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Accountancy 6 Marks Question

Cash Flow Statement · CBSE STD 12 Commerce (CBSE - English Medium). 100 questions.

Questions · Page 2 of 2

6 Marks Question

Question 516 Marks
From the following particulars of Bharat Gas Limited, calculate Cash Flows from Investing Activities. Also show the workings clearly preparing the ledger accounts:
Notes to accounts:
Additional Information:
  1. Patents were written-off to the extent of ₹ 40,000 and some Patents were sold at a profit of ₹ 20,000.
  2. A Machine costing ₹ 1,40,000 (Depreciation provided thereon ₹ 60,000) was sold for ₹ 50,000. Depreciation charged during the year was ₹ 1,40,000.
  3. On March 31, 2016, 10% Investments were purchased for ₹ 1,80,000 and some Investments were sold at a profit of ₹ 20,000. Interest on Investment 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 ₹ 30,000.
Answer



Working Note Machine costing ₹ 1,40,000 less depreciation ₹ 60,000, present value ₹ 80,000 sold for ₹ 50,000 i.e., loss on sale ₹ 30,000.
Note: Any income received on investment is a part of investments like dividend,interest or rent received.
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Question 526 Marks
From the following information, calculate Net Cash Flow from Operating Activities and Financing Activities:
Additional Information:
  1. During the year additional debentures were issued at par on 1st October and Bank Loan was repaid on the same date.
  2. Dividend on Equity Shares @ 8% was paid on Opening Balance.
  3. Income tax ₹ 1,12,500 has been provided during the year.
  4. Preference shares were redeemed at par at the end of the year.
Answer


Working Notes:
Calculation of Interest on Debentures

$3,75,000\times\frac{8}{100}=30,000$
$2,75,000\times\frac{8}{100}\times\frac{6}{12}=11,000$
Total Interest = 41,000 (30,000 + 11,000)
Calculation of Interest on Bank Loan
$1,25,000\times\frac{8}{100}\times\frac{6}{12}=5,000$
$1,00,000\times\frac{8}{100}\times\frac{6}{12}=4,000$
Total Interest = 9,000 (5,000 + 4,000)
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Question 556 Marks
From the following information, perpare Cash Flow Statement:
Answer

Note: It has been assumed that Debentures were issued at the end of the accounting period. Therefore, interest on Debentures is computed on the opening balance of the Debenture.
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Question 566 Marks
Prepare Cash Flow Statement from the following Balance Sheet:
Notes to Accounts:
Additional Information:
  1. An old machinery having book value of ₹ 50,000 was sold for ₹ 60,000.
  2. Depreciation provided on Machinery during the year was ₹ 30,000.
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Question 576 Marks
The Balance Sheets of X Ltd. as at 31st March 2018 and 31st March 2017 were as follows:

Notes:

Additional Information:
1.
Contingent Liability:
31.3.2018
31.3.2017
 
 
₹
₹
 
Proposed Dividend
72,000
60,000
2.
Depreciation charged during the year on Plant & Machinery amounted to ₹ 80,000.
3.
Machinery costing ₹ 80,000 (book value ₹ 30,000) was sold at a loss of 40% on book value.
Prepare Cash Flow Statement .
Answer

Notes:
  1. Calculation of Net Profit before Tax:
 
₹
Profit & Loss Balance on 31 st March, 2018
2,90,000
Less: Profit & Loss Balance on 31st March, 20 I 7
(1,80,000)
 
1,10,000
Add: Transfer to General Reserve
50,000
Proposed Dividend for Previous year
60,000
 
2,20,000
  1.  

