AHSEC CLASS 12
ACCOUNTANCY QUESTION BANK
UNIT – 11: Cash flow
statement practical problems
Questions
Asked in Past Exam 2012 to 2022
CASH FLOW STATEMENT (5 MARKS)
1. CALCULATION OF CASH FLOW FROM OPERATING ACTIVITIES (DIRECT METHOD): 2012
2. CALCULATION OF CASH FLOW FROM OPERATING ACTIVITIES (INDIRECT): 2014, 2015, 2018, 2019, 2020, 2022
3. CALCULATION OF CASH FLOW FROM INVESTING ACTIVITIES: 2016, 2017
4. CALCULATION OF CASH FLOW FROM FINANCING ACTIVITIES: 2016
Q.1. Ascertain Cash Flows from operating
activities under the Direct Method from the Following data Related to the
accounting year 2010 – 11 (5) 2012
Total
sales: 44,000 (Cash Rs 4,000, Credit Rs 40,000)
Cash
received from customers: 35,000
Closing
Account Receivables: 8,000
Cash paid
to Suppliers: 42,000
Cash paid
to employees: 7,000
Furniture
purchased from (M/s. Decorators on credit): 9,000
Income tax
paid: 3,000
Donation
paid: 1,000
Office
expenses, total Rs 6,000, paid: 3,000
Q.2. From
the following information, calculate cash flow from operating activities using
Direct Method: 2014
Particulars (Dr.) |
Amount |
Particulars (Cr.) |
Amount |
To
Cost of goods sold To
Gross Profit c/d To
Salary To
Insurance To
Depreciation To
Income Tax To
Net Profit |
130000 70000 |
By
Sales By
Gross Profit b/d |
200000 |
200000 |
200000 |
||
20000 2000 5000 8000 35000 |
70000 |
||
|
70000 |
|
70000 |
Additional
Information:
(1)
Debtors – Opening Balance Rs.15000, Closing
Balance Rs.20000.
(2)
Creditors – Opening Balance Rs.10000, Closing
Balance Rs.12000.
(3)
Stock – Opening Balance Rs.7000, Closing
Balance Rs.10000.
At the end
of the year, outstanding salary Rs.2000 pre-paid insurance Rs.400 and Income
tax outstanding Rs.1000.
Q.3. X
Ltd. Made a profit of Rs. 5, 00,000/- after considering the following items: 2015
|
Rs. |
Goodwill written off Depreciation on Fixed Assets Loss on Sale of Machinery Provision for doubtful debt Gain on sale of land |
5,000/- 50,000/- 20,000/- 10,000/- 7,500/- |
Additional
Information:
Particulars |
31-03-2020 |
31-03-2019 |
Bills Receivable Prepaid Expenses Bills Payable Expenses Payable |
78,000/- 3,000/- 51,000/- 20,000/- |
52,000/- 2,000/- 40,000/- 34,000/- |
Calculate
Cash and Operating Activities for the year ended 31st March, 2020.
Q.4. From the following details, calculate
cash from Investing and Financing Activities:
2016
Particulars |
1-4-2019 |
31-3-2020 |
Machinery
at Cost Accumulated
Depreciation Capital Bank
Loan |
60,000 15,000 45,000 15,000 |
75,000 18,000 52,500 --- |
During the
year, machinery costing Rs. 15,000/- was sold at a loss of Rs. 3,000.
Depreciation on machinery charges during the year amounted to Rs. 9,000.
Q.5. From the following information,
ascertain “Cash Flow from Investing Activities”: 2017
|
Rs. |
Land and
Buildings purchased during the year Additional
furniture purchased during the year Investments
purchased Investments
sold Loss on
Sale of Investments Plant
and Machinery sold during the year Dividend
received Interest
received Sale of
land Profit
on Sale of land |
2,00,000/- 50,000/- 50,000/- 1,00,000/- 5,000/- 40,000/- 15,000/- 20,000/- 3,00,000/- 1,50,000/- |
Q.6. Charles Ltd. made a profit of Rs.
1,00,000/- after charging depreciation of Rs. 20,000 on assets and a transfer
to general reserve of Rs. 30,000/-. The goodwill written off was Rs. 7,000/-
and gain on sale of machinery was Rs. 3,000/-. Other information available to
you (change in the value of current assets and current liabilities) are:
debtors showed an increase of Rs. 6,000/-; creditors an increase of Rs.
10,000/-; prepaid expenses an increase of Rs. 200/-; bills receivable a
decrease of Rs. 3,000/-; bills payable a decrease of Rs. 4,000/- and
outstanding expenses a decrease of Rs. 2,000/-. Ascertain cash flow from
operating activities. 2018
Q.7.From the following information calculate the cash from operating activities: 8 2019
|
2016 (Rs.) |
2017 (Rs.) |
Profit and Loss A/c Bills Receivable Provision for Depreciation Outstanding Wages Prepaid Insurance Goodwill Provision for Doubtful Debts Debtors Cash and Bank Balance |
3,00,000 20,000 60,000 18,000 6,000 40,000 10,000 1,20,000 30,000 |
2,50,000 18,000 80,000 15,000 9,000 32,000 14,000 80,000 25,000 |
Q.8. X Ltd. made a profit of Rs. 5,00,000 after considering the following items: 5 2020
|
Rs.
|
Preliminary expenses written off Depreciation on fixed assets Loss on sale of machinery Provision for doubtful debts Gain on sale of Land |
5,000 50,000 20,000 10,000 7,500 |
Position of current assets and current liabilities:
Particulars |
2017
(Rs.) |
2018
(Rs.) |
Debtors Bills Received Prepaid expenses Creditors Bills Payable Expenses Payable |
52,000 15,000 2,000 40,000 19,000 34,000 |
78,000 12,000 3,000 51,000 12,000 20,000 |
Calculate cash from operating activities.
Q.9. Calculate cash from operating activities from the following
information: 2022
|
2019 (Rs.) |
2020 (Rs.) |
Profit and Loss A/c Debtors Bills Receivable General Reserve Salary Outstanding Wages Prepaid Goodwill Cash and Bank Balance |
60,000 87,000 62,000 2,02,000 30,000 5,000 80,000 40,000 |
65,000 50,000 1,03,000 2,37,000 12,000 7,000 70,000 30,000 |
Cash Flow from Operating Activities
1. From
the following information, calculate net cash flows from operating activities:
Particulars |
2019 (Rs.) |
2020 (Rs.) |
Profit
and Loss Account Preliminary
Expenses Outstanding
Salaries Sundry
Debtors Stock in
Hand Sundry
Creditors Prepaid
Expenses Bills
Payable Bills
Receivable Income
Received in Advance |
1,20,000 20,000 4,000 40,000 90,000 30,000 6,000 30,000 60,000 6,000 |
1,40,000 15,000 5,000 50,000 60,000 40,000 8,000 20,000 50,000 4,000 |
2. From
the following information calculate cash from operations:
i.
Profits made during the year 2020, Rs.
3,00,000 after considering the following items:
a)
Income from investments Rs. 6,000.
b)
Goodwill written off Rs. 4,000.
c)
Transferred to General Reserve Rs. 10,000.
d)
Depreciation on fixed assets Rs. 20,000.
e)
Provision for bad debts Rs. 6,000.
ii.
The following is the position of current
assets and current liabilities:
Particulars |
2019(Rs.) |
2020(Rs.) |
Stock Sundry
Debtors Bills
Receivable Bills
Payable Sundry
Creditors Outstanding
Expenses Prepaid
Rent |
60,000 30,000 15,000 20,000 40,000 10,000 6,000 |
50,000 35,000 10,000 25,000 45,000 12,000 10,000 |
3. From the following information calculate
net cash flows from operating activities:
i.
Loss incurred during the year 2020 Rs. 10,000
after considering the following items:
a)
Depreciation on machinery Rs. 15,000.
b)
Goodwill written off Rs. 10,000.
c)
Loss on sale of plant Rs. 5,000.
d)
Profit on sale of land Rs. 8,000.
e)
Provision for likely bad debts Rs. 1,000.
ii.
The following is the position of current
assets and current liabilities:
Particulars |
2019(Rs.) |
2020(Rs.) |
Stock Marketable
Securities Accrued
Income Sundry
Debtors Sundry
Creditors Bills
Receivable Bills
Payable Provision
for Bad Debt Bank
Overdraft |
80,000 60,000 10,000 40,000 60,000 40,000 20,000 2,000 20,000 |
90,000 40,000 6,000 50,000 65,000 35,000 25,000 3,000 25,000 |
4. Calculate net cash flows from operating
activities from the following:
Profit and
Loss Account for the year ended 31st March, 2020
Particulars |
Rs. |
Particulars |
Rs. |
To
Salaries To Rent To
Depreciation To Loss
on Sale of Plant To
Goodwill written off To
Proposed Dividends To
Provision for Taxation To Net
Profit |
15,000 10,000 2,000 1,000 4,000 5,000 5,000 11,000 |
By Gross
Profit By
Profit on Sale of Land By
Income Tax Refund |
45,000 4,000 4,000 |
|
53,000 |
|
53,000 |
5. Calculate the Cash Flow from
Operating Activities from the following information:
Net
income for the year ended 31st March, 2020 Annual
Depreciation Profit
on sale of furniture which was transferred to Statement of Profit and Loss Trade
Receivable (Increase in Debtors) Trade
Payables (Increase in Creditors) |
Rs. 15,00,000 6,00,000 1,50,000 1,20,000 1,80,000 |
6. Compute Cash Flow from Operating
Activities from the following:
Particulars |
1st April, 2019 |
31st March, 2020 |
Balance
in Statement of Profit and Loss Trade
Receivables: Bills Receivable Debtors Inventories
(Stock) Prepaid
Expenses Trade
Payables: Creditors Bills Payable Outstanding
Expenses Provision
for bad debt |
40,000 5,000 10,000 7,000 500 4,000 1,000 2,000 2,000 |
80,000 8,000 12,000 4,000 - 6,000 - 3,000 1,500 |
7. From the following you are required
to calculate Cash Flow from Operating Activities:
Particulars |
31st March, 2019 |
31st March, 2020 |
Balance
in Statement of Profit and Loss Trade
Receivables: Debtors Bills Receivable General
Reserve Dividend
Equalization Fund Salary
Outstanding Wages
Prepaid Goodwill |
60,000 87,000 62,000 2,02,000 78,000 30,000 5,000 80,000 |
65,000 40,000 1,03,000 2,37,000 1,00,000 12,000 7,000 70,000 |
8. Ascertain Cash Flows from operating
activities under the Direct Method from the Following data Related to the accounting
year 2019 – 20
Total
sales: 44,000 (Cash Rs 4,000, Credit Rs 40,000)
Cash
received from customers: 35,000
Closing
Account Receivables: 8,000
Cash paid
to Suppliers: 42,000
Cash paid
to employees: 7,000
Furniture
purchased from (M/s. Decorators on credit): 9,000
Income tax
paid: 3,000
Donation
paid: 1,000
Office
expenses, total Rs 6,000, paid: 3,000
9. From
the following information, calculate cash flow from operating activities using
Direct Method:
Particulars (Dr.) |
Amount |
Particulars (Cr.) |
Amount |
To
Cost of goods sold To
Gross Profit c/d To
Salary To
Insurance To
Depreciation To
Income Tax To
Net Profit |
130000 70000 |
By
Sales By
Gross Profit b/d |
200000 |
200000 |
200000 |
||
20000 2000 5000 8000 35000 |
70000 |
||
|
70000 |
|
70000 |
Additional
Information:
(1)
Debtors – Opening Balance Rs.15000, Closing
Balance Rs.20000.
(2)
Creditors – Opening Balance Rs.10000, Closing
Balance Rs.12000.
(3)
Stock – Opening Balance Rs.7000, Closing
Balance Rs.10000.
(4)
At the end of the year, outstanding salary
Rs.2000 pre-paid insurance Rs.400 and Income tax outstanding Rs.1000.
Cash flow from investing and financing activities
10. From the following information,
calculate Cash Flow from Investing Activities:
Purchase
of Machine Purchase
of Goodwill Sale of
Machine Sale of
Investment |
Rs. 2,50,000 1,00,000 35,000 50,000 |
Purchase
of Investments Sale of Patents Interest
and Dividend Received |
Rs. 1,50,000 40,000 10,000 |
A building was purchased as investment out of surplus which was let out for commercial purpose. Rent received Rs. 20,000.
ALSO READ (AHSEC ASSAM BOARD CLASS 12):
CHAPTERWISE PRACTICAL IMPORTANT QUESTIONS
PROFIT AND LOSS APPROPRIATION ACCOUNT AND PARTNERSHIP DEED
ADMISSION OF A PARTNER
RETIREMENT OF A PARTNER
DEATH OF A PARTNER
DISSOLUTION OF PARTNERSHIP FIRM
ACCOUNTING FOR SHARE CAPITAL
ISSUE AND REDEMPTION OF DEBENTURES
ANALYSIS OF FINANCIAL STATEMENTS
RATIO ANALYSIS
CASH FLOW STATEMENT
********************************************
11. From the following information,
calculate Cash Flow from Investing Activities:
Particulars |
31st March, 2019 (Rs.) |
31st March, 2020(Rs.) |
Plant
and Machinery Investment
(Long-term) Land (At
cost) |
8,50,000 40,000 2,00,000 |
10,00,000 1,00,000 1,00,000 |
Additional Information:
1. Depreciation charged on Plant & Machinery Rs. 50,000.
2. Plant & Machinery with a Book Value of Rs. 60,000 was sold for Rs. 40,000.
3. Land was sold at a profit of Rs. 60,000.
4. No Investment was sold during the year.
12. From the following details, calculate cash
from Investing and Financing Activities: 5
Particulars |
1-4-2019 |
31-3-2020 |
Machinery
at Cost Accumulated
Depreciation Capital Bank
Loan |
60,000 15,000 45,000 15,000 |
75,000 18,000 52,500 --- |
During the year, machinery costing Rs.
15,000/- was sold at a loss of Rs. 3,000. Depreciation on machinery charges
during the year amounted to Rs. 9,000.
13. From the following information,
calculate Cash Flow from Investing and Financing Activities:
Particulars |
1st April, 2019 (Rs.) |
31st March, 2020(Rs.) |
Machinery
(At Cost) Accumulated
Depreciation Capital Bank
Loan |
40,000 10,000 30,000 10,000 |
50,000 12,000 35,000 - |
During the year, a machine costing Rs.
10,000 was sold at a loss of Rs. 2,000. Depreciation on machinery charged
during the year amounted to Rs. 6,000.
14. From the following information,
calculate the Net Cash Flow from Investing Activities:
Particulars |
31st March, 2019 (Rs.) |
31st March, 2020(Rs.) |
Machinery
(At Cost) Accumulated
Depreciation |
5,00,000 1,00,000 |
5,50,000 1,70,000 |
During the year 2011-12, a machine
costing Rs. 50,000 (accumulated depreciation Rs. 20,000) was sold for Rs.
26,000.
15. From the following particulars,
calculate the Cash Flow from Investing Activities:
Particulars |
Purchased |
Sold |
Machinery Investments Goodwill Patents |
6,20,000 2,40,000 1,00,000 - |
2,00,000 80,000 - 1,50,000 |
Additional Information:
1) Interest received on debentures held as investment Rs. 8,000.
2) Interest paid on debentures issued Rs. 20,000.
3) Dividend received on shares held as investment Rs. 20,000.
4) Dividend paid on equity share capital Rs. 30,000.
5) A plot of land was purchased out of the surplus funds for investment purpose and was let out for commercial use. Rent received Rs. 50,000 during the year.
16. From the following information,
calculate the Net Cash Flow from Financing Activities:
Particulars |
31st March, 2019 (Rs.) |
31st March, 2020(Rs.) |
Equity
Share Capital Preference
Share Capital Securities
Premium Reserve 12%
Debentures |
9,00,000 1,00,000 2,50,000 1,50,000 |
10,00,000 50,000 2,60,000 1,00,000 |
Additional Information: Interest paid
on debentures Rs. 18,000. Bonus shares issued during the year Rs. 50,000.
Premium paid on redemption of debentures 10%.
17. Balance Sheets of A Ltd. as at 31.3.2019
and 31.3.2020 were as follows:
Liabilities |
31.3.2019 |
31.3.2020 |
Assets |
31.3.2019 |
31.3.2020 |
Share
Capital General
Reserve Profit
and Loss Account Secured
Loans Sundry
Creditors Income
Tax Provision |
50,000 5,000 41,000 20,000 10,000 20,000 |
60,000 8,000 33,000 25,000 12,000 17,000 |
Fixed
Assets Stock Debtors Cash/Bank Preliminary
Expenses |
90,000 20,000 30,000 4,000 2,000 |
1,00,000 24,000 25,000 5,000 1,000 |
|
1,46,000 |
1,55,000 |
|
1,46,000 |
1,55,000 |
Additional Information – Depreciation written
off on fixed assets was Rs. 18,000. Prepare cash flow statement.
18. From the following summarized Cash Book of
ABC Ltd. prepare a Cash Flow Statement for the year ended 31st
December, 2020 in accordance with AS – 3 (Revised).
Summarized
Cash Book
Date |
Particulars |
Rs. |
Date |
Particulars |
Rs. |
2010 Jan. 1 |
To
Balance b/d To
Collection from Sundry Debtors To Issue
of Preference Shares To Sale
of Land |
10,000 5,00,000 3,00,000 1,90,000 |
2010 |
By
Purchase of Machinery By
Payment to Suppliers By Wages By Rent,
Rates and Taxes By
Income Tax By
Redemption of Debentures By
Dividends By
Balance c/d |
2,00,000 4,00,000 30,000 20,000 25,000 2,75,000 30,000 20,000 |
|
|
10,00,000 |
|
|
10,00,000 |
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