-->

Cash Flow Statement: Problems with Solution

Cash Flow Statement: Problems with Solution

Here we are providing the Solution of the Cash flow statement (Under direct method) of  Class 12 Accountancy. This solution includes very important Problems with accurate solutions which helps students, who are preparing for their class 12 board exams. Important extra Problems and Solutions to the Cash flow statement are here and students can practice these questions themselves and can take help of solutions if needed.


Advertisement

2070 Supp. Q. No. 17

Required: Cash flow statement under the direct method

Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales revenue

1600000

 

:- Decrease in debtors

100000

1700000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(1100000)

 

:- Increase in Inventories

(100000)

 

:- Decrease in Bills payable

(20000)

 

:- Increase in creditors

100000

 (1120000)

c. Cash paid to employees

 

 

:- Operating expenses

(180000)

(180000)

e. Interest paid

 

 

:- Interest on debenture

(20000)

(20000)

Cash from operating expenses

 

380000

Cash flow from investing activities

 

 

:- Purchase of machinery

 

(600000)

:- Sales of machinery

 

60000

Cash from investing activities

 

(540000)

Cash flow from financial activities

 

 

:- Issue of share capital with premium

 

(200000 + 20000)

 

220000

:- Redemption of 10% debenture

 

(100000)

:- Dividend paid

 

(60000)

Cash from financial activities

 

60000

The net change in cash and cash equivalent

 

 

(100000)

Add: Opening cash and cash equivalent

 

 

200000

Closing cash and cash equivalent

 

100000

 


2070 Set C Q. No. 17

Required: Cash flow statement under the direct method

Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales revenue

1200000

 

:- Increase in debtors

(30000)

1170000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(725000)

 

:- Increase in stock

(25000)

 

:- Increase in creditors

30000

(720000)

c. Cash paid to employees

 

 

:- Operating expenses

(300000)

 

:- Increase in salaries outstanding

10000

(290000)

d. Tax paid

 

 

:- Tax paid

(15000)

(15000)

Cash from operating expenses

 

145000

Cash flow from investing activities

 

 

:- Purchase of Equipment

 

(104000)

:- Sales of furniture

 

100000

Cash from investing activities

 

(4000)

Cash flow from financial activities

 

 

:- Issue of share capital

 

150000

Cash from financial activities

 

150000

The net change in cash and cash equivalent

 

 

291000

Add: Opening cash and cash equivalent

 

 

75000

Closing cash and cash equivalent

 

366000

 


Advertisement

2070 Set D Q. No. 17

Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales revenue

800000

 

:- Decrease in debtors

30000

830000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(500000)

 

:- Increase in Inventory

(20000)

 

:- Increase in creditors

25000

(495000)

c. Cash paid to employees

 

 

:- Administrative expenses

(160000)

 

:- Decrease in Outstanding Expenses

(5000)

(165000)

e. Interest paid

 

 

:- Interest on debenture

(15000)

(15000)

d. Tax paid

 

 

:- Increase in provision for tax

10000

10000

Cash from operating expenses

 

165000

Cash flow from investing activities

 

 

:- Purchase of office equipment

 

(250000)

:- Sales of office equipment

 

55000

:- Purchase of investment

 

(50000)

Cash from investing activities

 

(245000)

Cash flow from financial activities

 

 

:- Issue of share capital with premium (200000 + 50000)

 

 

250000

:- Redemption of 10% debenture

 

(50000)

:- Dividend paid

 

(70000)

Cash from financial activities

 

130000

The net change in cash and cash equivalent

 

 

45000

Add: Opening cash and cash equivalent

 

 

250000

Closing cash and cash equivalent

 

295000

 


2069 Supp. Set A Q. No. 17

Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales income

2400000

 

:- Decrease in debtors

200000

2600000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(1400000)

 

:- Increase in inventories

(200000)

 

:- Increase in creditors

200000

(1400000)

c. Cash paid to employees

 

 

