The document provides 6 problems involving preparing cash flow statements from balance sheet information. The problems include information such as changes in asset and liability accounts, depreciation expenses, purchases and sales of assets, dividends paid, and additional financial details needed to prepare the cash flow statement. Solving the cash flow statement problems would require analyzing the changes between the opening and closing balance sheets provided, and determining the cash impact of financial transactions and accounting adjustments during the period.
The document provides 6 problems involving preparing cash flow statements from balance sheet information. The problems include information such as changes in asset and liability accounts, depreciation expenses, purchases and sales of assets, dividends paid, and additional financial details needed to prepare the cash flow statement. Solving the cash flow statement problems would require analyzing the changes between the opening and closing balance sheets provided, and determining the cash impact of financial transactions and accounting adjustments during the period.
The document provides 6 problems involving preparing cash flow statements from balance sheet information. The problems include information such as changes in asset and liability accounts, depreciation expenses, purchases and sales of assets, dividends paid, and additional financial details needed to prepare the cash flow statement. Solving the cash flow statement problems would require analyzing the changes between the opening and closing balance sheets provided, and determining the cash impact of financial transactions and accounting adjustments during the period.
The document provides 6 problems involving preparing cash flow statements from balance sheet information. The problems include information such as changes in asset and liability accounts, depreciation expenses, purchases and sales of assets, dividends paid, and additional financial details needed to prepare the cash flow statement. Solving the cash flow statement problems would require analyzing the changes between the opening and closing balance sheets provided, and determining the cash impact of financial transactions and accounting adjustments during the period.
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
You are on page 1/ 5
Cash Flow Statement Problems
Problem No. 1 From the following Balance Sheets of Roop Ltd., prepare a cash flow statement. I. Equity and Liabilities 2014 Rs. 2015 Rs. Equity Share Capital 15000 20000 12% Preference share capital 7500 5000 General Reserve 2000 3500 P & L A/c 1500 2400 Creditors 3750 4950 29750 35850 II. Assets Goodwill 3600 2000 Building 8000 6000 Plant 4000 10000 Debtors 11900 15450 Stock 1000 1500 Cash 1250 900 29750 35850 Depreciation charged on plant was Rs. 1000 and on building Rs. 6000.
Problem No. 2
Balance sheet of XYZ is as follows:
I. Equity and Liabilities 2016 Rs. 2017 Rs. Share Capital 7000 7400 Debentures 1200 600 Sundry Creditors 1036 1184 Provision for doubtful debts 70 80 P & L A/c 1004 1056 10310 10320 II. Assets Cash 900 780 Sundry Debtors 1490 1770 Stock 4920 4270 Land 2000 3000 Goodwill 1000 500 10310 10320
Additional Information: (i) Dividend totaling Rs. 350 was paid. (ii) Land was purchased for Rs. 1000 and amount provided for the amortization of goodwill totaled Rs. 500. (iii) Debentures of Rs. 600 were redeemed. Prepare a Cash flow statement. Problem No. 3
The following are the balance sheets of Yes Ltd., as on 31st December 2016 and 2017 2016 2017 I. Equity and Liabilities Rs. Rs. Equity Share Capital 70,000 80000 General Reserve 45000 60000 Profit and Loss 17300 23300 Account 70000 90000 Trade Creditors 115000 140000 Bank overdrafts 8000 9200 Creditors for expenses 19700 37000 Provision for taxation 15000 15000 Proposed dividends 360000 454500 II. Assets Fixed Assets 50000 60000 Additions 10000 8000 Depreciation 60000 68000 Investments 20000 32000 Debtors 40000 36000 Stock 12000 -- 130000 218500 178000 200000 360000 454500
Prepare Cash Flow Statement for the year 2017
Problem No. 4
Given below are the balance sheets of Veer & Sons.
01 Jan. 2015 31 Dec. 2015
I. Equity and Liabilities Rs. Rs. Creditors 4,000 4,400 Mrs. A’s Loan 2,500 -- Loans and Bank 4,000 5,000 Capital 12,500 15,300 23,000 24,700 II. Assets Cash 1,000 700 Debtors 3,000 5,000 Stock 3,500 2,500 Machinery 8,000 5,500 Land 4,000 5,000 Building 3,500 6,000 23,000 24,700
During the year a machine costing Rs.1000 (accumulated depreciation Rs. 300) is sold for Rs. 500. The provisions for depreciation against machinery as on 01 January 2015 was Rs. 2500 and on 31 December 2015 Rs. 4000. Net profit for the year amounts to Rs. 4500. You are required to prepare a Cash Flow Statement.
