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Accountancy · 2022 · 5 marks
Cash Flow StatementAscertainment of Cash Flow from Investing and Financing Activities5 markslong answer
CBSE 2022 · Region 5 · Set 3 · Q12
Calculate 'Cash Flows from Investing Activities' and 'Cash Flows from Financing Activities' for the year ended 3 1st March, 2021 from the following…
Calculate 'Cash Flows from Investing Activities' and 'Cash Flows from Financing Activities' for the year ended $\displaystyle 3$ 1st March, $\displaystyle 2021$ from the following Balance Sheet of Kamna Ltd. as at $\displaystyle 3$ 1st March, $\displaystyle 2021$ showing your workings clearly : Kamna Ltd. Balance Sheet as at 31st March, $\displaystyle 2021$
Notes to Accounts :
Additional Information : A piece of Machinery costing ₹ $\displaystyle 24,000$ on which accumulated depreciation was ₹ $\displaystyle 16,000$, was sold for ₹ $\displaystyle 6$,000.
| Particulars | Note No. | 31st March, $\displaystyle 2021$ (₹) | 31st March, $\displaystyle 2020$ (₹) |
| I. Equity and Liabilities | |||
| 1. Shareholders' funds | |||
| (a) Share Capital | $\displaystyle 12,00,000$ | $\displaystyle 11,00,000$ | |
| (b) Reserves and surplus | $\displaystyle 1$ | $\displaystyle 3,00,000$ | $\displaystyle 2,00,000$ |
| 2. Non-Current Liabilities | |||
| Long-term borrowings | $\displaystyle 2,40,000$ | $\displaystyle 1,70,000$ | |
| 3. Current Liabilities | |||
| Trade payables | $\displaystyle 2,20,000$ | $\displaystyle 2,81,000$ | |
| Total | $\displaystyle 19,60,000$ | $\displaystyle 17,51,000$ | |
| II. Assets | |||
| 1. Non-Current Assets | |||
| (a) Fixed Assets | |||
| (i) Tangible Assets | $\displaystyle 2$ | $\displaystyle 10,70,000$ | $\displaystyle 8,50,000$ |
| (ii) Intangible Assets | $\displaystyle 3$ | $\displaystyle 40,000$ | $\displaystyle 1,12,000$ |
| 2. Current Assets | |||
| (a) Current Investments | $\displaystyle 2,40,000$ | $\displaystyle 1,50,000$ | |
| (b) Inventories | $\displaystyle 1,20,000$ | $\displaystyle 1,21,000$ | |
| (c) Trade Receivables | $\displaystyle 1,70,000$ | $\displaystyle 1,43,000$ | |
| (d) Cash and Cash Equivalents | $\displaystyle 3,20,000$ | $\displaystyle 3,75,000$ | |
| Total | $\displaystyle 19,60,000$ | $\displaystyle 17,51,000$ |
| Note No. | Particulars | 31st March, $\displaystyle 2021$ (₹) | 31st March, $\displaystyle 2020$ (₹) |
| 1. | Reserve and Surplus | $\displaystyle 3,00,000$ | $\displaystyle 2,00,000$ |
| Surplus i.e. Balance in Statement of Profit & Loss | |||
| 2. | Tangible Assets : | ||
| Machinery | $\displaystyle 12,70,000$ | $\displaystyle 10,00,000$ | |
| Accumulated Depreciation | ($\displaystyle 2,00,000$) | ($\displaystyle 1,50,000$) | |
| $\displaystyle 10,70,000$ | $\displaystyle 8,50,000$ | ||
| 3. | Intangible Assets : | ||
| Goodwill | $\displaystyle 40,000$ | $\displaystyle 1,12,000$ |
Marking-scheme solution
Calculation of Cash Flows from Investing Activities
for the year ended 31st March $\displaystyle 2021$
Particulars (₹) (₹)
Purchase of Machinery ($\displaystyle 2,94,000$)
Sale of Machinery $\displaystyle 6,000$
Cash used in Investing Activities ($\displaystyle 2,88,000$)
Working Notes:
Dr. Machinery A/c Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Balance b/d $\displaystyle 10,00,000$ By Bank A/c $\displaystyle 6,000$
To Bank A/c $\displaystyle 2,94,000$ By Accumulated Depreciation $\displaystyle 16,000$
(Balancing figure) By Statement of Profit & Loss $\displaystyle 2,000$
By Balance c/d $\displaystyle 12,70,000$
$\displaystyle 12,94,000$ $\displaystyle 12,94,000$
Dr. Accumulated Depreciation Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Machinery $\displaystyle 16,000$ By Balance b/d $\displaystyle 1,50,000$
To Balance c/d $\displaystyle 2,00,000$ By Statement of Profit & Loss $\displaystyle 66,000$
(Balancing figures)
$\displaystyle 2,16,000$ $\displaystyle 2,16,000$
Calculation of Cash Flows from Financing Activities
for the year ended 31st March $\displaystyle 2021$
Particulars (₹) (₹)
Issue of Share Capital $\displaystyle 1,00,000$
Long-term borrowings raised $\displaystyle 70,000$
Cash Flows from Financing Activities $\displaystyle 1,70,000$
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CBSE Class 12 Accountancy past-paper question from the 2022 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.