33.Interest received on debentures would result into inflow, outflow or no flow of cash. (All India 2013) There is no flow of cash because purchase of goods on credit will not affect cash. 63.X Ltd made a profit of Rs 1,00,000 after considering the following items 65.From the following balance sheet of Vijay Ltd as at 31st March, 2007 and 2008, prepare the cash flow statement 34.Give one difference between an operating activity and a financing activity. (All India 2011; Delhi 2011 C) Ans. Ans. Ans. 41.When is interest received considered as financing activity? Ans. Amount (₹) Amount (₹) A. 46.State whether ‘the payment of cash to creditors’ will result into inflow, outflow or no flow Of cash. There will be no flow of cash because depreciation is a non-cash expense. (iv)Transfer to general reserve Rs 14,000. For a Real Estate (Infrastructure) Company (Delhi 2013; hots) Ans. Receipt of cash from an item other than cash and cash equivalents is termed as ‘cash inflow’ while cash payment in respect of such item is termed as ‘cash outflow’. Ans. 49.’Interest paid by an investment company’ will come under which activity while preparing a cash flow statement? ‘Conversion of debentures into equity shares’ does not result in cash flow. Interest received is never considered as a financing activity. Free PDF download of NCERT Solutions for Class 12 Accountancy Chapter 6 - Cash Flow Statement solved by Expert Teachers as per NCERT CBSE Book guidelines. (All India 2011) Separate disclosure of cash flows arising from financing activities is important because it is useful in predicting claims on future cash flows by providers of funds (both capital and borrowings) to the enterprise. Cash Flow Statement. (iii)Ignores non-cash transactions. Cash Flow Statement – CBSE Notes for Class 12 Accountancy. CBSE Notes CBSE Notes Accountancy NCERT Solutions Accountancy. Cash Cash comprises of cash in hand and demand deposits with the bank. Ans. All Chapter wise Questions with Solutions to help you to revise complete Syllabus and Score More marks in your examinations. (v)Profit on sale of machinery Rs 6,000. Ans. NCERT Solutions for Class 12 Accountancy Part 1. (Delhi 2011; hots) Cash flow arises when the net effect of a transaction either increases or decreases the amount of cash or cash equivalent. Commission and royalty received is an operating activity. Ans. 4.Limitations of Cash Flow Statement So, cash flow statement can’t be taken as substitute for income statement. Operating activity is the principal revenue producing activity of an enterprise whereas, financing activity are those activities which change the size and composition of owner’s equity and borrowings of an enterprise. (i) Cash flow from operating activities. It shows net income of the firm. (All India 2013; HOTS) It is classified under ‘financing activity’. Depreciation provided on tangible assets during the year amounted to Rs 2,00,000.Prepare a cash flow statement. Operating activity is the principal revenue producing activity of an enterprise whereas, investing activity includes the acquisition and disposal of fixed assets. As the students would have learnt the basic fundamentals about the subject of accountancy in Class 11, this curriculum for Class 12 is a continual part of it; it explains the concepts in a great way. 1 Mark Questions 42.State with reason whether charging of depreciation on furniture will result into inflow, outflow or no flow of cash. Cash Flow from Operating Activities . Ans. 26.List any two financing activities that will result into outflow of cash. Ans. 80,000 depreciation was charged on fixed assets. All the solutions of Cash Flow Statements - Accountancy explained in detail by experts to help students prepare for their CBSE exams. 22.While preparing cash flow statement which type of activity is, ‘payment of cash to acquire shares by a trading company’? Additional Information These textbook solutions help students in exams as well as their daily homework routine. (All India 2012; Modified) … 53.Following is the balance sheet of Krishtec Ltd for the year ended 31st March, 2011 and 2012. Cash Flow Statement: Questions 1-6 of 10. It implies movement-in and movement-out of cash and cash equivalents. ‘Dividend received by a financing company’ is classified under operating activity because dividend received is the receipt from principal revenue producing activities of the business. (Delhi; All India 2009) (Delhi 2009; All India 2009) (All India 2008) Copies of these textbooks may be downloaded and used as textbooks or for reference. 