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Question 586 Marks
From the following Balance Sheet of SRS Ltd. and the additional information as on 31st March, 2016, prepare a Cash Flow Statement: Notes to Accounts:
Additional Information:
  1. 50,000, 12% Debentures were issued on 31st March, 2016.
  2. 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

Working Notes:

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Question 596 Marks
From the following information, Calculate:
  1. Cash Flows from Investing Activities.
  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 1st October 2017 at a premium of 4%.
Answer


Working Notes:
  1.  
  1.  
  1. Sale Price of Machinery:
Cost of Machinery-Accumulated Depreciation - Loss on Sale
₹ 1,50,000 - ₹ 32,000 - ₹ 44,000 = ₹ 74,000
  1. Interest on Debentures:
 
₹
8% on ₹ 5,00,000 for six months
20,000
8% on ₹ 3,50,000 for six months
14,000
 
34,000
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Question 606 Marks
Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheets of P.S. Ltd. as at 31st March 2018 and 2017:
Notes:

Debentures amounting to ₹ 20,000 were redeemed on 31st Dec., 2017. Interest on debentures has been paid regularly.
Answer

Note:
Calculation of Net Profit before Tax:
₹
Reserve & Surplus Balance on 31st March, 2018
70,000
Less: Reserve & Surplus Balance on 31st March, 2017
50,000
 
20,000
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Question 616 Marks
From the following Balance Sheet of Mishi Ltd. as at 31st March, 2018, prepare Cash Flow Statement:

Notes to Accounts:

Additional Information:
  1. During the year, Machinery costing ₹ 1,40,000 (accumulated depreciation of ₹ 1,10,000) was sold for ₹ 20,000.
  2. During the year, Non-current Investments costing ₹ 80,000 were sold at a profit of ₹ 16,000.
Answer

Working Notes:
WN 1:

WN 2:

WN 3:
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Question 626 Marks
Prepare a Cash-Flow Statement from the following Balance Sheets of Nilgiri Tea Ltd.
Notes: Interest paid on debentures amounted to ₹ 9,000.
Answer

Note:
 
₹
Profit & Loss Balance on 31.3.2018
1,83,000
Less: Profit & Loss Balance on 31.3.2017
(82,000)
Net Profit before Tax
1,01,000
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Question 636 Marks
From the following Balance Sheet of Mohan Ltd., prepare cash flow Statement:
Notes to accounts:
Additional Information: Machine Costing ₹ 80,000 on which accumulated depreciation was ₹ 50,000 was sold for ₹ 20,000.
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Question 646 Marks
From the following Balance Sheet and information of Volvo Ltd., prepare Cash Flow Statement: Notes to Accounts:
Additional Information:
  1. You are informed that during the year.
Proposed Dividend:
31st March, 2018
31st March, 2017
Equity Share Capital
Nil
Nil
Preference Share Capital
12%
12%
  1. A machine with a book value of ₹ 20,000 was sold for ₹ 12,500.
  2. Depreciation charged during the year was ₹ 35,000
  3. Preference shares were redeemed on 31st March, 2018 at a premium of 5%.
  4. An interim dividend of ₹ 5,000 was paid on equity shares on 31st March, 2018 out of General Reserve.
  5. Fresh equity shares were issued on 31st March, 2018;
  6. Additional investments were purchased on 31st March, 2018.
Answer

Working Notes:
  1. Interim dividend on equity shrares was paid out of General Reserve and not out of Surplus. Hence, the same has not been considered while calculating Net Profit before Tax and Extra-ordinary items.
  2.  
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Question 656 Marks
Following are the Balance Sheet of XY Ltd. as at 31st March, 2018 and 2017:
Notes: Additional Information:
Contingent Liability:
31.3.2018
31.3.2017
 
₹
₹
Proposed Dividend
20,200
11,200
You are required to prepare a Cash Flow Statement
Answer

Note:
Calculation of Net Profit before Tax: ₹
Profit & Loss Balance on 31st March, 2018 6,200
Less: Profit & Loss Balance on 31st March, 2017 (7,200)
  1,000
Add: Transfer to General Reserve (₹ 12,000 - ₹ 8,000) 4,000
Proposed Dividend for Previous year 11,200
Net Profit before Tax 14,200
Note: Figure in brackets represent minus items.
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Question 666 Marks
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 old 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.
Answer
Calculation of Cash Flow from Operating Activities for the year ended 31st March, 2015: Working Note:
Calculation of Net Profit before Tax
₹
₹
Surplus (i.e., Balance in the Statement of Profit and Loss as on 31st March, 2015)
 
