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KENDRIYA VIDYALAYA NO 03 BHOPAL SHIFT-I

QUESTION BANK CASH FLOW STATEMENT
Q.NO QUESTIONS
1 Following was the balance sheet of M.M.Ltd. at on 31.03.2019
Particular Note No. 31.03.2019 31.03.2018
I. Equity and Liabilities:
1) Shareholders’ Funds
a)Share Capital 4,00,000
b) Reserves and Surpulus 1 5,00,000 (50,000)
2) Non-current Liabilities 2,00,000
Long-term borrowing 2 5,00,000
3) Current Liabilities 4,50,000
a) short-term borrowings 3 50,000
b) short-term provisions 4 1,50,000 90,000
70,000
TOTAL 13,70,000 9,90,000
II. Assets
1) Non-Current Assets
a) Fixed Assets
i) Tangible 5 10,03,000 7,20,000
ii) Intangible 6 20,000 30,000
b) Non-Current investment 1,00,000 75,000
2) Current Assets:
a) Current Investment 7 50,000 60,000
b) Inventories 1,07,000 45,000
c) Cash and Cash Equivalents 90,000 60,000
TOTAL 13,70,000 9,90,000
Notes to Accounts
Note Particular 31.03.2019 31.03.2018
No.
1 Reserve and Surplus
( Surplus i.e. balance in statement of Profit 2,00,000 (50,000)
and loss)
2,00,000 (50,000)
2 Long term borrowing
12% Debenture 4,50,000 5,00,000
4,50,000 5,00,000
3 Short-term borrowing
Bank overdraft 1,50,000 50,000
1,50,000 50,000
4 Short-term Provisions
Provision for tax 70,000 90,000
70,000 90,000
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5 Tangible assets
Machinery 12,03,000 8,21,000
Accumulated depreciations (2,00,000) (1,01,000)
10,03,000 7,20,000
6 Intangible assets
Goodwill 20,000 30,000
20,000 30,000
7 Inventories
Stock in trade 1,07,000 45,000
1,07,000 45,000

Additional Information:
i) 12% Debenture were redeemed on 31.03.2019
ii) Tax Rs. 70,000 was paid during the year.
Prepare Cash Flow Statement.
2 From the following Balance Sheets of Surya Ltd, prepare a statement of cash flow:

Particulars Note 2013-14 (Rs.) 2014-15

No. (Rs.)
EQUITY & LIABILITIES
(1) Shareholders Funds
(a) Share Capital
Equity Share Capital 3,00,000 4,00,000
(b) Reserves & Surplus
Statement of P/L 10,000 70,000
(2) Non-Current Liabilities
15% Debentures 2,00,000 2,50,000
(3) Current Liabilities
Trade payables 50,000 1,10,000
TOTAL 5,60,000 8,30,000
ASSETS
(1) Non-Current Assets
(a) Fixed Assets 2,00,000 5,00,000
(b) Non-Current Investments 40,000 50,000
(2) Current Assets
(a) Inventories 2,00,000 2,00,000
(b) Cash & Cash Equivalents 50,000 30,000
(c) Trade receivables 70,000 50,000
TOTAL 5,60,000 8,30,000

3 Following are the Balance Sheets of Sukla Laddu Ltd as on 31-03-12 & 31-03-13:
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Particulars Note 2011-12 2012-13

No. (Rs.) (Rs.)
EQUITY & LIABILITIES
(1)Shareholders Funds
(a) Share Capital 10,00,000 14,00,000
(b) Reserves & Surplus 1 4,00,000 5,00,000
(2)Non-Current Liabilities
(a) Long term borrowings 2 2,00,000 6,00,000
(3)Current Liabilities
(a) Short Term Provisions 3 60,000 80,000
TOTAL 16,00,000 25,80,000
ASSETS
(1)Non-Current Assets
(a) Fixed Assets
(i) Tangible Assets 4 9,00,000 16,00,000
(ii) Intangible Assets 5 2,00,000 1,40,000
(2)Current Assets
(a) Inventories 2,00,000 2,50,000
(b) Trade Receivables 3,00,000 5,00,000
(c) Cash & Cash Equivalents 60,000 90,000
TOTAL 16,00,000 25,80,000
Notes to Accounts:
Note -1: Reserves & Surplus
Particulars 2011-12 2012-13
(Rs.) (Rs.)
Statement of Profit & Loss 4,00,000 5,00,000
Note -2: Long term Borrowings
Particulars 2011-12 2012-13
(Rs.) (Rs.)
9% Public Deposits 2,00,000 6,00,000
Note -3: Short Term Provisions
Particulars 2011-12 2012-13
(Rs.) (Rs.)
Provision for Tax 60,000 80,000
Note -4: Tangible Assets
Particulars 2011-12 2012-13
(Rs.) (Rs.)
Machinery 9,00,000 16,00,000
Note -5: Intangible Assets
Particulars 2011-12 2012-13
(Rs.) (Rs.)
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Goodwill 2,00,000 1,40,000