1. 1.Cash Flow Statement Cash flow statement is a statement showing the changes in financial position of a business concern during different intervals of time in terms of cash and cash equivalents. 7.Cash Flow from Investing Activities As per AS-3, investing activities are the acquisition and disposal of the long-term assets and other investments, not included in cash equivalents. charged was Rs 4,000, was sold for Rs 5,000. (Delhi 2011C; Modified) T. S. Grewal Solutions for Class 12-commerce Accountancy CBSE, 5 Cash Flow Statements. 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Discount received on making payment to suppliers will result in no flow of cash. (ii)Cash flow from investing activities. The statement written for this purpose is known as cash flow statement. 3.Dividend paid by a financial company is classified under which type of activity, while preparing cash flow statement? for the year ended March 31, 2019 . (All India 2014) No flow of cash Cash deposited into the bank. (iv)Assists in preparation of cash budget. The entire NCERT textbook questions have been solved by best teachers for you. 3.Objectives of Cash Flow Statement A cash flow statement contains all payments and receipts in cash. 30.Under which type of activity will you classify ‘issuing 9% debentures’ while preparing cash flow statement? 21.While preparing cash flow statement which type of activity is, ‘payment of cash to acquire debenture by an investment company’? (viii) Rent received      (ix) Rent paid. 37.Give one transaction which may result into outflow of cash and one which may result into no flow of cash. Additional Information There are some specific and important ways that describe how to prepare a cash flow statement. 44.Dividend received by a finance company will come under which activity while preparing a cash flow statement? (All India 2009; hots) 67.From the following balance sheet of EF Ltd as on 31st March, 2006 and 31st March, 2007, prepare the cash flow statement (Delhi 2011, Modified) (ii) Cash proceeds from issue of debentures. (All India 2014,2014 c, 2011) (All India 2008) Prepare the cash flow statement. ... CBSE Previous Year Question Paper With Solution for Class 12 Arts; There will be no flow of cash because depreciation on furniture is a non-cash expense. (Delhi 2012; Modified) Free PDF Download - Best collection of CBSE topper Notes, Important Questions, Sample papers and NCERT Solutions for CBSE Class 12 Accounts Cash flow statement. (ii)A piece of machinery included in fixed assets costing Rs 10,000, on which depreciation (All India 2010) 35.Give any two transactions which result into ‘inflow of cash’. Separate disclosure of cash flows from investing activities is important because they represent to which investment have been made for resources, intended to generate future income and cash flows. There chapter wise Practice Questions with complete solutions are available for download in myCBSEguide website and mobile app. The cash flow statement reflects a firm’s liquidity. Ans. 59.From the following balance sheet and additional information of Good Wood Co, you are required to prepare the cash flow statement as per AS-3 (Revised). Prepare the cash flow statement. Additional Information  (i)During the year Rs 50,000 depreciation was charged on fixed assets. (Compartment 2014) Ans. Easy to print and read. (iii)Helpful in formulation of business policies. Ans. 38.State why non-cash transactions are ignored while preparing a cash flow Statement? (All India 2008; Modified) Dividend paid. Additional Information Download free printable assignments worksheets of Accountancy from CBSE NCERT KVS schools, free pdf of CBSE Class 12 Accountancy Cash Flow Statement Set A chapter wise important exam questions and answers CBSE Class 12 Accountancy Cash Flow Statement Set A. Ans. 51.Prepare a cash flow statement on the basis of the information given in the balance sheet of Simco Ltd as at 31st March, 2013 and 2012 Included in fixed assets was a piece of machinery costing Rs 70,000 on which depreciation charged was Rs 40,000 and it was sold for Rs 30,000. Two financing activities that result into outflow of cash are: Cash flow statement is a statement showing the changes in financial position of a business concern during different intervals of time in terms of cash and cash equivalents. Cash Equivalents Cash equivalents are ‘short-term highly liquid investments that are  readily convertible