Additional Information: Proposed Dividend for the years ended 31st March, 2018 and 2019 are ₹ 4,00,000 and ₹ 5,00,000 respectively.Prepare the Note to show Net Profit before Tax and Extraordinary Items. (v)Cash received for interest and dividends (vi) Cash paid for interest (a). Also after the chapter you can get links to Class 12 Accountancy Notes, NCERT Solutions, Important Question, Practice Papers etc. It is simply a movement between two components of cash and cash equivalents. 12.Under which type of activity will you classify ‘refund of income tax received’ while preparing the cash flow statement? It shows net income of the firm. Depreciation charged on Plant and Machinery ₹ 50,000.2. 40.State why cash flow statement is not a substitute for income statement? Solution: Question 12. Solution: Question 3. Plant and Machinery with a Book Value of ₹ 60,000 was sold for ₹ 40,000.3. Calculate Cash Flow from Investing Activities. Ans. Ans. Calculate Cash Flow from Investing Activities on the basis of the above information. 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. There will be no flow of cash because depreciation is a non-cash expense. Ans. Solution: Question 5. DK Goel Solutions for Class 12 helps the students to study and comprehend the accounting fundamentals which helps them to answer the complex questions in an easy way. Goodwill amortised was ₹ 7,000, and gain on sale of machinery was ₹ 3,000. Patents written off to the extent of ₹ 20,000. Investments costing ₹ 24,000 were sold during the year for ₹ 25,5000. Depreciation for the year was ₹35,000. 21.While preparing cash flow statement which type of activity is, ‘payment of cash to acquire debenture by an investment company’? 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. 29.State with reason whether ‘withdrawal of cash from bank’ will result into, inflow,outflow or no flow Of cash. Ans. The NCERT accountancy book for class 12 students gives a precise and appropriate definition of cash flow statement, followed by its uses. The Interim Dividend paid during the year amounted to ₹ 1,20,000. During the year, a part of the Fixed Assets costing ₹ 30,000 was sold for ₹ 36,000. Two financing activities that result into outflow of cash are: There is no flow of cash by the issue of 9% debentures to the vendors for the purchase of machinery of Rs 50,000 because this transaction will not change the balance of cash and cash equivalents. Additional Information If you have any query regarding TS Grewal Accountancy Class 12 Solutions Chapter 7 Company Accounts Financial Statements of Not-for-Profit Organisations, drop a comment below and we will get back to you at the earliest. Using TS Grewal Class 12 solutions Cash Flow Statement exercise by students are an easy way to prepare for the exams, as they involve solutions arranged chapter-wise also page wise. A business earned an average profit of 8,00,000 during the last few years. (Delhi 2009c) Provistion for Tax made during the year was ₹ 27,000. Cash Equivalents Cash equivalents are ‘short-term highly liquid investments that are  readily convertible into known amount of cash and which are subjected to an insignificant risk of change in value’. Income Tax paid during the year was ₹ 28,000. The questions involved in TS Grewal Solutions are important questions that can be asked in the final exam. The detailed, step-by-step solutions will help you understand the concepts better and clear your confusions, if any. DK Goel Accountancy Class 12 is contemplated to be the most helpful study resource for the students pursuing their Class 12. Ans. Ans. Ans. In the beginning of the year, a part of plant was sold for ₹45,000 which had a written down value of ₹30,000.Calculate Cash Flow from Investing Activities, From the following details. Additional Information From the following Balance Sheet and information of Sun Ltd., prepare Cash Flow Statement: (ii) A machine with a book value of ₹ 90,000 was sold for ₹ 50,000;(iii) Depreciation charged during the year ₹ 60,000;(iv) Debentures were issued on 1st April 2018;(v) Investments were purchased on 31st March 2019;(vi) Preference shares were redeemed on 31st December 2018;(vii) An interim dividend @ 15% was paid on equity shares on 31st December 2018;(viii) Fresh equity shares were issued at a premium of 5% on 31st March 2019. From the following information, calculate Net Cash Flow from Operating