71,000
Surplus (i.e., Balance in the Statement of Profit and Loss as on 31st March, 2014)
 
89,000
Net Loss during the year
 
18,000
Add: Tax Paid
23,000
 
Interim Dividend Paid
36,000
59,000
Net Profit before Tax
 
41,000
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Question 676 Marks
Prepare a format of cash flow from operating activities under indirect method.
Answer
The format of cash flow from operating activities is as follows:
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Question 686 Marks
From the following Balance Sheets of EF Ltd. as at 31-3-2018 and 31-3-2017 prepare a Cash-Flow Statement:

Notes:

Additional Information:
During the year machine costing ₹ 50,000 was sold for ₹ 15,000.
Interim dividend paid on equity share capital ₹ 20,000.
During the year machine costing ₹ 50,000 was sold for ₹ 15,000 and dividend paid ₹20,000.
Answer

Notes:
  1. Calculation of Net Profit before Tax:
 
₹
Profit & Loss Balance on 31st March, 2018
1,60,000
Less: Profit & Loss Balance on 31st March, 2017
(85,000)
 
75,000
Add: Preference Dividend for Previous Year (8% on ₹ 30,000)*
2,400
Interim Dividend on Equity Capital
20,000
 
97,400
Less: Decrease in General Reserve (₹ 25,000 - ₹ 35,000)
(10,000)
Net Profit before Tax
87,400
* Dividend on Preference Shares is paid before payment of dividend on equity shares. The Company has paid interim dividend on equity shares. Hence, it must have paid previous year's dividend ₹ 2,400 on pref. shares.
  1.  
  1. It is assumed that debentures have been redeemed at the end of the year i.e., on 31st March, 2018.
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Question 696 Marks
Following are the Balance Sheets of Quick Gains Ltd.

Notes:

Additional Information:
1.
Contingent Liability
31st March, 2018
 31st March, 2017
 
 
₹
₹
 
Proposed Dividend
28,000
20,000
2.
Interest paid on long-term borrowings amounted to ₹ 8,000.
  
You are required to prepare a Cash-Flow Statement.
Answer
Notes:
  1.  
Calculation of Net Profit before Tax:
₹
Reserve & Surplus Balance on 31st March, 2018
1,25,000
Less: Reserve & Surplus Balance on 3 l st March, 2017
(20,000)
 
1,05,000
Add: Proposed Dividend for Previous year
20,000
Provision for Tax made during the Current year
15,000
Net Profit before Tax
1,40,000
  1.  
  1.  
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Question 706 Marks
From the following Balance Sheets of Enclotek Ltd. as at 31st March and the additional information provided, calculate:
  1. Cash from 'Operating Activities'
  2. Cash from 'Financing Activities':

Notes:

Additional Information:
  1. Depreciation provided on Fixed Assets ₹ 60,000.
  2. Preference shares were redeemed at a premium of 5% on 31st March, 2018.
  3. Additional debentures were issued on 1st October, 2017.
  4. Proposed dividend on equity share capital for previous year ended 31st March, 2017 was paid @ 8%.
Answer
  1.  

Notes:
  1. Calculation of Net Profit before Tax:
 
₹
Profit & Loss Balance on 31st March, 2018
1,00,000
Less: Profit & Loss Balance on 31st March, 2017
(1,00,000)
 
2,00,000
Add: Transfer to Capital Redemption Reserve
1,00,000
Transfer to General Reserve
35,000
Proposed Dividend on Equity Shares (8% on ₹ 4,50,000)
36,000
Dividend on Preference Shares (5% on ₹ 3,00,000)
15,000
Net Profit before Tax
3,86,000
  1. Negative balance of Profit & Loss amounting to ₹ 1,00,000 appearing in the Balance Sheet on 31.3.2017 represents an amount of loss. In the current year (2017-18), 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 :
  ₹
8% on ₹ 2,00,000 for 6 months 8,000
8% on ₹ 3,00,000 for 6 months 12,000
  20,000
  1.  
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Question 716 Marks
Following are the Balance Sheets of Krishtec Ltd. for the years ended 31st March, 2012 and 2011:
Prepare a Cash Flow Statement after taking into account the following adjustments:
  1. The company paid interest ₹ 36,000 on its long-term borrowings.
  2. Depreciation charged on tangible fixed assets was ₹ 1,20,000.
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Question 726 Marks
From the following Balance Sheets, prepare a Cash Flow Statement as per AS-3 (revised):