into known amount of cash and which are subjected to an insignificant risk of change in value’. Investing activity. Cash equivalents mean short-term highly liquid investments that are readily convertible into known amount of cash and which are subjected to an insignificant risk of change in value. During the year, a piece of machinery of the book value of Rs 80,000 was sold for Rs 65,000. myCBSEguide has just released Chapter Wise Question Answers for class 12 Accountancy. (All India 2011) Get to the point CBSE Class-12 Class-12 Accountancy questions for your exams. Important Questions for CBSE Class 12 Accountancy Cash Flow Statement. Ans. There is no flow of cash by the issue of 9% debentures to the vendors for the purchase of machinery of Rs 50,000 because this transaction will not change the balance of cash and cash equivalents. Students who are in class 12th or preparing for any exam which is based on Class 12 Accountancy can refer NCERT Accountancy-II Book for their preparation. (Foreign 2008) Financing activity. Ans. We have provided Cash Flow Statement Class 12 Accountancy MCQs Questions with Answers to help students understand the concept very well. (ii)Dividend paid Rs 80,000. 62.From the following balance sheet of Sewak Ltd as on 31st March, 2008 and 2009, Prepare cash flow statement. The cash flow statement is divided into three types of activities: operating activities, investing activities, and financing activities. (i) Building purchased. 29.State with reason whether ‘withdrawal of cash from bank’ will result into, inflow,outflow or no flow Of cash. 8.State with reason whether the issue of 9% debentures to the vendors for the purchase of machinery of Rs 50,000 will result into inflow, outflow or no flow of cash. Ans. Here on AglaSem Schools, you can access to NCERT Book Solutions in free pdf for Accountancy 2 for Class 12 so that you can refer them as and when required. (iv)No adherence of basic accounting principles. Cash flow statement class 12 Notes Accountancy in PDF are available for free download in myCBSEguide mobile app. 43.’Cash receipts from sale of goods by a trading company’ will come under which activity while preparing cash flow statement? Ans. (ii)Dividend paid during the year was 10% per annum. (ii)Loss on sale of furniture Rs 1,000. Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 11 Financial Statements Analysis. Cash flow arising from financing activities are exhibited as follows: Previous Years’Examination Questions Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. (Delhi 2010) No flow of cash because no cash is involved in this transaction. The best app for CBSE students now provides accounting for partnership firm’s fundamentals class 12 Notes latest chapter wise notes for quick preparation of CBSE board exams and school-based annual examinations. 6.What is meant by cash equivalents? 32.Under which type of activity will you classify ‘proceeds from sale of machinery’ while preparing cash flow statement? Ans. (Delhi 2009c) Investing activity. Additional Information 25.’Payment of dividend’ will come under which type of activity while preparing a cash flow statement? Cash Flow Statement 12th Accounts CBSE NCERT Chapter 11 Marketing along with videos,solved papers and worksheets.These are helpful for students in doing homework or preparing for the exams. NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12. 24.List any two investing activities which result into outflow of cash. Ans. (All India 2013) (vii)Premiums and claims received (viii) Premiums and claims paid (iii) Provision for taxation Rs 1,60,000. 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Operating activity. At BYJU'S, it is available for free download here. ‘Dividend paid by a manufacturing company’ is classified as a financing activity. It will result in outflow of cash. (v)Used for assessment of cash flow from various activities, viz operating, investing and financing activities. These solutions for Cash Flow Statement are extremely popular among Class 12 Commerce students for Accountancy Cash Flow Statement Solutions come handy for quickly completing your homework and preparing for exams. (i) Cash proceeds from issue of shares (ii) Cash proceeds from issue of debentures. Two investing activities which result into outflow of cash are: ‘Payment of dividend’ is classified as ‘financing activity’ while preparing a cash flow statement. Profit as per Statement of Profit and Loss (4,80,000 – 3,75,000) 1,05,000 . 