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Cash Flow Statement-Past question solution of Account

Cash Flow Statement (Under Direct Method) OLD is GOLD solution of account class 12. Past question of Cash flow statement solution of account. 

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2076 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

960000

 

:- Increase in debtors

(24000)

936000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(580000)

 

:- Increase in stock

(20000)

 

:- Increase in creditors

24000

(576000)

c. Cash paid to employees

 

 

:- Operating expenses

(240000)

 

:- Increase in salaries outstanding

8000

(232000)

d. Tax paid

 

 

:- Tax paid

(12000)

(12000)

Cash from operating expenses

 

116000

Cash flow from investing activities

 

 

:- Purchase of fixed assets

 

(85000)

:- Sales of fixed assets

 

80000

Cash from investing activities

 

(5000)

Cash flow from financial activities

 

 

:- Issue of share capital

 

120000

Cash from financial activities

 

120000

The net change in cash and cash equivalent

 

 

231000

Add: Opening cash and cash equivalent

 

60000

Closing cash and cash equivalent

 

291000




 

2076 Set 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

840000

 

:- Decrease in debtors

48000

888000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(528000)

 

:- Increase in stock

(48000)

 

:- Increase in creditors

40000

(536000)

c. Cash paid to employees

 

 

:- Administrative expenses

(120000)

 

:- Increase in outstanding expenses

20000

(100000)

Cash from operating expenses

 

252000

Cash flow from investing activities

 

 

:- Purchase of fixed assets

 

(384000)

:- Sales of fixed assets

 

84000

Cash from investing activities

 

(300000)

Cash flow from financial activities

 

 

:- Issue of share capital

 

120000

:- Redemption of 10% debenture

 

(60000)

:- Dividend paid

 

(72000)

Cash from financial activities

 

(12000)

The net change in cash and cash equivalent

 

 

(60000)

Add: Opening cash and cash equivalent

 

120000

Closing cash and cash equivalent

 

60000



 

2075 GIE 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

80000

2080000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(1400000)

 

:- Increase in stock

(20000)

 

:- Increase in creditors

40000

(1380000)

c. Cash paid to employees

 

 

:- Operating expenses

(400000)

 

:- Decrease in salaries outstanding

(10000)

 

:- Increase in prepaid rent

(10000)

(420000)

d. Tax paid

 

 

:- Tax paid

(30000)

(30000)

e. Interest paid

 

 

:- Interest on debenture

(20000)

(20000)

Cash from operating expenses

 

230000

Cash flow from investing activities

 

 

:- Purchase of office equipment

 

(60000)

:- Sales of office equipment

 

40000

:- Purchase of investment

 

(300000)

Cash from investing activities

 

(320000)

Cash flow from financial activities

 

 

:- Issue of share capital

 

150000

:- Redemption of 10% debenture

 

(80000)

:- Dividend paid

 

(90000)

Cash from financial activities

 

(20000)

The net change in cash and cash equivalent

 

 

(110000)

Add: Opening cash and cash equivalent

 

 

150000

Closing cash and cash equivalent

 

40000

 

Working note

Provision for tax a/c

Debit

Amount

Credit

Amount

To Closing balance of To provision for tax

 

30000

By Opening balance of provision for tax

 

30000

To Tax paid

50000

By Provision made for tax during the year

 

50000

 

80000

 

80000




 

2075 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 revenue

1300000

 

:- Decrease in sundry debtors

110000

1410000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(700000)

 

:- Increase in stock

(50000)

 

:- Increase in creditors

50000

(700000)

c. Cash paid to employees

 

 

:- Administrative expenses

(130000)

 

:- Increase in outstanding expenses

20000

(110000)

Cash from operating expenses

 

600000

Cash flow from investing activities

 

 

:- Purchase of fixed assets

 

(300000)

:- Sales of office equipment

 

100000

Cash from investing activities

 

(200000)

Cash flow from financial activities

 

 

:- Issue of share capital

 

200000

:- Redemption of 10% debenture

 

(50000)

:- Dividend paid

 

(370000)

Cash from financial activities

 

(220000)

The net change in cash and cash equivalent

 

 

180000

Add: Opening cash and cash equivalent

 

 

120000

Closing cash and cash equivalent

 

300000

 

Working note

Fixed assets a/c

Debit

Amt.