A dividend of ₹ 30,000 was paid during the year 2017-18.
Answer

Note:
Calculation of Net Profit before Tax:
₹
Reserve & Surplus Balance on 31st March, 2018
60,000
Less: Reserve & Surplus Balance on 31st March, 2017
(50,000)
 
10,000
Add: Dividend paid for Current year
30,000
 
40,000
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Question 736 Marks
From the following Balance Sheets of Samta Ltd. as at 31.3.2018 and 31.3.2017 prepare a Cash Flow Statement:
Additional Information:
1.
Contingent Liability:
31.3.2018
31.3.2017
 
 
₹
₹
 
Proposed Dividend
2,00,000
1,00,000
2.
During the year ₹ 80,000 depreciation was charged on fixed tangible assets.
3.
A piece of machinery included in fixed tangible assets costing ₹ 20,000 on which depreciation charged was ₹ 8,000, was sold fort ₹ 10,000.
Answer

Notes:
  1. Calculation of Net Profit before Tax:
  ₹
Reserve & Surplus Balance on 31st March, 2018 4,00,000
Less: Reserve & Surplus Balance on 31st March, 2017 2,00,000
  2,00,000
Add: Proposed Dividend for Previous year 1,00,000
Net Profit before Tax 3,00,000
  1.  

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Question 746 Marks
From the foltowingBatance Sheet of Tiger Super Steel Ltd, prepare Cash flow statement.

Notes to accounts:

Additional Information.
Depreciation Charged on Land and building ₹ 20,000 and plant ₹ 10,000 during the year.
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Question 756 Marks
From the following Balance Sheet and information of XYZ Ltd., prepare Cash Flow Statement: Notes to accounts:
You are informed that during the year:
  1.  
Proposed Dividend: 31st March, 2018 31st March, 2017
Equity Share Capital Nil Nil
Preference Share Capital 10% 10%
  1. A machine with a book value of ₹ 90,000 was sold for ₹ 50,000.
  2. Depreciation charged during the year ₹ 60,000
  3. Debentures were issued on 1st April, 2017.
  4. Investments were purchased on 31st March, 2018
  5. Preference shares were redeemed on 31st December, 2017
  6. An interim dividend @ 15% was paid on equity shares on 31st December, 2017.
  7. Fresh equity shares were issued at a premium of 5% on 31st March, 2018
Answer

Working Notes:
  1. Dividend on 10% Preference Shares has been calculated on the value as on 31st March, 2018 as ₹ 1,00,000 Preference Shares were redeemed on 31st March, 2018.
  2.  
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Question 766 Marks
Prepare a Cash Flow Statement from the following Balance Sheet:

Note:

Additional Information:
An old machinery having book value of ₹ 42,000 was sold for ₹ 56,000.
Depreciation provided on machinery during the year was ₹ 28,000.
Answer

Working Notes:
  1. Net Profit before Tax:
  ₹
Profit & Loss Balance on 31st March, 2013 3,08,000
Less: Profit & Loss Balance on 31st March, 2012 (1,82,000)
  1,26,000
  1.  
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Question 776 Marks
Following is the Balance Sheet of Rahul & Co. for two years. Prepare Cash Flow Statement:
Answer

Notes:
1.
Reserve and Surplus on 31st March, 2018
 
23,000
 
Reserve and Surplus on 31st March, 2017
 
10,000
 
 
 
13,000
2.
Cash & Cash Equivalents:
 
 
 