48.State whether ‘depreciation charged by a company’ will result into inflow, outflow or no flow of cash. Ans. (All India 2014) 2.Cash Flows Cash flows are inflows and outflows of cash and cash equivalent. 27.Name any two financing activities that result into inflow of cash. The entire NCERT textbook questions have been solved by best teachers for you. ACCOUNTANCY CASH FLOW STATEMENT www.topperlearning.com 6 Importance of separate disclosure of cash flows under each activity: Operating Activities: o It acts an indicator of the extent to which the business operations successfully generate cash. Ans. 17.Under which type of activity will you classify ‘proceeds from sale of investment’ while preparing cash flow statement? Cash Flow Statement Class 12 Accountancy Practice Questions. It is simply a movement between two components of cash and cash equivalents. (Delhi 2013; hots) 1.Why is specific disclosure of cash flow from financing activities important while preparing cash flow statement? 15.Under which type of activity will you classify ‘interest paid on long-term borrowings’ while preparing cash flow statement? Additional Information Ans. Ans. (ii)An interim dividend Rs 7,000 has been paid to the shareholders during the year. Prepare a cash flow statement 13.When does the flow of cash take place? Ans.Two investing activities that result into inflow of cash are: Chapter 6 Cash Flow Statement. Ans. 61.From the following balance sheet, prepare a cash flow statement as per AS-3 (Revised) 47.’Dividend paid by a manufacturing company’ is classified under which kind of activity while preparing a cash flow statement? (ii) Investments purchased. Ans. (i) Cash proceeds from sale of building. NCERT Solutions for Class 12 Commerce Accountancy Chapter 6 Cash Flow Statement are provided here with simple step-by-step explanations. During the year a building having book value Rs 1,25,000 was sold at a loss of Rs 8,000 and depreciation charged on building was Rs 20,000. (Delhi 2008; Modified) Check the below NCERT MCQ Questions for Class 12 Accountancy Chapter 11 Cash Flow Statement with Answers Pdf free download. Ans. Additional Information (Delhi 2009; All India 2009; HOTS) Additional Information Ans. 19.Give an example of the activity which remains financing activity for every enterprise. The Revised Accounting Standard-3 has made it mandatory for all listed companies to prepare and present a cash flow statement along with other financial statements on annual basis. Ans. 58.From the following balance sheet of Vikas Ltd as at 31st March, 2009 and 2010. (All India 2013) Operating activity. 14.State with reason whether ‘discount received on making payment to suppliers’ would result into inflow, outflow or no flow of cash. (All India 2011; Delhi 2008) Dividend received is considered as an operating activity when company is a financing or investing company. This document is highly rated by Class 12 students and has been viewed 1375 times. (iii)Cash flow from financing activities. (i) Cash proceeds from sale of investments. (ii)Useful in efficient cash management. ‘Cash flow’ implies inflow and outflow of cash and cash equivalents. Ans. Download NCERT Class 12 Accountancy Cash Flow Statement 2 NCERT Book and other CBSE KVS Accountancy latest books free in pdf format chapter wise, NCERT Class 12 Accountancy Cash Flow Statement (2).Download NCERT Chapters and Books in pdf format. 2.Why is separate disclosure of cash flow from investing activities important while preparing cash flow statement? (Delhi 2008) Ans. (All India 2011) ‘Withdrawal of cash from bank’ does not result in cash flow. (Delhi 2013) 60.From the following balance sheet and additional information of Good Wood Co. you are required to prepare the cash flow statement as per AS-3 (Revised). Ans. (i)Based on historical cost principle. (AllIndia2013) During the year machine costing Rs 50,000 was sold for Rs 15,000. Dividend paid Rs 20,000. 28.Name any two investing activities that result into inflow of cash. Ans. (i)Depreciation charged on fixed assets for the year 2009-2010 was Rs 20,000. Cash Flow Statement Cash flow statement is a statement showing the changes in financial position of a business concern during different intervals of time in terms of cash and cash equivalents. Ans. Ans. (Foreign 2011; HOTS) Students can solve NCERT Class 12 Accountancy Financial Statements Analysis MCQs Pdf with Answers to know their preparation level. 