It shows net income of the firm. Ans. (i) Cash proceeds from sale of building. Ans. (ii)Useful in efficient cash management. (Delhi 2010) (All India 2014) NCERT Solutions Class 12 Accountancy 2 Chapter 6 Cash Flow Statement. Ans. (i)During the year, machine costing Rs 80,000 was sold for Rs 50,000. Ans. (All India 2013) 18.Under which type of activity will you classify ‘proceeds from sale of patents’ while preparing cash flow statement? During the year, a piece of machinery of the book value of Rs 80,000 was sold for Rs 65,000. Ans. … Dividend paid. Ans. Cash flow statement class 12 Notes Accountancy in PDF are available for free download in myCBSEguide mobile app. We have provided Cash Flow Statement Class 12 Accountancy MCQs Questions with Answers to help students understand the concept very well. Ans. 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. 49.’Interest paid by an investment company’ will come under which activity while preparing a cash flow statement? Cash Flow Statement Class 12 Accountancy Practice Questions. (All India 2008) A cash flow statement contains all payments and receipts in cash. (All India 2013) 63.X Ltd made a profit of Rs 1,00,000 after considering the following items (i)Income tax paid during the year Rs 3,500. Two investing activities which result into outflow of cash are: Proceeds from sale of investments is an investing activity. 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. Cash Cash comprises of cash in hand and demand deposits with the bank. 1. No flow of cash Cash deposited into the bank. 1 Mark Questions Delhi 2012) Ans. (i) Redemption of debentures. 20.Under which type of activity will you classify ‘commission and royalty received’while preparing cash flow statement? It is classified under ‘financing activity’. 52.Following is the balance sheet of Wisben Ltd as on 31st March, 2012 (iii) Provision for taxation Rs 1,60,000. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. The statement written for this purpose is known as cash flow statement. Additional Information Cash Flow from Operating Activities . Check the below NCERT MCQ Questions for Class 12 Accountancy Chapter 11 Cash Flow Statement with Answers Pdf free download. Ans. Ans. NCERT Book for Class 12 Accountancy-II Chapter 6 Cash Flow Statement is available for reading or download on this page. 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. 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. 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). 21.While preparing cash flow statement which type of activity is, ‘payment of cash to acquire debenture by an investment company’? (All India 2014 (C), 2009) Ans. T. S. Grewal Solutions for Class 12-commerce Accountancy CBSE, 5 Cash Flow Statements. 17.Under which type of activity will you classify ‘proceeds from sale of investment’ while preparing cash flow statement? 14.State with reason whether ‘discount received on making payment to suppliers’ would result into inflow, outflow or no flow of cash. Additional Information (Delhi 2014,2012,2011C; All India 2014,2012) Ans. (i)Depreciation charged on fixed assets for the year 2009-2010 was Rs 20,000. 65.From the following balance sheet of Vijay Ltd as at 31st March, 2007 and 2008, prepare the cash flow statement (All India 2008; Modified) Particulars. Ans. During the year, equipment costing Rs 1,00,000 was purchased. 42.State with reason whether charging of depreciation on furniture will result into inflow, outflow or no flow of cash. Ans. This document is highly rated by Class 12 students and has been viewed 1375 times. ‘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. 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. No flow of cash as final dividend is only declared, not yet paid. Cash flow represents only net cash inflow or outflow of cash. 32.Under which type of activity will you classify ‘proceeds from sale of machinery’ while preparing cash flow statement? Ans.The two financing activities that result into inflow of cash are: Outflow of cash Purchase of investments. (ii)Based on secondary data. 34.Give one difference between an operating activity and a financing activity. Ans. (All India2010) Cash Flow Statement: Classification, Format and Adjustments ,Cash Flow Statements - Get topics notes, Online test, Video lectures, Doubts and Solutions for CBSE Class 12-commerce on TopperLearning. Ans. Interest paid on long-term borrowings is a financing activity. (Delhi 2008) An income statement shows both cash and non-cash items. 6.Cash Flow from Operating Activities Operating activities are the principal revenue producing activities of the enterprise and other activities that are not investing or financing activities. Investing activity. Cash Flow Statement. Proceeds from sale of patents is an investing activity. (Foreign 2008) 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. 80,000 depreciation was charged on fixed assets. Ans. It is simply a movement between two components of cash and cash equivalents. (All India 2013) (Delhi 2009c) Ans. 55.From the following balance sheet of BCR Ltd as at 31st March, 2010 and 2011. (All India 2014,2014 c, 2011) 1.Why is specific disclosure of cash flow from financing activities important while preparing cash flow statement? 13.When does the flow of cash take place? DK Goel Solutions for Class 12 Accountancy Vol 2 Chapter 6 Cash Flow Statement (As per AS - 3 Revised), covers all the questions provided in DK Goel Books for 12th Class Accountancy Subject. 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. (vii)Premiums and claims received (viii) Premiums and claims paid (Delhi 2009c) It implies movement-in and movement-out of cash and cash equivalents. (v)Cash flow statement is not a substitute for income statement. At BYJU'S, it is available for free download here. 22.While preparing cash flow statement which type of activity is, ‘payment of cash to acquire shares by a trading company’? 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’. (v)Used for assessment of cash flow from various activities, viz operating, investing and financing activities. 4.State the purpose or objective of preparing a cash flow statement. 58.From the following balance sheet of Vikas Ltd as at 31st March, 2009 and 2010. (All India 2013) 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. 