SANJEEV CLASSES

SANJEEV SIR

SANJEEV CLASSES
CASH FLOW STATEMENT
Question:- 1 From the following information, prepare the Cash Flow statement:
Liabilities
Share Capital
Profit and Loss
A/c
15%
Debentures
sundry
creditors
Bills Payable

31st March 2008

(Rs.)
2,00,000

31st March 2009

(Rs.)
2,50,000

1,00,000

1,95,000

Assets
Fixed Assets
Long-Term
Investments

31st March 2008

(Rs.)
1,17,000

31st March 2009

(Rs.)
2,74,000

55,000

68,000

50,000

80,000

Stock

1,50,000

2,06,000

1,10,000
20,000

1,50,000
12,000

Debtors
Cash
Bank
Preliminary
Expenses

70,000
20,000
50,000

32,000
25,000
70,000

18,000
12,000
4,80,000
6,87,000
4,80,000
6,87,000
Cash From Operating Activities- Rs. 1,22,500; Cash used in Investing Activities Rs. 1,70,000; and Cash
from financing Activities- Rs. 1,70,000;]

Question:-

2 Following are the Balance Sheets of Good Luck Ltd. Prepare the Cash Flow

Statement:
Liabilities
Equity Share
Capital
Profit and Loss A/c
Mortgage Loan
Public Deposits
Creditors
Outstanding
Expenses

1st April 2008

(Rs.)

31st March 2009

(Rs.)

3,00,000
50,000

4,00,000
60,000

1,00,000
70,000
1,05,000

1,30,000
10,000
1,40,000

20,000

8,000

1st April 2008

(Rs.)

Assets
Goodwill
Plant
Inventories(Stock
)
Debtors
Prepaid Insurance
Share Issue
Expenses
cash

31st March 2009

(Rs.)

60,000
1,72,000

45,000
2,96,000

2,00,000
1,20,000
10,000

2,80,000
92,000
15,000

3,000
50,000

2,000
16,000

Bank
30,000
6,45,000
7,48,000
6,45,000
7,48,000
[Cash From Operating Activities- Rs.8,000, Cash used in Investing Activities- Rs. 1,24,000, Cash from
financing Activities- Rs.70,000]

Question:- 3 The Following are the Balance Sheets of Agrawal Limited as on 31st March,2008
and 2009:
Liabilities
Share Capital
Profit and Loss A/c

2008 Rs.
2,00,000
20,000

2009 Rs.
2,00,000
1,25,000

Assets
Fixed Assets
Less:

2008 Rs.
2,20,000
36,000

2009 Rs.
3,75,000
52,000

SANJEEV CLASSES---9810486099----9015691579---9211126579---2755790

2,000

Mortgage Loan
Provision for Tax
Proposed Dividend
Creditors

50,000
10,000
20,000
70,000

75,000
15,000
28,000
36,000

Accumulated
Depreciation
1,84,000
50,000
60,000
15,000

Stock
Debtors
Bills Receivable
Prepaid Expenses
Cash and Bank

3,23,000
72,000
51,000
-

2,000

59,000
3,70,000

33,000
4,79,000

3,70,000
4,79,000
You are required to prepare the Cash Flow Statement.
[Cash From Operating Activities- Rs.1,24,000; Cash used in Investing Activities- Rs. 1,55,000; Cash from
financing Activities- Rs.5,000]

Question:- 4 From the following Balance Sheets of A Ltd. Make out the cash Flow Statement:
Liabilities

31st
March
2008 Rs.

31st
March
2009 Rs.

Share Capital

80,000

80,000

Profit and Loss A/c

15%
Creditors
Provision for
Taxation
Proposed Dividend
Bank Overdraft

30,000
75,000
46,000

80,000
90,000

12,000
20,000
37,000

15,000
30,000
25,000

3,00,000

3,20,000

Assets
Plant and
Machinery
Less:
Accumulated
Depreciation

Stock
Debtors
Bills Receivable
Cash

31st March
2008 Rs.

31st March
2009 Rs.

2,00,000

1,50,000

50,000
1,50,000

60,000
90,000

80,000
50,000
15,000

1,20,000
86,000
11,000

5,000
3,00,000

13,000
3,20,000

Note:- Loan was paid on 1st April, 2008.