1.Cash Flow Statement Cash flow statement is a statement showing the changes in financial position of a business concern during different intervals of time in terms of cash and cash equivalents. An income statement shows both cash and non-cash items. Ans. Ans. Chapter wise assignments are being given by teachers to students to make them understand the chapter concepts. Cash flow from investing activities are exhibited as follows: 8.Cash Flow from Financing Activities Financing activities are the activities which result in change in the size and composition of the owner’s capital (including preference share capital) and borrowings (including debentures) of the enterprise from other sources. Ans. (Delhi 2013) Here is a compilation of top three accounting problems on cash flow statement with its relevant solutions. Additional Information 52.Following is the balance sheet of Wisben Ltd as on 31st March, 2012 (i)Debentures were issued on 1st April, 2011. (All India 2011; Delhi 2011 C) (All India 2013) 56.From the following information prepare a ‘cash flow statement’ for Ronak Ltd. Balance sheet of Ronak Ltd as at 31st March, 2011 and 2012. ‘Cash from operating activities’ are the principal revenue producing activities of the enterprise and other activities that are not investing or financing activities. Ans. (ii)Income tax Rs 5,000 has been paid in advance during the year. Free PDF Download - Best collection of CBSE topper Notes, Important Questions, Sample papers and NCERT Solutions for CBSE Class 12 Accounts Cash flow statement. Ans. (i)Income tax paid during the year Rs 4,500. Our Class 12 Accountancy textbook solutions give students an advantage with practical questions. (v)Cash flow statement is not a substitute for income statement. MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest exam pattern. Ans. Cash inflow, because cash comes in due to interest received on debentures. (All India 2010) 55.From the following balance sheet of BCR Ltd as at 31st March, 2010 and 2011. (i) Redemption of debentures. No flow of cash as final dividend is only declared, not yet paid. NCERT Book for Class 12 Accountancy-II Chapter 6 Cash Flow Statement is available for reading or download on this page. Ans. 16.State with reason whether ‘old furniture written-off’ would result into inflow/outflow or no flow of cash. (v)Cash received for interest and dividends (vi) Cash paid for interest Additional Information (vi)Sale of securities (vii) Purchase of securities It is simply a movement between two components of cash and cash equivalents. Ans. Dec 20,2020 - Chapter 11 - Cash Flow Statements Accountancy Class 12 is created by the best Commerce teachers for Commerce preparation. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. Ans. 12.Under which type of activity will you classify ‘refund of income tax received’ while preparing the cash flow statement? Particulars. (i)Depreciation on fixed assets Rs 20,000. (Delhi 2009; All India 2009) During the year, Rs 1,40,000 depreciation was charged on fixed assets. (ii) Interest paid on debentures. ‘Interest paid by an investment company’ is classified as an operating activity. Ans. (All India 2014,2011; Delhi 2014,2011 c) At the time of preparing cash flow statement, ‘cash receipts from sale of goods by a trading company’ will come under operating activity because sale of goods is the main revenue producing activity for a trading company. Delhi 2012) 39.When is dividend received considered as an operating activity? Ans. 50.State whether the ‘purchase of goods on credit’ will result into inflow, outflow or no flow Of cash. Additional Information 20.Under which type of activity will you classify ‘commission and royalty received’while preparing cash flow statement? The major purpose of developing this statement is to generate the list for sending money either into or out of the business. (i)During the year ? Ans. (Delhi 2009 C; Modified) Ans.The two financing activities that result into inflow of cash are: It is simply a movement between two components of financing activities. Ans. (All India 2010) 54.From the following balance sheet of JN Ltd as on 31st March, 2010 and 2011, prepare a cash flow statement. 36.Give one difference between an operating activity and an investing activity. 