NCERT Solutions for Class 12 Accountancy Chapter 11 Cash Flow Statement

NCERT Solutions

Cash Flow Statement Class 12 NCERT Solutions

NCERT Books Solutions for Class 12 Accountancy Chapter 11 Cash Flow Statement

NCERT Solutions offer a broad variety of definitions and introduction to the topic for Class 12 Accounts, which includes all the questions provided in the NCERT books.

NCERT Solutions for Class 12 Accountancy Chapter 11 Cash Flow Statement
NCERT Solutions for Class 12 Accountancy Chapter 11 Cash Flow Statement

 

NCERT Solutions for class 12 accountancy cash flow statement has been provided to ace up your preparation. Access and use the direct links available for Chapterwise Class 12 NCERT Solutions whenever you want. The detailed approach used to explain the NCERT Solutions of the 12th Std Accounts makes it easy for you to understand the concepts behind them.

NCERT Solutions for Class 12 Accountancy Cash Flow Statement provides us with all-inclusive information on all concepts. As students would have to learn the basics about the subject in class 12, this curriculum for class 12 is a comprehensive study material, which explains the concepts in a great way.

Questions Covered In Cash Flow Statement Class 12 NCERT Solutions

Question 1 : What is a Cash Flow Statement?

Question 2 : How are the various activities classified (as per AS-3 revised) while preparing cash flow statement?

Question 3 : State the uses of cash flow statement?

Question 4 : What are the objectives of preparing cash flow statement?

Question 5 : State the meaning of the terms: Cash Equivalents, Cash flows

Question 6 : Prepare a format of cash flow from operating activities under indirect method.

Question 7 : 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.

Question 8 : “The nature/type of enterprise can change altogether the category into which a particular activity may be classified.” Do you agree? Illustrate your answer.

Question 9 : Describe the procedure to prepare Cash Flow Statement.

Question 10 : Describe “Indirect” method of ascertaining Cash Flow from Operating Activities.

Question 11 : Explain the major Cash Inflow and outflows from investing activities.

Question 12 : Explain the major Cash Inflows and outflows from financing activities.

Question 13 : 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.

Question 14 : 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

Question 15 : 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.

Question 16 : 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.

Question 17 : 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

Question 18 : 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.

Question 19 : 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.

Question 20 : 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.

Question 21 : 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.

Question 22 : 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.

Question 23 : 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

Question 24 : 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

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