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Accountancy · 2022 · 5 marks
CBSE 2022 · Region 2 · Set 2 · Q12
Calculate 'Cash Flows from Operating Activities' for the year ended 31st March, 2021 from the following Balance Sheet of Raman Ltd. as at 31st March,…
Calculate 'Cash Flows from Operating Activities' for the year ended 31st March, $\displaystyle 2021$ from the following Balance Sheet of Raman Ltd. as at 31st March, $\displaystyle 2021$ : Balance Sheet of Raman Ltd. as at 31st March, $\displaystyle 2021$ Note $\displaystyle 31.3.2021$ $\displaystyle 31.3.2020$ Particulars No. < < I Equity and Liabilities : $\displaystyle 7$ 1. Shareholders Funds (a) Share Capital $\displaystyle 7,50,000$ $\displaystyle 7,00,000$ (b) Reserves and Surplus $\displaystyle 1$ $\displaystyle 1,25,000$ $\displaystyle 55,000$ 2. Non-Current Liabilities Long-term Borrowings $\displaystyle 1,00,000$ $\displaystyle 62,500$ 3. Current Liabilities (a) Short-term Borrowings $\displaystyle 2$ $\displaystyle 6,000$ $\displaystyle 5,000$ (b) Trade Payables $\displaystyle 7,500$ $\displaystyle 41,500$ (c) Short-term Provisions $\displaystyle 3$ $\displaystyle 9,000$ $\displaystyle 5,500$ Total $\displaystyle 9,97,500$ $\displaystyle 8,69,500$ _ II Assets : 1. Non-Current Assets Fixed Assets (a) Tangible Assets $\displaystyle 4$ $\displaystyle 9,30,000$ $\displaystyle 8,05,000$ (b) Intangible Assets $\displaystyle 5$ $\displaystyle 25,000$ $\displaystyle 15,000$ 2. Current Assets (a) Current Investments $\displaystyle 4,000$ $\displaystyle 2,500$ (b) Inventories $\displaystyle 18,500$ $\displaystyle 29,500$ (c) Trade Receivables $\displaystyle 13,000$ $\displaystyle 11,500$ (d) Cash and Cash Equivalents $\displaystyle 7,000$ $\displaystyle 6,000$ Total $\displaystyle 9,97,500$ $\displaystyle 8,69,500$ Notes to Accounts : Note $\displaystyle 31.3.2021$ $\displaystyle 31.3.2020$ Particulars No. < < $\displaystyle 1$ Reserves and Surplus (Balance in Statement of Profit and Loss) $\displaystyle 1,25,000$ $\displaystyle 55,000$ $\displaystyle 2$ Short-term Borrowings Bank Overdraft $\displaystyle 6,000$ $\displaystyle 5,000$ $\displaystyle 3$ Short-term Provisions Provision for Tax $\displaystyle 9,000$ $\displaystyle 5,500$ $\displaystyle 4$ Tangible Assets Machinery $\displaystyle 10,00,000$ $\displaystyle 8,50,000$ Accumulated Depreciation $\displaystyle (70,000)$ $\displaystyle (45,000)$ $\displaystyle 9,30,000$ $\displaystyle 8,05,000$ $\displaystyle 5$ Intangible Assets Patents $\displaystyle 25,000$ $\displaystyle 15,000$ Additional Information : Tax paid during the year amounted to ₹ $\displaystyle 6$,500.
Marking-scheme solution
Calculation of ‘Cash Flows from operating activities’
for the year ended 31st March, $\displaystyle 2021$
Amount
Particulars
(₹)
Net profit before tax and extraordinary items $\displaystyle 80,000$
Add : Non-cash and Non-operating expenses :
Depreciation $\displaystyle 25,000$
Net profit before changes in working capital $\displaystyle 1,05,000$
Add : Decrease in Current Assets and increase in Current
Liabilities :
Inventories
$\displaystyle 11,000$
Less : Increase in Current Assets and decrease in Current
Liabilities :
:
$\displaystyle (1,500)$
Trade Receivables $\displaystyle (34,000)$
Trade payables
Cash generated from operations $\displaystyle 80,500$
Less : Tax paid $\displaystyle (6,500)$
Cash Flow from operating activities $\displaystyle 74,000$
Dr. Provision for Tax Cr.
Particulars (₹) Particulars (₹)
To Bank A/c $\displaystyle 6,500$ By Balance b/d $\displaystyle 5,500$
To Balance c/d $\displaystyle 9,000$ By Statement of Profit &loss $\displaystyle 10,000$
$\displaystyle 15,500$ $\displaystyle 15,500$
Working Notes :
Calculation of net profit before tax :
(₹)
Net Profit $\displaystyle 70,000$
Add provision for Tax $\displaystyle 10,000$
$\displaystyle 80,000$
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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.