6 Marks Question

Question 16 Marks

From the following Balance Sheet of SRS Ltd. and the additional information as on 31.3.2016, prepare a Cash Flow Statement:

Additional Information:

₹ 50,000, 12% debentures were issued on 31.3.2016.
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.

Answer

Notes:
Calculation of Net Profit before tax:

Net profit as per statement of Profit & Loss	75,000
Add: Proposed Dividend	1,00,000
Net Profit before tax & extraordinary items	1,75,000

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Question 26 Marks

Following was the Balance Sheet of M.M. Ltd at on 31.3.2015.

Additional Information:

12% Debentures were redeemed on 31.3.2015.
Tax ₹ 70,000 was paid during the year.

Prepare Cash Flow Statement.

Answer

Notes:
Calculation of Net Profit before tax:

Net profit as per statement of Profit & Loss	2,50,000
Add: Provision for tax made	50,000
Net Profit before tax & extraordinary items	3,00,000

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Question 36 Marks

Following is the Balance Sheet of Solar Power Ltd. as at 31.3.2014:

Additional Information:
During the year a piece of machinery costing ₹ 48,000 on which accumulated depreciation was ₹ 32,000 was sold for ₹ 12,000. Prepare Cash Flow Statement.

Answer

Working Notes:

Notes:

If short-term provision is treated as provision for tax or provision for doubtful debts, full credit is to be given.
If short-term provision is treated as proposed dividend then cash flow from operating activity will be ₹ 4,60,000 and financing activity will be ₹ 1,86,000.
If the examinee has presented the working notes with asset disposal account full credit to be given.
If the examinee has treated current investments as current assets then the cash flow from operating activities will be ₹ 1,26,000 and increase or decrease in cash and cash equivalents will be ₹ 1,10,000.

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Question 46 Marks

Xavier, Yusuf and Zaman were partners in a firm sharing profits in the ratio of 4 : 3 : 2. On 1.4.2014 their Balance Sheet was as follows:

Yusuf had been suffering from ill health and thus gave notice of retirement from the firm. An agreement was, therefore, entered into as on 1.4.2014, the terms of which were as follows:

That land and building be appreciated by 10%.
The provision for bad debts is no longer necessary.
That stock be appreciated by 20%.
That goodwill of the firm be fixed at ₹ 54,000. Yusuf's share of the same be adjusted into Xavier's and Zaman's Capital Accounts, who are going to share future profits in the ratio of 2 : 1.
The entire capital of the newly constituted firm be readjusted by bringing in or paying necessary cash so that the future capitals of Xavier and Zaman will be in their profit sharing ratio.

Prepare Revaluation Account and Partners' Capital Accounts.

Answer

Working Notes:

Gaining Ratio = New share - Old share

Xavier's = 2/3 - 4/9 = 2/9

Zaman = 1/3 - 2/9 = 1/9

Gaining ratio = 2 : 1

Yusuf's share of Goodwill = 54,000 x 3/9 = 18,000

Xavier's capital A/c = 18,000 x 2/3 = 12,000

Zaman's Capital A/c = 18,000 x 1/3 = 6,000

Xavier's Capital = 1,19,400

Zaman's capital = 59.700

Total capital = 1,19,400 + 59,700 = 1,79,100

Xavier's share = 1,79,000 x 2/3 = 1.19,400

Zaman's share = 1,79,000 x 1/3 = 59,700

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Question 56 Marks

Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheet of Simco Ltd. as at 31.3.2013 and 31.3.2012:

Notes to Accounts
Note 1

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Question 66 Marks

Following is the Balance Sheet of Solar Power Ltd. as at 31.3.2014:

Notes to Accounts:

Additional Information:
During the year a piece of machinery costing ₹ 48,000 on which accumulated depreciation was ₹ 32,000 was sold for ₹ 12,000. Prepare Cash Flow Statement.

Answer

Working Notes:

Notes:

If short-term provision is treated as provision for tax or provision for doubtful debts, full credit is to be given.
If short-term provision is treated as proposed dividend then cash flow from operating activity will be ₹ 4,60,000 and financing activity will be ₹ 1,86,000.
If the examinee has presented the working notes with asset disposal account full credit to be given.
If the examinee has treated current investments as current assets then the cash flow from operating activities will be ₹ 1,26,000 and increase or decrease in cash and cash equivalents will be ₹ 1,10,000.

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Question 76 Marks

From the following Balance Sheets, prepare a Cash Flow Statement as per AS-3

A dividend of ₹ 3,000 was paid during the year 2008-09.