Credit

Amt.

To opening balance

500000

By closing balance

700000

To purchase

300000

By sales

100000

 

800000

 

800000

 

Gross profit = Sales – Cost of goods sold

= 1300000 – 700000

= 600000

Net income (Net profit)

Gross profit = 600000

(-) Administrative expenses 130000

Net income = 470000

Dividend paid = opening balance of retaining earning – closing balance + Net income

= 150000 – 250000 + 470000

= 370000



 

2074 Supp. Q. No. 17

Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales

360000

 

:- Increase in debtors

(12000)

348000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(202200)

 

:- Increase in Inventory

(15000)

 

:- Increase in creditors

30000

(187200)

c. Cash paid to employees

 

 

:- Operating expenses

(60000)

(60000)

Cash from operating expenses

 

100800

Cash flow from investing activities

 

 

:- Purchase of machine

 

(105000)

:- Sales of machinery

 

9000

:- Sales of investment

 

31200

:- Building purchased

 

(240000)

Cash from investing activities

 

(304800)

Cash flow from financial activities

 

 

:- Issue of share capital with share premium (90000 + 33000)

 

 

123000

:- Issue of Long term Loan

 

150000

:- Dividend paid

 

(17400)

Cash from financial activities

 

255600

Net change in cash and cash equivalent

 

 

51600

Add: Opening cash and cash equivalent

 

 

201000

Closing cash and cash equivalent

 

252600

 




2074 Set A No. 17

Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales revenue

750000

 

:- Increase in debtors

(40000)

 

:- Decrease in Bills receivable

30000

740000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(430000)

 

:- Increase in Inventories

(20000)

 

:- Increase in creditors

20000

(430000)

c. Cash paid to employees

 

 

:- Operating expenses

(150000)

 

:- Decrease in salaries outstanding

(5000)

 

:- Increase in prepaid rent

(10000)

(165000)

d. Tax paid

 

 

:- Tax paid

(20000)

(20000)

e. Miscellaneous expenses

 

 

:- Increase Bank overdraft

20000

20000

Cash from operating expenses

 

145000

Cash flow from investing activities

 

 

:- Purchase of office equipment

 

(150000)

:- Sales of investment

 

50000

Cash from investing activities

 

(100000)

Cash flow from financial activities

 

 

:- Issue of share capital

 

100000

:- Redemption of 10% debenture

 

(100000)

:- Dividend paid

 

(40000)

Cash from financial activities

 

(40000)

Net change in cash and cash equivalent

 

 

5000

Add: Opening cash and cash equivalent

 

 

10000

Closing cash and cash equivalent

 

15000



2073 Supp. Q. No. 17

Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales

680000

 

:- Increase in debtors

(50000)

6300000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(420000)

 

:- Increase in inventory

(30000)

 

:- Increase in creditors

100000

(350000)

c. Cash paid to employees

 

 

:- Administrative expenses

(150000)

 

:- Increase in outstanding expenses

50000

(100000)

Cash from operating expenses

 

180000

Cash flow from investing activities

 

 

:- Purchase of fixed assets

 

(350000)

:- Sales of fixed assets

 

50000

Cash from investing activities

 

(300000)

Cash flow from financial activities

 

 

:- Issue of share capital

 

200000

:- Redemption of 10% debenture

 

(100000)

:- Dividend paid

 

(60000)

Cash from financial activities

 

40000

Net change in cash and cash equivalent

 

 

(80000)

Add: Opening cash and cash equivalent

 

 

120000

Closing cash and cash equivalent

 

40000



2073 Set C Q. No. 17

Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales

840000

 

:- Decrease in debtors

48000

888000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(528000)

 

:- Increase in Inventory

(48000)

 

:- Increase in creditors

40000

(536000)

c. Cash paid to employees

 

 

:- Administrative expenses

(120000)

 

:- Increase in outstanding expenses

20000

(100000)

