Class 12th - Accountancy

Assignment – Cash Flow Statement

ASSIGNMENT:
Cash Flow Statement
1. Cash Flow Statement is based upon:
a. Accrual Basis of Accounting b. Cash Basis of Accounting
c. Accounting Equation d. None of These

2. What do you mean by “Cash Equivalents”?

a. Short Term Loans and Advances b. Short term highly liquid Investments
c. Investments d. Investment in debentures

3. The meaning of ‘Cash’ as per AS

AS-3 (revised) is:
a. Cash in Hand b. Cash at Bank
c. Cash in Hand & Demand Deposit with Banks d. None of these

4. Which of the following transaction will not result into flow of cash:
a. Issue of Equity Shares of ₹100,000 b. Purchase of Machinery ₹54,000
c. Redemption of 9% Debentures ₹4,00,000 d. Cash deposited in Bank ₹40,000

5. Which of the following items would be specifically included while constructing Cash
Flow Statement as per AS
AS-3?
a. Conversion of Debt into Equity
b. Acquiring an Asset through Lease
c. Operating and Non
Non-operating Cash flow information
d. Purchasing a machine by giving a mortgage to the seller.

6. Investing activities of an enterprise refer to the purchase and sale of __________________

which are not held for resale purposes:
a. Fixed Assets b. Investments
c. Fixed Assets or Investments d. Fixed Assets and Investments

7. Increase in value of Goodwill in current year as compared with the value of previous
year will be:
a. Known as Goodwill written off. b. Reputation of business has increased
c. Known as Goodwill Purchased d. Known as Goodwill Sold

8. Cash withdrawn from bank is:

a. Not Cash Flow b. Cash inflow of investing activity.
c. Cash inflow of operating activity. d. Cash inflow of financing activity.

9. Flow of Cash from issue of shares is an example of which activity?

a. Operating Activities b. Financing
nancing Activities
c. Investing Activities d. All of the above

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 Class 12th - Accountancy
Assignment – Cash Flow Statement

10. Komal Ltd is a financing company, under which activity will the amount of interest paid
on a debentures in the current year be shown:
a. Investing Activities b. Financing Activities
c. Both (a) and (b) d. Operating Activities

11. “Payment of Bonus by Insurance Company to its employees” will be shown under which
activity:
a. Operating Activities b. Investing Activities
c. Financing Activities d. Both (a) and (c)

12. Cash receipts of interest and dividend by a financial enterprise is cash flow from
_________________ activity:
a. Operating Activities b. Investing Activities
c. Financing Activities d. Both (a) and (b)

13. While preparing Cash Flow Statement, Rent received is considered as _____________
activity.

14. Refund of Income Tax is a cash flow from:

a. No Flow of Cash b. Investing Activities
c. Financing Activities d. Operating Activities

15. Cash flow from Operating Activities will be increased due to:
a. Increase in Current
rent Assets b. Increase in Fixed Assets
c. Payment of Tax d. Decrease in Trade Receivables.

16. Consider the following information available from the books of Dhanshri Jewellers and
ascertain the net cash flow from their Operating Activities:
Net Profit Before Tax for the year ₹70,000
Depreciation ₹41,000
Amortisation of Patents ₹25,000
Interest on Investments ₹11,000
Increase in Bills Payable ₹10,000
Decrease in Other Current Assets ₹5,000
Increase in Prepaid Expenses ₹12,000

a. ₹164,000 b. ₹128,000 c. ₹108,000 d. ₹118,000

17. Cash receipts from sales of Goods and services will be considered under which activity?
a. Operating Activities b. Investing Activities
c. Financing Activities d. None of these.

18. Which of the following

owing is non
non-operating expenses:
a. Advertisement b. Salaries to Staff
c. Loss on Sale of Machine d. Distribution Expenses

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 Class 12th - Accountancy
Assignment – Cash Flow Statement

19. Interest Received on Calls in arrears by a company is a part of ______________ Activity.

20. Interest Received by Bajaj Finance Bank on their Investments in shares of Tata Motors
Ltd ₹5000 crores, is an example of:
a. Cash inflow of Investing Activities b. Cash Outflow of Financing Activities
c. Cash Inflow of Operating Activities d. Cash Outflow of Investing Activities.

21. Tax Paid on Sales of Asset is a part of ________________ activity.

22. Payment of Interim Dividend is ____________________.

a. Deducted from Operating Activity and Added to Investing Activity.
b. Added in Operating Activity and Added to Financing Activity.
c. Added in n Operating Activity and Deducted from Investing Activity.
d. Added in Operating Activity and Deducted from Financing Activity.