Answer

Calculation of Profit before interest & Tax:

Profit earned :	₹ 1,000
Add : Dividend:	₹ 3,000
	4,000

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Question 86 Marks

From the following Balance Sheets of Som Ltd. as on 31.3.2006 and 31.3.2007 prepare a Cash Flow Statement:

During the year a machine costing ₹ 70,000 was sold for ₹. 15,000. Dividend paid ₹ 24,000.

Answer

Calculation of Net Profit/ loss before Tax:

Profit for the year	(1,00,000)
Add transferred to reserve	70,000
Add dividend	24,000
	(6,000)

Working Notes:

Note 1: Full credit to be given to an examinee if he/she has taken preference dividend separately. The answers would be:
Net Profit before tax = Rs.(2,000)
Cash used in operating activities = Rs.(37,000)
Cash used in investing activities = Rs.(2,05,000)
Cash generated from financing activities = Rs.2,62,000 Note 2: In case, interest on debentures and dividend on preference shares has been calculated on the closing balances, no marks should be deducted.

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Question 96 Marks

From the following Balance Sheets of B.C.R.Ltd. as on 31.3.2010 and 31.3.2011,
prepare a Cash Flow Statement:

Additional Information:
During the year Equipment costing ₹ 1,00,000 was purchased. Loss on sale of Equipment amounted to ₹ 12,000. ₹ 18,000 depreciation was charged on Equipment.

Answer

Working Note:

.Calculation of Profit before tax:

Balance as per P/LA/c	1,50,000
Add: Provision forTax (C.Y.)	50,000
Proposed Dividend (C.Y.)	70,000
Net ProfitBefore Tax	₹ 2,70,000

Note: Full credit should be given if decrease in Patents is considered as sale of Patents.

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Question 106 Marks

Following is the Balance Sheet of SN Ltd. as at 31-3-2015:

Additional Information:

12% Debentures were redeemed on 31-3-2015.
Tax ₹ 35,000 was paid during the year.

Prepare Cash Flow Statement.

Answer

Notes:
Calculation of Net Profit before tax:

Net profit as per statement of Profit & Loss	1,25,000
Add: Provision for tax made	25,000
Net Profit before tax & extraordinary items	1,50,000

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Question 116 Marks

Following is the Balance Sheet of J.M. Ltd as at 31.3.2016:

Additional Information:

₹ 25,000, 12% debentures were issued on 31.3.2016.
During the year a piece of machinery costing ₹ 20,000, on which accumulated depreciation was ₹ 10,000, was sold at a loss of ₹ 2,500.

Prepare Cash Flow Statement.

Answer

Notes:
Calculation of Net Profit before tax:

Net profit as per statement of Profit & Loss	37,500
Add: Proposed Dividend	50,000
Net Profit before tax & extraordinary items	87,500

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Question 126 Marks

Following is the Balance Sheet of ₹ Ltd as at $31^{st}$ March, $2016$:

Additional Information:

₹ $1,00,000, 12%$ Debentures were issued on $31-3-2016$.
During the year a piece of machinery costing ₹ $80,000$, on which accumulatedDuring th depreciation was ₹ $40,000$, was sold at a loss of ₹ $10,000$.

Prepare a Cash Flow Statement.

Answer

Notes:
Calculation of Net Profit before tax:

Net profit as per statement of Profit & Loss	1,50,000
Add: Proposed Dividend	2,00,000
Net Profit before tax & extraordinary items	3,50,000

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Question 136 Marks

Following is the Balance Sheet of K.K. Ltd. as at 31-3-2015:

Additional Information:

12% Debentures were redeemed on 31-3-2015.
Tax ₹ 1,40,000 was paid during the year.

Prepare Cash Flow Statement.

Answer

Calculation of Net Profit before tax:

Net profit as per statement of Profit & Loss	5,00,000
Add: Provision for tax made	1,00,000
Net Profit before tax & extraordinary items	6,00,000

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Question 146 Marks

Following is the Balance Sheet of Thermal Power Ltd. as at 31-3-2014:

Notes to Accounts:

Additional information:
During the year a piece of machinery, costing ₹ 24,000 on which accumulated depreciation was ₹ 16,000, was sold for ₹ 6,000. Prepare Cash Flow Statement.

Answer

Working Notes:

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Question 156 Marks

Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheets of Liva Ltd. as at 31-3-2013 and 31-3-2012:

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Question 166 Marks

Following is the Balance Sheet of Wisben Ltd. as on $31^{st}$ March $2012$:

Adjustments:

During the year a piece of machinery of the book value of ₹ $80,000$ was sold for ₹ $65,000$. Depreciation provided on tangible assets during the year amounted to ₹ $2,00,000$.

