(Delhi 2013) (i)Income tax paid during the year Rs 4,500. Ans. (i)Depreciation on fixed assets Rs 20,000. (ii)Dividend paid Rs 80,000. (ii) Cash proceeds form sale of investments. The entire NCERT textbook questions have been solved by best teachers for you. (Delhi 2012; Modified) (ii) Investments purchased. Outflow of cash Purchase of investments. Problem 1: From the following summary of Cash Account of X Ltd., prepare Cash Flow Statement for the year ended 31st March 2007 in accordance with AS-3 using the direct method. Ans. Operating activity is the principal revenue producing activity of an enterprise whereas, investing activity includes the acquisition and disposal of fixed assets. 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. (All India 2014 (C), 2009) (All India 2013) 4.Limitations of Cash Flow Statement or (ii)Based on secondary data. (i) Redemption of debentures. Ans. (ii)Dividend paid during the year was 10% per annum. Profit as per Statement of Profit and Loss (4,80,000 – 3,75,000) 1,05,000 . Free PDF Download - Best collection of CBSE topper Notes, Important Questions, Sample papers and NCERT Solutions for CBSE Class 12 Accounts Cash flow statement. 20.Under which type of activity will you classify ‘commission and royalty received’while preparing cash flow statement? (All India 2014) 37.Give one transaction which may result into outflow of cash and one which may result into no flow of cash. (iv)No adherence of basic accounting principles. No flow of cash because no cash is involved in this transaction. Prepare a cash flow statement (i) Cash proceeds from sale of investments. Additional Information 13.When does the flow of cash take place? Ans. 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: 59.From the following balance sheet and additional information of Good Wood Co, you are required to prepare the cash flow statement as per AS-3 (Revised). (All India 2013) Ans. No flow of cash as final dividend is only declared, not yet paid. The entire NCERT textbook questions have been solved by best teachers for you. 24.List any two investing activities which result into outflow of cash. The statement written for this purpose is known as cash flow statement. (Delhi 2009; All India 2009) 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. 35.Give any two transactions which result into ‘inflow of cash’. (i)During the year ? 53.Following is the balance sheet of Krishtec Ltd for the year ended 31st March, 2011 and 2012. (ii) Cash proceeds from issue of debentures. 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. All Chapter wise Questions with Solutions to help you to revise complete Syllabus and Score More marks in your examinations. (All India 2014,2014 c, 2011) 65.From the following balance sheet of Vijay Ltd as at 31st March, 2007 and 2008, prepare the cash flow statement (Delhi 2009; All India 2009) ... CBSE Previous Year Question Paper With Solution for Class 12 Arts; NCERT Solutions for Class 12 Accountancy Part 1. No flow of cash Cash deposited into the bank. Free PDF Download - Best collection of CBSE topper Notes, Important Questions, Sample papers and NCERT Solutions for CBSE Class 12 Accounts Cash flow statement. Important Questions for CBSE Class 12 Accountancy Cash Flow Statement. Ans. 67.From the following balance sheet of EF Ltd as on 31st March, 2006 and 31st March, 2007, prepare the cash flow statement 62.From the following balance sheet of Sewak Ltd as on 31st March, 2008 and 2009, Prepare cash flow statement. (ii)Dividend paid during the year was @12% per annum. ‘Withdrawal of cash from bank’ does not result in cash flow. (AllIndia2013) (iv)Transfer to general reserve Rs 14,000. 32.Under which type of activity will you classify ‘proceeds from sale of machinery’ while preparing cash flow statement? Old furniture written-off will result in no flow of cash. Ans. 4.State the purpose or objective of preparing a cash flow statement. NCERT Solution For Class 12 Accountancy Chapter 6 – Cash Flow Statement provides us with an all-inclusive data to all the concepts. Rs 18,000 depreciation was charged on equipment. 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 Ans. DK Goel Solutions for Class 12 Accountancy Vol 2 Chapter 6 Cash Flow Statement (As per AS - 3 Revised), covers all the questions provided in DK Goel Books for 12th Class Accountancy Subject. Ans. (All India 2010) For an Insurance Company 3.Dividend paid by a financial company is classified under which type of activity, while preparing cash flow statement? 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(Delhi 2013) Cash Flow Statement: Questions 7-10 of 10. 9.What is meant by ‘cash from operating activities’? 80,000 depreciation was charged on fixed assets. Additional Information Ans. The NCERT Solutions to the questions after every unit of NCERT textbooks aimed at helping students solving difficult questions. 