(b). (i)During the year ? (All India 2014,2014 c, 2011) Interim Dividend paid during the year was ₹ 9,000. calculate Cash Flow from Investing Activities. Ans. Additional Information Plant and Machinery with a Book Value of ₹ 60,000 was sold for ₹ 40,000.3. Ltd. as at 31st March, 2015. Ans. ____2. Interest received on investments ₹ 75,000. (All India 2011) During the year, a piece of machinery of the book value of Rs 80,000 was sold for Rs 65,000. Solution: Question 6. Additional Information  (iii)Cash flow from financing activities. Ans. Ans. You can have precise and clear solutions to difficult problems too. Board of Directors proposed dividend in both the years @ 10%.3. 53.Following is the balance sheet of Krishtec Ltd for the year ended 31st March, 2011 and 2012. Goodwill amortised was ₹ 7,000, and gain on sale of machinery was ₹ 3,000. Following was the Balance Sheet of M.M. Ans. Half of the investment held in the beginning of the year were sold at 10% profit.2. 31.Declaration of final dividend would result into inflow, outflow or no flow of cash.Give your answer with reason. Machinery was purchased during the year ₹ 33,000. (vi)Sale of securities (vii) Purchase of securities Ans. Cash flow from investing activities are exhibited as follows: 8.Cash Flow from Financing Activities Financing activities are the activities which result in change in the size and composition of the owner’s capital (including preference share capital) and borrowings (including debentures) of the enterprise from other sources. State which of the following would result in inflow/outflow or no flow of Cash and Cash Equivalents:(a) Sale of Fixed Assets, Book Value ₹ 1,00,000 at a profit of ₹10,000. 33.Interest received on debentures would result into inflow, outflow or no flow of cash. Following is the summarised Balance Sheet of Philips India Ltd. as at 31st March 2018: Additional Information:1. ‘Withdrawal of cash from bank’ does not result in cash flow. Tax ₹ 70,000 was paid during the year. Additional Information :  (i) You are informed during the year: (ii) A machine with a book value of ₹20,000 was sold for ₹12,500;(iii) Depreciation charged during the year was ₹35,000;(iv) Preference shares were redeemed on 31st March, 2018 at a premium of 5%;(v) An Interim dividend of ₹5,000 was paid on equity shares on 31st March, 2019 out of General Reserve;(vi) Fresh equity shares were Issued on 31st March, 2019; and(vii) Additional Investments were purchased on 31st March, 2019. Ans. Non-cash transactions are ignored while preparing a cash flow statement because cash flow statement shows flow of cash and cash equivalents during a given period. (Delhi 2011, Modified) Ans. 21.While preparing cash flow statement which type of activity is, ‘payment of cash to acquire debenture by an investment company’? Interim Dividend of ₹ 1,00,000 was paid during the year.4. 1.Cash Flow Statement Cash flow statement is a statement showing the changes in financial position of a business concern during different intervals of time in terms of cash and cash equivalents. Depreciation to be charged on machinery ₹ 14,000 and building ₹ 10,000. (All India 2011; Delhi 2011 C) (iv) Preference shares were redeemed at par at the end of the year. Ans. 42.State with reason whether charging of depreciation on furniture will result into inflow, outflow or no flow of cash. (c) Dividend paid on Shares. (All India 2008) (Delhi 2009c) A business earned an average profit of 8,00,000 during the last few years. The questions involved in TS Grewal Solutions are important questions that can be asked in the final exam. ‘Payment of dividend’ is classified as ‘financing activity’ while preparing a cash flow statement. (Delhi 2012; Modified) 15.Under which type of activity will you classify ‘interest paid on long-term borrowings’ while preparing cash flow statement? 66.From the following balance sheet of XY Ltd as on 31st March, 2006 and 2007, prepare a cash flow statement All of these are considered to have a positive effect on Cash. During the year, machine costing ₹ 90,000 with accumulated depreciation of ₹ 60,000 was sold for ₹        50,000.2. It is simply a movement between two components of financing activities. Calculations: Percentages 9. Following are the Balance Sheets of Solar Power Ltd. as at 31st March, 2014 and 2013: Additional Iformation:Druing the year, a piece of machinery costing ₹ 48,000 on which accumulated deprciation was ₹ 32,000. was sold for ₹ 12,000. Ans. Additional Information:1. 3.Objectives of Cash Flow Statement Value Added Tax (VAT) 10. From the following particulars, calculate Cash Flow from Investing Activities. Ans. (ii)During the year a machine included in fixed assets costing Rs 1,20,000 was purchased and another machine of the book value of Rs 30,000 was sold at a loss of Rs 2,000. (All India 2011) The detailed, step-by-step solutions will help you understand the concepts better and clear your confusions, if any. Patents written off were ₹ 50,000 while a part of patents were sold at a profit of ₹ 40,000. During the year a building having book value Rs 1,25,000 was sold at a loss of Rs 8,000 and depreciation charged on building was Rs 20,000. It is simply a movement between two components of cash and cash equivalents. (i)Useful in short-term financial planning. Gopal Ltd. was registered with an authorised capital of Rs.50,00,000 divided into Equity Shares of Rs.10 each. (Delhi 2013) 1.Why is specific disclosure of cash flow from financing activities important while preparing cash flow statement? Cash inflow, because cash comes in due to interest received on debentures. (Delhi 2008; Modified) Additional Information NCERT Solutions CBSE Sample Papers Accountancy Class 12 Accountancy. 