Problems on Cash flow statement

1. The balance sheet of VXL limited as at 31st December of two years are given
Liabilities 2019 2020 Assets 2019 2020

Equity Share capital 3,00,000 4,00,000 Goodwill 1,15,000 90,000

9% preference share 1,50,000 1,00,000 Land and building 2,00,000 1,70,000
capital
General reserve 40,000 70,000 Plant and machinery 80,000 2,00,000
P&L A/c 30,000 48,000 Debtors 1,60,000 2,00,000
Creditors 55,000 83,000 Stock 77,000 1,09,000
Provision for tax 40,000 50,000 Bills receivables 20,000 30,000
Bills payable 20,000 16,000 Cash in hand 15,000 10,000
Proposed dividend 42,000 50,000 Cash at bank 10,000 8,000
Additional info
 Depreciation of 20000 on land and building and 10000 on plant and
machinery has been charged in 2020
 Interim dividend of 20000 has been paid in 2020
 Income tax 35,000 has been paid during 2020
You are require to prepare cash flow statement
2. Following is the balance sheet of AB co ltd as at 1st January 2022 and 31st
December 2022
Liabilities 31/03/2017 31/03/2018
Rs. Rs.
Equity Share capital 3,00,000 3,50,000
Share premium - 30,000
General reserve 45,000 65,000
P/L A/c 30,000 80,800
6% debenture - 70,000
Sundry creditors 85,000 90,700
Provision for tax 22,500 40,500
Proposed Dividend 30,000 35,000
5,12,500 7,62,000
Assets
Land & buildings 2,30,000 3,90,000
Plant and Machinery 85,400 1,40,000
Debtors 75,000 85,500
Stock 82,400 95,700
Bank balance 34,200 44,300
Furniture 5,500 6,500
5,12,500 7,62,000
Additional information
Depreciation written off during the year
Land and building 60,000
Plant and machinery Rs 50000
Furniture Rs 1200
 You are require to prepare cash flow statement
3. From the following balance sheet of Abc company Ltd . as on 31st march
2019 and 31st march 2020
Liabilities 2019 2020 Assets 2019 2020

Share capital 684000 900000 Goodwill 230000 180000

9% preference share 300000 200000 Land and building 400000 340000
capital
General reserve 80000 140000 Plant and machinery 160000 400000
P&L A/c 60000 96000 Debtors 320000 400000
Creditors 110000 166000 Stock 154000 218000
Provision for tax 80000 100000 Bills receivables 40000 60000
Bills payable 40000 32000 Cash 50000 36000
1354000 1634000 1354000 1634000
Additional information
a) Dividend paid Rs 40000
b) Depreciation written off during the year 2020
a. Land and building Rs 40000
b. Plant Rs 20000
c) Provisions for tax made during the year 2020 was Rs 90000. Prepare cash flow
statement
4. From the following balance sheet prepare cash flow statement
Liabilities 2019 2020 Assets 2019 2020

Share capital 1,00,000 1,25,000 Land and building 1,00,000 95000

Bank loan 35000 - Machinery 75000 85500
General reserve 25000 30000 Stock 50000 37000
P&L A/c 15250 15300 Debtors 40000 32100
Creditors 75000 67600 Cash 250 300
Provision for tax 15000 17500 Bank 4000
Prepaid expenses 1500
2,65,250 2,55,400 2,65,250 2,55,400
Additional information
a) Dividend of Rs 11500 was paid
b) Depreciation has been charged on land and buildings Rs 5000
c) Machinery was further purchased for Rs 19000
d) Depreciation written off on machinery Rs 6000
e) Income Tax paid during the year Rs 16500
f) Loss on sale of machinery Rs 100 was Written off
5. Following are the summarized balance sheets of a company as on 31/03/2017
& 31/03/2018.
Liabilities 31/03/2017 31/03/2018
Rs. Rs.
Share capital 40,000 50,000
General reserve 10,000 12,000
P/L A/c 6,000 6,000
Long term loan 14,000 --
Sundry creditors 30,000 27,000
Provision for tax 6,000 7,000
1,06,000 1,02,000
Assets
Land & buildings 40,000 38,000
Machinery 30,000 33,800
Debtors 16,000 12,800
Stock 17,000 14,800
Cash 3,000 1,600
Goodwill -- 1,000
1,06,000 1,02,000
Additional Information:
a) Dividend of Rs.4600 was paid.
b) Assets of another company purchased were machinery Rs.5000, stock Rs.4,000 &
goodwill Rs.1,000 by issuing equity shares.
c) Machinery was further purchased for cash Rs.1600.
d) Depreciation written off against machinery Rs.2400.
e) Income tax provided during the year Rs.7000.
f) Loss on sale of machinery Rs.400 was written off
Prepare cash flow statement as per AS-3 (Indirect method).