Prepare a Cash Flow Statement after taking into account the following adjustments:
(a) The company paid interest Rs.45,000 on its Deposits.
(b) Depreciation provided on machinery during the year Rs. 2,00,000
4 Prepare a Cash Flow Statement from the following Balance Sheet:
Particulars Note 2015-16 (Rs.) 2016-17 (Rs.)
No.
EQUITY & LIABILITIES
(1) Shareholders Funds
(a) Share Capital 1 5,00,000 6,00,000
(b) Reserves & Surplus 2 2,00,000 4,00,000
(2) Current Liabilities
Trade payables 3 1,80,000 2,80,000
TOTAL 8,80,000 12,80,000
ASSETS
(1) Non-Current Assets
(a) Fixed Assets
Plant Machinery 5 3,00,000 5,00,000
(2) Current Assets
(a) Inventories 6 1,50,000 1,00,000
(b) Cash & Cash Equivalents 7 30,000 80,000
(c) Trade receivables 8 4,00,000 6,00,000
TOTAL 8,80,000 12,80,000
Notes to Accounts
Note-1: Reserves & Surplus
Particulars 2013-14 (Rs.) 2014-15 (Rs.)
Balance in Statement of P/L 2,00,000 4,00,000
Additional Information:
(a) A part of machine costing Rs.80,000 was sold for Rs.32,000.
(b) Depreciation provided on Machinery during the year was Rs.55,000.
5 Following is the abstract from the Balance sheet of a company Calculate Cash Flow from Financing
activity:-
Particular Current Year Previous
(Rs.) Year (Rs.)
Equity Share Capital 9,00,000 7,00,000
12%Preference Share Capital 3,00,000 5,00,000
Securities Premium Reserve 1,40,000 1,00,000
12%Debentures 4,00,000 3,00,000

