

(i)

(ii) Debentures were issued on 1^st April, 2021, at a discount of 10%.

(iii) Unclaimed Dividend ₹ 7,000.

From the following statement, calculate Cash from Operating Activities:

Notes to Accounts:

Additional Information:

1. During the year 2017-18, tax paid was ₹ 25,000.
2. Proposed Dividend for the year ended 31^st March, 2018 was ₹ 15,000.

Read the following information of Hydrogen Ltd., and answer the questions that follow:

Additional information:

During the year 2022-23, the company:

1. Issued bonus shares to the shareholders at the beginning of the year in the ratio of 1 : 4 (that is, 1 bonus share for every 4 shares held) by capitalising the Securities Premium.
2. Purchased office equipment for ₹ 2,40,000; payment made by issuing 20,000 Equity shares of ₹ 10 each to the vendor and the balance in cash.
3. Paid ₹ 4,000 for interim dividend.
4. The interest on all borrowings was ₹ 16,000, out of which the amount paid till the end of the year was ₹ 12,500.
5. Dividend of ₹ 15,000 proposed in the year 2021-22 was declared and paid.
6. Paid underwriting commission of ₹ 10,000.

1. How many bonus shares have been issued by the company to the shareholders?
2. What is the company’s Net Profit before Tax?
3. What is the Cash from Operating Activities of the company before tax paid?
4. What is Hydrogen Ltd.’s inflow/outflow of cash from Financing Activities?
5. Give the inflow/outflow of cash from Investing Activities, if any.
6. The Board of Directors of Hydrogen Ltd. proposed a dividend of ₹ 30,000 at the end of the year 2022-23.

State with reason the disclosure/non-disclosure of this dividend proposed in the Cash Flow Statement of the company for the year 2022-23.

From the following Balance Sheets of Platinum Ltd., you are required to prepare a Cash Flow Statement (as per AS 3) for the year 2022-23.

Notes to Accounts:

Additional information:

During the year 2022-23, the company:

1. Paid share issue expenses of ₹ 25,000.
2. Sold a machine for ₹ 90,000 at a profit of ₹ 10,000.

Anand Ltd. reported a loss of ₹ 80,000 for the year ended 31^st March, 2024, after considering the depreciation charged on Plant & Machinery represented by ‘??’ and the following items:

Additional information:

1. During the year 2023-24:

• A machine having a book value ₹ 40,000 was disposed of for ₹ 25,000, and a machine costing ₹ 2,20,000 was purchased.
• Credit sales were ₹ 1,00,000.

2. An extract of the balance sheet of the company as at 31^st March, 2023, and as at 31^st March, 2024:

1. You are required to calculate for the year 2023-24: (Show the workings clearly.)
   1. The net operating profit of the company before working capital changes.
   2. Cash from Investing Activity.
2. Taking the information of credit sales into consideration, state with reason whether the increase in Trade Receivables in the year 2023-24 over the year 2022-23 will cause the cash from operating activities before tax paid to be more or less than the net operating profit of the company before its working capital changes.

State why cash flow statement is not a substitute for income statement?

State whether conversion of debentures into equity shares by a financing company will result in inflow, outflow or no flow of cash.

Give the meaning of ‘Cash Equivalents’ for the purpose of preparing Cash Flow Statement.

List any two items other than cash in hand and cheques in hand that are included in ‘cash and cash equivalents.’

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

What is meant by ‘operating activities’?

Give two examples of cash flows from operating activities.

What is meant by ‘cash flow from investing activities’?

Give four types of investing activities.

What is meant by financing activities?

Give two examples of cash flows from financing activities.

How do you treat profit or loss on sale of fixed assets for calculating cash flow from operating activities?

Why do we add back depreciation to net profit while calculating cash flows from operating activities?

Why do we add back preliminary expenses to net profit while calculating cash flows from operating activities?

How will you treat decrease in prepaid expenses in the cash flow from operating activities?

What adjustments are required for a decrease or an increase in creditors/bills payable while calculating ‘cash flow from operating activities’?

For calculating ‘Cash flow from operating activities,’ why decrease in debtors or bills receivables are added to operating profits?

How will you deal increase in the balance of ‘securities premium’ while preparing a cash flow statement?

Give any one example of an activity, which is an investing activity for every type of enterprise.