Problem No. 5
Following is the Balance Sheet of ABC Co. Ltd., on at 01st January, 2015 and 31st December 2015. (Amount In Rs.) 01-01-2015 31-12-2015 I. Equity and Liabilities : Equity share capital 30,000 35000 Share premium -- 3000 General reverse 4500 6500 Profit and Loss 3000 8080 6% Debentures -- 7000 Sundry creditors 8500 9070 Provision for taxation 2250 4050 Proposed divided 3000 3500 51250 76200 II. Assets : Land and building 23000 39000 Plant and machinery 8540 14000 Furniture 550 650 Stock 8240 9570 Sundry debtors 7500 8550 Bank balance 3420 4430 51250 76200 Additional Information: Depreciation written off during the year Land and building 6000 Plant and machinery 5000 Furniture 120 You are required to prepare a cash flow statement.
Problem No. 6
The following Balance Sheets are given :
I. Equity and Liabilities 2014 2015
(Rs.) (Rs.) Equity Share Capital 30000 40,000 Redeemable Pref. Capital 15000 10,000 General Reserve 4000 7000 Profit and Loss Account 3000 4800 Proposed Dividend 4200 5000 Creditors 5500 8300 Bills Payable 2000 1600 Provision for Taxation 4000 5000 67700 81700 II. Assets Goodwill 11500 9000 Land and Building 20000 17000 Plant 8000 20000 Debtors 16000 20000 Stock 7700 10900 Bills Receivable 2000 3000 Cash in Hand 1500 1000 Cash at Bank 1000 800 67700 81700
It is also given that:
(a) Depreciation of Rs. 2000 on land and building and Rs.1000 on plant has been charged in 2015. (b) Interim dividend of Rs. 2000 has been paid in 2015. (c) Income tax Rs.3500 has been paid during 2015. Prepare Cash Flow Statement for the year 2015.
Problem No. 7
The Balance Sheet of Smartkart Ltd, as at March 31st 2016 and 2017 are given follows:
2016 2017 I. Equity and Liabilities Rs. Rs. Accumulated Depreciation 2000 2150 Creditors 720 900 Taxes Payable 600 600 Bills payable 1400 2600 Debentures 3500 3500 Equity capital 5000 6000 Profit and Loss Account 2640 2090 15860 17840 II. Assets Cash 600 800 Debtors 700 1200 Prepaid Rent 360 240 Stock 3200 2800 Investments 4000 4000 Fixed Assets 7000 8800 15860 17840 Additional information 1. Purchased a new fixed asset costing Rs. 2500; paid Rs. 1300 cash and given short-term bills payable for the remainder. 2. Net loss for the year ending 31-3-2017 was Rs. 150. 3. One fully depreciated asset of an original cost of Rs. 700 and no salvage value was abandoned.
From the following condensed comparative Balance Sheets of Hotel Hills Ltd., and additional information, prepare a Cash Flow Statement for the year 2015.
I. Equity and Liabilities 2014 2015
Rs. Rs. Share Capital 7000 8000 Share Premium 900 1100 Retained earnings 2382 3082 7% Mortgage loan -- 2000 Creditors 690 600 Outstanding salaries 200 140 Provision for taxation 100 140 11272 15062 II. Assets Plant & Machinery 6200 6600 Accumulation Dep. on plant and machinery (3700) (2620) Building 9500 11600 Accumulation dep. on buildings (4300) (4500) Land 1000 1200 Stock 1022 962 Debtors 860 760 Prepaid expenses 72 80 Cash 618 980 11272 15062
Additional information: 1. Plant costing Rs. 1600 (accumulated depreciation Rs. 1480) was sold during the year for Rs. 120. 2. Building was acquired during the year at a cost of Rs. 2100. In addition to cash payment of Rs. 100 a 7% mortgage loan was raised for the balance. 3. Dividend of Rs. 800 was paid during the year. 4. A sum of Rs. 1390 was transferred to provision for taxation account in 2015.
