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    Cashflow Test

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    Nahata Professional Academy

    Test Topic - Cash Flow Statement


    Time allowed:- 1 hour
    Max. marks :- 20 marks

    Question 1 (10marks)
    The following are the summarized Balance Sheets of ‘X’ Ltd. as on March 31, 2005 and
    2006:
    Liabilities As on As on
    31.3.2005 31.3.2006
    (` ) (` )
    Equity share capital 10,00,000 12,50,000
    Capital Reserve --- 10,000
    General Reserve 2,50,000 3,00,000
    Profit and Loss A/c 1,50,000 1,80,000
    Long-term loan from the Bank 5,00,000 4,00,000
    Sundry Creditors 5,00,000 4,00,000
    Provision for Taxation 50,000 60,000
    Proposed Dividends 1,00,000 1,25,000
    25,50,000 27,25,000

    Assets Year 2005 Year 2006


    (` ) (` )
    Land and Building 5,00,000 4,80,000
    Machinery 7,50,000 9,20,000
    Investment 1,00,000 50,000
    Stock 3,00,000 2,80,000
    Sundry Debtors 4,00,000 4,20,000
    Cash in Hand 2,00,000 1,65,000
    Cash at Bank 3,00,000 4,10,000
    25,50,000 27,25,000
    Additional Information:
    (i) Dividend of ` 1,00,000 was paid during the year ended March 31, 2006.
    (ii) Machinery during the year purchased for ` 1,25,000.
    (iii) Machinery of another company was purchased for a consideration of `
    1,00,000 payable in equity shares.
    (iv) Income-tax provided during the year ` 55,000.
    (v) Company sold some investment at a profit of ` 10,000, which was credited
    to Capital reserve.
    (vi) There was no sale of machinery during the year.
    (vii) Depreciation written off on Land and Building ` 20,000.
    From the above particulars, prepare a cash flow statement for the year ended March,
    2006 as per AS 3 (Indirect method).
    Question 2 (10 marks)
    Surya Ltd. has provided you the following particulars. Prepare Cash Flow from
    Operating Activities by Indirect Method in accordance with AS 3 :
    Profit & Loss Account of Surya
    Ltd. for the year ended 31st
    March, 2013
    Particulars ` Particulars `
    To Depreciation 86,700 By Operating Profit before 11,01,600
    depreciation
    To Patents written off 35,000 By Profit on Sale on Investments 10,000
    To Provision for Tax 1,25,000 By Refund of Tax 3,000
    To Proposed dividend 72,000 By Insurance Claim-Major Fire 1,00,000
    Settlement
    To Transfer to Reserve 87,000
    To Net Profit 8,08,900
    12,14,600 12,14,600

    Additional information :
    in `
    31.3.2012 31.3.2013
    Stock 1,20,000 1,60,000
    Trade Debtors 7,500 75,000
    Trade Creditors 23,735 87,525
    Provision for Tax 1,18,775 1,25,000
    Prepaid Expenses 15,325 12,475
    Marketable Securities 11,775 29,325
    Cash Balance 25,325 35,340

    Question 3

    (a) The following information was provided by PQR Ltd. for the year ended 31st
    March, 2019 :
    (1) Gross Profit Ratio was 25% for the year, which amounts to ` 3,75,000.
    (2) Company sold goods for cash only.
    (3) Opening inventory was lesser than closing inventory by ` 25,000.
    (4) Wages paid during the year ` 5,55,000.
    (5) Office expenses paid during the year ` 35,000.
    (6) Selling expenses paid during the year ` 15,000.
    (7) Dividend paid during the year ` 40,000 (including dividend distribution
    tax).
    (8) Bank Loan repaid during the year ` 2,05,000 (included interest ` 5,000)
    (9) Trade Payables on 31st March, 2018 were ` 50,000 and on 31 st March,
    2019 were
    ` 35,000.
    (10) Amount paid to Trade payables during the year ` 6,10,000
    (11) Income Tax paid during the year amounts to `
    55,000 (Provision for taxation as on 31st March,
    2019 ` 30,000)·
    (12) Investments of ` 8,20,000 sold during the year at a profit of ` 20,000.
    (13) Depreciation on furniture amounts to ` 40,000.
    (14) Depreciation on other tangible assets amounts to ` 20,000.
    (15) Plant and Machinery purchased on 15th November, 2018 for ` 3,50,000.

    (16) On 31st March, 2019 ` 2,00,000, 7% Debentures were issued at face


    value in an exchange for a plant.
    (17) Cash and Cash equivalents on 31st March, 2018 ` 2,25,000.
    Prepare cash flow statement for the year ended 31 st March, 2019, using direct method.

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