Fine Garments Ltd. is engaged in the export of ready-made garments. The company purchased machinery of ₹ 10,00,000 for the use in packaging of such garments. State giving reason whether the cash flow due to the purchase of machinery will be cash flow from operating activities, investing activities or financing activities?

A Ltd., engaged in the business of retailing of two-wheelers, invested ₹ 50,00,000 in the shares of a manufacturing company. State with reason whether the dividend received on this investment will be cash flows from operating activities or investing activities.

How will you treat payment of tax and payment of dividend in a cash flow statement?

How will you treat ‘Interest on debentures’ while preparing a cash flow statement?

State whether cash deposited in bank will result in inflow, outflow or no flow of cash?

Give two examples of ‘significant non-cash transactions.’

A company receives a dividend of ₹ 2 Lakhs on its investment in other company’s shares. Will it be cash inflow from operating or investing activities?

In which category ‘Rent received’ will be classified while preparing the cash flow statement in case of (i) Real estate agent and (ii) Non-real estate agent.

State how cash flow statements are historical in nature?

Give one difference between an operating activity and an investing activity.

Give one difference between an investing activity and a financing activity.

Give two differences between net profit and cash from operations.

State, with reason, which of the following would result in inflow, outflow, or no flow of cash:

1. Cash deposited in the bank.
2. Proposed dividend.

State whether the following would result in inflow, outflow, or no flow of cash:

1. Bill receivable endorsed to creditors.
2. Old vehicle written off.

Mention with reason whether the following would result in inflow, outflow, or no flow of cash:

1. Issue of fully paid bonus shares.
2. Cash withdrawn from bank.

Identify the following as operating, investing, financing, or cash & cash equivalents:

1. Bank overdraft repaid.
2. Purchase of marketable securities to be sold within 90 days.

Mention the basis on which a cash flow statement is prepared.

For calculating ‘cash flow from operating activities’ from the given figure of ‘Net profit’ earned during a year, how would you deal with;

1. Increase in debtors
2. Decrease in stock
3. Decrease in bills payable
4. Increase in creditors

For calculating ‘cash flow from operating activities’ from a given figure of ‘Net profit’ earned during a year, how would you deal with,

1. The redemption of debentures
2. Decrease in outstanding expenses
3. Increase in cash balance
4. Decrease in inventory

Classify the following into Cash flows from (i) Operating Activities, (ii) Investing Activities, and (iii) Financing Activities while preparing a Cash flow statement:

1. Purchase of fixed Assets
2. Issue of share capital
3. Payment of income tax
4. Payment of dividend
5. Payment of interest
6. Sale of long-term investments
7. Interest received
8. Dividend received
9. Repayment of long-term borrowings

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.

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

Give the meaning of ‘Cash Flow statement.’

Classify the following into cash flow from (i) Operating activities, (ii) Investing activities, and (iii) Financing activities, while preparing a cash flow statement:

1. Purchase of machinery
2. Issue of debentures
3. Payment of dividend
4. Payment of income tax

What is a Cash Flow Statement?

State the objective of preparing a ‘Cash flow statement.’

Classify the following into cash flows from Investing activities/Financing activities while preparing a Cash Flow Statement:

1. Repayment of public deposits
2. Sale of fixed assets
3. Receipt of dividend
4. Interest received.

Classify the following into cash flows from Investing activities/Financing activities while preparing a Cash Flow Statement:

1. Repayment of bank loan
2. Purchase of fixed assets
3. Payment of dividend
4. Interest received

Categorise each of the following items into operating/investing/financing activities while preparing the Cash Flow Statement: 

1. Redemption of 2,00,000, 12% preference shares of ₹ 10 each at a premium of ₹ 4 per share.
2. Sale of machinery for ₹ 40,000.
3. Declared and paid a dividend of ₹ 1,00,000.
4. Interest collected from investments ₹ 28,000.

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.

