DELHI PUBLIC SCHOOL AGRA

(Under the aegis of the Delhi Public School Society, East of Kailash, New Delhi)
XII – Accountancy
Pre-Board Examination (2024-25)
Revision Worksheet 9
CASH FLOW STATEMENT
1. How will you treat payment of ‘Interest on Debentures’ while preparing a Cash Flow
Statement?
(A) Cash Flow from Operating Activities
(B) Cash Flow from Investing Activities
(C) Cash Flow from Financing Activities
(D) Cash Equivalent
2. Interest received by a finance company is classified under which kind of activity while
preparing a Cash flow statement?
(A) Cash Flow from Operating Activities
(B) Cash Flow from Investing Activities
(C) Cash Flow from Financing Activities
(D) No Cash Flow
3. State whether cash deposited in bank will be classified under which kind of activity?
(A) Cash Flow from Operating Activities
(B) Cash Flow from Investing Activities
(C) Cash Flow from Financing Activities
(D) No Cash Flow
4. Mention the net amount of ‘Source’ or ‘Use’ of cash when a fixed asset having book value
of ₹15,000 is sold at a loss of ₹5,000.
(A) Use ₹5,000
(B) Source ₹10,000
(C) Use ₹15,000
(D) Source ₹15,000
5. Dividend paid by a Trading company is classified under which kind of activity while
preparing cash flow statement?
(A) Cash Flow from Operating Activities
(B) Cash Flow from Investing Activities
(C) Cash Flow from Financing Activities
(D) No Cash Flow
6. A company receives a dividend of ₹2 Lakhs on its investment in other company’s shares. In
case of a Finance Company, it will be classified under which kind of activity?
(A) Cash Flow from Operating Activities
(B) Cash Flow from Investing Activities
(C) Cash Flow from Financing Activities
(D) No Cash Flow
7. An example of Cash Flows from Investing Activity is :
(A) Cash Revenue from Operations
(B) Commission Received
(C) Payment of cash for purchase of fixed assets
(D) Dividend paid
8. An Example of cash flow from financing activity is :
(A) Payment of dividend
(B) Receipt of dividend on investment
(C) Cash received from customer
(D) Purchase of fixed asset
9. An example of Cash Flows from Financing Activity is :
(A) Credit Revenue from Operations
(B) Cash receipts from issue of shares
 (C) Sale of Investments
(D) Interest Received
10. If a machine whose original cost is ₹40,000 having accumulated depreciation ₹12,000,
were sold for ₹34,000 then while preparing Cash Flow Statement its effect on cash flow will
be :
(A) Cash flow from financing activities ₹34,000
(B) Cash flow from financing activities ₹6,000
(C) Cash flow from investing activities ₹34,000
(D) Cash flow from investing activities ₹6,000
11. Classify the following transactions as Operating Activities for a financial company and a
non-financial company:
(a) Purchase of Shares on a Stock Exchange. (b) Dividend received on Shares.
(c) Dividend paid on Shares. (d) Loans given.
(e) Loans taken. (f) Interest paid on borrowings.
12. State which of the following would result in inflow/outflow or no flow of Cash and Cash
Equivalents:
(a) Sale of Fixed Assets, Book Value Rs 1,00,000 at a profit of Rs10,000.
(b) Sale of goods against cash.
(c) Purchase of machinery for cash.
(d)Purchase of Land and Building for Rs10,00,000. Consideration paid by issue of debentures.
(e) Issued fully paid Bonus Shares.
(f) Cash withdrawn from bank.
(g) Payment of Interim Dividend.
13. Mars Ltd. has Plant and Machinery whose written down value on 1st April, 2017 was
Rs9,60,000 and on 31st March, 2018 was Rs10,50,000. Depreciation for the year was
Rs35,000. In the beginning of the year, a part of plant was sold for Rs45,000 which had a
written down value of Rs30,000.
Calculate Cash Flow from Investing Activities
14. From the following Balance Sheet as at 31st March, 2019 and Statement of Profit and Loss
for the year ended 31st March, 2019 of RSB Ltd. and additional information, prepare Cash
Flow Statement:
Particulars NN 2019 2018
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 7,50,000 5,00,000
(b) Reserves and Surplus 1 9,50,000 3,00,000
2. Non-Current Liabilities
Long-term Borrowings (5% Debentures) 7,00,000 4,00,000
3. Current Liabilities
(a) Trade Payables 1,10,000 90,000
(b) Other Current Liabilities 2 39,000 25,000
(c) Short-term Provisions 2,60,000 2,25,000
Total 28,09,000 15,40,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets – Tangible 3 6,85,000 7,45,000
(b) Non-current Investments 7,50,000 2,50,000
2. Current Assets
(a) Current Investments 6,74,000 95,000
(b) Inventories 1,00,000 2,00,000
(c) Trade Receivables 4,00,000 1,50,000
 (d) Cash and Cash Equivalents 2,00,000 1,00,000
Total 28,09,000 15,40,000