Cash & Cash Equivalents
47,000
30,000
 
Current Investments
8,000
10,000
 
 
55,000
40,000
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Question 786 Marks
Perpare a cash Flow Statemennt on the basis of the informantion given in the Balance Sheets of Libra Ltd. as at 31st March, 2013 and 31st March 2012:
Notes to Accounts:
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Question 796 Marks
From the following Balance Sheets of Som Ltd. as at 31-3-2018 and 31-3-2017 prepare a Cash Flow Statement:
Notes:

Additional Information:
  1. During the year, a machine costing ₹ 70,000 was sold for ₹ 15,000.
  2. Interim Dividend paid on equity share capital during the year ₹ 24,000.
Answer
Notes:
  1. Calculation ofNet Profit before Tax:
 
₹
Profit & Loss Balance on 31st March, 2018
25,000
Less: Profit & Loss Balance on 31st March, 2017
(1,25,000)
 
1,00,000
Add: Transfer to General Reserve
70,000
Preference Dividend for previous year (8% on ₹ 50,000)
4,000
Interim Dividend on Equity Capital
24,000
 
2,000
* Dividend on Pref. Shares is paid before payment of dividend on equity shares. The Company has paid interim dividend on equity shares. Hence, it must have paid previous year's dividend on preference shares.
  1. It has been assumbed that debentures were redeemed at the end of the year.
  1.  
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Question 806 Marks
Prepare a Cash-Flow Statement from the following Balance Sheets of Dry Fruits Ltd.
Notes: Additlonal 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.
Answer

Notes:
  1. Calculation of Net Profit before Tax:
 
₹
Profit & Loss Balance on 31st March, 2018
60,000
Less: Profit & Loss Balance on 31st March, 2017
(8,000)
 
68,000
Add: Transfer to General Reserve
24,000
Interim Dividend Paid
20,000
 
1,12,000
Negative balance of Profit & Loss amounting to ₹ 8,000 appearing in the balance sheet on 31.3.2017 represents an amount of loss. In the current year, after covering this loss of ₹ 8,000, the Profit & Loss shows a profit of ₹ 60,000. It means that net profit during the current year must have been ₹ 60,000 + ₹ 8,000 = ₹ 68,000.
  1.  

  1.  

  1.  

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Question 816 Marks
Following are the Balance Sheets of Rashi Ltd. as at 31st March 2018 and 31st March 2017:
Notes: Additional Information:
  1. New public deposits were accepted on 1st January, 2018.
  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 Investments were sold at a profit of 25%.
Prepare Cash Flow Statement.
Answer

Notes:
  1. Calculation of net profit before tax:
 
₹
Profit & Loss Balance (Net Loss) on 31.3.2018
(1,70,000)
Profit & Loss Balance (Net Loss) on 31.3.2017
(2,15,000)
Net Profit before Tax
45,000
  1. Interest paid on Public Deposits:
 
 
₹
12% on ₹ 2,50,000 for 1 year
=
30,000
12% on ₹ 50,000 for 3 months
=
1,500
 
 
31,500
  1.  

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Question 826 Marks
From the following Balance Sheets of XLtd., you are required to prepare Cash Flow Statement. Notes:
1.
Short-term Borrowings:
31.3.2018
31.3.2017
 
Bank Overdraft
88,000
66,000
2.
Short-term Provision
 
 
 
Taxation Provision
34,000
26,000
3
Tangible Assets:
 
 
 
Land
1,50,000
2,00,000
 
Plant
2,25,000
3,00,000
 
 
3,75,000
5,00,000
Additional Information:
  1. Interim Dividend paid during the year ₹ 60,000
  2. Land was sold at a profit of ₹ 30,000
  3. Plant costing ₹ 20,000 was sold during the year at a loss of ₹ 8,000.
Answer

Notes:
  1. Calculation of Net Profit before Tax.
  ₹
Reserve & Surplus Balance on 31st March, 2018 1,70,000
Less: Reserve & Surplus Balance on 31st March, 2017 91,000
  79,000
Add: Interim Dividend Paid 60,000
Provision for Tax made during the Current year 34,000
  1,73,000
  1.  