Identify the following transactions as belonging to (i) Operating, (ii) Investing, (iii) Financing Activities, and (iv) Cash Equivalents:

1. Interest paid
2. Interest received by a Company on its investments
3. Dividend received
4. Dividend paid
5. Cash received from sale of goods
6. Cash paid for purchase of Stock in Trade
7. Salaries and Wages paid
8. Debentures purchased
9. Loan advanced
10. Sale of fixed assets 
11. Bank balance
12. Short-term deposits in banks
13. Bank Overdraft (I.SC. 2023)
14. Marketable Securities
15. Goodwill Written off

Classify the following activities into (i) Operating Activities, (ii) Investing Activities, and (iii) Financing Activities:

1. Purchase of shares of a company.
2. Proceeds from sale of shares.
3. Brokerage paid on purchase of shares.
4. Loans and advances made to third parties.
5. Dividend and interest received on securities.
6. Salary paid to employees.
7. Interest paid on debentures.
8. Dividend paid to shareholders.

Identify the following transactions as belonging to (i) Operating, (ii) Investing, (iii) Financing Activities, and (iv) Cash Equivalents:

1. Cash sale of goods
2. Cash received against revenue from services rendered
3. Cash purchase of goods
4. Cash paid against services taken
5. Patents purchased
6. Marketable securities
7. Bank overdraft
8. Proceeds from issue of debentures
9. Purchase of shares
10. Repayment of long-term loan
11. Commission received
12. Redemption of debentures
13. Interest on debentures
14. Interest on investments
15. Income tax paid
16. Income tax paid on gain of sale of asset
17. Cash received from debtors
18. Cash paid to creditors
19. Bank balance
20. Dividend received
21. Salaries and wages paid
22. Dividend paid
23. Debentures purchased
24. Loan advanced
25. Sale of fixed assets
26. Rent received by a company whose main business is manufacturing
27. Short-term deposits in banks
28. Goodwill written off
29. Buy-back of equity shares
30. Payment of share issue expenses
31. Discount allowed to customers
32. Discount received from suppliers
33. Increase in the balance of cash credit
34. Repayment of short-term loan
35. Proceeds from short-term borrowings
36. Rent received by a company whose main business is real estate business

State which of the following would result in inflow/outflow of Cash or Cash Equivalents:

1. Purchase of Goods on Credit
2. Sale of Goods costing ₹ 2,00,000 for ₹ 1,80,000 for cash.
3. Purchase of a fixed asset on long term deferred payment basis.
4. Issue of shares against purchase of fixed asset.
5. Cash received from a Trade Receivable ₹ 48,000, discount allowed ₹ 2,000.
6. Sale of fixed asset (book value ₹ 3,00,000) for ₹ 2,00,000 for cash
7. Old Furniture (book value ₹ 60,000) written off.
8. Bill Receivable endorsed to creditors.
9. Discount of ₹ 5,000 received while making payment to a creditor of ₹ 50,000.
10. Cash deposited into Bank
11. Sale of Marketable Securities for cash
12. Sale of Long-term Investments for cash
13. Conversion of Debentures into Shares
14. Declaration of Dividend.
15. Payment of Dividend
16. Receipt of Interest on Investment
17. Receipt of Dividend
18. Decrease in Cash Credit

State which of the following would result in inflow, outflow, or no flow of cash:

1. A long-term loan from a bank.
2. Repayment of long-term loan.
3. Payment of interest on loan.
4. Conversion of debentures into preference shares.
5. Interest received on investments.
6. Interest due on debentures.
7. Receipt of accrued interest.
8. Purchase of securities of a company.
9. Buy-back of Equity Shares.
10. Purchase of Goodwill.
11. Goodwill written off.
12. Patents written off.

On March 31^st, 2024 Shiva Ltd. indicated a profit of ₹ 1,27,000, after considering the following:

Additional Information:

Ascertain the net cash (cash flow) from operating activities.

Hints:

1. There will be no entry of Cash in Hand.
2. Decrease in Bank Overdraft will be recorded under ‘Financing Activities’.

Narula Ltd. earned a profit of ₹ 2,00,000 after charging or crediting the following items:

The following additional information is given to you:

You are required to determine the Cash from operating activities.

Z Ltd. made a profit of ₹ 20,00,000 after charging Depreciation of ₹ 1,50,000, writing off preliminary expenses of ₹ 10,000, and loss on sale of assets ₹ 30,000. The other information available to you is as follows:

At the end of the year, Trade Payables showed an increase of ₹ 45,000; Trade Receivables, an increase of ₹ 53,000; Prepaid Expenses decrease of ₹ 2,000; and Outstanding Expenses decrease of ₹ 10,000.

