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प्रश्न
Which of the following transactions will result in the flow of cash?
(1) Cash was withdrawn from bank Rs 20,000.
(2) Issued Rs 20,000; 9% debentures for the vendors of machinery.
(3) Received Rs 19,000 from debtors.
(4) Deposited cheques of Rs 10,000 into the bank
उत्तर
Received Rs 19,000 from debtors.
The transaction that resulted in a flow of cash is the amount received in cash from debtors of Rs 19,000.
Deposit of cheque into bank and withdrawal of cash from a bank are cash management activities and do not involve any cash flow. An issue of debentures is regarded as the issue of debentures for consideration other than cash and does not involve any cash flow.
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संबंधित प्रश्न
State the objective of preparing ‘Cash Flow statement’.
Following is the Balance Sheets of Wind Power Ltd as at 31.3.2014:
| Wind Power Ltd Balance Sheet as at 31.3.2014 |
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| Particulars | Note No |
2013-14 Rs |
2012-13 Rs |
|
I. Equity and Liabilities 1. Shareholder’s Funds a. Share Capital b. Reserve and Surplus 2. Non - Current Liabilities a. Long-term borrowings 3. Current Liabilities a. Trade Payables b. Short-Term Provisions |
1
|
48,00,000 12,00,000
9,60,000
7,16,000 2,00,000 |
44,00,000 8,00,000
6,80,000
8,16,000 3,08,000 |
| Total | 78,76,000 | 70,04,000 | |
|
II. Assets a) Fixed Assets (i) Tangible assets (ii) Intangible b) Non – Current Investments 2. Current Assets a) Current Investments b) Inventories c) Trade Receivables d)Cash and Cash Equivalents |
2 3
|
42,80,000 1,60,000
9,60,000 5,16,000 6,80,000 12,80,000 |
34,00,000 4,80,000
4,48,000 4,84,000 5,72,000 16,20,000 |
| Total | 78,76,000 | 70,04,000 | |
Notes to Accounts
| Note No |
Particulars | As On 31-3-2014 |
As On 31-3-2013 |
| 1 |
Reserve and Surplus |
12,00,000 |
8,00,000 |
|
2
|
Tangible Assets Machinery Less: Accumulated Depreciation |
50,80,000 (8,00,000) |
40,00,000 (6,00,000) |
|
3
|
Intangible Assets Goodwill |
1,60,000 |
4,80,000 |
Additional information
During the year a piece of machinery, costing Rs 96,000 on which accumulated depreciation was Rs 64,000 was sold for Rs 24,000.
Prepare Cash Flow Statement
While preparing 'Cash Flow Statement', the accountant of 'Jain Limited', a financing company, showed dividend received on investments as investing activity. Was he correct in doing so? Give reason.
Under which type of activity will you classify' Dividend received by a financial company' while preparing Cash Flow Statement?
State any two advantages of preparing cash flow statement.
J.K. Ltd. purchased machinery on deferred payment basis. During the year ended 31.3.2016 the company paid in instalment of Rs 4,00,000 which included interest of Rs 40,000. While preparing cash flow statement, under which type of activities will this payment be classified? Also, mention the amount involved in each activity.
State with reason whether the following transactions will increase, decrease or not change the 'Return on Investment':
(i) Purchase of machinery worth Rs 2,00,000 by issue of equity shares.
(ii) Charging depreciation of Rs 5,000 on machinery.
(iii) Redemption of debentures in cash Rs 70,000.
(iv) Converting Rs 50,000, 9% debentures into equity shares.
Give the meaning of ‘Cash Flow’.
List any two investing activities which result into outflow of cash.
‘Payment of dividend’ will come under which type of activity while preparing a Cash Flow Statement?
From the following Balance Sheets of B.C.R. Ltd as on 31-3-2010 and 31-3-2011.
Prepare a Cash Flow Statements:
|
Balance Sheets of B.C.R. Ltd. as on 31.3.2010 and 31.3.2011 |
|||||
|
Liabilities |
31-3-2010 Rs |
31-3-2011 Rs |
Assets |
31-3-2010 Rs |
31-3-2011 Rs |
|
Equity Shares Capital Profit and Loss Account Bank Loan Proposed Dividend Provision for tax Creditors |
5,00,000
2,00,000
1,00,000 50,000 30,000 55,000 |
7,00,000
3,50,000
50,000 70,000 50,000 52,000 |
Patents Equipment Investment Debtors Stock Bank |
1,00,000 5,00,000 – 80,000 55,000 2,00,000 |
95,000 5,00,000 1,00,000 1,30,000 3,00,000 |
|
|
|
||||
|
9,35,000 |
12,72,000 |
|
9,35,000 |
12,72,000 |
|
|
|
|
|
|||
Additional Information:
During the year Equipment costing Rs 1,00,000 was purchases. Loss on sale of Equipment amounted to Rs 12,000. Rs 18,000 deprecation charged on Equipment.
Long Answer Question
Describe"Indirect" method of ascertaining Cash Flow from Operating Activities.
The following is the Profit and Loss Account of Yamuna Limited:
|
Statement of Profit and Loss of Yamuna Ltd., for the Year ended March 31, 2017 |
|||
| Particulars | Note No. | Amount (₹) | |
| i) | Revenue from Operations | 10,00,000 | |
| ii) | Expenses | ||
|
|
Cost of Materials Consumed | 1 | 50,000 |
| Purchase of Stock-in-trade | 5,00,000 | ||
| Other Expenses | 2 | 3,00,000 | |
| Total Expenses | 8,50,000 | ||
| iii) | Profit before Tax (i – ii) | 1,50,000 | |
Additional information:
- Trade receivables decrease by Rs 30,000 during the year.
- Prepaid expenses increase by Rs 5,000 during the year.
- Trade payables increase by Rs 15,000 during the year.
- Outstanding expenses payable increased by Rs 3,000 during the year.
- Other expenses included a depreciation of Rs 25,000.
Compute net cash from operations for the year ended March 31, 2017 by the indirect method.
From the following Balance Sheet of Mohan Ltd., prepare cash flow Statement:
Balance Sheet of Mohan Ltd.,
as at 31st March 2016 and 31 March 2017
| Particulars | Note No. | March 31, 2017 (Rs) |
March 31, 2016 (Rs) |
| I) Equity and Liabilities | |||
|
1. Shareholders’ Funds |
|||
|
a) Equity share capital |
3,00,000 | 2,00,000 | |
|
b) Reserves and surplus |
2,00,000 | 1,60,000 | |
|
2. Non-current liabilities |
|||
|
a) Long-term borrowings |
1 | 80,000 | 1,00,000 |
|
3. Current liabilities |
|||
|
Trade payables |
1,20,000 | 1,40,000 | |
|
Short-term provisions |
2 | 70,000 | 60,000 |
| Total | 7,70,000 | 6,60,000 | |
| II) Assets | |||
|
1. Non-current assets |
|||
|
Fixed assets |
3 | 5,00,000 | 3,20,000 |
|
2. Current assets |
|||
|
a) Inventories |
1,50,000 | 1,30,000 | |
|
b) Trade receivables |
4 | 90,000 | 1,20,000 |
|
c) Cash and cash equivalents |
5 | 30,000 | 90,000 |
| Total | 7,70,000 | 6,60,000 |
Notes to accounts:
|
|
2017 | 2016 |
| 1. Long-term borrowings | ||
|
Bank Loan |
80,000 | 1,00,000 |
| 2. Short-term provision | ||
|
Proposed dividend |
70,000 | 60,000 |
| 3. Fixed assets | 6,00,000 | 4,00,000 |
|
Less: Accumulated Depreciation |
1,00,000 | 80,000 |
|
(Net) Fixed Assets |
5,00,000 | 3,20,000 |
| 4. Trade receivables | ||
|
Debtors |
60,000 | 1,00,000 |
|
Bills receivables |
30,000 | 20,000 |
|
|
90,000 | 1,20,000 |
| 5. Cash and cash equivalents Bank | 30,000 | 90,000 |
Additional Information:
Machine Costing Rs. 80,000 on which accumulated depreciation was Rs. 50,000 was sold for Rs. 20,000.
An example of Cash Flows from Operating Activity is ______
______ reconciles the opening cash balance with the closing cash balance of a given period on the basis of a net decrease or increase in cash during that period.
Which of the following is not an investing cash flow?
State whether the following transaction will result in inflow, outflow or no flow of cash while preparing cash flow statement:
Issued bonus shares ₹ 5,00,000.