23. Which one of the following is an example of Financing Activities:

a. Repayment Received of Loans Granted
b. Purchase of Goods and Services on Credit
c. Increase in Bank Overdraft
d. Decrease in Bank Balance

24. Interest Received is considered as ____________ activity while interest paid is considered
as ___________ activity while preparing Cash Flow Statement of a non
non-financing
financing company.

25. Profit
it on Sale of Fixed Assets is debited to?
a. Profit and Loss Account
b. Fixed Assets Account
c. Depreciation Account
d. Trading Account

26. Purchase of Fixed assets by a Business on “Long Term Deferred Payment” basis would
result in ______________ of Cash
a. Inflow b. Outflow c. No Flow d. Loss

27. Provision for Tax as on 31st March, 2020 ₹40,000

40,000
Provision for Tax as on 31st March, 2019 ₹75,000
,000
Payment of Tax during 2019
2019-2020 ₹105,000
,000
Amount of Provision for Tax of Current Year will be:
a. ₹40,000 b. ₹75,000 c. ₹145,000 d. ₹70,000

28. Out of the following, which one is an example of Non

Non-Cash
Cash Transactions:
a. Payment of Tax b. Interim Dividend Paid
c. Depreciation of Fixed Assets d. Sale of Land.

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 Class 12th - Accountancy
Assignment – Cash Flow Statement

29. “Cash Advances and Loans” made by financial enterprise will be shown under which
type of activity while preparing Cash Flow Statement
Statement:
a. Operating Activities b. Investing Activities
c. Financing Activities d. None of these.

30. If the net profits earned during the year is ₹50,000 and the amount of debtors in the
beginning and at the end of the year is ₹10,000 and ₹20,000 respectively, then the cash
flow from operating activities will be equal to ______________. (₹40,000
₹40,000 / ₹60,000)
₹60,000

31. Manjhi Ltd purchased a Machinery on Deferred Payment Basis from Harihar Ltd. During
the year ended 31st March, 2020, the company paid an instalment of ₹200,000 which
included the interest of ₹25,000. While preparing Cash Flow Statement, under which
type of Activities will this payment be classified? Also, mention the amount involved in
each activity.
(Investing ₹175,000; Financing ₹25,000)
32. “Sale of Marketable Securities at Book Value”, would result in ______________ of Cash
a. Inflow b. Outflow c. No Flow d. Loss

33. Consider the following information:

Particulars Opening Balance Closing Balance
₹ ₹
Cash in Hand 50,000 74,000
Bank Overdraft 60,000 40,000
Cash Credit 70,000 80,000
Current Investments 60,000 70,000
Calculate the net amount of increase/decrease in Cash and Cash Equivalents.

34. Issue of shares to vendor for furniture purchased from him will be shown in:
a. Operating Activities b. Investing Activities
c. Financing Activities d. None of these

35. “Old Furniture Sold at ₹10,000”, would result in ______________ of Cash

a. Inflow b. Outflow c. No Flow d. Loss

36. “Old Furniture written off from Books ₹5,000”, would result in ______________ of Cash
a. Inflow b. Outflow c. No Flow d. Loss

37. Give an example of a transaction which will aalways be considered as Operating Activity
for all enterprises.

38. State the conditions for an investment to classify as a Cash and Cash Equivalents as per
AS – 3.

39. Give an example of a transaction

transaction,, where in spite of being flow of Cash, are not
considered as Cash Flow.

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 Class 12th - Accountancy
Assignment – Cash Flow Statement

40. What will be the treatment of the given information while preparing Cash flow from
operating activities:
Accumulated Depreciation as on 31st March, 2020 ₹55,000
55,000
Accumulated Depreciation as on 01st April, 2019 ₹42,000
42,000

41. From the following information, Calculate Cash Flow from Investing Activities;
Particulars 31.03.2020 (₹) 31.03.2019 (₹)
Machinery (Cost) 420,000 400,000
Accumulated Depreciation 110,000 100,000
Patents 160,000 280,000
Additional Information:
(i) During the year, a machine costing ₹40,000 with its accumulated depreciation
₹24,000
24,000 was sold at a profit of 25% of Book Value.
(ii) Patents were written off to the extent of ₹40,000 and some patents were sold
at a profit of ₹20,000
₹20,000.
(Ans:: Cash flow from Investing Activity ₹60,000)

42. Sumitata Ltd issued 100,000 Equity Shares of ₹10 each to its existing shareholders on
o the
condition that they shall also subscribe for the 10,000; 10% Debentures of ₹100 each at
a premium of 10%.
All the shares and debentures were subscribed and amount was duly received.
The company incurred expenses on issue of shares and debentures amounting to
₹100,000.
You are required to calculate Cash flow from Financing Activities for the period.