You are required to ascertain cash flow from operating activities.

Calculate ‘Cash from Operating activities’ from the following figures:

Hint: Cash and Bank Balance will not affect Cash Flow from Operating Activities.

Calculate ‘Cash from operating activities’ from the following:

From the following figures, calculate ‘cash from operating activities’:

Calculate ‘cash from operating activities’ from the following:

1. Profit for the year amounted to ₹ 50,000 after providing for depreciation of ₹ 20,000.
2. Following is the position of current assets and current liabilities:

Hint: Decrease in Bank Overdraft will be recorded under ‘Financing Activities’.

Following is the position of Current Assets and Current Liabilities of X Ltd.:

The company incurred a loss of ₹ 37,000 during the year. Calculate ‘Cash from operating activities.’

Hints:

1. Short-term loan and Bank overdraft will be treated as a financing activity.
2. Increase in Goodwill is treated as purchase of Goodwill. Hence, it will not affect ‘Cash from operating activities’. It will be shown as an Investing Activity while preparing Cash Flow Statement.

Calculate ‘Cash from Operating Activities’ from the following Balance Sheets:

Working Notes:

Note: It has been assumed that new debentures have been issued on 31.3.2019. As such, interest on debentures has been calculated on ₹ 2,00,000.

The following is the Statement of Profit and Loss of Z Ltd. for the year ended March 31, 2023:

Additional Information:

1. Sundry Creditors increased by ₹ 40,000 during the year.
2. Sundry Debtors increased by ₹ 70,000 during the year.
3. Outstanding wages decreased by ₹ 10,000 during the year.
4. Bills Receivable decreased by ₹ 5,000 during the year.
5. Prepaid expenses decreased by ₹ 20,000 during the year. 

Compute net Cash from operations by the indirect method.

From the following information, calculate ‘cash inflows from operating activities’:

From the following information, calculate ‘Cash from operating activities’:

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

1. Dividend received on shares held as Investments - ₹ 10,000.
2. Interest received on debentures held as Investments - ₹ 8,000.
3. Dividend paid on equity share capital - ₹ 50,000

X Ltd. has Plant and Machinery whose written-down value on 1st April, 2021 was ₹ 15,40,000 and on 31st March, 2022 was ₹ 19,10,000. Depreciation for the year was ₹ 1,50,000. In the beginning of the year, a part of plant was sold for ₹ 2,20,000 which had a written-down value of ₹ 3,00,000.

Calculate Cash Flow from Investing Activities.

Calculate Cash Flow from Investing Activities from the following particulars:

Information:

1. Depreciation charged during the year ₹ 2,20,000.
2. Plant & Machinery costing ₹ 2,40,000 on which ₹ 90,000 had accumulated as depreciation, was sold for ₹ 1,70,000.

Hint: Cash used for purchase ₹ 7,10,000 and cash inflow from sale ₹ 1,70,000.

Calculate Cash Flows from Investing Activities from the following information:

Additional information:

A machine costing ₹ 40,000 (depreciation provided thereon ₹ 12,000) was sold for ₹ 35,000. Depreciation charged during the year was ₹ 60,000.

Notes:

1. It is assumed that investments were sold on 31st March, 2022.
2. In case it is assumed that investments were sold on 1st April, 2021, interest would be ₹ 25,000, and Cash used in investing activities would be ₹ 10,43,000.

The balance in Plant & Machinery account and Accumulated depreciation account as on March 31, 2021, and 2022, stood as follows:

Plant & machinery costing ₹ 12,80,000, accumulated depreciation thereon ₹ 5,30,000, was sold at a loss of ₹ 2,60,000.

You are required to:

1. Compute the amount of plant and machinery purchased, sold, and depreciation charged for the year.
2. How each of the items related to plant & machinery will be reported in the statement of cash flows.

From the following particulars, calculate Cash from Investing Activities:

Additional Information:

During the year:

1. Depreciation charged on Plant and Machinery ₹ 80,000.
2. A machine having a book value of ₹ 1,40,000 was sold for ₹ 1,50,000. 
3. Patents having a book value of  ₹ 60,000 were sold for ₹ 45,000.