52.Following is the balance sheet of Wisben Ltd as on 31st March, 2012 Old furniture written-off will result in no flow of cash. During the year, a machinery costing ₹ 50,000 (accumulated depreciation provided thereon ₹ 20,000) was sold for ₹ 26,000. 44.Dividend received by a finance company will come under which activity while preparing a cash flow statement? Depreciation for the year was ₹35,000. 1 Mark Questions Ans.Two investing activities that result into inflow of cash are: Ans. 58.From the following balance sheet of Vikas Ltd as at 31st March, 2009 and 2010. A fixed asset with original cost of 1,00,000, on which depreciation till date was provided of ₹ 80,000 was sold at a profit of ₹ 10,000. From the following information, calculate Cash Flow from Investing and Financing Activities: During the year, a machine costing ₹ 10,000 was sold at a loss of ₹ 2,000. A machine having book value of ₹ 1,00,000 (Depreciation provided thereon ₹ 1,62,500) was sold at a loss of ₹ 20,000.2. (ii)Based on secondary data. During the year machine costing Rs 50,000 was sold for Rs 15,000. Dividend paid Rs 20,000. Ans. (ii) Depreciation provided on Machinery during the year was ₹30,000. There is no flow of cash because purchase of goods on credit will not affect cash. Updated November 20, 2019 The cash flow statement is one of the three financial statements a business owner uses in cash flow analysis. Cash flow is the driving force behind the operations of a business. (Compartment 2014) (i)Depreciation on fixed assets Rs 20,000. Payment of cash to repurchase outstanding capital stock – it is also a financing activity. (ii)A piece of machinery included in fixed assets costing Rs 20,000 on which depreciation charged was Rs 8,000, was sold for Rs 10,000. 40.State why cash flow statement is not a substitute for income statement? (b) Depreciation charged on tangible fixed assets was ₹1,20,000, From the following Balance Sheet of JY Ltd. as at 31st March 2017, prepare a Cash Flow Statement:BALANCE SHEET as at 31st March, 2017. (All India 2008; Modified) Depreciation provided on tangible Assets ₹ 60,000; (iii) Additional Debentures were issued at par on 1st October, 2018 and Bank Loan was repaid on the same date; (iv) At the end of the year Preference Shares were redeemed at a premium of 5%. Loss on sale of equipment amounted to Rs 12,000. Ans. Ans. (All India 2014,2011; Delhi 2014,2011 c) A plot of land was purchased out of the surplus funds for investment purposes and was let out for commercial use. Ans. From the following extracts of a company, calculate Cash Flow from Investing Activities: Calculate Cash Flow from Investing Activities from the following information: Additional Information:1. Identify the transactions as belonging to (i) Operating Activities, (ii) Investing Activities, (iii) Financing Activities and (iv) Cash and Cash Equivalents: Classify the following transactions as Operating Activities for a financial company and a non-financial company:(a) Purchase of Shares on a Stock Exchange. DK Goel Accountancy Class 12 is contemplated to be the most helpful study resource for the students pursuing their Class 12. (ii) machine with a net book value of ₹ 10,000 (Accumulated Depreciation ₹ 40,000) was sold for ₹ 2,000.Prepare Cash Flow Statement. (iii)Ignores non-cash transactions. The document is not intended to serve as a complete manual, but as a (i) Cash proceeds from sale of investments. No flow of cash Cash deposited into the bank. All the solutions of Cash Flow Statements - Accountancy explained in detail by experts to help students prepare for their CBSE exams. (ii) 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. Depreciation on machinery charged during the year amounted to ₹ 6,000. Solved Cash Flow Statements with Balance Sheet (vertical) and Notes to Accounts - Cbse Class 12 Accountancy Project Cash Cash comprises of cash in hand and demand deposits with the bank. (Delhi 2010) Additional Information :(i) During the year, Machinery costing ₹ 1,40,000 (accumulated depreciation provided thereon ₹ 1,10,000) was sold for ₹ 20,000. Premium paid was debited to Statement of Profit and Loss.4. Solution: Question 13. (b) Dividend received on Shares. TEST YOUR UNDERSTANDING I. Ans. Additional Information XYZ. Depreciation on Land and Building was ₹ 50,000 for the year.3. 5.Classification of Business Activities Accounting Standard-3 (Revised) requires that the changes resulting in inflows and outflows of cash and cash equivalents will be classified into following three activities: For each of the following transactions, calculate the resulting Cash Flow and state the nature of Cash Flow, i.e., whether it is Operating, Investing or Financing:(a) Acquired machinery for ₹2,50,000 paying 20% by cheque and executing a bond for the balance payable. From the following Balance Sheet of Combiplast Ltd. for the year ended 31st March, 2019 and additional information, calculate Cash Flow from Investing Activities: Additional Information:During the year the company sold machinery at Book Value of ₹ 1,50,000. 48.State whether ‘depreciation charged by a company’ will result into inflow, outflow or no flow of cash. 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