[Cash From Operating Activities- Rs.65,000; Cash used in Investing Activities- Rs. 50,000; Cash used in
financing Activities- Rs.95,000,
Net increase in cash and cash equivalents-Rs.20,000*]

Question:- 5 From the following Balance Sheets of B Limited make out the cash Flow
Statement as perAS-3(Revised):
Liabilities
Equity Share
Capital
12% Debentures
General Reserve
Profit and Loss A/c
Provision for Tax
Creditors
Outstanding
Expenses
Bank Overdraft

2008 Rs.

2009 Rs.

Assets

2008 Rs.

2009 Rs.

2,50,000
30,000
1,00,000

2,80,000
1,25,000

60,000
2,00,000
1,50,000

42,000
50,000
3,15,000

40,000
22,000
1,76,000

67,000
30,000
83,000

Goodwill
Land & Building
Plant and Machinery
Investments(Longterm)
Stock
Debtors
Preliminary
Expenses
Cash

62,000
1,20,000
66,000

30,000
80,000
1,00,000

10,000
20,000
70,000
40,000
10,000
18,000
6,88,000
6,35,000
6,88,000
6,35,000
[Cash From Operating Activities- Rs.21,000; Cash From Investing Activities- Rs. 17,000; Cash From financing
Activities-Nil.]

Preparation of cash flow statement (With Adjustment)

Question:- 6 From the following Balance Sheets of Vivek Ltd. Prepare the cash Flow
Statement:

SANJEEV CLASSES---9810486099----9015691579---9211126579---2755790

Liabilities
Equity Share Capital
12% Preference Share
Capital
General Reserve
Profit and Loss A/c
Creditors

2007 Rs.
2,00,000

2008 Rs.
2,50,000

Assets
Goodwill

2007 Rs.
30,000

2008 Rs.
20,000

50,000
35,000
15,000
23,000

40,000
55,000
17,000
5,000

Building
Plant
Debtors
Stock
Cash

3,23,000

3,67,000

1,00,000
40,000
1,20,000
18,000
15,000
3,23,000

80,000
70,000
1,60,000
20,000
17,000
3,67,000

Depreciation charged on Plant was Rs. 30,000 and on Buildings Rs. 50,000.
[Cash From Operating Activities- Rs.52,000; Cash used in Investing Activities- Rs. 90,000; Cash From financing
Activities-40,000.]

Question:- 7 From the following Balance Sheets of Rajan Ltd. Prepare the cash Flow
Statement:
Liabilities
Equity Share Capital
General Reserve
Profit and Loss A/c
Creditors

2007 (Rs.)
2,25,000
20,000
15,000
37,000

2008 (Rs.)
2,50,000
35,000
24,000
49,500

2,97,500

3,58,500

Assets
Goodwill
Building
Plant
Debtors
Stock
Cash

2007 (Rs.)
36,000
80,000
40,000
1,19,000
10,000

2008 (Rs.)
20,000
60,000
1,00,000
1,54,500
15,000

12,500
2,97,500

9,000
3,58,500

Depreciation charged on Plant was Rs. 10,000 and on Buildings Rs. 60,000.
[Cash Flow From Operating Activities- Rs.81,500; Cash used in Investing Activities- Rs. 1,10,000; Cash From
financing Activities-25,000.]

Question:- 8 From the following Comparative Balance Sheets , Prepare the cash Flow
Statement for the year ended 31st March,2008:

Liabilities
Creditors
Loan From X
Loan From Bank
Capital

31st
March
2007 Rs.
40,000
25,000
40,000
1,25,000

31st
March
2008 Rs.
44,000
50,000
1,53,000

2,30,000

2,47,000

Assets
Cash
Debtors
Stock
Machinery
Land
Building

31st March
2007 Rs.
10,000
30,000
40,000
80,000
35,000
35,000
2,30,000

31st March
2008 Rs.
7,000
50,000
25,000
55,000
50,000
60,000
2,47,000

During the year , a machine costing Rs. 10,000 with accumulated depreciation of Rs. 3,000 was
sold for Rs. 5,000.
[Cash Flow From Operating Activities- Rs.47,000; Cash used in Financing
Activities- Rs. 15,000; Cash used in Investing Activities-35,000

Question:- 9 From the following Details relating to the Accounts of Grow More Ltd. Prepare
Cash Flow Statement.
31.3.2002
(Rs.)