The balance in Plant & Machinery account and Accumulated depreciation account as on March 31, 2021, and 2022 stood as follows:

Plant & Machinery costing ₹ 8,00,000 was sold at a loss of ₹ 1,04,000. Depreciation provided during the year was ₹ 4,30,000.

You are required to calculate Cash from Investing Activities.

D.K. Ltd. provides you the following information:

During the year 2022, the company sold 80% of its original investments at a profit of 20% on book value. Calculate sources and uses of cash.

X Ltd. provides you the following information:

During the year 2022, X Ltd. purchased investments costing ₹ 25,000 and sold some investments at a loss of 20% on book value. Calculate sources of cash.

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

Additional Information:

1. Depreciation charged on Plant and Machinery ₹ 72,000.
2. Plant and Machinery with a book value of ₹ 1,20,000 was sold for ₹ 75,000.
3. Investments were purchased for ₹ 3,00,000. Some investments were sold at a loss of ₹ 10,000. Interest received on investments during the year ₹ 15,000.
4. Land was sold at a profit of ₹ 80,000.

Calculate Cash flows from financing activities from the following particulars:

Additional Information:

1. Equity Shares were issued at a premium of 2%.
2. 8% Preference Shares were redeemed at a premium of 2%.
3. 9% Debentures were issued at a discount of 1% and 7% debentures were redeemed at a premium of 5%.
4. Underwriting commission on Equity Shares was paid @ 2.5% on issue price.
5. Interest paid on 7% debentures ₹ 7,000.
6. Dividend paid on preference shares ₹ 8,000.

From the following Balance Sheets of Enclotek Ltd. as at 31^st March and the additional information provided, calculate:

1. Cash from ‘Operating Activities’
2. Cash from ‘Financing Activities’:

Working Notes:

Additional Information:

1. Depreciation provided on Machinery ₹ 60,000.
2. Preference shares were redeemed at a premium of 5% on 31^st March, 2023.
3. Additional debentures were issued on 1^st October, 2022.
4. Proposed dividend on equity share capital for previous year ended 31^st March 2022 was paid @ 8%.

Hint: Dividend paid on Preference Shares ₹ 15,000.

Notes:

(1) Negative balance of Profit & Loss amounting to ₹ 1,00,000 appearing in the Balance Sheet on 31.3.2022 represents an amount of loss. In the current year (2022-23), after covering this loss of ₹ 1,00,000, the Profit and Loss shows a profit of ₹ 1,00,000. It means net profit during the current year must have been ₹ 1,00,000 + ₹ 1,00,000 = ₹ 2,00,000.

(2) Interest on Debentures:

(3) Since dividend on Equity Shares has been paid, dividend on Preference Shares also must have been paid prior to dividend on equity shares.

(4) Proposed Dividend paid on Equity Share Capital ₹ 36,000.

Sony Ltd. provides you the following information. Calculate Cash flows from financing activities:

Additional Information:

1. During the year 2022-23, Sony Ltd. issued bonus shares in the ratio of 1 : 4 by capitalising reserve.
2. 10% Debentures were redeemed on 1^st January, 2023, at a premium of 5%.
3. Preference Shares were issued on 1^st October, 2022. Preference Dividend was paid for half year.
4. Dividend received on Investments ₹ 10,000.

From the following information, calculate:

1. Cash Flows from Investing Activities, and
2. Cash Flows from Financing Activities.

Additional Information:

1. During the year, a machine costing ₹ 1,50,000 was sold at a loss of ₹ 44,000. Depreciation on Plant & Machinery charged during the year amounted to ₹ 80,000.
2. Interest paid on Bank Overdraft amounted to ₹ 28,000.
3. Debentures were redeemed on 1^st October, 2022, at a premium of 4%.

From the following extracts of a company’s Balance Sheets and the additional information, you are required to calculate Cash from Financing Activities for the year ending 31^st March, 2021.

Additional information:

(1) During the year 2020-21:

1. Dividend proposed on Equity Shares in 2019-20 of ₹ 65,000 was declared and paid.
2. Debentures were issued on 1^st July, 2020, at a discount of 10%.
3. Interest on cash credit of ₹ 500 was paid.
4. Underwriting commission of ₹ 25,000 was paid to the underwriters.
5. The Equity shares were issued at a premium.