Additional Information:
1. Interim dividend on Equity Shares at the end of Current year was paid @15%..
2. Dividend on Preference Shares was paid.
3. Preference Shares were redeemed at a premium of 5% at the last date of current year.
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Premium was charged from profit. Fresh shares and Debentures were issued on the last
date of current year.
6 From the following information calculate Cash flow from Investing Activities:
Particular Current Year Previous Year
(Rs.) (Rs.)
Machinery (at cost) 4,20,000 4,00,000
Accumulated Depreciation 1,10,000 1,00,000
Patents 1,60,000 2,80,000
Additional Information:
1. During the year a machine costing Rs.40,000 with its accumulated depreciation of 24,000 was sold for
Rs.20,000.
2. Patents were written off to the extent of Rs.40,000 and some patents were sold at a profit of
Rs.20,000.
3. Interest received on investments Rs.35,000.
Dividend received on investments Rs. 25,000.
7 Calculate Cash flow from Operating Activities from the following information:
Particular Opening Balance (Rs.) Closing Balance (Rs.)
Surplus,i.e. Balance in Statement of Profit and Loss. 30,000 35,000
General Reserve 10,000 15,000
Provision for Depreciation 30,000 35,000
Outstanding Expense 5,000 3,000
Goodwill 20,000 10,000
Trade Receivables 40,000 35,000
An item of Plant costing Rs.20,000 having book value of Rs.14,000 was sold for Rs.18,000 during the year.
8 From the following summarized Balance sheet of KBC Ltd. as at 31ST March 2014 and 31ST
March 2013 You are required to prepare Cash Flow Statement:
Particular Note 31stMarch 31St March
No. 2014 (Rs.) 2013 (Rs.)
I.EQITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 3,50,000 3,00,000
(b) Reserve and Surplus 2,30,000 1,50,000
2.Non Current Liabilities:
Long term Borrowings:
15%Debentures 1,00,000 1,50,000
3. Current Liabilities
(a) Trade Payable 1,25,000 80,000
(b) Short Term Provision 55,000 50,000
(c) Other Current Liabilities: Outstanding 6,000 5,000
Expenses
Total 8,66,000 7,35,000
II. ASSETS
1.Non Current Assets 4,75,000 4,00,000
Long term Investment 90,000 90,000
(a) Current Assets
(i) Inventories 1,35,000 1,00,000
(ii) Trade Receivables 1,22,500 1,12,500
(iii) Cash & Cash Equivalents 43,500 32,500
Total 8,66,000 7,35,000
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Notes to Accounts:
Particulars 31stMarch 31St March
2014 (Rs.) 2013 (Rs.)
1. Reserve and Surplus:
Capital Reserve (Profit on sale of 5,000 -----
Investment) 2,25,000 1,50,000
Surplus i.e. Balance in Statement of
Profit and Loss
2,30,000 1,50,000
2. Short term Provisions:
Proposed Dividend 17,000 15,000
Provision for Tax 38,000 35,000
55,000 50,000
3. Non current Assets:
Fixed Assets (At Cost) 6,00,000 5,00,000
Less: Accumulated Depreciation (1,25,000) (1,00,000)
4,75,000 4,00,000 Additional
Information:
(a) During the year ended 31St March 2014 Fixed Assets with a net Book valuer of Rs.5,000
(Accumulated Depreciation Rs.15,000) was sold for Rs.4,000.
(b) During the year ended 31St March 2014 investment costing Rs.40,000 was sold.
(c) Debentures were redeemed at a premium of 10%.
(d) Tax of Rs.37,500 was paid.
Debentures interest paid during the year ended 31st March 2014 was Rs.15,000
9 From the Following information, Calculate Cash Flow From Operating Activities-
Particulars 31st March 2020 31st March 2021
General Reserve 1,00,000 1,50,000
Surplus i.e., Balance in Statement of (60,000) 70,000
Profit/Loss
10% Debentures 2,10,000 3,10,000
Trade Payables 75,000 11,75,000
Cash & Cash Equivalents 90,000 1,30,000
Goodwill 1,00,000 80,000
Machinery 5,00,000 4,60,000
10% Non- Current Investments 60,000 1,60,000
Inventories 60,000 2,45,000
Provision for Doubtful Debts 1,00,000 1,50,000
Trade Receivables 10,00,000 21,00,000
Discount on Issue of Debentures 10,000 ---------
10 From the following Balance sheet prepare Cash Flow Statement:
Particular Note 31stMarch 31StMarch
No. 2018 (Rs.) 2017 (Rs.)
I.EQITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 2,50,000 2,00,000
(b) Reserve and Surplus 90,600 80,500
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2. Current Liabilities
(a) Short Term Borrowings: Bank Loan ---- 70,000
(b) Trade Payables 1,35,000 1,50,000
(c) Short Term Provision: Provision for Tax 35,000 30,000
Total 5,10,600 5,30,500
II. ASSETS
1. Non Current Assets
(a) Fixed Assets:
(i) Tangible Assets 3,59,000 3,50,000
(ii) IntangibleAssets: Goodwill 5,000 -----
2. Current Assets
(a) Inventories 74,000 1,00,000
(b) Trade Receivables 64,000 80,000
(c) Cash and Cash Equivalents 8,600 500
Total 5,10,600 5,30,500