6. Following are the summarized balance sheets of a company as on 31/03/2017

& 31/03/2018.
Liabilities 31/03/2017 31/03/2018
Rs. Rs.
Share capital 20,000 25000
General reserve 5,000 6,000
P/L A/c 3050 3060
Long term loan 7000 --
Sundry creditors 15000 13520
Provision for tax 3000 3500
53050 51080
Assets
Land & buildings 20000 19000
Machinery 15000 16900
Debtors 8000 6420
Stock 10000 7400
Cash 50 860
Goodwill -- 500
53050 51080
Additional Information:
a) Dividend of Rs.2300 was paid.
b) Assets of another company purchased were machinery Rs 2500 Stock
Rs.2000 & goodwill Rs.500 by issuing equity shares.
c) Machinery was further purchased for cash Rs.800.
 d) Depreciation written off against machinery Rs.1200.
e) Income tax provided during the year Rs.3300.
f) Loss on sale of machinery Rs.500 was written off
Prepare cash flow statement as per AS-3 (Indirect method).
7. From the following balance sheet of Vidhya company Ltd . prepare fund flow
statement showing in detail all the calculations
Liabilities 2019 2020 Assets 2019 2020

Share capital 400000 500000 Land and building 400000 480000

General reserve 80000 140000 Plant and 360000 260000
machinery
P&L A/c 64000 78000 Debtors 160000 128000
Creditors 300000 260000 Stock 200000 252000
Provision for tax 60000 80000 Bank 104000 18000
Bank loan (long 320000 80000
term)
1224000 1138000 1224000 1138000

Additional information
a. During the year 31-3-2020 Dividend of Rs 84000 was paid
b. Assets of another company was purchased for a consideration of Rs
100000 payable by the issue of shares and assets includes land and
building Rs 50000 and stock Rs 50000
c. Income tax Paid during the year Rs 70000
d. Depreciation written off on machinery Rs 24000 and land and building
Rs 45000
8. Prepare cash flow statement
Liabilities 2019 2020 Asstes 2019 2020
Share capital 13,00,000 1500000 Plant and machinery 600000 800000
General reserve 200000 250000 Land and building 750000 1000000
Bank loan 300000 200000 Investments 135000 100000
Creditors 100000 160000 Stock 330000 230000
Profit and loss Ac 120000 180000 Debtors 230000 332000
Provision for tax 45000 60000 Goodwill 30000 20000
Proposed dividend 100000 175000 Preliminary expenses 20000 15000
Bills payable 80000 60000 Cash and bank 150000 88000
2245000 2585000 2245000 2585000
Additional information
a) Depreciation written off during the year 31/3/2020 on plant and machinery 120000
b) Equity shares issued against the acquisition of another company. The assets consisted
of land and building worth Rs 150000 and stock worth Rs 50000. No depreciation has
been provided on land and building during the year.
c) A dividend of Rs 13500 was received during the year
(provision for taxation and proposed dividend are treated as non current
liability)
 9. From the following balance sheet of Mr Mahesh company Ltd prepare cash
flow statement showing in detail all the calculations
Liabilities 2019 2020 Assets 2019 2020