:- Operating expenses

(400000)

 

:- Decrease in outstanding Expenses

(40000)

(440000)

Cash from operating expenses

 

760000

Cash flow from investing activities

 

 

:- Purchase of office fixed assets

 

(1200000)

:- Sales of fixed assets

 

120000

Cash from investing activities

 

(1080000)

Cash flow from financial activities

 

 

:- Issue of share capital with premium (400000 + 40000)

 

 

440000

:- Redemption of 8% debenture with premium (200000 +40000)

 

 

 

(240000)

:- Dividend paid

 

(80000)

Cash from financial activities

 

120000

The net change in cash and cash equivalent

 

 

(200000)

Add: Opening cash and cash equivalent

 

 

400000

Closing cash and cash equivalent

 

200000

 


Advertisement

2069 Supp. Set B Q. No. 17

Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales revenue

2000000

 

:- Decrease in debtors

5000

205000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(110000)

 

:- Increase in stock

(5000)

 

:- Increase in bills payable

5000

 

:- Increase in creditors

10000

(100000)

c. Cash paid to employees

 

 

:- Administrative expenses

(30000)

(30000)

Cash from operating expenses

 

75000

Cash flow from investing activities

 

 

:- Purchase of plant

 

(75000)

:- Sales of plant

 

3000

:- Decrease investment

 

20000

Cash from investing activities

 

(52000)

Cash flow from financial activities

 

 

:- Issue of share capital

 

25000

:- Redemption of 10% debenture

 

(10000)

:- Dividend paid

 

(10000)

Cash from financial activities

 

5000

The net change in cash and cash equivalent

 

 

28000

Add: Opening cash and cash equivalent

 

 

10000

Closing cash and cash equivalent

 

38000

 



2069 (Set A) Q. No. 17

Required: Cash flow statement under the direct method

Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales revenue

380000

 

:- Decrease in debtors

36500

416500

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(190000)

 

:- Increase in stock

(37500)

 

:- Increase in creditors

31500

(196000)

c. Cash paid to employees

 

 

:- Administrative expenses

(75000)

 

:- Decrease in wages outstanding

(1500)

 

:- Decrease in prepaid insurance

1000

(75500)

Cash from operating expenses

 

145000

Cash flow from investing activities

 

 

:- Purchase of machinery  

 

(230000)

:- Sales of furniture

 

17500

Cash from investing activities

 

(212500)

Cash flow from financial activities

 

 

:- Issue of share capital (75000 + 7500)

 

82500

:- Redemption of Loan

 

(37500)

:- Dividend paid

 

(15000)

Cash from financial activities

 

30000

The net change in cash and cash equivalent

 

 

(37500)

Add: Opening cash and cash equivalent

 

 

75000

Closing cash and cash equivalent

 

375000

 


Advertisement

2069 (Set B) Q. No. 17

Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales revenue

1000000

 

:- Decrease in bills receivable

10000

 

:- Decrease in debtors

40000

1050000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(750000)

 

:- Increase in Closing stock

(50000)

 

:- Increase in creditors

40000

(760000)

c. Cash paid to employees

 

 

:- Operating expenses

(120000)

(120000)

Cash from operating expenses

 

170000

Cash flow from investing activities

 

 

:- Purchase of fixed assets

 

(300000)

:- Sales of fixed assets

 

40000

Cash from investing activities

 

(260000)

Cash flow from financial activities

 

 

:- Issue of share capital with premium (100000 + 10000)

 

 

110000

:- Redemption of 15% debenture

 

(50000)

:- Dividend paid

 

(20000)

Cash from financial activities

 

40000

The net change in cash and cash equivalent

 

 

(50000)

Add: Opening cash and cash equivalent

 

 

100000

Closing cash and cash equivalent

 

50000

 


2068 Q. No. 17

Required: Cash flow statement under the direct method

Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales income

1050000

 

:- Decrease in debtors

60000

1110000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(660000)

 