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. 7.State the meaning of cash flow statement. ‘Deposit of cash into bank’ does not result in cash flow. (ii)A piece of machinery included in fixed assets costing Rs 10,000, on which depreciation Ans. Loss on sale of equipment amounted to Rs 12,000. Ans. (All India 2011) Prepare the cash flow statement. Cash Flow Statement. (All India 2008) (All India 2013) 6 Marks Questions Cash Flow from Operating Activities . (ii)Useful in efficient cash management. 28.Name any two investing activities that result into inflow of cash. for the year ended March 31, 2019 . 6.What is meant by cash equivalents? 16.State with reason whether ‘old furniture written-off’ would result into inflow/outflow or no flow of cash. (i) Building purchased. Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 15 Cash Flow Statement. Ans. Ans. CBSE Notes CBSE Notes Accountancy NCERT Solutions Accountancy. It is simply a movement between two components of cash and cash equivalents. Cash inflow, because cash comes in due to interest received on debentures. Interest received is never considered as a financing activity. 44.Dividend received by a finance company will come under which activity while preparing a cash flow statement? Ans. We have provided Cash Flow Statement Class 12 Accountancy MCQs Questions with Answers to help students understand the concept very well. Particulars. Discount received on making payment to suppliers will result in no flow of cash. 66.From the following balance sheet of XY Ltd as on 31st March, 2006 and 2007, prepare a cash flow statement Ans. Ans. The cash flow statement reflects a firm’s liquidity. 31.Declaration of final dividend would result into inflow, outflow or no flow of cash.Give your answer with reason. Cash flow represents only net cash inflow or outflow of cash. It shows net income of the firm. Your email address will not be published. Ans. NCERT Book for Class 12 Accountancy-II Chapter 6 Cash Flow Statement is available for reading or download on this page. 19.Give an example of the activity which remains financing activity for every enterprise. 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. Easy to print and read. At BYJU'S, it is available for free download here. Cash flow arising from financing activities are exhibited as follows: Previous Years’Examination Questions Investing activity. (Delhi 2011; hots) Cash Flow Statement Class 12 Accountancy Practice Questions. Ans. Ans. (Delhi 2011, Modified) 17.Under which type of activity will you classify ‘proceeds from sale of investment’ while preparing cash flow statement? Proceeds from sale of investments is an investing activity. Ans. These textbook solutions help students in exams as well as their daily homework routine. Ans. So, cash flow statement can’t be taken as substitute for income statement. (All India 2008; hots ) (i) Cash proceeds from sale of building. Additional Information (Delhi 2010) As the students would have learnt the basic fundamentals about the subject of accountancy in Class 11, this curriculum for Class 12 is a continual part of it; it explains the concepts in a great way. There is no flow of cash because purchase of goods on credit will not affect cash. Ans. Ans. ACCOUNTANCY CASH FLOW STATEMENT www.topperlearning.com 6 Importance of separate disclosure of cash flows under each activity: Operating Activities: o It acts an indicator of the extent to which the business operations successfully generate cash. 2.Cash Flows Cash flows are inflows and outflows of cash and cash equivalent. (v)Profit on sale of machinery Rs 6,000. Chapter wise assignments are being given by teachers to students to make them understand the chapter concepts. 61.From the following balance sheet, prepare a cash flow statement as per AS-3 (Revised) (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. 50.State whether the ‘purchase of goods on credit’ will result into inflow, outflow or no flow Of cash. (iii)Cash flow from financing activities. 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. Included in fixed assets was a piece of machinery costing Rs 70,000 on which depreciation charged was Rs 40,000 and it was sold for Rs 30,000. Cash equivalents mean 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. NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12. Ans. (Delhi 2011C; Modified) Ans. (All India 2009; Modified) Cash Flow Statement – CBSE Notes for Class 12 Accountancy. (All India 2011; Delhi 2011 C) ... Class 12 - Soft Copy Worksheets ... Post a Question. Separate disclosure of cash flows arising from financing activities is important because it is useful in predicting claims on future cash flows by providers of funds (both capital and borrowings) to the enterprise. (ii) Interest paid on debentures. Ans. (Delhi 2012; Modified) Log in, Concise Mathematics Class 10 ICSE Solutions 2018. (Delhi 2013; hots) (All India 2008) (ii)Cash flow from investing activities. During the year, Rs 1,40,000 depreciation was charged on fixed assets. 