Cash from operating expenses

 

252000

Cash flow from investing activities

 

 

:- Purchase of fixed assets

 

(384000)

:- Sales of fixed assets

 

84000

Cash from investing activities

 

(300000)

Cash flow from financial activities

 

 

:- Issue of share capital

 

120000

:- Repayment of debenture

 

(60000)

:- Dividend paid

 

(72000)

Cash from financial activities

 

(12000)

Net change in cash and cash equivalent

 

 

(60000)

Add: Opening cash and cash equivalent

 

 

120000

Closing cash and cash equivalent

 

60000



2073 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

1000000

 

:- Increase in debtors

(15000)

:- Increase in Bills receivable

20000

1005000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(730000)

 

:- Increase in Inventories

(30000)

 

:- Increase in creditors

30000

(730000)

c. Cash paid to employees

 

 

:- Office expenses

(50000)

 

:- Selling expenses

(20000)

(70000)

d. Tax paid

 

 

:- Tax paid

(15000)

(15000)

Cash from operating expenses

 

190000

Cash flow from investing activities

 

 

:- Purchase of machinery

 

(160000)

:- Sales of furniture

 

25000

:- Decrease in investment

 

50000

Cash from investing activities

 

(85000)

Cash flow from financial activities

 

 

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

 

 

110000

:- Issue of Debenture

 

50000

:- Dividend paid

 

(10000)

Cash from financial activities

 

150000

Net change in cash and cash equivalent

 

 

255000

Add: Opening cash and cash equivalent

 

 

80000

Closing cash and cash equivalent

 

335000

 


2072 Supp. Q. No. 17

Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales

6000000

 

:- Increase in debtors

(20000)

580000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(337000)

 

:- Increase in Inventories

(25000)

 

:- Increase in creditors

50000

(312000)

c. Cash paid to employees

 

 

:- Operating expenses

(100000)

(100000)

Cash from operating expenses

 

168000

Cash flow from investing activities

 

 

:- Purchase of fixed assets

 

(575000)

:- Sales of fixed assets

 

15000

:- Sales of investment

 

52000

Cash from investing activities

 

(508000)

Cash flow from financial activities

 

 

:- Issue of share capital (150000 + 55000)

 

 

205000

:- Issue of 10% debenture

 

250000

:- Dividend paid

 

(29000)

Cash from financial activities

 

426000

Net change in cash and cash equivalent

 

 

86000

Add: Opening cash and cash equivalent

 

 

335000

Closing cash and cash equivalent

 

421000




2072 Set C Q. No. 17

Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales

600000

 

:- Increase in debtors

(25000)

575000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(225000)

 

:- Increase in inventories

(25000)

(250000)

c. Cash paid to employees

 

 

:- Operating expenses

(250000)

 

:- Increase in wages outstanding

10000

 

:- Increase in prepaid insurance

(5000)

(245000)

d. Interest Paid

 

 

:- Interest on debenture

(10000)

(10000)

e. Tax paid

 

 

:- Tax paid

(25000)

(25000)

Cash from operating expenses

 

45000

Cash flow from investing activities

 

 

:- Purchase of fixed assets

 

(215000)

:- Sales of fixed assets

 

15000

Cash from investing activities

 

(200000)

Cash flow from financial activities

 

 

:- Issue of share capital

 

100000

:- Redemption of 10% debenture

 

(50000)

:- Issue of Long term Loan

 

100000

:- Dividend paid

 

(25000)

Cash from financial activities

 

125000

Net change in cash and cash equivalent

 

 

(30000)

Add: Opening cash and cash equivalent

 

 

45000

Closing cash and cash equivalent

 

15000



2072 Set D. 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)

 

:- Increase in creditors

40000

:- Decrease in Bills payable

(40000)

(880000)

c. Cash paid to employees

 

 

:- Operating expenses

(160000)

(160000)

Cash from operating expenses

 

200000

Cash flow from investing activities

 

 

:- Purchase of machine

 

(400000)

:- Sales of machine

 

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



2072 Set E No. 17

Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales  

630000

 

:- Increase in debtors

(30000)