Notes to Accounts:
Particulars 31stMarch 31StMarch
2018 (Rs.) 2017 (Rs.)
1. Reserve and Surplus:
General Reserve 60,000 50,000
Surplus i.e. Balance in Statement of Profit and Loss 30,600 30,500
90,600 80,500
2. Tangible Fixed Assets
Land and Building 1,90,000 2,00,000
Plant and Machinery 1,69,000 1,50,000
3,59,000 3,50,000
Additional Information:
1. Proposed Dividend for the year ended 31st March,2017 was Rs.23,000 and for
the year ended 31st March 2018 was Rs.15,000.
2. The Income Tax paid during the year Rs.28,000.
3. Machinery was purchased during the year Rs.33,000.
4. Depreciation written off on Machinery Rs.14,000 , Building Rs.10,000.
11 Give an example of an activity which is always financing with regards to the Cash Flow Statement.
12 On 1.10.2018, Micro Ltd. issued 20,000, 8% debentures of Rs. 100 each and paid interest of Rs.
80,000 on these debentures on 31st March, 2019. Calculate the cash flow from financing activities
for the period ending 31st March, 2019.
13 An investment normally qualifies as cash-equivalent only when from the date of acquisition it has a
short maturity period of :
(A) One month or less (B) Three months or less (C) Three months or more (D) One year or less
14 From the following information of Nova Ltd., calculate the cash flow from investing activities :
Particulars 31.3.2019(Rs.) 31.3.2018 (Rs.)
Machinery (At cost) 5,00,000 3,00,000
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Accumulated Depreciation on machinery 1,00,000 80,000

Goodwill 1,50,000 1,00,000
Land 70,000 1,00,000
Additional Information : During the year, a machine costing Rs.50,000 on which the accumulated
depreciation was Rs.35,000, was sold for Rs. 12,000.
15 The profit of Jova Ltd. for the year ended 31st March, 2019 after appropriation was Rs. 2,50,000.
Additional Information :
Particulars (Rs.)
Depreciation of Machinery 20,000
Goodwill written off 9,000
Loss on sale of Furniture 2,000
Transfer to General Reserve 22,500

The following was the position of its Current Assets and Current Liabilities as at 31st March, 2018
and 2019.
Particulars 31.3.2018 (Rs.) 31.3.2019(Rs.)
Income Received in Advance 8,000 —
Inventory 12,000 8,000
Calculate the Cash flow from operating activities.
16 An investment normally qualifies as a cash equivalent only when it has a maturity of _________
months or less from the date of acquisition.
17 X Ltd. purchased furniture for Rs. 20,00,000 paying 60% by issue of equity shares of Rs. 10 each
and the balance by a cheque. This transaction will result in :
(A) Cash used in investing activities Rs. 20,00,000.
(B) Cash generated from financing activities Rs. 12,00,000.
(C) Increase in cash and cash equivalents Rs. 8,00,000.
(D) Cash used in investing activities Rs. 8,00,000.
18 State the objective of preparing ‘Cash Flow Statement’.
19 Cash flow from the operating activities of Pinnacle Ltd. for the year ended 31st March, 2019 was
Rs. 28,000. The Balance Sheet along with notes to accounts of Pinnacle Ltd. as at 31st March, 2019
is given below :
Pinnacle Ltd. Balance Sheet as at 31st March, 2019
Particulars Note 31.3.2019 31.3.2018
No. (Rs.) (Rs.)
EQUITY & LIABILITIES
(1) Shareholders Funds
(a) Share Capital 9,00,000 5,00,000
(b) Reserves & Surplus 1 90,000 1,10,000
(2) Non-Current Liabilities :
Long-term Borrowings 2 3,00,000 2,00,000
(2) Current Liabilities
Trade payables 60,000 80,000
TOTAL 13,50,000 8,90,000
ASSETS
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(1) Non-Current Assets

(i) Tangible Assets 3 7,46,000 5,24,000
(ii) Intangible Assets 4 36,000 76,000
(2) Current Assets
(a) Current Investments 1,30,000 20,000
(b) Inventories 2,00,000 1,30,000
(c) Cash & Cash Equivalents 2,38,000 1,40,000
TOTAL 13,50,000 8,90,000
Notes to Accounts