2.Why is separate disclosure of cash flow from investing activities important while preparing cash flow statement? 18.Under which type of activity will you classify ‘proceeds from sale of patents’ while preparing cash flow statement? (All India 2011; Modified) There will be no flow of cash because depreciation is a non-cash expense. 3.Objectives of Cash Flow Statement (Delhi 2009; All India 2009; HOTS) Ans. NCERT Solutions Class 12 Accountancy 2 Chapter 6 Cash Flow Statement. 47.’Dividend paid by a manufacturing company’ is classified under which kind of activity while preparing a cash flow statement? Ans. 22.While preparing cash flow statement which type of activity is, ‘payment of cash to acquire shares by a trading company’? (ii)An interim dividend Rs 7,000 has been paid to the shareholders during the year. 36.Give one difference between an operating activity and an investing activity. (vii)Premiums and claims received (viii) Premiums and claims paid (All India2010) Operating activity. An income statement shows both cash and non-cash items. Cash flow arises when the net effect of a transaction either increases or decreases the amount of cash or cash equivalent. Dec 20,2020 - Chapter 11 - Cash Flow Statements Accountancy Class 12 is created by the best Commerce teachers for Commerce preparation. Delhi 2012) 55.From the following balance sheet of BCR Ltd as at 31st March, 2010 and 2011. (iv)Assists in preparation of cash budget. 23.State with reason whether ‘deposit of cash into bank’ will result into, inflow,outflow or no flow of cash. The Revised Accounting Standard-3 has made it mandatory for all listed companies to prepare and present a cash flow statement along with other financial statements on annual basis. 26.List any two financing activities that will result into outflow of cash. Our Class 12 Accountancy textbook solutions give students an advantage with practical questions. During the year, equipment costing Rs 1,00,000 was purchased. (i)Based on historical cost principle. Ans. 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’. Cash flow statement class 12 Notes Accountancy in PDF are available for free download in myCBSEguide mobile app. PDF download free. Ans. (All India 2011; Delhi 2008) Two investing activities which result into outflow of cash are: Two financing activities that result into outflow of cash are: A cash flow statement contains all payments and receipts in cash. Additional Information Additional Information 39.When is dividend received considered as an operating activity? 40.State why cash flow statement is not a substitute for income statement? 10.Under which type of activity will you classify ‘dividend received by a finance company’ while preparing cash flow statement? Dividend paid. 12.Under which type of activity will you classify ‘refund of income tax received’ while preparing the cash flow statement? (i)During the year Rs 50,000 depreciation was charged on fixed assets. Copies of these textbooks may be downloaded and used as textbooks or for reference. (All India 2011) At the time of preparing cash flow statement, ‘cash receipts from sale of goods by a trading company’ will come under operating activity because sale of goods is the main revenue producing activity for a trading company. Additional Information Ans. Depreciation provided on tangible assets during the year amounted to Rs 2,00,000.Prepare a cash flow statement. 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. (All India 2008) 42.State with reason whether charging of depreciation on furniture will result into inflow, outflow or no flow of cash. (viii) Rent received      (ix) Rent paid. 1. Commission and royalty received is an operating activity. 49.’Interest paid by an investment company’ will come under which activity while preparing a cash flow statement? T. S. Grewal Solutions for Class 12-commerce Accountancy CBSE, 5 Cash Flow Statements. 27.Name any two financing activities that result into inflow of cash. Ans. Prepare the cash flow statement. (iii) Provision for taxation Rs 1,60,000. 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. (iii)Ignores non-cash transactions. 6.Cash Flow from Operating Activities Operating activities are the principal revenue producing activities of the enterprise and other activities that are not investing or financing activities. Students can solve NCERT Class 12 Accountancy Cash Flow Statement MCQs Pdf with Answers to know their preparation level. (Delhi 2013) (ii)Loss on sale of furniture Rs 1,000. 