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NCERT solutions for Class 12 Accountancy chapter 6 - Cash Flow Statement

Ncert Class 12 Accountancy - Company Accounts and Analysis of Financial Statements

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NCERT Ncert Class 12 Accountancy - Company Accounts and Analysis of Financial Statements

Ncert Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Shaalaa.com

Chapter 6: Cash Flow Statement

Short Answer QuestionOthersLong Answer QuestionNumerical Questions

Chapter 6: Cash Flow Statement Exercise Short Answer Question solutions [Page 272]

Short Answer Question | Q 1 | Page 272

Short Answer Question

What is a Cash Flow Statement?

Short Answer Question | Q 2 | Page 272

Short Answer Question

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

Short Answer Question | Q 3 | Page 272

Short Answer Question

State the uses of cash flow statement?

Q 4 | Page 272

Short Answer Question

What are the objectives of preparing cash flow statement?

Short Answer Question | Q 5 | Page 272

Short Answer Question

State the meaning of the terms: Cash Equivalents, Cash flows.

Short Answer Question | Q 6 | Page 272

Short Answer Question

Prepare a format of cash flow from operating activities under indirect method.

Short Answer Question | Q 7 | Page 272

Short Answer Question

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

(i) Hotel

(ii) Film production house

(iii) Financial enterprise

(iv) Media enterprise

(v) Steel manufacturing unit

(vi) Software development business unit.

Short Answer Question | Q 8 | Page 272

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.

Chapter 6: Cash Flow Statement Exercise Long Answer Question solutions [Page 272]

Long Answer Question | Q 1 | Page 272

Long Answer Question

Describe the procedure to prepare Cash Flow Statement.

Long Answer Question | Q 2 | Page 272

Long Answer Question

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

Long Answer Question | Q 3 | Page 272

Long Answer Question

Explain the major Cash Inflow and outflows from investing activities.

Long Answer Question | Q 4 | Page 272

Long Answer Question

Explain the major Cash Inflows and outflows from financing activities.

Chapter 6: Cash Flow Statement Exercise Numerical Questions solutions [Pages 272 - 280]

Numerical Questions | Q 1 | Page 272

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.

Numerical Questions | Q 2 | Page 273

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

Numerical Questions | Q 3 | Page 273

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.

Numerical Questions | Q 4 | Page 273

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

Statement of Profit and Loss of Yamuna Ltd.,

for the Year ended March 31, 2017

Particulars

Note No.

Amount

(Rs)

i)

Revenue from Operations

 

10,00,000

ii)

Expenses

 

 

 

Cost of Materials Consumed

1

50,000

 

Purchase of Stock-in-trade

 

5,00,000

 

Other Expenses

2

3,00,000

 

Total Expenses

 

8,50,000

iii)

Profit before Tax (i – ii)

 

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.

Numerical Questions | Q 5 | Page 274

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
Numerical Questions | Q 6 | Page 274

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

  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.

Numerical Questions | Q 7 | Page 275

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.

Numerical Questions | Q 8 | Page 276

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

Balance Sheet of Tiger Super Steel Ltd.
as at 31st March 2014 and 31st March 2017

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.

Numerical Questions | Q 9 | Page 277

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.

Numerical Questions | Q 10 | Page 278

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.

Numerical Questions | Q 11 | Page 279

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
Numerical Questions | Q 12 | Page 280

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

                                                                          (Rs in '000)
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

Chapter 6: Cash Flow Statement

Short Answer QuestionOthersLong Answer QuestionNumerical Questions

NCERT Ncert Class 12 Accountancy - Company Accounts and Analysis of Financial Statements

Ncert Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Shaalaa.com

Textbook solutions for Class 12






















NCERT solutions for Class 12 Accountancy chapter 6 - Cash Flow Statement

NCERT solutions for Class 12 Accountancy chapter 6 (Cash Flow Statement) include all questions with solution and detail explanation. This will clear students doubts about any question and improve application skills while preparing for board exams. The detailed, step-by-step solutions will help you understand the concepts better and clear your confusions, if any. Shaalaa.com has the CBSE Ncert Class 12 Accountancy - Company Accounts and Analysis of Financial Statements solutions in a manner that help students grasp basic concepts better and faster.

Further, we at Shaalaa.com provide such solutions so that students can prepare for written exams. NCERT textbook solutions can be a core help for self-study and acts as a perfect self-help guidance for students.

Concepts covered in Class 12 Accountancy chapter 6 Cash Flow Statement are Preparation of Cash Flow Statement, Ascertainment of Cash Flow from Investing and Financing Activities, Ascertaining Cash Flow from Operating Activities, Classification of Activities for the Preparation of Cash Flow Statement, Cash and Cash Equivalents, Benefits of Cash Flow Statement, Concept of Cash Flow Statement.

Using NCERT 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. The questions involved in NCERT Solutions are important questions that can be asked in the final exam. Maximum students of CBSE Class 12 prefer NCERT Textbook Solutions to score more in exam.

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