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Question 836 Marks
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 during the year was ₹ 35,000.
Answer

Notes:
  1.  
Profit and Loss Balance on 31st March, 2018
45,000
Less: Profit & Loss Balance on 31st March, 201 7
(50,000)
Net Loss during the year
5,000
  1.  
  1.  

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Question 846 Marks
Prepare a Cash-Flow Statement from the following Balance Sheets of SuryaVanaspati Ltd.

Notes:

Additional Information:
During the year, machinery whose original cost was ₹ 50,000 was sold for ₹ 32,000
Company charged ₹ 20,000 as depreciation on Plant & Machinery.
Answer

Notes:
  1. Calculation of Net Profit before Tax:
 
₹
Reserve & Surplus Balance on 31st March, 2017
72,000
less: Reserve & Surplus Balance on 31st March, 2016
(50,000)
 
22,000
Provision for Tax made during the Current year
24,000
Net Profit before Tax
46,000
  1.  

  1.  

* Balancing figure of Accumulated Depreciation Ne ~ 12,000 will be transferred to the Cr. side of Plant & Machinery Account.
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Question 856 Marks
From the following Balance Sheets of Tarun Fashions Ltd., prepare a Cash-Flow Statement: Notes:
Additional Information:
1. Contingent Liability: 31.3.2018 31.3.2017
    ₹ ₹
  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 1st April, 2017
5. Provision for Tax made during the year ₹ 50,000
Answer

Notes:
  1. Calculation of Net Profit before Tax:
 
₹
Reserve & Surplus Balance on 31st March, 2018
1,78,000
Less: Reserve & Surplus Balance on 31st March, 2017
75,000
 
1,03,000
Add: Proposed Dividend for Previous year
12,000
Provision for Tax made during Current year
50,000
Net Profit before Tax
1,65,000
  1. Increase in Goodwill will be treated as purchase of Goodwill.
  1.  

  1.  

  1.  

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Question 866 Marks
From the following Balance Sheets of XY Ltd. prepare a Cash-Flow Statement for the year ended 31st March, 2018:

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 1st October, 2017
  4. During the year share issue expenses amounted to ₹ 10,000 and these were written off from Statement of Profit & Loss.
Answer

Notes:
  1. Calculation of Net Profit before Tax:
 
₹
Profit & Loss Balance on 31st March, 2018
1,20,000
Less: Profit & Loss Balance on 31st March, 2017
(1,59,000)
 
39,000
Add: Transfer to General Reserve
1,20,000
Net Profit before Tax
81,000
  1. Interest on Debentures:
  ₹
8% on 1,00,000 for 1 year
8,000
8% on 50,000 for 6 months
2,000
 
10,000
  1. It has been assumed that Non-Current investments have been purchased at the end of the accounting year i.e., on 31st March, 2018.
  1.  

  1.  

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Question 876 Marks
The following are the summarised Balance Sheets of X Ltd. as at 31st March, 2018 and 2017: Notes: Additional Information:
1.
Contingent Liability
31.3.2018
31.3.2017
 
 
₹
₹
 
Proposed Dividend
30,000
25,000
2.
Provision for tax made ₹ 30,000.
3.
Additional debentures amounting to ₹ 5,000 were issued on 1st Oct. 2017. Interest on debentures has been paid up-to date.
You are_required to prepare a statement of Cash-Flow.
Answer

Working Notes:
  1. Net Profit before tax :
 
₹
Reserve & Surplus Balance (₹ 52,000 - ₹ 50,000)
2,000
Add: Provision for Tax for 2018
30,000
Proposed Dividend for 2017
25,000
 
57,000
  1.  

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Question 886 Marks
You are required to prepare a Cash Flow Statement (as per AS-3) for the year 2017-18 from the following Balance Sheets:

Additional Information:
During the year 2017-18:
  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 31st March, 2017 was 20% and for the year ended 31st March, 2018 was 10%.
Answer

Working Netes:
  1.  
 