STATEMENT OF PROFIT AND LOSS

for the year ended 31st March, 2019
Particulars NN 2019 2018
I. Revenue from Operations 4 40,00,000 35,00,000
II. Other Income 5 35,000 30,000
III. Total Revenue (I + II) 40,35,000 35,30,000
IV. Expenses:
Purchases of Stock-in-Trade 27,00,000 24,70,000
Change in Inventories of Stock-in-Trade 6 1,00,000 50,000
Finance Cost 27,500 20,000
Depreciation 40,000 45,000
Other Expenses 22,500 20,000
Total Expenses 28,90,000 26,05,000
V. Profit before Tax (III – IV) 11,45,000 9,25,000
VI. Less: Tax 3,45,000 2,25,000
VII. Profit after Tax (V – VI) 8,00,000 7,00,000

Notes to Accounts
Particular 2019 2018
1. Reserves and Surplus
Debenture Redemption Reserve 1,00,000 1,00,000
Surplus, i.e., Balance in Statement of Profit and Loss 8,50,000 2,00,000
9,50,000 3,00,000
2. Other Current Liabilities
Interest on Debentures 35,000 20,000
Outstanding Expenses 4,000 5,000
39,000 25,000
3. Fixed Assets–Tangible
Cost 8,90,000 9,90,000
Less: Accumulated Depreciation 2,05,000 2,45,000
6,85,000 7,45,000
4. Revenue from Operations
Sales 42,00,000 35,75,000
Less: Sales Return 2,00,000 75,000
40,00,000 35,00,000
5. Other Income
Interest on Deposits 15,000 12,500
Dividend on Investments 10,000 17,500
Gain (Profit) on Sale of Fixed Assets 10,000 …
35,000 30,000
6. Change in Inventories of Stock-in-Trade
Opening Stock 2,00,000 2,50,000
Less: Closing Stock 1,00,000 2,00,000
1,00,000 50,000
 Additional Information:
i. Additional debentures were issued on 1st October, 2018 of Rs5,00,000. On the same date,
part of outstanding debentures were redeemed and interest was paid, whereas interest on
outstanding debentures was paid on 10th April, 2019.
ii. Board of Directors proposed dividend in both the years @ 10%.
iii. Interim Dividend of Rs 1,00,000 was paid during the year.
iv. A fixed asset with original cost of 1,00,000, on which depreciation till date was provided of
Rs 80,000 was sold at a profit of Rs 10,000.
15. From the following Balance Sheet of Samta Ltd., as at 31st March, 2019, prepare Cash
Flow Statement:
Note
Particulars 2019 2018
No.
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 1 7,50,000 7,50,000
(b) Reserves and Surplus 2 3,10,000 (20,000)
2. Non-Current Liabilities
Long-term Borrowings (8% Debentures) 2,60,000 1,50,000
3. Current Liabilities
(a) Short-term Borrowings (8% Bank Loan) 40,000 50,000
(b) Trade Payables 1,20,000 1,10,000
(c) Short-term Provisions 3 50,000 40,000
Total 15,30,000 10,80,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets:
(i) Tangible Assets (Net) 8,60,000 6,20,000
(ii) Intangible Assets (Goodwill) 15,000 40,000
(b) Non-Current Investments 1,25,000 80,000
2. Current Assets
(a) Current Investments 5,000 15,000
(b) Inventories 1,95,000 1,00,000
(c) Trade Receivables 2,00,000 2,00,000
(d) Cash and Cash Equivalents 1,30,000 25,000
Total 15,30,000 10,80,000
Notes to Accounts
Particulars 2019 2018
1. Share Capital
Equity Share Capital 5,50,000 4,50,000
12% Preference Share Capital 2,00,000 3,00,000
7,50,000 7,50,000
2. Reserves and Surplus
Securities Premium Reserve 10,000 ...
General Reserve 1,50,000 1,20,000
Surplus, i.e., Balance in Statement of Profit and Loss 1,50,000 (1,40,000)
3,10,000 (20,000)
4. Short-term Provisions
Provision for Tax 50,000 40,000

Additional Information :
(i) During the year a piece of machinery costing Rs 60,000 on which depreciation charged
was Rs 20,000 was sold at 50% of its book value. Depreciation provided on tangible Assets
Rs 60,000;
(ii) Income tax Rs 45,000 was provided;
(iii) Additional Debentures were issued at par on 1st October, 2018 and Bank Loan was
repaid on the same date;
(iv) At the end of the year Preference Shares were redeemed at a premium of 5%.