# 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.

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## 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

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## 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

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## 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

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## 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

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## 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

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## 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

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## 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

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