Capital 250000 306000 Cash 20000 14000

Mr Mahesh loan 50000 - Debtors 60000 100000
Loan from bank 80000 100000 Stock 70000 50000
Creditors 80000 88000 Land 80000 100000
Building 70000 120000
Machinery 160000 110000
Total 460000 494000 Total 460000 494000
Additional information
During the year machine costing Rs 20000(accumulated depreciation Rs 6000) was
sold for Rs 10000. The provisions for depreciation against machinery on 1/1/2020 and
31/12/2020 were Rs 50000 and Rs 80000 respectively. Net profit for the year
amounted to Rs 90000
10. From the following balance sheet of IVRL & Sons company Ltd prepare
cash flow statement showing in detail all the calculations
Liabilities 1/Jan2014 31/Dec/2014 Assets 1/Jan/2014 31/Dec/2014

Capital 125000 153000 Cash 10000 7000

Mr A’s loan 25000 - Debtors 30000 50000
Loan from 40000 50000 Stock 35000 25000
bank
Creditors 40000 44000 Land 40000 50000
Building 35000 60000
Machinery 80000 55000
Total 230000 247000 Total 230000 247000

Additional information
During the year machine costing Rs 10000(accumulated depreciation Rs 3000) was sold
for Rs 5000. The provisions for depreciation against machinery on 1/JAN/2014was Rs
25000 and 31/DEC/2014 were Rs 40000 respectively. Net profit for the year amounted to
Rs 45000
11. The following are the summarized b/s of sadhu ltd. As on 31-3-2019and 31-3-
2020
Liabilities 30-3-2019 31-3-2020 Assets 31-3-2019 31-3-2020
Share capital 3,00,000 4,00,000 P &m (cost) 2,00,000 3,22,500
Debentures 1,00,000 1,50,000 Land & building 1,50,000 2,00,000
(cost)
P&L a/c 62,500 1,25,000 Stock 1,50,000 1,75,000
Creditors 57,000 45,000 Cash 10,000 20,000
Provision RBD 3,000 1,500 Debtors 34,500 30,500
Provision for 10,000 12,000 Preliminary 3,500 3,000
depreciation on land & expenses
 buildings

Provision for 15,000 17,500

depreciation on P & M
5,48,000 7,51,000 5,48,000 7,51,000
Additional information
a) During the year part of machinery costing @ cost is Rs 35,000 (accumulated Rs
10,000) was sold for is Rs.3,000
b) Dividend of Rs.25,000 were paid
12. The following are the summarized b/s of AZ CO ltd. For two years
Liabilities 31-3-2019 31-3-2020 Assets 31-3- 31-3-
2019 2020
Share capital 12,00,000 16,00,000 P & M 8,00,000 12,90,000
Debentures 4,00,000 600,000 Land & building 600000 8,00,000