43. From the following information, Calculate Cash Flow from Financing Activities;
Particulars 31.03.2020 (₹) 31.03.2019 (₹)
Equity Share Capital 15,00,000 10,00,000
10% Debentures -------- 100,000
8% Debentures 200,000 -------
Additional Information:
(i) Interest Paid on Debentures ₹10,000
(ii) Dividend Paid ₹50,000
(iii) During the year 2019
2019-20,
20, company issued Bonus Shares in the Ratio of 2:1 by
capitalising the reserve
(Ans:: Cash flow from Financing Activity ₹40,000)
44. Balance Sheet of New Indian Ltd for the year ended 31st March, 2020 is as follows:
BALANCE SHEET OF NEW INDIAN LTD
as at 31st March, 2020
Particulars Note No. 31st March, 2020 31st March, 2019
I. EQUITY & LIABILITIES
1. Shareholders' Funds
(a) Share Capital 22,50,000 22,50,000
(b) Reserves and Surplus 1 18,90,000 17,80,000
2. Non Current Liabilities
Long Term Borrowings 2 13,50,000 ------
3. Current Liabilities:
(a) Trade Payables 6,70,000 8,40,000
(b) Short Term Provisions 3 50,000 3,75,000

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 Class 12th - Accountancy
Assignment – Cash Flow Statement

Total 62,10,000 52,45,000

II. ASSETS
1. Non Current Assets
(a) Fixed Assets (Tangible) 4 16,00,000 20,00,000
(b) Non-Current
Current Investments 3,00,000 2,50,000
2. Current Assets
(a) Current Investments 85,000 95,000
(b) Inventories 10,50,000 12,00,000
(c) Trade Receivables 22,75,000 10,50,000
(d) Cash and Cash Equivalents 9,00,000 6,50,000

Total 62,10,000 52,45,000

Notes to Accounts:
Particulars 31st March, 2020 31st March, 2019
1. Reserves and Surplus
General Reserve 15,50,000 15,00,000
Surplus (i.e. Balance in Statement of Profit and
Loss) 3,40,000 2,80,000
18,90,000 17,80,000

2. Long Term Borrowings

1350, 10% Debentures 13,50,000 -

3. Short Term Provision

Provision for Tax 50,000 3,75,000

4. Fixed Assets (Tangible)

Land and Building 8,00,000 10,00,000
Plant and Machinery 8,00,000 10,00,000
16,00,000 20,00,000
Additional Information:
(i) New debentures were issued by the company on 1st April, 2019.
(ii) Provision for tax made during the year amounted to ₹125,000
(iii) A piece of land (having book value ₹430,000) was sold by the company for
₹530,000.
530,000. Depreciation charged during the year ₹70,000.

45. You are given the following Balance Sheets of Alpha Ltd for the year ended 31st March,
2020 and 2019. You are required to prepare Cash Flow Statement for the year ended
31st March, 2020:
BALANCE SHEET OF ALPHA LTD
For the year ended 31.03.2020
Particulars Note No. 31st March, 2020 31st March, 2019
I. EQUITY & LIABILITIES
1. Shareholders' Funds
(a) Share Capital 80,000 80,000
(b) Reserves and Surplus 1 9,300 9,000
2. Current Liabilities:
(a) Short Term Borrowings 2 240 360
(b) Trade Payables 1,620 2,400
(c) Short Term Provisions 3 5,580 4,920

Total 96,740 96,680

II. ASSETS
1. Non Current Assets
(a) Fixed Assets (Tangible) 71,600 73,100
(a) Fixed Assets (Intangible) 4 3,000 3,600

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 Class 12th - Accountancy
Assignment – Cash Flow Statement

2. Current Assets
(a) Current Investments 3,300 3,000
(b) Inventories 7,020 9,000
(c) Trade Receivables 6,660 6,000
(d) Cash and Cash Equivalents 5,160 1,980

Total 96,740 96,680

Notes to Accounts:
Particulars 31st March, 2020 31st March, 2019
1. Reserves and Surplus
General Reserve 5,000 5,000
Surplus (i.e. Balance in Statement of Profit and Loss) 4,300 4,000
9,300 9,000
2. Short Term Borrowings
Cash Credit 240 360
3. Short Term Provision
Provision for Tax 5,400 4,800
Provision for Doubtful Debts 180 120
5,580 4,920
4. Fixed Assets (Intangible)
angible)
Brands 3,000 3,600