(2) The 10% Preference Shares were redeemed on 31^st March, 2021.

Hints:

(1)

(2) Since Company has paid dividend on equity shares, it must have paid dividend on preference shares also.

From the figures given in the Balance Sheet and additional information, calculate ‘Cash Flows from Investing Activities’ and ‘Cash Flows from Financing Activities’.

Notes to Accounts:

Additional Information:

1. A piece of machinery costing ₹ 7,00,000 was sold for ₹ 5,00,000. Depreciation charged during the year amounted to ₹ 1,80,000.
2. 8% Debentures were redeemed at a premium of 5% on 1^st January, 2024.
3. Interim Dividend on equity share capital was paid @ 7%.

Following are the Balance Sheets of Quick Gains Ltd.:

Notes:

Additional Information:

(1)

(2) Interest paid on long-term borrowings amounted to ₹ 8,000.

You are required to prepare a Cash-Flow Statement.

From the following Balance Sheet of Ajanta Limited as at March 31, 2017, prepare a Cash Flow Statement:

Notes to Accounts:

Additional Information:

1. During the year 2016-17, a machinery costing ₹ 50,000 and accumulated depreciation thereon ₹ 15,000 was sold for ₹ 32,000. 
2. 9% Debentures ₹ 80,000 were issued on April 1, 2016.

Prepare ‘Provision for Income Tax Account’ from the following information for preparing Cash Flow Statement:

Additional Information:

    During the year, Income Tax paid was ₹ 2,30,000.

Prepare ‘Provision for Income Tax Account’ from the following information for preparing Cash Flow Statement:

Additional Information:

Provision for Income Tax made during the year 2022 was ₹ 1,70,000.

From the following Balance Sheets of Tarun Fashions Ltd., prepare a Cash-Flow Statement:

Notes:

Additional Information:

1. 
   

   	31.3.2024 (₹)	31.3.2023 (₹)
   Contingent Liability:
   Proposed Dividend	15,000	12,000

2. Depreciation of ₹ 10,000 was provided on Plant & Machinery. 
3. Gain on sale of a part of Building ₹ 25,000.
4. Debentures were redeemed on 1^st April, 2023.
5. Provision for Tax made during the year ₹ 50,000.

Hint:

1. Increase in Goodwill will be treated as a purchase of Goodwill.
2. Tax paid during the year: ₹ 38,000.

Prepare a Cash-Flow Statement from the following Balance Sheets of Dry Fruits Ltd.:

Notes:

Additional Information:

1. Interest paid on mortgage loan amounted to ₹ 14,100.
2. Interim Dividend paid during the year ₹ 20,000.
3. Machinery costing ₹ 40,000 (accumulated depreciation thereon being ₹ 18,000 was sold for ₹ 5,000.

Prepare a Cash-Flow statement from the following:

Notes:

Additional Information:

1. During the year, company sold 60% of its original non-current investments at a profit of 25%.
2. Depreciation provided on Machinery during the year was ₹ 35,000.

Following are the Balance Sheets of Rashi Ltd. as on 31^st March, 2022 and 31^st March, 2021:

Notes:

Additional Information:

1. New public deposits were accepted on 1^st January, 2022.
2. Machinery costing ₹ 2,00,000, on which depreciation charged was ₹ 70,000, was sold for ₹ 1,50,000.
3. New machinery purchased during the year amounted to ₹ 4,00,000.
4. Non-current investments were sold at a profit of 25%.

Prepare Cash Flow Statement.

Hints:

1. Depreciation on Plant and Machinery ₹ 80,000.
2. Profit as per Balance Sheet ₹ 2,15,000 − ₹ 1,70,000 = ₹ 45,000.
3. Interest on Public Deposits ₹ 31,500.

There was ‘Nil’ net cash flow from operating activities of Ashok Ltd. during the year ending 31^st March, 2019. From the following Balance Sheet of Ashok Ltd. as at 31^st March, 2019, prepare a Cash Flow Statement:

Notes to Accounts:

Additional information:

1. A machinery of the book value of ₹ 60,000 (depreciation provided thereon ₹ 20,000) was sold at a loss of ₹ 6,000.
2. 8% Debentures were redeemed on 1^st July, 2018.