Prepare a Cash Flow Statement.

Answer

Working Notes:

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Question 176 Marks

From the following Balance Sheets of Sonam Ltd as on 31-3-2010 and 31-3-2011 prepare a Cash Flow Statement:

Additional Information:
During the year a Building having book value ₹ 50,000 was sold at a loss of ₹ 2,000 and depreciation charged on Building was ₹ 4,000.

Answer

Working Note:

Calculation of Profit before tax:

Balance as per P/L A/c	₹ 25,000
Add: Provision for Tax (C.Y.)	₹ 17,500
Proposed Dividend (C.Y.)	₹ 15,000
Net Profit Before Tax	₹ 57,500

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Question 186 Marks

From the following Balance Sheets of Vijaya Ltd. as on 31-3-2009 and 31-3-2010 prepare a Cash Flow Statement.

Additional Information:

Depreciation on Fixed Assets for the year 2009-2010 was ₹ 14,700.
An interim dividend ₹ 7,000 has been paid to the shareholders during the year.

Answer

Cash Flow Statement:

Working Note:

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Question 196 Marks

From the following Balance Sheets, prepare a Cash Flow Statement as per AS-3 (revised)

A dividend of ₹ 3,000 was paid during the year 2008-09.

Answer

Calculation of Profit before Interest & Tax

Profit earned :	₹ 1,000
Add : Dividend:	₹ 3,000
	₹ 4,000

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Question 206 Marks

X Ltd., made a profit of ₹ 1,00,000 after considering the following items:

Depreciation on Fixed Assets ₹ 20,000.
Writing off preliminary expenses ₹ 10,000.
Loss on sale of furniture ₹ 1,000.
Provision for taxation ₹ 1,60,000.
Transfer to General Reserve ₹ 14,000.
Profit on sale of machinery ₹ 6,000.

The following additional information is available to you:

Calculate Cash flow from operating activities.

Answer

Cash flow from Operating Activity:

Note: If an examinee has deducted tax paid ₹ 1,60,000, the cash generated from operating activities will be ₹ 1,41,800. Full credit is to be given.

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Question 216 Marks

From the following Balance Sheet of X Y Ltd. as on 31.3.2006 and 31.3.2007 prepare a Cash Flow Statement:

Additional Information: During the year machine costing Rs. 80,000 was sold for Rs. 50,000. Dividend paid Rs. 80,000.

Answer

Calculation of NP before tax:

Net loss	(50,000)
Add dividend	80,000
Less transfer from reserve	(20,000)
Net profit before tax	10,000

Working Notes:

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Question 226 Marks

From the following Balance Sheet of JY Ltd. as at $31^{st}$ March $2017$, prepare a Cash Flow Statement:

Notes to Accounts:

Additional Information:
₹ $1,00,000, 10\%$ debentures were issued on $31.3.2017$.

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Question 236 Marks

From the following Balance Sheet of Kiero Ltd. and the additional information as on $31-3-2018$, prepare a Cash Flow Statement:

Notes to Accounts:

Additional Information:
$12\%$ debentures were issued on $1^{st}$ September, $2017$.

Answer

Cash Flow Statement of Kiero Ltd. for the year ended $31^{st}$ March $2018$:

Working Notes:

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Question 246 Marks

From the following information of Nova Ltd., calculate the cash flow from investing activities:

Additional Information:

During the year, a machine costing ₹ $50,000$ on which the accumulated depreciation was ₹ $35,000$, was sold for ₹ $12,000$.

The profit of Jova Ltd. for the year ended $31^{st}$ March, $2019$ after appropriation was ₹ $2,50,000$.

Additional Information:

Answer

Working notes:

Working Note:

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Question 256 Marks

Prepare a format of 'cash flow statment' under indirect method.

Answer

Note No. 1: Calculation of Net Profit before Tax:

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Question 266 Marks

Prepare Cash-Flow Statement from the following Balance Sheets of Mr. Kapoor as at 31st March ________ .

Additional Information:

There was neither any drawings nor any capital addition during the year.
There was no purchase/ sale of fixed assets.

Answer

Note: No information is given in the question about the amount of net profit or net loss incurred during the year. As such, increase in proprietor's capital will be treated as net profit:

	₹
Opening Capital	2,40,000
Less: Closing Capital	(3,00,000)
Net Profit	60,000

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Question 276 Marks

Compute cash from operations from the following figures:

Profit for the year 2016-17 is a sum of ₹ 10,000 after providing for depreciation of ₹ 2,000.
The current assets and current liabilities of the business for the year ended March 31, 2016 and 2017 are as follows:

Prepare of cash flow statement from summary cash account.