600000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(350000)

 

:- Increase in stock

(35000)

 

:- Increase in creditors

20000

(365000)

c. Cash paid to employees

 

 

:- Operating expenses

(125000)

 

:- Increase in outstanding Expenses

5000

 

:- Decrease in prepaid insurance

5000

(115000)

Cash from operating expenses

 

120000

Cash flow from investing activities

 

 

:- Purchase of machinery

 

(195000)

:- Sales of furniture

 

60000

Cash from investing activities

 

(135000)

Cash flow from financial activities

 

 

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

 

 

110000

:- Redemption of Loan

 

(50000)

:- Dividend paid

 

(20000)

Cash from financial activities

 

40000

Net change in cash and cash equivalent

 

 

25000

Add: Opening cash and cash equivalent

 

 

100000

Closing cash and cash equivalent

 

125000

 

Working note

Furniture A/C

Debit

Amt.

Credit

Amt.

To opening balance

100000

By closing balance

50000

To gain on sale of furniture

10000

By sales a/c

60000

 

110000

 

110000



2071 Supp. Q. No. 17

Cash flow statement

Under Direct Method

Particular

Amt.

Amt.

Cash flow from operating activities:

 

 

a. Cash Collection from customers:

 

 

:- Sales

800000

 

:- Decrease in debtors

30000

830000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(350000)

 

:- Increase in stock

(50000)

 

:- Increase in creditors

10000

(390000)

c. Cash paid to employees

 

 

:- Operating expenses

(210000)

(210000)

Cash from operating expenses

 

230000

Cash flow from investing activities

 

 

:- Purchase of fixed assets

 

(400000)

:- Sales of fixed assets

 

80000

Cash from investing activities

 

(320000)

Cash flow from financial activities

 

 

:- Issue of share capital

 

300000

:- Redemption of 10% debenture

 

(100000)

:- Dividend paid

 

(100000)

Cash from financial activities

 

100000

Net change in cash and cash equivalent

 

 

10000

Add: Opening cash and cash equivalent

 

 

100000

Closing cash and cash equivalent

 

110000



2071 Set 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

1200000

 

:- Decrease in debtors

110000

1310000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(800000)

 

:- Increase in creditors

50000

 

:- Increase in inventories

(50000)

(800000)

c. Cash paid to employees

 

 

:- Administrative expenses

(120000)

 

:- Increasing in expen outstanding

20000

(100000)

d. Interest paid

 

 

:- Interest on debenture

(10000)

(10000)

e. Tax paid

 

 

:- Tax paid

(60000)

(60000)

Cash from operating expenses

 

340000

Cash flow from investing activities

 

 

:- Purchase of fixed assets  

 

(350000)

:- Sales of fixed assets

 

110000

:- Purchase of investment

 

(300000)

Cash from investing activities

 

(240000)

Cash flow from financial activities

 

 

:- Issue of share capital

 

200000

:- Redemption of 10% debenture

 

(50000)

:- Dividend paid

 

(70000)

Cash from financial activities

 

80000

Net change in cash and cash equivalent

 

 

180000

Add: Opening cash and cash equivalent

 

 

120000

Closing cash and cash equivalent

 

300000



2071 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

1100000

 

:- Decrease in debtors

50000

1150000

b. Cash paid to suppliers

 

 

:- Cost of goods sold

(730000)

 

:- Increase in stock

(150000)

 

:- Increase in creditors

100000

(780000)

c. Cash paid to employees

 

 

:- Operating expenses

(140000)

(140000)

Cash from operating expenses

 

230000

Cash flow from investing activities

 

 

:- Purchase of machinery

 

(400000)

:- Sales of machinery

 

150000

Cash from investing activities

 

(250000)

Cash flow from financial activities

 

 

:- Issue of share capital

 

100000

:- Redemption of Loan

 

(100000)

:- Dividend paid

 

(80000)

Cash from financial activities

 

(80000)

Net change in cash and cash equivalent

 

 

(100000)

Add: Opening cash and cash equivalent

 

 

200000

Closing cash and cash equivalent

 

100000




=