₹
Statement of Profit & Loss (₹ 2,00,000 - ₹ 1,00,000)
1,00,000
Add: Proposed dividend for Previous Year (20% of ₹ 4,00,000)
80,000
Provision for Tax
80,000
Net Profit before Tax
2,60,000
  1.  
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Question 896 Marks
Prepare a Cash-Flow Statement from the Balance Sheets given below:
Notes:

Additional Information:
  1. Depreciation written off on fixed assets @ 10% on last year's balance.
  2. Interim Dividend paid during the year @ 10% on Share Capital.
  3. Mortgage Loan was taken on 1st July 2017 @ 10% p.a. Interest has been paid up-to date.
Answer

Notes:
  1. Calculation of Net Profit before Tax:
 
₹
Profit & Loss Balance on 31st March, 2018
75,000
less: Profit & Loss Balance on 31st March, 2017
(30,000)
 
1,05,000
Add: Transfer to General Reserve
30,000
Dividend Paid (10% on ₹ 5,00,000)
50,000
Provision for Tax made during the Current year
15,000
Net Profit before Tax
2,00,000
Negative balance of Profit and Loss amounting to ₹ 30,000 appearing in the balance sheet on 31.3.2017 represents an amount of loss. In the current year, after covering this loss of ₹ 30,000, the Profit & Loss shows a profit of ₹ 75,000. It means that net profit during the current year must have been ₹ 75,000 + ₹ 30,000 = ₹1,05,000.
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Question 906 Marks
Following are the Balance Sheets of X Ltd. Notes:

Additional Information:
  1. A piece of machinery was sold for ₹ 8,000 during the year 2018. Its original cost was ₹ 20,000 and depreciation of ₹ 15,000 has been provided on it.
  2. Non-Current 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 Cash-Flow Statement.
Answer

Note:
  1. Calculation of Net Profit before Tax:
 
₹
Profit & Loss Balance on 31st March, 2018
50,000
Less: Profit & Loss Balance on 31st March, 2017
(37,000)
 
87,000
Add: Transfer to General Reserve
22,000
Provision for Tax made during the Current year
20,000
Net Profit before Tax
1,29,000
Negative balance of Profit & Loss amounting to ₹ 37,000 is given in previous year's balance sheet. As such, it represents the amount of loss of the previous year. In the current year, there is a profit in Profit & Loss (after meeting the loss of previous year) amounting to ₹ 50,000. It means that net profit during the current year must have been ₹ 37,000 + ₹ 50,000 = ₹ 87,000.
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Question 916 Marks
From the following Balance Sheets of Vivek Ltd., prepare Cash Flow Statement: Notes:

Additional Information:
Depreciation charged on Plant was ₹ 30,000 and on Building ₹ 50,000 Income Tax paid during the year amounted to ₹ 25,000.
Answer

Notes:
  1. Calculation of Net Profit before Tax:
  ₹
Reserve and Surplus Balance on 31st March, 2018 1,52,000
Less: Reserve and Surplus Balance on 31st March, 2017 (50,000)
  1,02,000
Add: Provision for Tax made during the Current year 33,000
  1,35,000
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Question 926 Marks
Following was the Balance Sheet of Sreshtha Ltd. as at 31st March, 2014:

Notes to Accounts:

Prepare a Cash Flow Statement after taking into account the following adjustment:
During the year, a piece of machinery costing ₹ 30,000 on which accumulated depreciation was ₹ 6,000, was sold for ₹ 20,000.
Answer
Working Notes:
  1. Calculation of Net profit before Tax:
 
₹
Surplus, i.e., Balance in Statement of Profit and Loss (₹ 5,00,000- ₹ 3,00,000)
2,00,000
Add: Provision for Tax
70,000
Net Profit before Tax
2,70,000
  1.  
  1.  
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Question 936 Marks
From the following Balance Sheet of Ajanta Limited as at March 31, 2017, prepare a Cash Flow Statement:

Notes to Accounts:

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

Working Notes:
  1.  
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Question 946 Marks
Following are the Balance Sheets of Pawan Ltd.

