Time- 1 hr ACCOUNTANCY- CASH FLOW STATEMENTS Max.

Marks-36
1. Mutual Fund Company receives a dividend of Rs.50,00,000 on its investment in other companys shares.
Why is it a cash inflow from operating activities for this company? (2)
2. What is meant by the term cash and Cash Equivalent as per AS-3? (2)
3. The Skylark purchased machinery for Rs.5,00,000 for manufacturing shoes. State giving reason whether the
cash flow due to purchase of machinery will be cash flow from operating, investing or financing activities? (2)
4. Classify the following into cash Flows from operating activities, investing activities and financing activities
while preparing the cash flow statement: (4)
(i)Purchase of goodwill, (ii) dividend received, (iii) redemption of debentures, (iv) borrowing of long term
loan, (v) Purchase of machinery, (vi) Payment of dividend, (vii) Issue of debentures; and, (viii) Payment of
long term loan.
5. Calculate the cash flow from operating activities from the following information: (8)
st st
Particulars 1 April 31 March
2012 2013
(Rs.) (Rs.)
Balance in statement of profit & loss 30,000 35,000
General reserve 10,000 15,000
Accumulated depreciation on plant 30,000 35,000
Outstanding expenses 5,000 3,000
Goodwill 20,000 10,000
Trade Receivables 40,000 35,000
An item of plant costing Rs.20,000 having book value Rs.14,000 was sold for Rs.18,000 during the year.
6. Calculate the cash flow from operating activities from the following information: (8)
st st
Particulars 1 April 31 March
2012 2013
(Rs.) (Rs.)
Machinery (gross block) 40,000 50,000
Capital 30,000 35,000
Provision for depreciation on machinery 10,000 12,000
Bank Loan 10,000 Nil
During the year, machine costing Rs.10,000 was sold at a loss of Rs.2,000. Depreciation charged during the
year on machinery is Rs.6,000.