Activities and Financing Activities: Additional Information:(i) During the year additional debentures were issued at par on 1st October and Bank Loan was repaid on the same date. Cash flow arises when the net effect of a transaction either increases or decreases the amount of cash or cash equivalent. Cash Flow Statement Class 12 Accountancy Practice Questions. Operating activity. Download free printable assignments worksheets of Accountancy from CBSE NCERT KVS schools, free pdf of CBSE Class 12 Accountancy Cash Flow Statement Set A chapter wise important exam questions and answers CBSE Class 12 Accountancy Cash Flow Statement Set A. 6. Interim Dividend paid during the year was ₹ 9,000.3. DK Goel Solutions for Class 12 DK Goel Solutions Accountancy furnishes a wide range of solutions that certainly supports the students to understand, analyse and solve them. (All India 2013) Ans. The indirect method for the preparation of the statement of cash flows involves the adjustment of net income with changes in balance sheet accounts to arrive at the amount of cash generated by operating activities. Ans. The Questions and Answers of What is the new treatment of proposed dividend in cash flow statements for class 12 as per the guidelines of CBSE? DK Goel Solutions Class 12 is considered to be the most helpful study tool for the students pursuing their class 12. During the year, machine costing ₹ 90,000 with accumulated depreciation of ₹ 60,000 was sold for ₹        50,000.2. A plot of land was purchased out of the surplus funds for investment purposes and was let out for commercial use. Charles Ltd. earned a profit of ₹ 1,00,000 after charging depreciation of 20,000 on assets and a transfer to General Reserve of ₹ 30,000. Following is the extract from the Balance Sheet of Zee Ltd. Additional Information:(i) Proposed dividend on equity shares for the year 2017-18 and 2018-19 are ₹ 1,60,000 and ₹ 2,00,000 respectively. 13.When does the flow of cash take place? 51.Prepare a cash flow statement on the basis of the information given in the balance sheet of Simco Ltd as at 31st March, 2013 and 2012 Dividend received by a finance company is an operating activity. 1. 5.Give the meaning of cash (All India 2014; Delhi 2011) Machinery was purchased during the year ₹ 33,000. Following is the summarised Balance Sheet of Philips India Ltd. as at 31st March 2018: Additional Information:1. (i) Cash proceeds from sale of building. Board of Directors proposed dividend in both the years @ 10%.3. (All India 2011; Delhi 2008) Prepare a Cash Flow Statement after taking into account the following adjustments: (a) The company paid Interest ₹36,000 on its long-term borrowings. Ans. 46.State whether ‘the payment of cash to creditors’ will result into inflow, outflow or no flow Of cash. (All India 2008) Ans. 63.X Ltd made a profit of Rs 1,00,000 after considering the following items A cash flow statement provides information about the historical changes in cash and cash equivalents of an enterprise by classifying cash flows into operating, investing and financing activities between the dates of two balance sheets. Consideration paid by issue of debentures. Ans. 26.List any two financing activities that will result into outflow of cash. 56.From the following information prepare a ‘cash flow statement’ for Ronak Ltd. Balance sheet of Ronak Ltd as at 31st March, 2011 and 2012. An income statement shows both cash and non-cash items. Investments costing ₹ 24,000 were sold during the year for ₹ 25,5000.2. Ans. (ii)Dividend paid Rs 80,000. Interim Dividend of ₹75,000 has been paid during the year.2. Ans. Ans. Investing activity. 57.From the following balance sheet of Vijaya Ltd as at 31st March, 2009 and 2010. (All India 2008; Modified) 2. (Delhi 2014,2012,2011C; All India 2014,2012) During the year,XYZ Ltd. issued bonus shares in the ratio of 5 : 1 by captialising reserve. Ans. For an Insurance Company (Delhi 2012; Modified) Maximum students of CBSE Class 12 prefer TS Grewal Textbook Solutions to score more in exam. Loss on sale of equipment amounted to Rs 12,000. Chapter wise assignments are being given by teachers to students to make them understand the chapter concepts. 