Additional Information:
(i) A piece of Fixed Assets has been sold for ₹2,400 at a profit of 100%.
(ii) Depreciation charged on Fixed Assets ₹2,100
(iii) Interim Dividend Paid during the year ₹4,500
(iv) Interest Paid on Cash Credit ₹40
46. From the following Balance Sheet of Bee Ltd as at 31st March, 2020, Prepare Cash Flow
Statement:
BALANCE SHEET OF BEE Ltd.
For the year ended 31.03.2020
Particulars Note No. 31st March, 2020 31st March, 2019
I. EQUITY & LIABILITIES
1. Shareholders' Funds
(a) Share Capital 15,00,000 12,50,000
(b) Reserves and Surplus 1 7,50,000 6,00,000
2. Non- Current Liabilities:
(a) Long Term Borrowings (10% Debentures) 2,00,000 -
3. Current Liabilities:
(a) Short Term Borrowings (10% Bank Loan) 1,00,000 50,000
(b) Trade Payables 2 7,00,000 6,50,000
(c) Short Term Provisions 3 2,50,000 1,50,000

Total 35,00,000 27,00,000

II. ASSETS
1. Non Current Assets
(a) Fixed Assets (Tangible) 3,00,000 2,00,000
(b) Non-Current
Current Investments 1,00,000 1,50,000
2. Current Assets
(a) Current Investments 9,00,000 4,30,000
(b) Inventories 12,00,000 8,70,000
(c) Trade Receivables 9,00,000 9,80,000
(d) Cash and Cash Equivalents 1,00,000 70,000

Total 35,00,000 27,00,000

Notes to Accounts:
Particulars 31st March, 2020 31st March, 2019
1. Reserves and Surplus
General Reserve 1,50,000 1,00,000
Surplus (i.e. Balance in Statement of Profit and
Loss) 6,00,000 5,00,000
7,50,000 6,00,000

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 Class 12th - Accountancy
Assignment – Cash Flow Statement

2. Trade Payables
Creditors 4,50,000 5,00,000
Bills Payable 2,50,000 1,50,000
7,00,000 6,50,000

3. Short Term Provision

Provision for Tax 2,50,000 1,50,000
2,50,000 1,50,000

Additional Information:
(i) Proposed Dividend for the year ended 31st March, 2020 and 31st March, 2019
were ₹120,000 and ₹150,000
(ii) During the year ₹50,000 depreciation was charged on fixed assets.
(iii) Tax provided during the year ₹200,000
(iv) 10% Debentures were issued on 01st April, 2019 and further Bank Loan was
raised on the same date.
(Answers: Cash flow from Operating Activities ₹250,000; Cash Used in
Investing Activities ₹100,000; Cash flow from Financing Activities
₹350,000)
47. From the following information, prepare Cash Flow Statement:
BALANCE SHEET OF ALPHA LTD
For the year ended 31.03.2020
Particulars Note No. 31st March, 2020 31st March, 2019
I. EQUITY & LIABILITIES
1. Shareholders' Funds
(a) Share Capital 3,50,000 3,00,000
(b) Reserves and Surplus 1 70,000 50,000
2. Non- Current Liabilities:
(a) Long Term Borrowings (12% Debentures) 80,000 1,00,000
3. Current Liabilities:
(a) Short Term Borrowings (Bank Loan) 15,000 25,000
(b) Trade Payables 1,65,000 60,000

Total 6,80,000 5,35,000

II. ASSETS
1. Non Current Assets
(a) Fixed Assets (Tangible) 2 4,10,000 3,00,000
(b) Non-Current
Current Investments 40,000 50,000
2. Current Assets
(a) Marketable Securities 18,000 15,000
(b) Inventories 52,000 30,000
(c) Trade Receivables 60,000 40,000
(d) Cash and Cash Equivalents 1,00,000 10,000

Total 6,80,000 4,45,000

Notes to Accounts:
Particulars 31st March, 2020 31st March, 2019
1. Reserves and Surplus
Capital Reserve 2,000 -
Securities Premium Reserve 5000
Less:: Share Issue Expenses w/off -5000 - -
General Reserve 33,000 20,000
Surplus (i.e. Balance in Statement of Profit and
Loss) 6,00,000 5,00,000
6,35,000 5,20,000

2. Fixed Assets - Tangible

Machinery (Cost) 4,70,000 3,50,000
Less: Accumulated Depreciation 60,000 50,000
4,10,000 3,00,000

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 Class 12th - Accountancy
Assignment – Cash Flow Statement