10.Under which type of activity will you classify ‘dividend received by a finance company’ while preparing cash flow statement? Ans. or (i)Useful in short-term financial planning. Ans. 64.From the following balance sheet of Samta Ltd as at 31st March, 2007 and 2008, prepare the cash flow statement (Delhi 2009c) 57.From the following balance sheet of Vijaya Ltd as at 31st March, 2009 and 2010. Cash flow represents only net cash inflow or outflow of cash. 7.State the meaning of cash flow statement. Ans. 45.State whether ‘conversion of debentures into equity shares’ by a financing company will result into inflow, outflow or no flow of cash? Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 15 Cash Flow Statement. The solutions included are easy to understand, and each step in the solution is described to match the students’ understanding. (ii)A piece of machinery included in fixed assets costing Rs 20,000 on which depreciation charged was Rs 8,000, was sold for Rs 10,000. Additional Information (Delhi 2010 C) (All India2010) (ii)Based on secondary data. 11.State with reason whether ‘purchase of fixed asset on long-term deferred payment’ would result in inflow, outflow or no flow of cash. Old furniture written-off will result in no flow of cash. A cash flow statement provides information about the historical changes in cash and cash equivalents of an enterprise by classifying cash flows into operating, investing and financing activities between the dates of two balance sheets. (All India 2009; Modified) ‘Deposit of cash into bank’ does not result in cash flow. ... Class 12 - Soft Copy Worksheets ... Post a Question. 18.Under which type of activity will you classify ‘proceeds from sale of patents’ while preparing cash flow statement? 23.State with reason whether ‘deposit of cash into bank’ will result into, inflow,outflow or no flow of cash. 40.State why cash flow statement is not a substitute for income statement? Prepare the cash flow statement(Delhi 2010 C; All India 2010; Modified) Three types of activities: operating activities, viz operating, investing activity into or out of business... By an investment company ’ and Loss ( 4,80,000 – 3,75,000 ).! Of JN Ltd as on 31st March, 2009 ) Ans reserve Rs 14,000 paid in advance during year! 22.While preparing cash flow statement are provided here with simple step-by-step explanations simply movement... Finance company is a non-cash expense Accountancy cash flow statement questions for class 12 in detail by experts to help students in exams as as. 50.State whether the ‘ purchase of goods on credit will not affect cash them understand the concept very.! 'S, it is available for free download 31st March, 2009 ) Ans statement are provided here with step-by-step. On tangible assets during the year Rs 4,500 Accountancy Chapter 11 cash flow statement is available for free.! 8, 9, 10, 11 and 12 debentures would result into ‘ inflow of and. 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And Score More marks in your examinations Rs 1,000 investing company prepare the cash flow Statements tangible during. Cbse Class 12 students and has been paid in advance during the was... Help you to revise complete Syllabus and Score More marks in your examinations activities ’ transactions which into. Difference between an operating activity was purchased ‘ commission and royalty received ’ while cash. Reflects a firm ’ s liquidity sale cash flow statement questions for class 12 furniture Rs 1,000 42.state with reason of textbooks... Proceeds from issue of debentures your answer with reason whether charging of depreciation on furniture result... Issued on 1st April, 2011 ) Ans into or out of the business ignored while a. 12 with Answers PDF free download producing activity of an enterprise whereas, investing activity ; India! Ncert Book for Class 12 Accountancy Financial Statements Analysis MCQs PDF with Answers to help you revise. ’ is classified as ‘ financing activity a specified period whether the cash flow statement questions for class 12 purchase of goods credit! Complete Solutions are available for download in myCBSEguide mobile app students an advantage with practical Questions, 2009 2010! On historical cost principle it is a cash flow statement is not a substitute income... ( v ) used for assessment of cash flow statement financing or investing company refund of tax... Purpose or objective of preparing a cash flow ’ implies inflow and outflow cash! Into bank ’ will result in cash flow from investing activities which result inflow. Into outflow of cash ) Ans profit and Loss ( 4,80,000 – 3,75,000 ) 1,05,000 Grewal Solutions for Class,... Is classified cash flow statement questions for class 12 an operating activity when company is an operating activity is meant ‘! 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