31.3.2001
(Rs.)

Liabilities:
Share Capital
Reserve
Profit and loss
Account
Debentures
Provision for
dividend

31.3.2002
(Rs.)

31.3.2001
(Rs.)

Assets:
Plant and
Machinery
Land/Building

7,00,000
6,00,000

5,00,000
4,00,000

10,00,000
2,00,000

8,00,000
1,50,000

1,00,000
2,00,000

60,000
-

Investments
Sundry Debtors

1,00,000
5,00,000

7,00,000

1,00,000

70,000

4,00,000

2,00,000

Proposed dividend

2,00,000

1,00,000

Stock
Cash on
hand/bank

2,00,000

2,00,000

Sundry Creditors

7,00,000

8,20,000

SANJEEV CLASSES---9810486099----9015691579---9211126579---2755790

25,00,000

20,00,000

25,00,000

20,00,000

Other Information:
1.

Depreciation @25% was charged on the opening value of plant and Machinery.

2.

During the year one old machine costing 50,000 (WDV 20,000) was sold for Rs. 35,000.

3.

Rs.50,000 was paid towards Income tax during the year.

4.

Building under construction was not subject to any depreciation.

Question:- 10 The following summary cash account has been extracted from the companys
accounting records:

Summary Cash Account

(Rs.'000)
Balance at 1-1-X8
Receipts from
customers
Issue of Shares
Sale of fixed assets

35
2,783
300
128
3,246

Payment to suppliers

2,047

Payment for fixed assets

Payment for overheads
Wages and salaries
Taxation
Dividends
Repayments of bank
loan

230
115
69
243
80
250
. (3034)

Balance at 31-12-X8

212
3,246

Prepare Cash Flow Statement of this company Hills Ltd., for the year ended 31st December 19X8 in
accordance with AS-3 (Revised).
The Company does not have any cash equivalents.

Question:- 11 From the following information prepare a cash flow Statement of AA Ltd. For the
year ended 31-03-1999:

Balance Sheet
Liabilities
Shares Capital
Equity Shares of
Rs.
10 each%
General Reserve
P&L A/c
Share Premium
14% Debentures
Cash Credit
Sundry Creditors
Provision for
Taxation
Proposed Dividend

97-98

98-99

Assets

97-98

98-99

Sundry Fixed

1,000
700
200
20
400
90

1,200
750
220
40
450
120

180

220

10
150

20
240

2,750

3,260

Assets:
Gross Block
Less:Dep.
Net Block
Investment
Inventories
Sundry
Debtors
Cash and Bank

1,600
320

2,000
720

1,280
600
500

1,280
700
700

320
50

450
130

2,750

3,260

Other Information:
1.

It discarded fixed assets costing Rs. 2 Lacs, accumulated depreciation Rs. 40,000 at 20,000 only.

SANJEEV CLASSES---9810486099----9015691579---9211126579---2755790

2.

It paid advance tax liability of Rs. 70 lacs for 1998-99 apart from payment of balance tax liability of
Rs.8 lacs for 1997-98.

3.

It transferred excess tax provision for 1997-98 to general reserve.

Question:- 12 From the following Summary Cash Account of X Ltd. Prepare Cash Flow
Statement for the year ended 31st March, 2001 in a accordance with AS-3 (Revised) using the
direct method. The company does not have any cash equivalents.

Summary Cash Account for the year ended 31-03-2001

Rs.'000
Balance at 1-4-2000
Issue of Equity
shares
Receipts from
customers
Sale of fixed assets

50
300
2,800
100

Rs.'000
Payment to suppliers
Payment for fixed
assets

2,000
200

Overhead expenses
Wages and Salaries
Taxation
Dividends
Repayments of bank
loan
Balance on 31-3-2001

200
100
250
50
300
150

3,250

3,250

(Nov - 2001)

Answer:- Cash Flow Operating Activities 250; Investing Activities (100); Financing Activities (50).
Question:- 13 Ms. Joythi of star Oils Limited has collected the following information for the
preparation of cash flow statement for the year 2000.
(Rs. In
Lakhs)
Net Profit

25,000

Dividend (Including dividend tax) paid

8,535

Provision for Income tax

5,000

Income Tax paid during the year

4,248

Loss on sale of assets (net)

Book Value of the assets sold
Depreciation charged to Profit & Loss Account
Profit on sale of Investments
Carrying amount of Investment sold
Interest income on investments

40
185
20,000
100
27,765
2,506

Interest expenses

10,000

Interest paid during the year

10,520

Increase in working capital

56,075

(excluding cash & bank balance).

Purchase of fixed assets
Investment in joint venture
Expenditure on construction work in progress
Proceeds from calls in arrear
Receipt of grant for capital projects

14,560
3,850
34,740
2
12

Proceeds from long-term borrowings

25,980

Proceeds from short-term borrowings

20,575

SANJEEV CLASSES---9810486099----9015691579---9211126579---2755790

Amortization of capital grant

Opening cash and bank balance

5,003

Closing cash and bank balance

6,988

Required;
Prepare the Cash Flow Statement for the year 2000 in accordance with As-3, Cash Flow Statements
issued by the Institute of Chartered Accountants of India. (Make necessary assumptions).
(May
2001)
Answer:- Operating Activities (2,895);
Investing Activities (22,634);
Financing Activities 27,514.

Question:- 14 From the following summarized balance sheets and other information prepare
Cash flow statement.

Balance Sheets
Liabilities
Equity Share
Capital
General Reserve
P&L A/c
Share Premium
Capital Reserve
10% Debentures

31.3.98

31.3.99

Assets

5,00,000
50,000
40,000
3,00,000

6,00,000
55,000
80,000
10,000
15,000
2,50,000

Goodwill
Land
Building
Less: Depr.
Machinery
Less:Dep.

20,000
20,000

15,000
40,000

1,20,000
5,00,000
1,00,000

1,24,000
4,49,600
70,000

Sundry Creditors

91,000

12,000

Investments
Inventories

2,00,000

2,00,000

Provision for
Taxation
Proposed Dividend

50,000
75,000

50,000
90,000

42,000
50,000
42,000

60,000
80,000
66,400

12,000

7,000

11,06,000

11,62,000

11,06,000

31.3.98

Debtors
Cash & Bank
Loans & Adv.
Preliminary
Exp.

11,62,000

31.3.99

Other Information:
1.

Machinery costing Rs. 50,000 was sold during 1998-99 Accumulated depreciation Rs. 12,000 sales
proceeds Rs.24,000.

2.

Depreciation charged on building @ 5% p.a. On Machinery @ 20% p.a.

3.

No depreciation was charged on machine sold during the current year. Full depreciation was charged
on additions. Additions to Building were made only at the year end.

4.

Investments costing Rs. 30,000 were sold for Rs. 40,000.

5.

10% Debentures were redeemed @ 10% premium.

6.

Capital reserve was created out of revaluation profit of land premium on Redemptions of debenture
was adjusted against Capital Reserve.

7.

No depreciation was charged on building extension.

8.

Tax paid Rs. 40,000 and dividend paid rs. 75,000 for 1997-98.

Ans:- Operating Activities 1,21,000; Ivesting Activities (46,000);Financing Activities (45,000)

Question:- 15 From the following information prepare Cash flow statement:

Balance Sheets
Share Capital
Debentures
General Reserve

31.3.00
10,00,000
5,00,000
2,00,000

31.3.01
11,00,000
3,00,000
2,00,000

Goodwill
Land
Machinery

31.3.00
50,000
4,20,000
6,00,000

31.3.01
40,000
6,60,000
8,00,000

SANJEEV CLASSES---9810486099----9015691579---9211126579---2755790

Profit and Loss A/c

Provision for

1,10,000

1,90,000

40,000
50,000
20,000

1,10,000
40,000
30,000

Income Tax
Creditors
Bills Payable
Provision for
Doubtful debts

30,000

24,000

19,50,000

19,94,000

Stock
Debtors(Good)
Preliminary
Exp.
Cash

2,50,000
3,00,000

2,10,000
2,40,000

30,000
3,00,000

20,000
24,000

19,50,000

19,94,000

Additional Information:
During the year, a part of machine costing Rs. 7,500 (accumulated depreciation thereon being Rs. 2,500)was
sold for Rs.3,000.
Income tax of 1999-2000 paid in 2000-2001 was Rs. 40,000.
Depreciation on machinery provided for 2000-2001 was Rs. 50,000.

Question:- 16 From the following balance sheet X Ltd., you are required to prepare cash flow
statement.

Balance Sheets
1-1-01

31-12-01

Equity Shares of
Rs.

3,00,000

4,00,000

General Reserve
Bank loan
Creditors
Bank overdraft
Proposed Dividend

85,000
1,00,000
3,10,000
45,000

1,10,000
75,000
2,90,000
5,000
60,000

8,40,000

9,40,000

1-1-01
Fixed Assets:
Less:
Accumulated
Depreciation
Investments
Stock
Debtors
Cash

31-12-01

4,00,000

5,50,000

80,000
3,20,000
80,000
2,00,000
2,10,000
30,000

1,35,000
4,15,000
1,10,000
2,25,000
1,80,000
10,000

8,40,000

9,40,000

A piece of machinery costing Rs. 50,000 was sold for Rs.30,000, accumulated depreciation thereon
being Rs.10,000.

Question:- 17 From the following balance sheet X Ltd. And additional information, prepare cash
flow statement.

Share Capital
Reserves
Proposed Dividend
Provision for tax
Current Liabilities

Previous
year
2,50,000
1,30,000
20,000
50,000
90,000
5,40,000

Current
year
3,50,000
1,65,000
35,000
60,000
1,20,000
7,30,000

19,50,000

19,94,000

Goodwill
Fixed Assets
Current Assets

Previous
year
60,000
2,90,000
1,90,000

Current
year
50,000
3,95,000
2,85,000

5,40,000

7,30,000

19,50,000

19,94,000

Additional Information:
1.

Depreciation on fixed assets provided during the year Rs. 30,000; Net Profit during the
year Rs. 80,000; Income tax paid Rs. 50,000; Final dividend paid Rs.20,000.

2.

Fixed asset costing Rs.60,000 (accumulated depreciation Rs.35,000) sold for Rs.30,000.

3.

Fixed assets costing Rs. 50,000 was purchased by issue of share capital.

Question:- 18 The balance sheets of Hari Ltd. For 2000 and 2001 are given below:

SANJEEV CLASSES---9810486099----9015691579---9211126579---2755790

Share Capital
Capital Reserve
General Reserve
P&L A/c
Debentures

2000
6,00,000
3,40,000
1,20,000
4,00,000

2001
8,00,000
20,000
4,00,000
1,50,000
2,80,000

Current Liabilities
Proposed Dividend
Provision for tax

2,40,000
60,000
1,80,000

2,60,000
72,000
1,70,000

Unpaid Dividend

8,000

19,40,000

21,60,000

Fixed Assets:
Less: Dep.
Investments
Current Assets
Preliminary
Exp.

2000
16,00,000
4,60,000
11,40,000
2,00,000
5,60,000

2001
19,00,000
5,80,000
13,20,000
1,60,000
6,60,000

40,000

20,000

19,40,000

21,60,000

Additional Information:
During the year 2001, the Company:
1.

Sold one machine for Rs. 50,000 the cost of which was Rs. 1,00,000 and the depreciation provided on
it was Rs. 40,000;

2.

Provided Rs. 1,80,000 as depreciation;

3.

Sold some investment at a profit of Rs. 20,000, which was credited to capital Reserve;

4.

Redeemed 30% of the Debentures @ 105;

5.

Decided to Value stock at cost, less 10% the stock according to books on 31-12-2000 was Rs.
1,08,000. The stock on 31-12-2001 was correctly valued at Rs. 1,50,000; and

6.

Decided to write of fixed assets costing Rs. 28,000 on which depreciation amount to Rs. 20,000 has
been provided.
Prepare the cash flow statement for the year 2001.

Question:- 19 The Summarized Balance Sheets of X Ltd. As on 31st March,2000 and 31st
March,2001 were as follows:
Particulars
Sources of Funds:
Share capital
General reserve
Profit and loss A/c
15% Debentures - A Series

99-2000
6,00,000
3,40,000
20,000
4,00,000
-

14% Debentures - B Series

Applications of Funds:

13,60,000

Fixed Assets at cost

Less: Depreciation to date

16,00,000
7,60,000

Net Fixed Assets

Investment
Sundry Debtors
Less: Provisions for doubtful debts
Stock
Cash and Bank Balance
Other Current Assets
Current Assets
Less: Current Liabilities
Net Current Assets

8,40,000
2,00,000
20,000
1,80,000
2,20,000
1,80,000
72,000
6,52,000
1,32,000
5,20,000

2000-01
8,00,000
4,20,000
50,000
5,00,000
17,70,00
0
19,00,00
0
8,80,000
10,20,00
0
3,00,000
2,00,000
50,000
1,50,000
1,60,000
2,20,000
96,000
6,26,000
1,76,000
4,50,000

SANJEEV CLASSES---9810486099----9015691579---9211126579---2755790

Total (A) + (B) + ( C )

13,60,000

17,70,00
0

While going though the accounts, the following are noticed:

1.

Fixed assets to original cost of Rs. 75,000 with book value of Rs. 10,000 were scrapped and sold for
Rs. 5,000.

2.

Included in current liabilities are proposed dividend figures:

31-03-2000
31-03-2001
3.

Rs. 60,000
Rs. 80,000

During the year, interim dividend for Rs. 45,000 was paid besides, the outstanding
dividend as on 31-03-2000.

From the above you are required to prepare a statement of cash flow during 2000-2001.

Question:- 20 From the following details relating to the accounts of Husmundi & Co. Ltd.
Prepare Cash flow statement.
31-12-86
Rs.
4,00,000

31-12-85
Rs.
3,00,000

Reserve
Profit & Loss
Account

1,00,000

80,000

50,000

30,000

Debentures
I.T .Provision

1,00,000
40,000

1,50,000
50,000

70,000
40,000

90,000
30,000

8,00,000

7,30,000

Liabilities
Share Capital

Trade Creditors
Proposed Dividend

Assets
Goodwill
Plant &
Machinery
Debenture
Discount
Prepaid
Expenses
Investment
Sundry
Debtors
Stock

31-12-86 Rs.
90,000

31-12-85
Rs.
1,00,000

4,29,250

2,98,000

5,000

8,000

5,750
60,000

4,000
1,00,000

1,10,000
80,000

1,60,000
50,000

Cash and Bank

20,000

10,000

8,00,000

7,30,000

1.

15% depreciation has been charged in the accounts on plant & Machinery.

2.

Old machine costing Rs. 50,000 (WDV 20,000) have been sold for Rs. 35,000.

3. A machine Costing Rs. 10,000 (WDV Rs. 3,000) has been discarded.
4. Rs.10,000 profit has been earned by sale of investments.
5.

Debentures have been redeemed at 5% premium.

6.

Rs.45,000 income tax has been paid and adjusted against Income Tax Provision Account.

Question:- 21 From the following comparative balance sheet of M/s. A Ltd. Make out: Cash flow
statement.
Liabilities
Equity Share Capital
Preference Share
capital
General Reserve
Profit and Loss A/c
Proposed Dividends
Trade Creditors
Bills Payable
Provision for
taxation

2001 Rs.
3,00,000

2002 Rs.
4,00,000

1,50,000
40,000
30,000
42,000

1,00,000
70,000
48,000
50,000

55,000
20,000

83,000
16,000

Assets
Goodwill
Land &
Building
Plant
Debtors
Stock
Bills
Receivable
Cash and Bank

40,000

50,000

Bank

2001 Rs.
1,15,000

2002 Rs.
90,000

2,00,000
80,000
1,60,000
77,000

1,70,000
2,00,000
2,00,000
1,09,000

20,000
15,000

30,000
10,000

10,000

8,000

SANJEEV CLASSES---9810486099----9015691579---9211126579---2755790

6,77,000

7,30,000

6,77,000

8,17,000

Supplementary Data:
1.

Depreciation of Rs. 10,000 and Rs. 20,000 have been charged on Plant and Land and
building respectively in 2002.

2.

An interim dividend of Rs. 20,000 has been paid in 2002.

3.

Income Tax Rs. 35,000 has been paid during the year 2002.

SANJEEV CLASSES---9810486099----9015691579---9211126579---2755790