Additional Information:
(i) During the year, Machinery costing ₹20,000 (accumulated depreciation ₹15,000)
was sold for ₹12,000
(ii) During the year, Non
Non-Current
Current Investments were sold at a profit of 20%, which is
transferred to Capital Reserve.
(iii) Debentures were redeemed at a premium of 5% on 01st April, 2019.
(iv) Tax of ₹15,000 was paid during the year.
(v) 5,000 Equity Shares of ₹10 each were issued at a premium of 10% on 01st
October, 2019 and expenses incurred on issue of such shares amounted to
₹5,000.
5,000. These expenses were written off during the year from Securities
Premium Reserve.
(Answers: Cash flow from Operating Activities ₹109,600;
Cash Used in Investing Activities ₹116,000; Cash flow from
Financing Activities ₹9,400)
48. You are required to prepare Cash Flow Statement (as per AS
AS-3)
3) for the year ended 31st
March 2020 from the following Balance Sheet:
BALANCE SHEET OF KINDER JOY LTD
as at 31st March, 2020
Particulars Note No. 31st March, 2020 31st March, 2019
I. EQUITY & LIABILITIES
1. Shareholders' Funds
(a) Share Capital 35,00,000 25,00,000
(b) Reserves and Surplus (Statement of
Profit and Loss) 12,50,000 10,00,000
2. Non- Current Liabilities:
(a) Long Term Borrowings (10%
Debentures) 12,50,000 3,50,000
3. Current Liabilities:
(a) Trade Payables 50,000 75,000
(b) Short Term Borrowings (Bank
Overdraft) 2,50,000 1,50,000
(c) Short Term Provisions 1 1,50,000 75,000

Total 64,50,000 41,50,000

II. ASSETS
1. Non Current Assets
(a) Fixed Assets (Tangible) 2 40,00,000 22,50,000
(b) Intangible Assets (Patents) 3,50,000 5,00,000
2. Current Assets
(a) Short Term Investments 25,000 50,000
(b) Inventories 6,25,000 5,00,000
(c) Trade Receivables 12,50,000 7,50,000
(d) Cash and Cash Equivalents 2,00,000 1,00,000

Total 64,50,000 41,50,000

Notes to Accounts:
Particulars 31st March, 2020 31st March, 2019
1. Short Term Provisions
Provision for Tax 1,50,000 75,000
1,50,000 75,000

2. Fixed Assets - Tangible

Plants 44,00,000 25,00,000
Less: Accumulated Depreciation 4,00,000 2,50,000
40,00,000 22,50,000

Additional Information:
(i) A part of the plant, book value ₹75,000 (costing ₹125,000) was sold for ₹45,000
(ii) Tax paid ₹50,000

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 Class 12th - Accountancy
Assignment – Cash Flow Statement

(iii) Interest of ₹125,000 was paid on Debentures.

49. The Balance Sheet of Tapasya Ltd as at 31st March, 2020 is given below:
BALANCE SHEET OF TAPASYA LTD
as at 31st March, 2020
Particulars Note No. 31st March, 2020 31st March, 2019
I. EQUITY & LIABILITIES
1. Shareholders' Funds
(a) Share Capital 1,80,000 1,50,000
(b) Reserves and Surplus 1 1,00,000 80,000
2. Non- Current Liabilities:
(a) Long Term Borrowings 2 1,89,000 1,31,000
3. Current Liabilities:
(a) Short Term Borrowings 3 1,000 3,000
(b) Trade Payables 4 14,000 14,000

Total 4,84,000 3,78,000

II. ASSETS
1. Non Current Assets
(a) Tangible Fixed Assets (Machinery) 5 3,20,000 2,30,000
(b) Intangible Assets (Brands) 5,000 10,000
2. Current Assets
(a) Inventories 75,000 60,000
(b) Trade Receivables 6 26,000 28,000
(c) Cash and Cash Equivalents 50,000 40,000
(d) Other Current Assets 7 8,000 10,000

Total 4,84,000 3,78,000

Notes to Accounts:
Particulars 31st March, 2020 31st March, 2019
1. Reserves and Surplus
General Reserves 30,000 30,000
Surplus i.e. Balance in Statement of Profit and
Loss 70,000 50,000
1,00,000 80,000

2. Long Term Borrowings

12% Debentures 69,000 51,000
12% Public Deposits 1,20,000 80,000
1,89,000 1,31,000

3. Short Term Borrowings

Cash Credit 1,000 3,000
1,000 3,000

4. Trade Payables
Creditors 10,000 8,000
Bills Payables 4,000 6,000
14,000 14,000

5. Fixed Assets (Tangible)

Building 2,20,000 1,50,000
Plant 1,00,000 80,000
3,20,000 2,30,000

6. Trade Receivables
Debtors 17,000 20,000
Bills Receivables 9,000 8,000
26,000 28,000

7. Other Current Assets

Accrued Income 6,000 10,000
Prepaid Expenses 2,000 -
8,000 10,000

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 Class 12th - Accountancy
Assignment – Cash Flow Statement

Additional Information:
(i) Depreciation charged on Building ₹10,000
(ii) Depreciation charged on Plant ₹5,000
(iii) Interest Paid on Debentures ₹7,200 for the year
(iv) Interest Paid on Public Deposits ₹9,600 for the year
From the above information, prepare Cash Flow Statement (as per AS
AS-3) for the year
ended 31st March, 2020.

50. From the following Balance Sheet of Sugandh Ltd. as at 31st March, 2020, prepare Cash
Flow Statement:
BALANCE SHEET OF SUGANDH LTD
as at 31st March, 2020
Particulars Note No. 31st March, 2020 31st March, 2019
I. EQUITY & LIABILITIES
1. Shareholders' Funds
(a) Share Capital 1 7,00,000 5,00,000
(b) Reserves and Surplus (Statement of Profit and
Loss) 2 2,50,000 3,25,000
2. Non- Current Liabilities:
(a) Long Term Borrowings (9% Debentures) 2,00,000 2,50,000
3. Current Liabilities:
(a) Short Term Provisions
Provision for Tax 50,000 25,000

Total 12,00,000 11,00,000

II. ASSETS
1. Non Current Assets
(a) Tangible Fixed Assets (Machinery) 5,00,000 3,00,000
(b) Non-current
current Investments 2,00,000 1,40,000
2. Current Assets
(a) Inventories 1,50,000 2,00,000
(b) Trade Receivables 3 1,80,000 1,50,000
(c) Cash and Cash Equivalents 1,70,000 3,10,000

Total 12,00,000 11,00,000

Notes to Accounts:
Particulars 31st March, 2020 31st March, 2019
1. Share Capital
Equity Share Capital 6,00,000 2,00,000
12% Preference Share Capital 1,00,000 3,00,000
7,00,000 5,00,000

2. Reserves and Surplus

General Reserves 1,50,000 1,86,000
Surplus i.e. Balance in Statement of Profit and Loss 1,00,000 1,39,000
2,50,000 3,25,000

3. Trade Receivables
Debtors 1,88,000 1,55,000
Less: Provision for Doubtful Debts 8,000 5,000
1,80,000 1,50,000

Additional Information:
(i) Machinery costing ₹100,000
100,000 on which depreciation charged was ₹70,000 was
sold at a profit of 20% on Book Value. Depreciation charged during the year
amounted to ₹70,000
(ii) Preference Shares were redeemed at par on31st March, 2020

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 Class 12th - Accountancy
Assignment – Cash Flow Statement

(iii) Debentures were redeemed on 01st January 2020 andnd Equity Shares were issued
on 01 April, 2019.
st

(iv) Dividend was declared on Preference Shares and was paid out of General
Reserve.
(v) Non-Current
Current Investments costing ₹60,000 were sold at a profit of 20%
(vi) Provision for Income Tax was made at ₹50,000.

51. From the following Balance Sheet of Sadhna Ltd as at 31st March, 2020 and the
information given, prepare Cash Flow Statement for the year Ended 31st March, 2020:
BALANCE SHEET OF SADHNA LTD
as at 31st March, 2020
Note
Particulars
No. 31st March, 2020 31st March, 2019
I. EQUITY & LIABILITIES
1. Shareholders' Funds
(a) Share Capital 5,00,000 4,00,000
(b) Reserves and Surplus 1 3,20,000 2,50,000
2. Non- Current Liabilities:
(a) Long Term Borrowings (10% Debentures) 2,00,000 1,00,000
3. Current Liabilities:
(a) Short Term Borrowings (12% Bank Loan) 1,00,000 2,00,000
(b) Trade Payables 1,50,000 90,000
(c) Short Term Provisions (Provision for Tax) 40,000 20,000

Total 13,10,000 10,60,000

II. ASSETS
1. Non Current Assets
(a) Tangible Fixed Assets (Machinery) 2 7,00,000 5,00,000
(b) Non Current Investments (10% Investments) 70,000 50,000
2. Current Assets
(a) Inventories 60,000 90,000
(b) Trade Receivables 1,20,000 70,000
(c) Cash and Cash Equivalents 3,60,000 3,50,000

Total 13,10,000 10,60,000

Notes to Accounts:
Particulars 31st March, 2020 31st March, 2019
1. Reserves and Surplus
General Reserves 1,00,000 80,000
Securities Premium Reserve 5,000 -
Surplus i.e. Balance in Statement of Profit and Loss 2,15,000 1,70,000
3,20,000 2,50,000

2. Fixed Assets (Tangible)

Machinery (Cost) 8,50,000 6,10,000
Less: Accumulated Depreciation 1,50,000 1,10,000
7,00,000 5,00,000

Additional Information:
(i) Machinery costing ₹50,000 (accumulated depreciation ₹35,000) was sold at a
loss of 20%
(ii) Equity Shares were issued at a premium of 15% on 01st April, 2019
(iii) New Non-Current
Current investments were purchased on 01st April, 2019 and Bank
loan was repaid on the same date.
(iv) Additional debentures were issued on 01st October, 2019 at a discount of 10%.
The company wrote off the discount on issue of debentures from Securities
Premium Reserve.
(v) An interim dividend was paid during the year ₹25,000

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 Class 12th - Accountancy
Assignment – Cash Flow Statement

(vi) Income Tax Paid ₹50,000

(Answer:: Cash Flow From Operating Activities ₹398,000;
Cash Used in Investing Activities ₹291,000; Cash Used in
Financing Activities ₹97,000)
52. From the following Balance Sheet of Mudita Ltd as at 31st March, 2020, prepare Cash
Flow Statement for the year ended 31st March, 2020:
BALANCE SHEET OF MUDITA LTD
as at 31st March, 2020
Particulars Note No. 31st March, 2020 31st March, 2019
I. EQUITY & LIABILITIES
1. Shareholders' Funds
(a) Share Capital 1 12,00,000 12,00,000
(b) Reserves and Surplus 2 5,15,000 2,75,000
3. Current Liabilities:
(a) Trade Payables 3 1,40,000 1,10,000
(b) Other Current Liabilities 10,000 20,000
(c) Short Term Provisions (Provision for Tax) 2,50,000 2,00,000

Total 21,15,000 18,05,000

II. ASSETS
1. Non Current Assets
(a) Tangible Fixed Assets 13,80,000 10,40,000
(b) Non Current Investments 5,00,000 5,00,000
2. Current Assets
(a) Other Current Assets 2,35,000 2,65,000

Total 21,15,000 18,05,000

Notes to Accounts:
Particulars 31st March, 2020 31st March, 2019
1. Share Capital
Equity Share Capital 10,00,000 10,00,000
8% Preference Share Capital 2,00,000 2,00,000
12,00,000 12,00,000

2. Reserves and Surplus

General Reserves 1,50,000 1,00,000
Investment Fluctuation Reserve 90,000 50,000
Surplus i.e. Balance in Statement of Profit and Loss 2,75,000 1,25,000
5,15,000 2,75,000

3. Trade Payables
Creditors 80,000 70,000
Bills Payable 60,000 40,000
1,40,000 1,10,000

Additional Information:
(i) Proposed Dividends for the year ended 31st March, 2020 and 31st March, 2019
are ₹104,000 and ₹124,000 respectively.
(ii) Depreciation for the year was ₹110,000
(iii) Bad debts written off during the year ₹15,000
(iv) Dividend received on Investments ₹10,000

53. From the following Balance Sheet of Baby Food Products Ltd, prepare Cash Flow
Statement:
BALANCE SHEET OF BABY FOOD PRODUCTS LTD
as at 31st March, 2020
Particulars Note No. 31st March, 2020 31st March, 2019
I. EQUITY & LIABILITIES
1. Shareholders' Funds
(a) Share Capital 10,00,000 8,00,000
(b) Reserves and Surplus 1 3,00,000 2,10,000

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 Class 12th - Accountancy
Assignment – Cash Flow Statement

2. Non-Current Liabilities
(a) Long Term Borrowings (10% Debentures) 2,00,000 -
3. Current Liabilities:
(a) Trade Payables 7,00,000 8,20,000
(b) Short Term Provisions (Provision for Tax) 1,00,000 70,000

Total 23,00,000 19,00,000

II. ASSETS
1. Non Current Assets
(a) Tangible Fixed Assets 3 13,00,000 9,00,000
(b) Non Current Investments 1,00,000 -
2. Current Assets
(a) Inventories 4,00,000 2,00,000
(b) Trade Receivables 5,00,000 7,00,000
(c) Cash and Cash Equivalents - 1,00,000

Total 23,00,000 19,00,000

Notes to Accounts:
Particulars 31st March, 2020 31st March, 2019
1. Reserves and Surplus
General Reserves 2,00,000 1,50,000
Surplus i.e. Balance in Statement of Profit and Loss 1,00,000 60,000
3,00,000 2,10,000

2. Fixed Assets (Tangible)

Plant and Machinery 7,00,000 5,00,000
Land and Building 6,00,000 4,00,000
13,00,000 9,00,000

Additional Information:
(i) Depreciation @25% was charged on the opening value of Plant and Machinery.
(ii) During the year, one old machinery costing ₹50,000 (Accumulated Depreciation
₹30,000)
30,000) was sold at a profit of ₹15,000
(iii) ₹50,000
50,000 was paid towards Income Tax during the current year.
(iv) Building under construction was not subject to depreciation during the current
year.
(v) Debentures were issued on 01st October, 2019 and Equity Shares were issued on
01st April, 2019.

54. From the following Balance Sheet of Sunrise Dream Homes Pvt. Ltd. as at 31st March,
2020, prepare Cash Flow Statement:
BALANCE SHEET OF SUNRISE DREAM HOMES PVT LTD
as at 31st March, 2020
Particulars Note No. 31st March, 2020 31st March, 2019
I. EQUITY & LIABILITIES
1. Shareholders' Funds
(a) Share Capital 1 30,00,000 30,00,000
(b) Reserves and Surplus 2 9,00,000 5,00,000
2. Non-Current Liabilities
(a) Long Term Borrowings (10% Debentures) 10,00,000 10,00,000
3. Current Liabilities:
(a) Trade Payables 15,50,000 6,00,000
(b) Other Current Liabilities 3 1,00,000 70,000
(b) Short Term Provisions (Provision for Tax) 50,000 30,000

Total 66,00,000 52,00,000

II. ASSETS
1. Non Current Assets
(a) Fixed Assets
Tangible Fixed Assets (Machinery) 30,00,000 20,00,000

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 Class 12th - Accountancy
Assignment – Cash Flow Statement

Intangible Fixed Assets (Patents) 3,00,000 3,40,000

(b) Non Current Investments 2,00,000 1,50,000
2. Current Assets
(a) Inventories 4,00,000 6,00,000
(b) Trade Receivables 7,00,000 9,00,000
(c) Cash and Cash Equivalents 20,00,000 12,10,000

Total 66,00,000 52,00,000

Notes to Accounts:
Particulars 31st March, 2020 31st March, 2019
1. Share Capital:
Equity Share Capital 20,00,000 20,00,000
12% Preference Share Capital 10,00,000 10,00,000
30,00,000 30,00,000

2. Reserves and Surplus

Surplus i.e. Balance in Statement of Profit and Loss 9,00,000 5,00,000
9,00,000 5,00,000

3. Other Current Liability

Dividend Payable 60,000 -
Outstanding Expenses 40,000 70,000
1,00,000 70,000

Additional Information:
(i) During the year, a Machinery costing ₹400,000 (Written Down Value ₹180,000)
was sold at a profit of ₹60,000
(ii) Depreciation charged on machinery during the year ₹700,000
(iii) During the year, company declared Interim Dividend @ 10%. It did not propose
final dividend on Equity Shares but paid Preference Dividend.
(Answer:: Cash Flow from Operating Activities ₹28,40,000;
Cash used in Investing Activities ₹16,90,000; Cash used in
Financing Activity ₹360,000)

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 Class 12th - Accountancy
Assignment – Cash Flow Statement

ANSWERS
1. (b) Cash Basis of Accounting
2. (b) Short Term Highly Liquid Investments
3. (c) Cash in Hand and Demand Deposits with Bank
4. (d) Cash Deposit in Bank ₹40,000
5. (c) Operating and Non--Operating Cash Flow Information
6. (d) Fixed Assets and Investments
7. (c) Known as Goodwill Purchased
8. (a) Not Cash Flow
9. (b) Financing Activities
10. (b) Financing Activities
11. (a) Operating Activities
12. (a) Operating Activities
13. Investing
14. (d) Operating Activities
15. (d) Decrease in Trade Receivables
16. (b) ₹128,000
17. (a) Operating Activities
18. (c) Loss on Sale of Machine
19. Financing
20. (c) Cash Inflow of Operating Activi
Activities
21. Investing
22. (d) Added in Operating Activity and Deducted from Financing Activity
23. (c) Increase in Bank Overdraft
24. Investing, Financing
25. (b) Fixed Assets Account
26. (c) No Flow
27. (d) ₹70,000
28. (c) Depreciation of Fixed Assets
29. (a) Operating Activities
30. ₹40,000
31. Investing ₹175,000; Financing ₹25,000
32. (c) No Flow
33. Increase ₹34,000
34. (d) None of these
35. (a) Inflow
36. (c) No Flow
37. Purchase/Sale of Goods, Cash Received from Debtors, Cash Paid to Creditors
38. When Investments are acquired for a period of not more than 3 months and are readily
convertible into cash
39. Cash Deposit in Bank / Cash Withdrawn from Bank
40. ₹15,000
15,000 Depreciation : Added in Operating Activities

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