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Question 286 Marks

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

Additional information:

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

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

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Question 296 Marks

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

Notes to accounts:

Additional Information: Net profit for the year after charging ₹ 50,000 as depreciation was ₹ 1,50,000, dividend paid on share was ₹ 50,000, tax provision created during the year amounted to ₹ 60,000.

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Question 306 Marks

From the following Balance Sheet, prepare Cash Flow Statement:

Notes to accounts:

Additional Information:

Proposed Dividend for the year ended 31st March, 2018 was ₹ 25,000 and for the year ended 31st March, 2017 was ₹ 14,000.
Interim Dividend paid during the year was ₹ 9,000.
The Income Tax paid during the year ₹ 28,000.
Machinery was purchased during the year ₹ 33,000.
Depreciation written off on machinery ₹ 14,000; building ₹ 10,000.

Answer

Working Notes:
WN 1:
WN 2:

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Question 316 Marks

From the following Balance Sheet of Samta Ltd., as at 31st March, 2018, prepare Cash Flow Statement.

Note to Accounts:

Additional Information:

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. Depreciation provided on tangible Assets ₹ 60,000.
Income tax ₹ 45,000 was provided.
Additional Debentures were issued at par on 1st October, 2017 and Bank Loan was repaid on the same date.
At the end of the year Preference Shares were redeemed at a premium of 5%.

Answer

Working Notes:
WN1:

WN2:

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Question 326 Marks

Following is the Balance Sheet of Akash Ltd. as on 31st March, 2014:

Notes to Accounts:

Additional Information:

Tax paid during the year amounted to ₹ 16,000.
Machine with a net book value of ₹ 10,000 (Accumulated Depreciation ₹ 40,000) was sold for ₹ 2,000.

Prepare Cash Flow Statement.

Answer

Working Notes:
WN 1:

WN 2:

WN 3:

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Question 336 Marks

From the following Balance Sheet of Kumar Ltd. as at 31st March, 2018, prepare Cash Flow Statement:

Notes to Accounts:

Additional Information:

During the year, a machinery costing ₹ 20,000 was sold for ₹ 6,000.
Dividend paid during the year ₹ 50,000.

Answer

Working Notes:

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Question 346 Marks

From the following information, prepare cash flow statement:

Additional Information: Depreciation charged on plant amount to ₹ 80,000.

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Question 356 Marks

Following are the Balance Sheets of Solar Power Ltd. as at 31st March,2014 and 2013:

Notes to Accounts:

Additional Information:
During the year, a piece of machinery costing ₹ 48,000 on which accumulated depreciation was ₹ 32,000, was sold for ₹ 12,000.
Prepare Cash Flow Statement.

Answer

Working Notes:

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Question 366 Marks

Prepare a Cash-Flow Statement from the following Balance Sheets of Garden Honey Ltd.

Notes: Debentures were redeemed on 1st April, 2017

Answer

Notes:

1.	Calculation of Net Profit before Tax:	₹
	Profit & Loss Balance on 31st March, 2018	67,000
	Less: Profit & Loss Balance on 31st March, 2017	(20,000)
		47,000
	Add: Transfer to General Reserve	25,000
	Provision for Tax made during the Current year	30,000
	Net Profit before Tax	1,02,000
2.	Decrease in the amount of Land & Building is treated as sale.

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Question 376 Marks

Following is the Financial Statement of Garima Ltd., prepare cash flow statement.

Notes to accounts:

Additional Information.

Interest paid on Debenture ₹ 600
Dividend paid during the year ₹ 4,000
Depreciation charged during the year ₹ 32,000

Answer

Cash receipts from the customers

Sales + Opening Debtors - Closing Debtors
= 5,00,000 + 20,000 - 80,000 = ₹ 4,40,000

Cash paid to the Creditors

Purchase + Opening Creditor - Closing Creditors
= 4,92,000 + 56,000 - 1,56,000 = ₹ 3,92,000

Cash paid to the expenses

Salaries + Prepaid Expenses at the end - Prepaid Expenses in the beginning
= 44,000 + 16,000 - 8,000 = ₹ 52,000
Note: Debtors and creditors account can also be prepared to calculate cash receipt or cash paid.

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Question 386 Marks

Following is the summarised Balance Sheet of Philips India Ltd. as at 31st March, 2018.