:- Increase in inventories

(60000)

 

:- Increase in creditors

50000

(670000)

c. Cash paid to employees

 

 

:- Administrative expenses

(150000)

 

:- Increase in outstanding expenses

25000

(125000)

Cash from operating expenses

 

315000

Cash flow from investing activities

 

 

:- Purchase of fixed assets

 

(480000)

:- Sales of fixed assets

 

105000

Cash from investing activities

 

(375000)

Cash flow from financial activities

 

 

:- Issue of share capital

 

150000

:- Redemption of 8% debenture

 

(75000)

:- Dividend paid

 

(90000)

Cash from financial activities

 

(15000)

The net change in cash and cash equivalent

 

 

(75000)

Add: Opening cash and cash equivalent

 

 

150000

Closing cash and cash equivalent

 

75000

 


2068 Supp. Q. No. 17

Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales

3000000

 

:- Decrease in Sundry debtors

10000

310000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(225000)

 

:- Increase in inventories

(20000)

 

:- Increase in sundry creditors

20000

:-  Increase in bills payable

15000

(210000)

c. Cash paid to employees

 

 

:- Operating expenses

(80000)

(80000)

Cash from operating expenses

 

20000

Cash flow from investing activities

 

 

:- Purchase of machinery

 

(150000)

:- Sales of machinery

 

20000

:- Decrease in investment

 

20000

Cash from investing activities

 

(110000)

Cash flow from financial activities

 

 

:- Issue of share capital

 

150000

:- Dividend paid

 

(20000)

Cash from financial activities

 

130000

The net change in cash and cash equivalent

 

 

40000

Add: Opening cash and cash equivalent

 

 

20000

Closing cash and cash equivalent

 

60000

 


Advertisement

2067 Q. No. 17

Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales

700000

 

:- Decrease in debtors

40000

740000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(440000)

 

:- Increase in stock

(40000)

 

:- Increase in creditors

50000

(430000)

c. Cash paid to employees

 

 

:- Operating expenses

(100000)

(100000)

Cash from operating expenses

 

210000

Cash flow from investing activities

 

 

:- Purchase of fixed assets

 

(320000)

:- Sales of office equipment

 

70000

Cash from investing activities

 

(250000)

Cash flow from financial activities

 

 

:- Issue of share capital

 

100000

:- Redemption of Bank Loan

 

(50000)

:- Dividend paid

 

(60000)

Cash from financial activities

 

(10000)

The net change in cash and cash equivalent

 

 

(50000)

Add: Opening cash and cash equivalent

 

 

100000

Closing cash and cash equivalent

 

50000

 


2066 (C) Q. No. 17



Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales revenue

1600000

 

:- Increase in debtors

(40000)

1560000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(1120000)

 

:- Decrease in inventory

30000

 

:- Decrease in creditors

(30000)

(1120000)

c. Cash paid to an employee

 

 

:- Operating expenses

(276000)

 

:- Increase in outstanding expenses

4000

 

:- Decrease in prepaid insurance

4000

(268000)

d. Tax paid

 

 

:- Tax paid

(40000)

:- Increase in provision for tax

60000

20000

e. Miscellaneous

 

 

:- Decrease in Overdraft

 

(20000)

Cash from operating expenses

 

112000

Cash flow from investing activities

 

 

:- Purchase of fixed assets

 

(312000)

:- Sales of fixed assets

 

72000

Cash from investing activities

 

(240000)

Cash flow from financial activities

 

 

:- Issue of share capital (80000 + 10000)

 

 

90000

:- Redemption of 10% debenture

 

80000

:- Dividend paid

 

(32000)

Cash from financial activities

 

138000

The net change in cash and cash equivalent

 

 

10000

Add: Opening cash and cash equivalent

 

 

40000

Closing cash and cash equivalent

 

50000




2066 Q. No. 17

Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales revenue

625000

 

:- Decrease in Account receivable

15000

640000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(300000)

 

:- Increase in Inventory

(50000)