47.’Dividend paid by a manufacturing company’ is classified under which kind of activity while preparing a cash flow statement? (c) Dividend paid on Shares. Following are the extracts from the Balance Sheet of MAH Ltd. as at 31st March, 2019. You are required to prepare Cash Flow Statement. (iii) Income tax ₹ 1,12,500 has been provided during the year. (i)Depreciation charged on fixed assets for the year 2009-2010 was Rs 20,000. (Foreign 2008) From the following information, calculate Net Profit before Tax and Extraordinary Items: From the following information, calculate Operating Profit before Working Capital Changes: From the following Balance Sheet of Double Tree Ltd. as at 31st March, 2019 and additional information, calculate Operating Profit before Working Capital Changes: (b) Other Current Liabilities (Outstanding Expenses), (c) Short-term Provisions (Provision for Tax), Surplus, i.e., Balance in Statement of Profit and Loss. (i) Cash proceeds from sale of investments. Additional Information Additional Information:1. During the year 12% investments were purchased for ₹ 1,00,000 and some investments were sold at a profit of ₹ 10,000. (Delhi 2013; hots) Additional Information:1. Old furniture written-off will result in no flow of cash. Dividend received is considered as an operating activity when company is a financing or investing company. Cash flow is the driving force behind the operations of a business. 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. 7.Cash Flow from Investing Activities As per AS-3, investing activities are the acquisition and disposal of the long-term assets and other investments, not included in cash equivalents. 27.Name any two financing activities that result into inflow of cash. 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. NCERT Solutions CBSE Sample Papers Accountancy Class 12 Accountancy. Half of the investment held in the beginning of the year were sold at 10% profit.2. (viii) Rent received      (ix) Rent paid. 36.Give one difference between an operating activity and an investing activity. (e) Loans taken. The normal rate of profit in the similar type of business is 10%. 41.When is interest received considered as financing activity? 1. (All India 2011) 67.From the following balance sheet of EF Ltd as on 31st March, 2006 and 31st March, 2007, prepare the cash flow statement 12% Debentures were redeemed on 31st March, 2015.2. Show how are the following items dealt with while preparing the final accounts for the year ended 31st March,2016 of a Not – […] Dividend paid. The questions involved in TS Grewal Solutions are important questions charged was Rs 4,000, was sold for Rs 5,000. 18.Under which type of activity will you classify ‘proceeds from sale of patents’ while preparing cash flow statement? Solved Cash Flow Statements with Balance Sheet (vertical) and Notes to Accounts - Cbse Class 12 Accountancy Project (ii)Dividend paid during the year was 10% per annum. (All India 2014 (C), 2009) Cash flow statement is one of the most important chapters in the 12 th standard syllabus. (ii) Tax of ₹ 53,000 was paid during the year.Prepare Cash Flow Statement. (All India 2011) From the following details. Depreciation provided on tangible assets during the year amounted to Rs 2,00,000.Prepare a cash flow 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. XYZ. Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheet of Libra Ltd. as at 31st March, 2013 and 31st March 2012: Surplus, i.e., Balance in Statement of Profit and Loss. The profit and loss account of Roy Limited is given here under. Cash Budget Analysis and Variances The information contained in this document is intended to familiarise teachers and learner with topics indicated above. Ans. It implies movement-in and movement-out of cash and cash equivalents. (Delhi; All India 2009) (i)During the year Rs 50,000 depreciation was charged on fixed assets. Operating activity is the principal revenue producing activity of an enterprise whereas, investing activity includes the acquisition and disposal of fixed assets. Prepare Cash Flow Statement from the following: STATEMENT OF PROFIT AND LOSSfor the year ended 31st March, 2019, (c) Short-term Provision: Provision form Tax, (a) Short-term Investments (Marketable Security), Surplus, i.e., Balance in Statement of Profit and Loss. (Delhi 2010) 58.From the following balance sheet of Vikas Ltd as at 31st March, 2009 and 2010. Note: Proposed dividends on equity for the years ended 31st March, 2018 and 2019 are ₹ 39,000 and ₹ 45,000 respectively. - access free t. S. 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