Hint. Purchase of Plant & Machinery ₹ 5,40,000

Following is the Balance Sheet of Mevanca Limited as at 31st March, 2024: Prepare Cash Flow Statement when Cash Flow from Financing Activities is ₹ 2,12,500.

Notes to Accounts:

Additional information:

1. Additional loan was taken on 1st July, 2023.
2. Tax of ₹ 53,000 was paid during the year.
3. Machinery of the book value of ₹ 80,000 (Accumulated Depreciation ₹ 20,000) was sold at a loss of ₹ 18,000.

Hints:

1. Machine with book value of ₹ 80,000 (Accumulated Depreciation ₹ 20,000) has been sold. In other words, machine costing ₹ 1,00,000 has been sold.
2. Machinery purchased ₹ 2,69,000; Current year’s Depreciation ₹ 45,000.

From the following information, calculate Cash Flow from Operating Activities:

1. A piece of machinery costing ₹ 50,000, on which depreciation of ₹ 20,000 had been charged, was sold for ₹ 10,000. Depreciation charged during the year was ₹ 18,000.
2. Income Tax ₹ 23,000 was paid during the year.
3. Interim Dividend paid during the year was ₹ 36,000.

The Balance Sheet of A Ltd. as at 31-3-2022 and 31-3-2021 were as follows:

Notes:

Additional Information:

1. Depreciation written off on Machinery was ₹ 18,000.
2. Interest paid on Long-term Borrowings amounted to ₹ 3,000.
3. Income Tax of ₹ 15,000 has been paid. 

Prepare a Cash-Flow Statement.

The following are the summarised Balance Sheets of X Ltd. as at 31^st March, 2024 and 2023:

Notes:

Additional Information:

1. 
   

   Particulars	31.3.2024 (₹)	31.3.2023 (₹)
   Contingent Liability:
   Proposed Dividend	30,000	25,000

2. Provision for tax made ₹ 30,000.
3. Additional debentures amounting to ₹ 5,000 were issued on 1^st October, 2023. Interest on debentures has been paid up to date. 

You are required to prepare a statement of cash flow.

Note: Repayment of Cash Credit will be treated as ‘Financing Activity’.

Prepare a Cash-Flow Statement from the following Balance Sheets of Surya Vanaspati Ltd.:

Notes:

Additional Information: 

1. During the year, machinery whose original cost was ₹ 50,000 was sold for ₹ 32,000.
2. Company charged ₹ 20,000 as depreciation on Plant and Machinery.

Hints:

1. Balancing figure of Accumulated Depreciation A/c ₹ 12,000, being the depreciation on machinery sold, will be transferred to the Cr. side of Plant and Machinery A/c.
2. Loss on sale of Machinery ₹ 6,000; Purchase of Plant & Machinery ₹ 1,60,000.

From the following Balance Sheets of XY Ltd., prepare a Cash-Flow Statement for the year ended 31^st March, 2024:

Notes:

Additional Information:

1. Depreciation of ₹ 30,000 has been charged on machinery. 
2. Non-current investments costing ₹ 30,000 were sold for ₹ 40,000 at the end of the year.
3. New debentures were issued on 1^st October, 2023. 
4. During the year, share issue expenses amounted to ₹ 10,000 and these were written off from Statement of Profit & Loss.

Note: It has been assumed that non-current investments have been purchased at the end of the accounting year, i.e., on 31st March, 2024.

You are required to prepare a Cash Flow Statement (as per AS-3) for the year 2021-22 from the following Balance Sheets:

Additional Information:

During the year 2021-22:

1. Building costing ₹ 75,000 was purchased.
2. An old building, the book value of which was ₹ 63,000, was sold at a loss of ₹ 5,000.
3. Tax provided during the year was ₹ 80,000.
4. Proposed dividend for the year ended 31^st March, 2021, was 20% and for the year ended 31^st March, 2022, was 10%.

From the following particulars of Phantom Ltd., you are required to calculate:

• Cash from Operating Activities
• Cash from Investing Activities

Additional Information:

During the year 2020-21, a machine with a book value of ₹ 50,000 (accumulated depreciation ₹ 20,000) was sold at a loss of ₹ 6,000.

Hint. Purchase of Plant & Machinery ₹ 50,000.