 

:- Increase in Account Payable

10000

(340000)

c. Cash paid to employees

 

 

:- Operating expenses

(60000)

(60000)

e. Interest paid

 

 

:- Interest on debenture

(10000)

(10000)

Cash from operating expenses

 

230000

Cash flow from investing activities

 

 

:- Purchase of fixed assets

 

(380000)

:- Sales of fixed assets

 

55000

Cash from investing activities

 

(325000)

Cash flow from financial activities

 

 

:- Issue of share capital

 

270000

:- Redemption of 10% debenture

 

(60000)

:- Dividend paid

 

(105000)

Cash from financial activities

 

105000

The net change in cash and cash equivalent

 

 

(10000)

Add: Opening cash and cash equivalent

 

 

5000

Closing cash and cash equivalent

 

5000




Advertisement

2065 Q. No. 17

Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales revenue

900000

 

:- Decrease in debtors

73000

973000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(520000)

 

:- Increase in inventories

(75000)

 

:- Increase in creditors

63000

(532000)

c. Cash paid to employees

 

 

:- Administrative expenses

(125000)

 

:- Selling and distribution expenses

(25000)

 

:- Decrease in outstanding expenses

(3000)

 

:- Decrease in prepaid rent

2000

(151000)

Cash from operating expenses

 

290000

Cash flow from investing activities

 

 

:- Purchase of plant and machinery

 

(465000)

:- Sales of machinery  

 

55000

Cash from investing activities

 

(410000)

Cash flow from financial activities

 

 

:- Issue of share capital with share premium (150000 + 15000)

 

 

165000

:- Redemption of 10% debenture

 

(75000)

:- Dividend paid

 

(45000)

Cash from financial activities

 

45000

Net change in cash and cash equivalent

 

 

(75000)

Add: Opening cash and cash equivalent

 

 

150000

Closing cash and cash equivalent

 

75000

 


2064 Q. No. 17

Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales revenue

600000

 

:- Decrease in Account receivable

50000

650000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(350000)

 

:- Increase in inventories

(50000)

 

:- Decrease in Bills payable

(10000)

 

:- Increase in Accounts payable

50000

(360000)

c. Cash paid to employees

 

 

:- Operating expenses

(100000)

(100000)

Cash from operating expenses

 

190000

Cash flow from investing activities

 

 

:- Purchase of fixed assets

 

(300000)

:- Sales of fixed assets

 

30000

Cash from investing activities

 

(270000)

Cash flow from financial activities

 

 

:- Issue of share capital with share premium (100000 +10000)

 

 

110000

:- Redemption of 10% debenture with premium (50000 + 10000)

 

 

(60000)

:- Dividend paid

 

(20000)

Cash from financial activities

 

(30000)

Net change in cash and cash equivalent

 

 

(50000)

Add: Opening cash and cash equivalent

 

 

100000

Closing cash and cash equivalent

 

50000

 


Advertisement

2064 Supp. Q. No. 17

Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales revenue

1200000

 

:- Decrease in debtors

40000

1240000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(800000)

 

:- Increase in inventories

(80000)

 

:- Decrease in Bills payable

(40000)

 

:- Increase in creditors

40000

(880000)

c. Cash paid to employees

 

 

:- Operating expenses

(160000)

(160000)

Cash from operating expenses

 

200000

Cash flow from investing activities

 

 

:- Purchase of Plant

 

(400000)

:- Sales of plant

 

60000

:- Purchase of investment

 

(60000)

Cash from investing activities

 

(400000)

Cash flow from financial activities

 

 

:- Issue of share capital

 

400000

:- Redemption of 10% debenture with premium (80000 + 4000)

 

 

(84000)

:- Dividend paid

 

(56000)

Cash from financial activities

 

260000

Net change in cash and cash equivalent

 

 

60000

Add: Opening cash and cash equivalent

 

 

40000

Closing cash and cash equivalent

 

100000

 

=