AHSEC Accountancy Question Bank: Cash Flow Statement 2023 Exam

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.         

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ALSO READ (AHSEC ASSAM BOARD CLASS 12):

CHAPTERWISE PRACTICAL IMPORTANT QUESTIONS

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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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