Calculate Cash Flow from Investing Activities from the following information:

1. Machinery costing ₹ 5,00,000 (Book Value ₹ 3,50,000) was sold at a loss of 10%.
2. Dividend received @ 10% from Long-term Investments of ₹ 2,00,000.
3. Receipt for permission granted for use of Trademark ₹ 1,20,000.
4. Non-Current Investments purchased ₹ 1,75,000. 
5. Non-Current Investment costing ₹ 3,00,000 was sold at a profit of 20%. 
6. Land was sold for ₹ 6,00,000, of which 40% is profit.

Prepare a Cash-Flow Statement from the Balance Sheets given below:

Notes:

Additional Information:

1. Depreciation written off on Machinery @ 10% on last year’s balance.
2. Interim Dividend paid during the year @ 10% on Share Capital.
3. Mortgage Loan was taken on 1^st July, 2021 @ 10% p.a. Interest has been paid up to date.

Following are the Balance Sheets of X Ltd.:

Notes:

Additional Information:

1. A piece of machinery was sold for ₹ 8,000 during the year 2022. Its original cost was ₹ 20,000 and depreciation of ₹ 15,000 has been provided on it.
2. Investments were sold at a loss of 40%.
3. Land was sold for ₹ 1,50,000. 
4. Interest paid on public deposits amounted to ₹ 6,000.

You are required to prepare a Cash-Flow Statement.

Hint: Non-current investments costing ₹ 8,000 are sold for ₹ 4,800.

From the following Balance Sheets of Godrej Ltd., you are required to prepare Cash-Flow Statement.

Notes:

Additional Information:

1. Machinery whose original cost was ₹ 50,000 (accumulated depreciation thereon being ₹ 32,000) was sold for ₹ 10,000.
2. Depreciation on Machinery charged during the year was ₹ 25,000.
3. Non-current investments costing ₹ 20,000 were sold for ₹ 32,000 during the year.
4. Interest paid on long-term borrowings amounted to ₹ 3,000.

Notes:

1. Patents are assumed to be written off.
2. Bank Overdraft is treated as financing activity.

Following are the Balance Sheets of Pawan Ltd.:

Notes:

1. Machinery of the book value of ₹ 60,000 was sold for ₹ 18,000 during the year.
2. Interim Dividend paid during the year: ₹ 25,000.
3. During the year Company sold 40% of its original non-current investments at a loss of 20%.

You are required to prepare a Cash-Flow Statement.

Hints:

1. Current year’s Depreciation ₹ 20,000.
2. Purchase of Non-Current Investments ₹ 15,000.
3. Increase in Intangible Assets will be treated as purchase of Intangible Assets.

You are required to prepare Cash-Flow Statement from the following information:

Notes:

From the following information, prepare a Cash-Flow Statement:

From the following information, prepare a Cash-Flow Statement:

Additional Information:

Given below are the Balance Sheets of X Ltd. as at 31st March, 2024 and 31st March, 2023.

Notes to Accounts:

Additional Information:

1. Investments costing ₹ 30,000 were sold for ₹ 36,000 at the end of the year.
2. New debentures have been issued at the end of the current accounting year at a discount of 5% which was written off from General Reserve.
3. New investments have been purchased at the end of the current accounting year.
4. Depreciation charged on machinery during the current accounting year was ₹ 10,000.

From the above information, prepare Cash Flow Statement as per Accounting Standard-3 (Revised).

From the following Balance Sheets of Rainbow Ltd., you are required to prepare a Cash Flow Statement (as per AS 3) for the year 2021-22.

Notes to Accounts:

Additional Information:

During the year 2021-22, the company:

1. Sold a machine for ₹ 90,000 at a loss of ₹ 10,000.
2. Issued the 5% Debentures on 31^st March, 2022, at a discount of 10%. The discount was written off from General Reserve.

Khushi Ltd. incurred a loss of ₹ 2,00,000 for the year ended 31^st March, 2025. This loss was arrived at after considering the below-given items, including depreciation charged on Plant & Machinery represented by “??”

Additional Information:

(a) During the year 2024-25: 
A machine having a book value of ₹ 1,00,000 was sold for ₹ 1,37,500, and a machine costing ₹ 5,50,000 was purchased.

(b) An extract of Balance Sheet of the company as at 31^st March, 2024, and as at 31^st March, 2025: