CASH FLOW STATEMENT

PART 2
FORMAT OF CASH FLOW STATEMENT
TERM 2
XII ACCOUNTANCY
SUNIL PANDA COMMERCE CLASSES
SUNIL PANDA COMMERCE CLASSES
Check class Notes for Format

SUNIL PANDA COMMERCE CLASSES

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SUNIL PANDA COMMERCE CLASSES

CASH FLOW STATEMENT
PART 3
FULL FLEDGED QUESTIONS
TERM 2
XII ACCOUNTANCY

SUNIL PANDA COMMERCE CLASSES

Q.1) Following are the balance sheets of solar power Ltd. as at
31st march,2014 and 2013
Particulars Note 31-3- 2014 31-3-2013
No.
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 24,00,000 22,00,000
(b) Reserves and Surplus 1 6,00,000 4,00,000
2. Non-Current Liabilities
Long-term Borrowings 4,80,000 3,40,000
3. Current Liabilities
(a) Trade Payables 3,58,000 4,08,000
(b) Short-term Provisions 1,00,000 1,54,000
Total SUNIL PANDA COMMERCE CLASSES 39,38,000 35,02,000
 Particulars Note 31-3- 2014 31-3-2013
No.
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets
(i) Tangible Assets 2 21,40,000 17,00,000
(ii) Intangible Assets 3 80,000 2,24,000
2. Current Assets
(a) current investments 4,80,000 3,00,000
(b) inventories 2,58,000 2,42,000
(c) trade receivables 3,40,000 2,86,000
(d) cash and cash equivalent 6,40,000 7,50,000
total 39,38,000 35,02,000

SUNIL PANDA COMMERCE CLASSES

 Notes to Accounts
Particulars 31-3- 31-3- 2013
2014

1. Reserves and Surplus

Surplus, i.e., Balance in Statement of Profit and Loss 6,00,000 4,00,000

2. Tangible Assets 25,40,000 20,00,000

Machinery (4,00,000) (3,00,000)
(less : accumulated dep) 21,40,000 17,00,000
3. Intangible Assets
Goodwill 80,000 2,24,000

SUNIL PANDA COMMERCE CLASSES

Additional information:- During the year a piece of machinery
costing 48,000 on which accumulated depreciation was 32,000
was sold for 12,000
Prepare cash flow statement

SUNIL PANDA COMMERCE CLASSES

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SPCC

SUNIL PANDA COMMERCE CLASSES

CASH FLOW STATEMENT
PART 4
FULL FLEDGED QUESTIONS
TERM 2
XII ACCOUNTANCY

SUNIL PANDA COMMERCE CLASSES

 Q.2) Following is the Balance Sheet of Fine Products Ltd. as at
31st March, 2019:

Particulars Note 31-3- 2019 31-3-2018

No.
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital: Equity Share Capital 3,50,000 3,00,000
(b) Reserves and Surplus 1 57,000 38,000
2. Current Liabilities
(a) Trade Payables 53,000 35,000
(b) Other Current Liabilities 6,000 8,000
(c) Short-term Provisions 2 32,000 28,000
Total 4,98,000 4,98,000
SUNIL PANDA COMMERCE CLASSES
 Particulars Note 31-3- 2019 31-3-2018
No.
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets
(i) Tangible Assets 3 2,48,000 2,00,000
(ii) Intangible Assets (Goodwill) 40,000 50,000
(b) Non-Current Investments 35,000 10,000
2. Current Assets
(a) Inventories 39,000 57,000
(b) Trade Receivables 1,08,000 75,000
(c) Cash and Bank Balance 28,000 17,000
Total 4,98,000 4,98,000

SUNIL PANDA COMMERCE CLASSES

 Notes to Accounts
Particulars 31-3- 2019 31-3- 2019

1. Reserves and Surplus

General Reserve 30,000 20,000
Surplus, i.e., Balance in Statement of Profit 27,000 18,000
and Loss
57,000 38,000
2. Short-term Provisions
Provision for Tax 32,000 28,000
3. Tangible Fixed Assets
Land and Building 57,000 1,10,000
Plant and Machinery 1,91,000 90,000
SUNIL PANDA COMMERCE CLASSES
Note: Proposed dividends on equity for the years ended 31st
March, 2018 and 2019 are ₹ 39,000 and ₹ 45,000 respectively.
You are required to prepare Cash Flow Statement for the year
ended 31st March, 2019.

SUNIL PANDA COMMERCE CLASSES

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SPCC

SUNIL PANDA COMMERCE CLASSES

CASH FLOW STATEMENT
PART 5
FULL FLEDGED QUESTIONS
TERM 2
XII ACCOUNTANCY

SUNIL PANDA COMMERCE CLASSES

Q.3) Following is the Balance Sheet of Mevanca Limited as at
31st March, 2017:
Particulars Note 31-3- 2017 31-3-2018
No.
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 3,00,000 1,00,000
(b) Reserves and Surplus 1 25,000 1,20,000
2. Non-Current Liabilities
Long-term Borrowings 2 80,000 60,000
3. Current Liabilities
(a) Trade Payables 6,000 20,000
(b) Short-term Provisions 3 68,000 70,000
Total 4,79,000 3,70,000
SUNIL PANDA COMMERCE CLASSES
 Particulars Note 31-3- 2017 31-3-201
No.
II. ASSETS
1. Non-Current Assets
Fixed Assets 4 3,36,000 1,92,000
2. Current Assets
(a) Inventories 67,000 60,000
(b) Trade Receivables 51,000 65,000
(c) Cash and Cash Equivalents 25,000 49,000
(d) Other Current Assets … 4,000
Total 4,79,000 3,70,000