3.Dividend paid by a financial company is classified under which type of activity, while preparing 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. 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. Additional Information (All India 2011; Delhi 2011 C) 4.Limitations of Cash Flow Statement (All India 2011; Delhi 2011 C) Additional Information (All India 2011) (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. Ans. (ii)Loss on sale of furniture Rs 1,000. CBSE Notes CBSE Notes Accountancy NCERT Solutions Accountancy. 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. There will be no flow of cash because depreciation is a non-cash expense. (Compartment 2014) 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. (ii)An interim dividend Rs 7,000 has been paid to the shareholders during the year. 50.State whether the ‘purchase of goods on credit’ will result into inflow, outflow or no flow Of cash. 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Ans. Operating activity is the principal revenue producing activity of an enterprise whereas, investing activity includes the acquisition and disposal of fixed assets. 2.Why is separate disclosure of cash flow from investing activities important while preparing cash flow statement? Ans.Two investing activities that result into inflow of cash are: Loss on sale of equipment amounted to Rs 12,000. 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. Ans. 36.Give one difference between an operating activity and an investing activity. 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). (ii) Investments purchased. 66.From the following balance sheet of XY Ltd as on 31st March, 2006 and 2007, prepare a cash flow statement 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. 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. 62.From the following balance sheet of Sewak Ltd as on 31st March, 2008 and 2009, Prepare cash flow statement. Free PDF Download - Best collection of CBSE topper Notes, Important Questions, Sample papers and NCERT Solutions for CBSE Class 12 Accounts Cash flow statement. (All India 2011) Get to the point CBSE Class-12 Class-12 Accountancy questions for your exams. Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 11 Financial Statements Analysis. 19.Give an example of the activity which remains financing activity for every enterprise. It is simply a movement between two components of cash and cash equivalents. Ans. Important Questions for CBSE Class 12 Accountancy Cash Flow Statement. Log in, Concise Mathematics Class 10 ICSE Solutions 2018. (All India 2009; Modified) (Delhi 2011, Modified) charged was Rs 4,000, was sold for Rs 5,000. (Delhi 2012; Modified) 2.Cash Flows Cash flows are inflows and outflows of cash and cash equivalent. 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. (Delhi 2013; hots) Cash inflow, because cash comes in due to interest received on debentures. ‘Withdrawal of cash from bank’ does not result in cash flow. (ii)During the year a machine included in fixed assets costing Rs 1,20,000 was purchased and another machine of the book value of Rs 30,000 was sold at a loss of Rs 2,000. 11.State with reason whether ‘purchase of fixed asset on long-term deferred payment’ would result in inflow, outflow or no flow of cash. ‘Payment of dividend’ is classified as ‘financing activity’ while preparing a cash flow statement. Ans. (Delhi 2008; Modified) Ans. (i)During the year Rs 50,000 depreciation was charged on fixed assets. 45.State whether ‘conversion of debentures into equity shares’ by a financing company will result into inflow, outflow or no flow of cash? (Delhi 2013) Students can solve NCERT Class 12 Accountancy Financial Statements Analysis MCQs Pdf with Answers to know their preparation level. (Delhi 2012) ... CBSE Previous Year Question Paper With Solution for Class 12 Arts; (Delhi 2009 C; Modified) (ii)A piece of machinery included in fixed assets costing Rs 10,000, on which depreciation NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12. 5.Classification of Business Activities Accounting Standard-3 (Revised) requires that the changes resulting in inflows and outflows of cash and cash equivalents will be classified into following three activities: Additional Information It will result in outflow of cash. Prepare a cash flow statement 47.’Dividend paid by a manufacturing company’ is classified under which kind of activity while preparing a cash flow statement? Ans. Prepare the cash flow statement(Delhi 2010 C; All India 2010; Modified) The solutions included are easy to understand, and each step in the solution is described to match the students’ understanding. (All India 2010) 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’. (Delhi 2010 c) 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. Our Class 12 Accountancy textbook solutions give students an advantage with practical questions. Ans. 46.State whether ‘the payment of cash to creditors’ will result into inflow, outflow or no flow Of cash. (Delhi 2013) (All India 2014) (Delhi 2010) Ans. ‘Conversion of debentures into equity shares’ does not result in cash flow. Amount (₹) Amount (₹) A. It is simply a movement between two components of financing activities. (iv)No adherence of basic accounting principles. 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. Cash Flow Statement – CBSE Notes for Class 12 Accountancy. Get to the point CBSE Class-12 Class-12 Accountancy questions for your exams. (All India 2010) (i) Building purchased. 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. (iv)Assists in preparation of cash budget. Ans. (Delhi 2012; Modified) ‘Deposit of cash into bank’ does not result in cash flow. 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. (All India 2009; hots) There are some specific and important ways that describe how to prepare a cash flow statement. 41.When is interest received considered as financing activity? Ans. (i) Cash flow from operating activities. 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. So, cash flow statement can’t be taken as substitute for income statement. 67.From the following balance sheet of EF Ltd as on 31st March, 2006 and 31st March, 2007, prepare the cash flow statement (i) Cash proceeds from issue of shares (ii) Cash proceeds from issue of debentures. 27.Name any two financing activities that result into inflow of cash. (ii) Cash proceeds form sale of investments. 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