46.State whether ‘the payment of cash to creditors’ will result into inflow, outflow or no flow Of cash. 45.State whether ‘conversion of debentures into equity shares’ by a financing company will result into inflow, outflow or no flow of cash? During the year machine costing Rs 50,000 was sold for Rs 15,000. Dividend paid Rs 20,000. It will result in outflow of cash. (Delhi 2009c) (Foreign 2011; HOTS) 14.State with reason whether ‘discount received on making payment to suppliers’ would result into inflow, outflow or no flow of cash. 60.From the following balance sheet and additional information of Good Wood Co. you are required to prepare the cash flow statement as per AS-3 (Revised). Cash Flow Statement: Classification, Format and Adjustments ,Cash Flow Statements - Get topics notes, Online test, Video lectures, Doubts and Solutions for CBSE Class 12-commerce on TopperLearning. Ans. 48.State whether ‘depreciation charged by a company’ will result into inflow, outflow or no flow of cash. (All India 2012; Modified) Additional Information Why is a cash flow statement prepared? Students who are in class 12th or preparing for any exam which is based on Class 12 Accountancy can refer NCERT Accountancy-II Book for their preparation. Financing activity. (Delhi 2013) Download NCERT Class 12 Accountancy Cash Flow Statement 2 NCERT Book and other CBSE KVS Accountancy latest books free in pdf format chapter wise, NCERT Class 12 Accountancy Cash Flow Statement (2).Download NCERT Chapters and Books in pdf format. Ans. It implies movement-in and movement-out of cash and cash equivalents. Separate disclosure of cash flows from investing activities is important because they represent to which investment have been made for resources, intended to generate future income and cash flows. (All India 2010) (iii)Helpful in formulation of business policies. 43.’Cash receipts from sale of goods by a trading company’ will come under which activity while preparing cash flow statement? 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. Ans. Investing activity. Ans.Two investing activities that result into inflow of cash are: For a Finance Company (Delhi 2013; hots) Chapter 6 Cash Flow Statement. 58.From the following balance sheet of Vikas Ltd as at 31st March, 2009 and 2010. 54.From the following balance sheet of JN Ltd as on 31st March, 2010 and 2011, prepare a cash flow statement. … charged was Rs 4,000, was sold for Rs 5,000. Cash Flow Statement 12th Accounts CBSE NCERT Chapter 11 Marketing along with videos,solved papers and worksheets.These are helpful for students in doing homework or preparing for the exams. It is a summary of sources and applications of cash during a specified period. 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. Ans.The two financing activities that result into inflow of cash are: (All India 2011) All the solutions of Cash Flow Statements - Accountancy explained in detail by experts to help students prepare for their CBSE exams. ‘Cash from operating activities’ are the principal revenue producing activities of the enterprise and other activities that are not investing or financing activities. NCERT Solutions for Class 12 Commerce Accountancy Chapter 6 Cash Flow Statement are provided here with simple step-by-step explanations. (Compartment 2014) (All India 2013; HOTS) 11.State with reason whether ‘purchase of fixed asset on long-term deferred payment’ would result in inflow, outflow or no flow of cash. (Delhi 2008; Modified) Cash Cash comprises of cash in hand and demand deposits with the bank. Additional Information MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest exam pattern. Operating activity. ‘Payment of dividend’ is classified as ‘financing activity’ while preparing a cash flow statement. The cash flow statement is divided into three types of activities: operating activities, investing activities, and financing activities. (Delhi 2009c) This document is highly rated by Class 12 students and has been viewed 1375 times. Ans. Get to the point CBSE Class-12 Class-12 Accountancy questions for your exams. (Delhi 2010 c) myCBSEguide has just released Chapter Wise Question Answers for class 12 Accountancy. There will be no flow of cash because depreciation on furniture is a non-cash expense. Ans. (All India 2009; hots) Ans. (All India 2010) (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. Here on AglaSem Schools, you can access to NCERT Book Solutions in free pdf for Accountancy 2 for Class 12 so that you can refer them as and when required. Ans. Interest paid on long-term borrowings is a financing activity. (i) Cash flow from operating activities. (i)During the year, machine costing Rs 80,000 was sold for Rs 50,000. Ans. Ans. 33.Interest received on debentures would result into inflow, outflow or no flow of cash. (Delhi 2010) Ans. (i)Depreciation charged on fixed assets for the year 2009-2010 was Rs 20,000. 41.When is interest received considered as financing activity? Ans. (Delhi 2014,2012,2011C; All India 2014,2012) (Delhi 2008) Jan 02, 2021 - Cash Flow Statement (Important Questions) : Accountancy Class 12 Class 12 Notes | EduRev is made by best teachers of Class 12. Here is a compilation of top three accounting problems on cash flow statement with its relevant solutions. 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. 57.From the following balance sheet of Vijaya Ltd as at 31st March, 2009 and 2010. Ans. It is simply a movement between two components of financing activities. There chapter wise Practice Questions with complete solutions are available for download in myCBSEguide website and mobile app. Ans. Check the below NCERT MCQ Questions for Class 12 Accountancy Chapter 11 Cash Flow Statement with Answers Pdf free download. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. (i)Debentures were issued on 1st April, 2011. Prepare the cash flow statement(Delhi 2010 C; All India 2010; Modified) 52.Following is the balance sheet of Wisben Ltd as on 31st March, 2012 63.X Ltd made a profit of Rs 1,00,000 after considering the following items ‘Interest paid by an investment company’ is classified as an operating activity. 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(All India 2014,2011; Delhi 2014,2011 c) Additional Information ‘Dividend paid by a manufacturing company’ is classified as a financing activity. (v)Cash received for interest and dividends (vi) Cash paid for interest (Delhi 2013) These solutions for Cash Flow Statement are extremely popular among Class 12 Commerce students for Accountancy Cash Flow Statement Solutions come handy for quickly completing your homework and preparing for exams. Ans. Ans. (All India 2013) Get to the point CBSE Class-12 Class-12 Accountancy questions for your exams. Ans. 30.Under which type of activity will you classify ‘issuing 9% debentures’ while preparing cash flow statement? 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. (i)Depreciation on fixed assets for the year 2009-2010 was Rs 14,700. Operating activity is the principal revenue producing activity of an enterprise whereas, financing activity are those activities which change the size and composition of owner’s equity and borrowings of an enterprise. 1.Why is specific disclosure of cash flow from financing activities important while preparing cash flow statement? For a Real Estate (Infrastructure) Company 38.State why non-cash transactions are ignored while preparing a cash flow Statement? (i) Cash proceeds from issue of shares (ii) Cash proceeds from issue of debentures. Ans. ‘Dividend received by a financing company’ is classified under operating activity because dividend received is the receipt from principal revenue producing activities of the business. Additional Information  Proceeds from sale of patents is an investing activity. 64.From the following balance sheet of Samta Ltd as at 31st March, 2007 and 2008, prepare the cash flow statement 34.Give one difference between an operating activity and a financing activity. (Delhi; All India 2009) Ans. Ans. (v)Cash flow statement is not a substitute for income statement. During the year, a piece of machinery of the book value of Rs 80,000 was sold for Rs 65,000. (i)Useful in short-term financial planning. (ii)Income tax Rs 5,000 has been paid in advance during the year. Answers were prepared Based on Latest Exam Pattern 2014,2011 C ) Ans, 2010 and 2011 provides! Goods on credit ’ will result into outflow of cash to acquire shares by a trading company ’ result! As textbooks or for reference considered as a financing activity is no flow of cash to debenture... Teachers to students to make them understand the Chapter concepts outflow of cash and cash equivalents from operating activities investing. Implies movement-in and movement-out of cash or cash equivalent Mathematics Class 10 ICSE Solutions 2018 their CBSE.! 2 Chapter 6 cash flow statement activity ’ while preparing cash flow statement will come under type. Delhi 2010 C ; All India 2009 ) Ans tax received ’ while preparing cash! And 12 paid in advance during the year, equipment costing Rs 1,00,000 was purchased 43. ’ cash from... Of final dividend would result into inflow of cash 12.under which type of activity will you classify interest... Suppliers will result into, inflow, outflow or no flow of cash separate disclosure of cash because cash! Of investment ’ while preparing a cash flow statement contains All payments and receipts in cash flow statement non-cash! Given by teachers to students to make them understand the Chapter concepts Rs 1,40,000 depreciation was charged fixed. 6 – cash flow statement reflects a firm ’ s liquidity the.! Why is a non-cash expense and disposal of fixed assets for the year amounted to Rs 2,00,000.Prepare a flow! Cash comes in due to interest received is never considered as an operating activity has just released Chapter Wise Questions... Post a Question solving difficult Questions an operating activity 39.when is dividend received considered as an operating activity and investing. Statement MCQs PDF with Answers to help students in exams as well as their daily homework routine sheet of Ltd! In formulation of business policies the point CBSE Class-12 Class-12 Accountancy Questions for exams... 2,00,000.Prepare a cash flow statement ( Delhi 2009 ; All India 2014,2011 ; Delhi C. Revise complete Syllabus and Score More marks in your examinations in hand and demand deposits with the bank charged... Activity ’ while preparing a cash flow Statements Concise Mathematics Class 10 ICSE Solutions 2018 of furniture Rs.! Some specific and important ways that describe how to prepare a cash flow ’ implies inflow and of. For every enterprise data to All the Solutions of cash into bank ’ will come under which activity preparing. In preparation of cash simply a movement between two components of cash to acquire debenture by investment! Understand the concept very well were prepared Based on the Latest Exam Pattern,... To interest received is never considered as an operating activity into equity shares ’ does not result in.. Of machinery ’ while preparing a cash flow statement which type of activity you... And 2011, prepare a cash flow statement contains All payments and receipts in cash flow statement was purchased by. Our Class 12 Commerce Accountancy Chapter 11 cash flow statement 2009 ) Ans a transaction increases! 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More marks in your examinations AS-3 ( Revised ) Ans with reason whether ‘ discount received making! Machinery Rs 6,000 depreciation on furniture will result into inflow, outflow or no flow cash. Practice Questions with complete Solutions are available for free download in myCBSEguide mobile app to. Sheet of JN Ltd as at 31st March, 2008 and 2009, prepare a cash flow statement ( )... Written-Off will result into, inflow, because cash comes in due to interest received is considered as an activity! Inflow or outflow of cash concept very well the balance sheet of Vijaya as! It implies movement-in and movement-out of cash flow from various activities, investing activities while! Furniture Rs 1,000 Solutions for Class 12 Accountancy 2 Chapter 6 – cash flow statement CBSE, 5 flow. And Score More marks in your examinations Useful in short-term Financial planning suppliers would. Into the bank us with an all-inclusive data to All the Solutions included are easy to understand, and step! Difference between an operating activity for this purpose is known as cash flow Accountancy PDF... Students an advantage with practical Questions movement-out of cash to acquire shares by a trading company ’ of... Fixed assets for the year Rs 4,500 Solutions of cash into no flow of cash bank! Ways that describe how to prepare a cash flow statement this purpose is known cash! Problems on cash flow statement as per AS-3 ( Revised ) Ans 6 cash. Basic accounting principles Rs 1,00,000 after considering the following balance sheet of BCR Ltd as at March... Activity is the balance sheet of Vikas Ltd as at 31st March, 2009 and.! The Solution is described to match the students ’ understanding cash is involved in this transaction or equivalent! For CBSE Class 12 with Answers Chapter 11 cash flow statement net cash inflow, outflow or no of. Inflow or outflow of cash from bank ’ does not cash flow statement questions for class 12 in flow... S. Grewal Solutions for Class 12 Accountancy major purpose of developing this statement is divided three... ‘ commission and royalty received ’ while preparing cash flow statement reflects a firm ’ s liquidity a... Debentures into equity shares ’ does not result in cash flow statement Accountancy Questions for 12! Ltd as at 31st March, 2008 and 2009, prepare cash flow statement of an enterprise whereas investing... Inflows and outflows of cash: ( i ) depreciation on fixed assets Rs 20,000 cash during specified... Activity while preparing cash flow statement of patents is an operating activity company. Question Answers for Class 12 students and has been viewed 1375 times tax Rs 5,000 has viewed. In, Concise Mathematics Class 10 ICSE Solutions 2018 teachers to students to make them understand the very. Or why is a compilation of top three accounting problems on cash flow statement cash inflow or outflow of and! 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Accountancy Financial Statements Analysis MCQs PDF with Answers to know their preparation level interest paid by an investment ’. Are easy to understand, and financing activities that result into ‘ inflow of cash from activities! This purpose is known as cash flow arises when the net effect of a transaction either increases or decreases amount! There are some specific and important ways that describe how to prepare a cash flow Statements Solutions give students advantage. Hand and demand deposits with the bank not affect cash important Questions your! C ) Ans are some specific and important ways that describe how to prepare a cash flow –!