SUNIL PANDA COMMERCE CLASSES

Notes to Accounts
Particulars 31-3- 2017 31-3- 2016

1. Reserves and Surplus

Surplus, i.e., Balance in Statement of Profit and Loss 25,000 1,20,000
25,000 1,20,000
2. Long-term Borrowings
10% Long-term Loan 80,000 60,000
80,000 60,000
3. Short-term Provisions
Provision for Tax 68,000 70,000
68,000 70,000
4. Fixed Assets
Machinery 3,84,000 2,15,000
Accumulated Depreciation (48,000) (23,000)
3,36,000 1,92,000
SUNIL PANDA COMMERCE CLASSES
 Additional Information:
(i) Additional loan was taken on 1st July, 2016.
(ii) Tax of ₹ 53,000 was paid during the year.
Prepare Cash Flow Statement.

SUNIL PANDA COMMERCE CLASSES

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SPCC

SUNIL PANDA COMMERCE CLASSES

CASH FLOW STATEMENT
PART 6
FULL FLEDGED QUESTIONS
TERM 2
XII ACCOUNTANCY

SUNIL PANDA COMMERCE CLASSES

 Q.4) From the following details relating to grow more ltd,
prepare cash flow statement
Particulars Note 31-3- 2021 31-3-2020
No.
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 1 20,00,000 16,00,000
(b) Reserves and Surplus 2 6,00,000 4,20,000
2. Non-Current Liabilities
Long-term Borrowings:10% debenture 4,00,000
3. Current Liabilities
(a) Trade Payables 14,00,000 16,40,000
(b) Short-term Provisions 3 2,00,000 1,40,000
Total SUNIL PANDA COMMERCE CLASSES
46,00,000 38,00,000
 Particulars Note 31-3- 2017 31-3-201
No.
II. ASSETS
1. Non-Current Assets
(a) Tangible assets 4 26,00,000 18,00,000
(b) Non current investment 2,00,000
2. Current Assets
(a) Inventories 8,00,000 4,00,000
(b) Trade Receivables 10,00,000 14,00,000
(c) Cash and Cash Equivalents 2,00,000

Total SUNIL PANDA COMMERCE CLASSES 46,00,000 38,00,000

 Notes to Accounts
Particulars 31-3- 2021 31-3- 2020

1.Share capital
issued subscribed and paid up
equity shares of 100 each fully paid 20,00,000 16,00,000
2. Reserves and Surplus
General Reserve 4,00,000 3,00,000
surplus i.e. balance in statement of profit and loss 2,00,000 1,20,000
3. Short term provision
provision for tax 2,00,000 1,40,000
4. Tangible assets
plant and machinery 14,00,000 10,00,000
land and building 12,00,000 8,00,000
SUNIL PANDA COMMERCE CLASSES
Additional information :-
1. Depreciation @25% was changed on the opening value of plant
and machinery
2. During the year one old machine costing 1,00,000 (WDV
40,000) was sold for 70,000
3. 1,00,000 was paid as income tax during the year
4. Proposed dividend for the year ended 31-3-2021 was 4,00,000
and for the year ended 31-3-2020 was 2,00,000
5. During the current year new debentures were issued on 1 oct
2020

SUNIL PANDA COMMERCE CLASSES

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SUNIL PANDA COMMERCE CLASSES

CASH FLOW STATEMENT
PART 7
THEORY QUESTIONS (2 MARKS)
TERM 2
XII ACCOUNTANCY

SUNIL PANDA COMMERCE CLASSES

Q.1) Identify the transaction as belonging to (i) Operating
Activities, (ii) Investing Activities (iii) Financing Activities and
(iv) Cash and Cash equivalents:
• Cash sale of goods
• Cash received against revenue form services rendered
• Cash purchase of goods
• Cash paid against services taken
• Patents purchased
• Marketable securities
• Bank overdraft
• Proceeds from issue of debentures
SUNIL PANDA COMMERCE CLASSES
• Purchase of shares
• Repayments of long term loan
• Commission received
• Redemption of debentures
• Interest on debentures
• Interest on investment
• Income tax paid
• Income tax paid on gain of sale of assets
• Cash received from debtors
• Cash paid to creditors

SUNIL PANDA COMMERCE CLASSES

Q.2) Classify the following transaction as operating activities
for a financial company and non-financial company:

• Purchase of share on a stock exchange

• Dividend received on shares
• Dividend paid on shares
• Loan given
• Loan taken
• Interest paid on borrowings

SUNIL PANDA COMMERCE CLASSES

Q.3) State which of the following would result in inflow
or outflow or no flow of cash and cash equivalents :
• Sale of fixed assets, book value 1,00,000 at a profit of 10,000
• Sale of goods against cash
• Sale of machinery for cash
• Purchase of land and building for 10,00,000. consideration
paid by issue of debentures
• Issued fully paid bonus shares
• Cash withdrawn form bank
• Payment of interim dividend

SUNIL PANDA COMMERCE CLASSES

Q.4)For each of the following transaction, calculate the
resulting cash flow and state the nature of cash flow i.e.
whether it is operating , investing or financing activity:
• Acquired machinery for 2,50,000 paying 20% by cheque and
executing a bond for the balance payable
• Paid 2,50,000 to acquire shares in informa tech Ltd. And
received a dividend of 50,000 after acquisition
• Sold machinery of original cost of 2,00,000 with an
accumulated depreciation of 1,60,000 for 60,000

SUNIL PANDA COMMERCE CLASSES

SUNIL PANDA COMMERCE CLASSES
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SUNIL PANDA COMMERCE CLASSES