Particulars 31.03.2019 31.03.2019

(Rs.) (Rs.)
1: Reserves & Surplus
Balance in Statement of P/L 90,000 1,10,000
2:Long-term Borrowings :
9% Debentures 3,00,000 2,00,000
3: Tangible Assets :
Plant and Machinery 8,86,000 6,04,000
Accumulated Depreciation (1,40,000) (80,000)
7,46,000 5,24,000
4: Intangible Assets :
Goodwill 36,000 76,000
You are given the following additional information :
(i) A machinery of the book value of Rs. 90,000 (depreciation provided thereon was Rs.
23,000), was sold at a profit of Rs. 12,000.
(ii) 9% debentures were issued on 1st April, 2018. Prepare the Cash Flow Statement.
20 Interest received in cash on loans and advances results in cash inflow from ___________ activity.
22 Machinery was purchased for Rs. 10,00,000, paying 40% by issue of equity shares of Rs. 10 each
and the balance by a cheque. This transaction will result in :
(A) Cash used in investing activities Rs. 6,00,000.
(B) Cash generated from financing activities Rs. 4,00,000.
(C) Decrease in cash and cash equivalents Rs. 10,00,000.
(D) Cash used in investing activities Rs. 10,00,000.
23 While preparing Cash Flow Statement, cash comprises __________ and __________ with bank.
24 Z Ltd. purchased a building for Rs. 50,00,000 from J Ltd., paying 40% by the issue of 9% debentures
and the balance by cheque. The above transaction will result in :
(A) Cash used in investing activities Rs. 20,00,000.
(B) Cash generated from financing activities Rs. 20,00,000.
(C) Decrease in cash and cash equivalents Rs. 20,00,000.
(D) Cash used in investing activities Rs. 30,00,000.
25 For a company manufacturing garments, procurement of raw material, incurrence of
manufacturing expenses, sale of garments are classified as ____________ activities.
26 Paid Rs. 4,00,000 to acquire shares in R.V. Ltd. and received a dividend of Rs. 40,000 after acquisition. These
transactions will result in
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(A) Cash used in investing activities Rs. 4,00,000. (B) Cash generated from financing activities Rs. 4,40,000.
(C) Cash used in investing activities Rs. 3,60,000. (D) Cash generated from financing activities Rs. 3,60,000.
27 While preparing Cash Flow Statement, if net cash flow from operating, investing and financing activities is
negative the same is ___________ to opening cash balance to obtain ___________ cash balance.
28 There was ‘Nil’ net cash flow from operating activities of Ashok Ltd. during the year ending 31st March,
2019. From the following Balance Sheet of Ashok Ltd. as at 31st March, 2019, prepare a Cash Flow
Statement :
Particulars Note No. 31.3.2019 (Rs.) 31.3.2018
(Rs.)
EQUITY & LIABILITIES
(1) Shareholders Funds
(a) Share Capital 19,00,000 11,00,000
(b) Reserves & Surplus 1 1,60,000 2,00,000
(2) Non-Current Liabilities :
Long-term Borrowings 2 1,00,000 4,00,000
(2) Current Liabilities
(a) Short-Term Borrowings 3 2,50,000 2,30,000
(b) Short-Term Provisions 4 1,90,000 2,70,000
TOTAL 26,00,000 22,00,000
ASSETS
(1) Non-Current Assets
(i) Tangible Assets 3 15,00,000 11,00,000
(ii) Intangible Assets 4 2,80,000 1,70,000
(2) Current Assets
(a) Current Investments 1,30,000 2,90,000
(a) Trade Receivables 3,90,000 4,10,000
(b) Cash & Cash Equivalents 3,00,000 2,30,000
TOTAL 26,00,000 22,00,000
Notes to Accounts :
Note No. Particulars 31.3.2019 Rs. 31.3.2018 Rs.
1 Reserves and Surplus :
Surplus (Balance in the Statement of Profit and Loss) 1,60,000 2,00,000
2 Long-term Borrowings : 8% Debentures 1,00,000 4,00,000
3 Short-term Borrowings : Bank overdraft 2,50,000 2,30,000
4. Short-term Provisions : Provision for Tax 1,90,000 2,70,000
5. Tangible Assets : Plant and Machinery 16,30,000 11,70,000
Accumulated Depreciation (1,30,000) (70,000)
15,00,000 11,00,000
6. Intangible Assets : Goodwill 2,80,000 1,70,000
Additional information :
(i) A machinery of the book value of Rs. 60,000, (depreciation provided thereon Rs. 20,000) was
sold at a loss of Rs. 6,000.
(ii) 8% Debentures were redeemed on 1st July, 2018
29 Paid Rs. 7,00,000 to acquire shares in K.L. Ltd. and received a dividend of Rs. 20,000 after acquisition. These
transactions will result in
(A) Cash used in investing activities Rs. 7,00,000. (B) Cash generated from financing activities Rs.
7,20,000.
(C) Cash generated from financing activities Rs. 6,80,000. (D) Cash used in investing activities Rs. 6,80,000.