Notes:

Additional Information:
  1. Machinery Costing ₹ 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 Cash-Flow Statement.
Answer

Notes:
  1. Calculation of Net Profit before Tax:
 
₹
Reserve & Surplus Balance on 31st March, 2018
1,97,000
Less: Reserve & Surplus Balance on 31st March, 2017
(1,75,000)
 
22,000
Add: Interim Dividend Paid
25,000
Provision for Tax made during the Current year
62,000
Net Profit before Tax
1,09,000
  1.  

  1.  

 
 
₹
Book Value of Investments sold= 40% of ₹ 50,000
=
20,000
Loss on Sale = 20% of ₹ 20,000
=
(4,000)
Sale Price of Investments
 
16,000
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Question 956 Marks
The Balance Sheet of A Ltd. as at 31-3-2018 and 31-3-2017 were as follows:

Notes:

Additional Information:
  1. Depreciation written off on fixed assets 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
Answer

Working Notes:
  1. Net Profit before Tax:
 
₹
Loss for the year (₹ 33,000 - ₹ 41,000)
(8,000)
Add: Provision for Tax for 2018 (Note 3)
12,000
Transfer to General Reserve
3,000
Profit before Tax
7,000
  1.  
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Question 966 Marks
Prepare a Cash-Flow statement from the following Balance Sheets of ONIDA Ltd.
Notes:

Additional Information:
  1. Debentures were issued on 1st October 2017. Interest has been paid up-to date.
  2. Machinery whose original cost was ₹ 50,000 (accumulated depreciation thereon being ₹ 27,000) was sold for ₹ 35,000.
  3. Depreciation on Machinery charged during the year ₹ 15,000.
  4. Interim Dividend paid during the year was @ 15% on Share Capital.
Answer

Working Note:
  1. Net Profit before Tax:
  ₹
Profit for the year:  
Reserve and Surplus on 31st March, 2018 1,07,000
(-) Reserve and Surplus on 31st March, 2017 (25,000)
  82,000
Add: Provision for Taxation for 2018 40,000
Interim Dividend paid ( 15% on ₹ 2,00,000) 30,000
  1,52,000
  1. Profit on sale of machinery:
 
₹
Cost of Machine sold
50,000
Less: Accumulated Depreciation thereon
(27,000)
Written down value of Machine sold
23,000
Sale amount of Machine
35,000
Profit on sale of Machine
12,000
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Question 976 Marks
Summarised Balance Sheets of Surya Vanaspati Ltd. as at 31st March, 2014 and 2013 are:

Notes to Accounts:

Additional Information:
  1. Non-Current Investments costing ₹ 20,000 were sold during the year 2013-14 at a profit of 20%.
  2. Tax paid during the year was ₹ 62,000
  3. During the year, part of fixed assets costing ₹ 40,000 was sold for ₹ 50,000 and the profit was included in the Statement of Profit and Loss.
  4. An Interim Dividend @ 12% was paid during the year
You are required to prepare Cash Flow Statement.
Answer

Working Notes:
  1. Calculation of Net Profit before Tax:
 
₹
Profit & Loss Balance on 31st March, 2014
50,000
Less: Profit & Loss Balance on 31st March, 2013
(70,000)
 
20,000
Add: Increase in General Reserve
50,000
Interim Dividend paid (12% on ₹ 6,00,000)
72,000
Provision for Tax made during current year (Note 4)
57,000
Net Profit before Tax
1,59,000
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Question 986 Marks
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.
Answer

Notes:
  1. Calculation of Net Profit before Tax:
 
₹
Reserve & Surplus Balance on 31st March, 2018
25,000
Less: Reserve & Surplus Balance on 31st March, 2017
(30,000)
 
5,000
Add: Provision for Tax made during the Current year
30,000
 
25,000
  1.  
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Question 996 Marks
From the following Balance Sheets of B.C.R. Ltd. as at 31-3-2018 and 31-3-2017 prepare a Cash Flow Statement:
Notes:

Additional Information:
Proposed Dividend for the year ended 31st March 2018 was 12% and for the year ended 31st March, 2017 was 10%. 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 Notes:
  1.  

  1.  

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6 Marks Question - Page 2 - Accountancy STD 12 Commerce Questions - Vidyadip