Notes to Accounts:

Additional Information:

Investments costing ₹ 24,000 were sold during the year for ₹ 25,500.
Provision for Tax made during the year was ₹ 27,000.
During the year, a part of the Fixed Assets costing ₹ 30,000 was sold for ₹ 36,000. The profits were included in the Statement of Profit and Loss.
The Interim Dividend paid during the year amounted to ₹ 1,20,000.

You are riquired to prepare cash flow statements.

Answer

Working Notes:
WN 1:

WN 2:

WN 3:

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Question 396 Marks

From the following Balance Sheet of Varun Ltd. as at 31st March, 2018, prepare Cash Flow Statement:

Notes to Accounts:

Additional Information:

During the year ₹ 5,000 depreciation was changed on fixed assets.
company has paid ₹ 12,000 intrim dividend during the year.
Tax provided during the year ₹ 20,000.

Answer

Working Notes:

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Question 406 Marks

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

		₹
1.	Interim Dividends paid during the year	7,000
2.	Plant Purchased	20,000
3.	Intangible Assets written off during the year	10,000
4.	Debentures redeemed on 1st Feb. 2018	12,000
5.	Interest on debentures has been paid up-to date

Notes:

Answer

Note:

Calculation of Net Profit before Tax:	₹
Reserve & Surplus Balance on 31st March, 2018	21,120
Less: Reserve & Surplus Balance on 31st March, 2017	(20,080)
	1,040
Add: Dividend Paid	7,000
	8,040

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Question 416 Marks

The Balance Sheet of Virendra Paper Ltd. as at 31st March, 2017 is given below:

Notes to Accounts:

Additional Information:

Interim Dividend of ₹ 75,000 has been paid during the year.
Debenture Interest paid during the year ₹ 27,000.

You are required to prepare Cash Flow Statement.

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Question 426 Marks

Following is the Balance Sheet of BPL Ltd. as at 31st March, 2018.

Notes to Accounts:

Note: Proposed equity dividends for the year ended 31st March, 2017 and 2018 are ₹ 39,000 and ₹ 45,000 respectively. You are required to prepare Cash Flow Statement for the year ended 31st March, 2018.

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Question 436 Marks

Following are the Balance Sheets of Fast Foods Ltd.

Notes:

Interest paid on Mortgage Loan amounted to ₹ 18,000 You are required to prepare a Cash-Flow Statement.

Answer

Note:

Retained Earnings on 31st March, 2018	60,000
Less: Retained Earnings on 31st March, 2017	(50,000)
Net profit before tax	10,000

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Question 446 Marks

From the following Balance Sheets of Vijaya Ltd. as at 31.3.2018 and 31.3.2017 prepare a Cash Flow Statement.

Note:

Additional Information:

Depreciation on Fixed Assets for the year 2017-2018 was ₹ 14,700.
An interim dividend ₹ 1,000 has been paid to the shareholders during the year

Answer

Working note:

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Question 456 Marks

Following was the Balance Sheet of M.M. Ltd. as at 31st March, 2015:

Notes to Accounts:

Additional Information:

12% Debentures were redeemed on 31st March, 2015.
Tax ₹ 70,000 was paid during the year.

Prepare Cash Flow Statement.

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Question 466 Marks

Following are the Balance Sheets of 'X' Co. Ltd.

Notes:

A machine costing ₹ 40,000 having book value of ₹ 25,000 was sold for ₹ 35,000 during the year. Interest paid on loan from bank amounted to ₹ 8,000. Prepare a Cash-Flow Statement.

Answer

Working Note:

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Question 476 Marks

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

Additional Information:

Answer

Note:

Calculation of Net Profit before Tax:	₹
Profit & Loss Balance on 31st March, 2014	79,500
Less: Profit & Loss Balance on 31st March, 2013	(42,000)
	37,500
Add: Transfer to General Reserve	2,000
Dividend Paid	17,500
	57,000

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Question 486 Marks

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

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

Answer

Relating to investing activity ₹ 50,000 as part payment.

Working Note:

$=2,50,000\times\frac{20}{100}=50,000(\text{outflow})$

Related to investing activity. Acquiring shares in Informa Tech is an investment and dividend received on it is also part of same (₹ 2,50,000-50,000= ₹ 2,00,000 outflow).
Related to investing activity. It is treated as sale of investment. ₹ 60,000 inflow and ₹ 20,000 as profit on sale of investment as operating activity.

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Question 496 Marks

Following are the Balance Sheets of Krishtec Ltd. as at 31st March 2018 and 2017: