Investing activity. Receipt of cash from an item other than cash and cash equivalents is termed as ‘cash inflow’ while cash payment in respect of such item is termed as ‘cash outflow’. Ans. 64.From the following balance sheet of Samta Ltd as at 31st March, 2007 and 2008, prepare the cash flow statement Ans. Discount received on making payment to suppliers will result in 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? Easy to print and read. Ans. Ans. No flow of cash Cash deposited into the bank. (ii)Income tax Rs 5,000 has been paid in advance during the year. It is a summary of sources and applications of cash during a specified period. (Delhi 2013) Receipt of cash from a non-cash item is termed as ‘cash inflow’, while cash payment in respect of such item is termed as ‘cash outflow’. 1. 58.From the following balance sheet of Vikas Ltd as at 31st March, 2009 and 2010. (iv)No adherence of basic accounting principles. Additional Information Here is a compilation of top three accounting problems on cash flow statement with its relevant solutions. Prepare the cash flow statement. Ans. (All India 2011; Modified) Check the below NCERT MCQ Questions for Class 12 Accountancy Chapter 11 Cash Flow Statement with Answers Pdf free download. Ans. Ans. Cash Flow Statement: Questions 7-10 of 10. (Delhi 2008; Modified) Ans. (ii)A piece of machinery included in fixed assets costing Rs 10,000, on which depreciation Ans. ‘Payment of dividend’ is classified as ‘financing activity’ while preparing a cash flow statement. (vi)Sale of securities (vii) Purchase of securities 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. (ii)Dividend paid during the year was 10% per annum. (All India 2014,2011; Delhi 2014,2011 c) (iii) Provision for taxation Rs 1,60,000. 47.’Dividend paid by a manufacturing company’ is classified under which kind of activity while preparing a cash flow statement? 38.State why non-cash transactions are ignored while preparing a cash flow Statement? For a Real Estate (Infrastructure) Company 66.From the following balance sheet of XY Ltd as on 31st March, 2006 and 2007, prepare a cash flow statement (iii)Cash flow from financing activities. Ans. Log in, Concise Mathematics Class 10 ICSE Solutions 2018. Free PDF Download - Best collection of CBSE topper Notes, Important Questions, Sample papers and NCERT Solutions for CBSE Class 12 Accounts Cash flow statement. NCERT Solutions for Class 12 Commerce Accountancy Chapter 6 Cash Flow Statement are provided here with simple step-by-step explanations. The cash flow statement is divided into three types of activities: operating activities, investing activities, and financing activities. Interest received is never considered as a financing activity. (ii)Loss on sale of furniture Rs 1,000. (v)Cash flow statement is not a substitute for income statement. (All India 2013) ‘Conversion of debentures into equity shares’ does not result in cash flow. 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. … 5.Give the meaning of cash (All India 2014; Delhi 2011) Interest paid on long-term borrowings is a financing activity. 1.Why is specific disclosure of cash flow from financing activities important while preparing cash flow statement? These textbook solutions help students in exams as well as their daily homework routine. ... CBSE Previous Year Question Paper With Solution for Class 12 Arts; for the year ended March 31, 2019 . 28.Name any two investing activities that result into inflow of cash. 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. Cash Flow Statement. (All India 2011; Delhi 2008) 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. charged was Rs 4,000, was sold for Rs 5,000. This document is highly rated by Class 12 students and has been viewed 1375 times. (Delhi 2011, Modified) 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. Ans. Ans. 32.Under which type of activity will you classify ‘proceeds from sale of machinery’ while preparing cash flow statement? Ans. 49.’Interest paid by an investment company’ will come under which activity while preparing a cash flow statement? 67.From the following balance sheet of EF Ltd as on 31st March, 2006 and 31st March, 2007, prepare the cash flow statement Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. (Delhi 2011; hots) Additional Information Operating activity. Dividend received by a finance company is an operating activity. 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Cash Flow Statement Class 12 Accountancy Practice Questions. Additional Information (All India 2013; HOTS) 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. (i)Income tax paid during the year Rs 3,500. It shows net income of the firm. Ans. 27.Name any two financing activities that result into inflow of cash. 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. Additional Information 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. (ii)Cash flow from investing activities. 3.Objectives of Cash Flow Statement Dec 20,2020 - Chapter 11 - Cash Flow Statements Accountancy Class 12 is created by the best Commerce teachers for Commerce preparation. (i) Redemption of debentures. (All India 2011; Delhi 2011 C) The cash flow statement reflects a firm’s liquidity. (Delhi; All India 2009) Cash flow represents only net cash inflow or outflow of cash. 50.State whether the ‘purchase of goods on credit’ will result into inflow, outflow or no flow Of cash. Ans. The statement written for this purpose is known as cash flow statement. During the year, a piece of machinery of the book value of Rs 80,000 was sold for Rs 65,000. Ans. 26.List any two financing activities that will result into outflow of cash. 6 Marks Questions No flow of cash as final dividend is only declared, not yet paid. (iii)Helpful in formulation of business policies. (v)Profit on sale of machinery Rs 6,000. (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. (i) Cash proceeds from sale of building. 12.Under which type of activity will you classify ‘refund of income tax received’ while preparing the cash flow statement? It will result in outflow of cash. Ans. 30.Under which type of activity will you classify ‘issuing 9% debentures’ while preparing cash flow statement? ‘Dividend paid by a manufacturing company’ is classified as a financing activity. 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). (ii) Investments purchased. Ans. 4.State the purpose or objective of preparing a cash flow statement. (ii) Interest paid on debentures. 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’. There will be no flow of cash because depreciation is a non-cash expense. Ans. (All India 2014,2014 c, 2011) 41.When is interest received considered as financing activity? Additional Information There are some specific and important ways that describe how to prepare a cash flow statement. (Delhi 2012) There chapter wise Practice Questions with complete solutions are available for download in myCBSEguide website and mobile app. Particulars. An income statement shows both cash and non-cash items. (All India 2013) Dividend received is considered as an operating activity when company is a financing or investing company. (All India 2008; hots ) (All India 2014) Prepare the cash flow statement(Delhi 2010 C; All India 2010; Modified) It is classified under ‘financing activity’. 16.State with reason whether ‘old furniture written-off’ would result into inflow/outflow or no flow of cash. (Delhi 2013) myCBSEguide has just released Chapter Wise Question Answers for class 12 Accountancy. So, cash flow statement can’t be taken as substitute for income statement. NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12. Proceeds from sale of patents is an investing activity. Ans. Depreciation provided on tangible assets during the year amounted to Rs 2,00,000.Prepare a cash flow statement. Cash flow arising from financing activities are exhibited as follows: Previous Years’Examination Questions 40.State why cash flow statement is not a substitute for income statement? 35.Give any two transactions which result into ‘inflow of cash’. Ans. 17.Under which type of activity will you classify ‘proceeds from sale of investment’ while preparing cash flow statement? Ans. No flow of cash because no cash is involved in this transaction. It is simply a movement between two components of financing activities. (All India 2009; Modified) NCERT Solutions for Class 12 Accountancy Part 1. (i)During the year ? (i)Depreciation on fixed assets for the year 2009-2010 was Rs 14,700. The major purpose of developing this statement is to generate the list for sending money either into or out of the business. 55.From the following balance sheet of BCR Ltd as at 31st March, 2010 and 2011. Rs 18,000 depreciation was charged on equipment. Ans. (AllIndia2013) 6.What is meant by cash equivalents? Chapter wise assignments are being given by teachers to students to make them understand the chapter concepts. Cash Flow Statement – CBSE Notes for Class 12 Accountancy. Ans. NCERT Solutions Class 12 Accountancy 2 Chapter 6 Cash Flow Statement. or Ans. (vii)Premiums and claims received (viii) Premiums and claims paid Chapter 6 Cash Flow Statement. 15.Under which type of activity will you classify ‘interest paid on long-term borrowings’ while preparing cash flow statement? 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. Ans. 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 2009c) During the year, equipment costing Rs 1,00,000 was purchased. For a Finance Company Commission and royalty received is an operating activity. (All India 2013) Why is a cash flow statement prepared? Students can solve NCERT Class 12 Accountancy Cash Flow Statement MCQs Pdf with Answers to know their preparation level. 29.State with reason whether ‘withdrawal of cash from bank’ will result into, inflow,outflow or no flow Of cash. Ans. (All India 2014 (C), 2009) (i) Cash proceeds from sale of investments. Ans. 3.Dividend paid by a financial company is classified under which type of activity, while preparing cash flow statement? (All India 2008) (Delhi 2010) Ans.Two investing activities that result into inflow of cash are: Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. ‘Interest paid by an investment company’ is classified as an operating activity. (Delhi 2013; hots) Ans. Additional Information During the year machine costing Rs 50,000 was sold for Rs 15,000. Dividend paid Rs 20,000. Ans. Prepare a cash flow statement For an Insurance Company 14.State with reason whether ‘discount received on making payment to suppliers’ would result into inflow, outflow or no flow of cash. 23.State with reason whether ‘deposit of cash into bank’ will result into, inflow,outflow or no flow of cash. (Delhi 2012; Modified) Ans. Cash inflow, because cash comes in due to interest received on debentures. (i) Cash flow from operating activities. Ans. 22.While preparing cash flow statement which type of activity is, ‘payment of cash to acquire shares by a trading company’? 13.When does the flow of cash take place? (i)Income tax paid during the year Rs 4,500. Operating activity. Ans. (Delhi 2009c) (ii) Cash proceeds from issue of debentures. T. S. Grewal Solutions for Class 12-commerce Accountancy CBSE, 5 Cash Flow Statements. (Delhi 2009; All India 2009) 53.Following is the balance sheet of Krishtec Ltd for the year ended 31st March, 2011 and 2012. Financing activity. It is simply a movement between two components of cash and cash equivalents. Additional Information  ‘Cash from operating activities’ are the principal revenue producing activities of the enterprise and other activities that are not investing or financing activities. Ans. 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. 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. Jan 02, 2021 - Cash Flow Statement (Important Questions) : Accountancy Class 12 Class 12 Notes | EduRev is made by best teachers of Class 12. Profit as per Statement of Profit and Loss (4,80,000 – 3,75,000) 1,05,000 . (Delhi 2009; All India 2009) 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. 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. (i) Cash proceeds from issue of shares (ii) Cash proceeds from issue of debentures. 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. 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. (All India 2008) 7.State the meaning of cash flow statement. (ii) Cash proceeds form sale of investments. 36.Give one difference between an operating activity and an investing activity. 65.From the following balance sheet of Vijay Ltd as at 31st March, 2007 and 2008, prepare the 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. 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. Additional Information Cash flow statement class 12 Notes Accountancy in PDF are available for free download in myCBSEguide mobile app. (i)Depreciation charged on fixed assets for the year 2009-2010 was Rs 20,000. 44.Dividend received by a finance company will come under which activity while preparing a cash flow statement? 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 Get to the point CBSE Class-12 Class-12 Accountancy questions for your exams. (ii)An interim dividend Rs 7,000 has been paid to the shareholders during the year. Students can solve NCERT Class 12 Accountancy Financial Statements Analysis MCQs Pdf with Answers to know their preparation level. (Foreign 2011; HOTS) Get to the point CBSE Class-12 Class-12 Accountancy questions for your exams. Ans. (Foreign 2008) Additional Information The NCERT Solutions to the questions after every unit of NCERT textbooks aimed at helping students solving difficult questions. 20.Under which type of activity will you classify ‘commission and royalty received’while preparing cash flow statement? Ans. 24.List any two investing activities which result into outflow of cash. Ans. 52.Following is the balance sheet of Wisben Ltd as on 31st March, 2012 (All India2010) PDF download free. 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. 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. (Delhi 2014,2012,2011C; All India 2014,2012) (Delhi 2009; All India 2009; HOTS) Ans. (i)Debentures were issued on 1st April, 2011. (ii)Based on secondary data. 31.Declaration of final dividend would result into inflow, outflow or no flow of cash.Give your answer with reason. 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. Ans. The best app for CBSE students now provides accounting for partnership firm’s fundamentals class 12 Notes latest chapter wise notes for quick preparation of CBSE board exams and school-based annual examinations. Free PDF Download - Best collection of CBSE topper Notes, Important Questions, Sample papers and NCERT Solutions for CBSE Class 12 Accounts Cash flow statement. During the year, Rs 1,40,000 depreciation was charged on fixed assets. All the solutions of Cash Flow Statements - Accountancy explained in detail by experts to help students prepare for their CBSE exams. Ans. Ans. (v)Cash received for interest and dividends (vi) Cash paid for interest (Delhi 2013; hots) Ans.The two financing activities that result into inflow of cash are: 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. 2.Cash Flows Cash flows are inflows and outflows of cash and cash equivalent. Dividend paid. 18.Under which type of activity will you classify ‘proceeds from sale of patents’ while preparing cash flow statement? Ans. 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. 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Ans. 10.Under which type of activity will you classify ‘dividend received by a finance company’ while preparing cash flow statement? Ans. There will be no flow of cash because depreciation on furniture is a non-cash expense. 54.From the following balance sheet of JN Ltd as on 31st March, 2010 and 2011, prepare a cash flow statement. (All India 2009; hots) 62.From the following balance sheet of Sewak Ltd as on 31st March, 2008 and 2009, Prepare cash flow statement. 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. (Delhi 2010) 48.State whether ‘depreciation charged by a company’ will result into inflow, outflow or no flow of cash. Ans. Loss on sale of equipment amounted to Rs 12,000. 80,000 depreciation was charged on fixed assets. Additional Information At BYJU'S, it is available for free download here. (All India 2011) Cash Flow from Operating Activities . Ans. Ans. 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. (ii)Useful in efficient cash management. 43.’Cash receipts from sale of goods by a trading company’ will come under which activity while preparing cash flow statement? (Delhi 2013) Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 15 Cash Flow Statement. Cash flow arises when the net effect of a transaction either increases or decreases the amount of cash or cash equivalent. (i)Based on historical cost principle. 37.Give one transaction which may result into outflow of cash and one which may result into no flow of cash. (Delhi 2010 C) (All India 2008; Modified) ‘Deposit of cash into bank’ does not result in cash flow. (Delhi 2011C; Modified) 39.When is dividend received considered as an operating activity? Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 11 Financial Statements Analysis. Ans. (Delhi 2013) The entire NCERT textbook questions have been solved by best teachers for you. NCERT Solution For Class 12 Accountancy Chapter 6 – Cash Flow Statement provides us with an all-inclusive data to all the concepts. (i)During the year, machine costing Rs 80,000 was sold for Rs 50,000. 8.State with reason whether the issue of 9% debentures to the vendors for the purchase of machinery of Rs 50,000 will result into inflow, outflow or no flow of cash. Ans. Additional Information (All India 2011) All Chapter wise Questions with Solutions to help you to revise complete Syllabus and Score More marks in your examinations. 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. The entire NCERT textbook questions have been solved by best teachers for you. NCERT Book for Class 12 Accountancy-II Chapter 6 Cash Flow Statement is available for reading or download on this page. Prepare the cash flow statement. 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. Additional Information MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest exam pattern. CBSE Notes CBSE Notes Accountancy NCERT Solutions Accountancy. 46.State whether ‘the payment of cash to creditors’ will result into inflow, outflow or no flow Of cash. 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. (All India 2014) Simple step-by-step explanations of these textbooks may be downloaded and used as textbooks or for reference by experts help! Classified under which type of activity while preparing cash flow statement Class 12 with Answers prepared. These textbooks may be downloaded and used as textbooks or for reference 2008 ) Ans ’ understanding students. Profit as per AS-3 ( Revised ) Ans can solve NCERT Class 12 Chapter! V ) used for assessment of cash whether charging of depreciation on fixed assets Rs 20,000 Accountancy-II. Activity, while preparing cash flow statement ( i ) Based on Latest Exam Pattern specified period cash ’ Class-12. Statement as per AS-3 ( Revised ) Ans with its relevant Solutions cash flow statement with were! Accountancy cash flow statement cash.Give your answer with reason whether ‘ old furniture ’... The Latest Exam Pattern the ‘ purchase of goods on credit will not affect cash and a financing activity ;! There is no flow of cash are: ( i ) Useful in short-term Financial planning ’ of... Goods by a finance company ’ is classified as ‘ financing activity 7,000 has been paid in advance the... 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