P and L Ac 250000 500000 Stock 600000 700000

Creditors 230000 180000 Bank 40,000 80,000
Provision bad and doubt full 12000 6000 Debtors 138000 122000
debts
Provision for depreciation on 40,000 48000 Preliminary 14000 12000
land & buildings expenses
Provision for depreciation on 60,000 70000
plant & machinery
21,92,000 30,04,000 21,92,000 30,04,000
Additional information
a) During the year part of machinery costing @ cost is Rs 1,40,000 (accumulated
depreciation there on Rs 4,000) was sold for is Rs.12,000
b) Dividend of Rs.1,00,000 were paid during the year
13. From the following Balance sheet of Narayan company ltd. & additional
information. Prepare a cash flow statement.
Liabilities 2019 2020 Assets 2019 2020
Rs. Rs. Rs. Rs.
Share capital 1,70,000 1,80,000 Plant & Machinery 99,000 92,200
Share premium 9,000 11,000 Building 1,38,000 1,61,000
Retained earnings 23,820 30,820 Land 10,000 12,000
Creditors 6,900 6,000 Stock 10,220 9,620
Provision for 1,000 1,400 Debtor 8,600 7,600
taxation
Outstanding salaries 2,000 1,400 Prepaid expenses 720 800
Mortgage loan -- 20,000 Cash 6,180 9,800
Debentures 60,000 42,400
2,72,720 2,93,020 2,72,720 2,93,020
Additional Information:
a) Building acquired during the year at a cost of Rs.60,000.
b) Dividend paid during the year Rs.17,000.
c) A sum of Rs.11,000 was transferred to provision for taxation.
 Problems for 4 marks
1) Calculate cash from operating Activities from the following data.
Particulars 2011 2012
Rs. Rs.
P/L Appropriation Account 30,000 40,000
B/R 7,500 10,000
Provision for depreciation 26,000 28,000
O/s salary 5,000 7,500
Prepaid rent 2,500 3,000
Goodwill 11,000 9,000
Stock 29,500 31,000

2) X ltd. had a profit of Rs.87,500 for the year ended 31/3/2014 after considering the
following. Calculate cash flows from operating activities.

Particulars 31/03/2014
Rs.
Depreciation on buildings 6,500
Depreciation on plant & machinery 2,000
Goodwill w/off. 1,500
Loss on sale of machinery 500
Following was the position of CA & CL of the co. for the years ending 31/03/2013 &
31/03/2014.
31/03/2013 31/03/2014
Rs. Rs.
Stock 35,000 42,500
Cash 32,500 25,000
Debtors 27,500 23,500
Creditors 22,500 25,000
O/S rent 2,500 1,500
B/P 20,000 17,500
B/R 22,500 26,500

3) From the following information, calculate cash flows from operating activities.
Particulars Rs.
P/L A/C on 01/01/2013 2,75,000
P/L A/C on 31/12/2013 4,00,000
Amount transferred to general reserve 25,000
Dividend paid 1,00,000
Income tax provision 75,000
Discount on shares w/off. 5,000
O/S expenses on 31/12/2013 12,500
Prepaid expenses on 01/01/2013 4,000
Accrued income on 31/12/2013 5,000
Income of 2013 received in advance in 2012 2,500
 Profit on sale of machinery 1,000
Loss on sale of furniture 500
Income on investments 25,000
Tax paid 11,500

4) Calculate cash flow from operation from the following information:

Particulars 31/03/2014 31/03/2015
Rs. Rs.
Debtors 1,50,000 1,41,000
Creditors 60,000 75,000
B/R 30,000 37,500
B/P 24,000 18,000
Outstanding expenses 3,000 15,000
Prepaid expenses 2,400 2,100
Profit made during the year -- 3,90,000
 (May 2016, B.Com)
5) From the following details, prepare Land & Buildings A/c & explain the
treatment of various items in the preparation of cash flow statement.
 Balance in Land & Buildings A/c as at 01/04/2009 Rs.5,60,000 & as at
31/03/2010 Rs.8,04,000.
 Purchase of Land & Buildings during the year 2009-10 Rs.3,00,000.
 There was no sale of any land or buildings during the year.
 (May 2013, B.Com)
6) From the following you are required to find out cash generated from operations
under indirect method.
Particulars 2011 2012
Rs. Rs.
Stock 60,000 50,000
Debtors 1,00,000 95,000
B/R 20,000 25,000
Creditors 40,000 50,000
B/P 20,000 15,000
O/S expenses 1,000 1,500
Income received in 2,000 1,500
advance
Adjustments:
1) Depreciation for the year was Rs.20,000.
2) Interim dividend paid Rs.60,000.
3) The balance of profits at the beginning of the year Rs.1,10,000 and at the end of
the year it was Rs.3,60,000.
 (May,2014 B.Com)
7) From the following balances calculate cash from operations.
Particulars 31/12/2017 31/12/2018
Rs. Rs.
B/R 60,000 57,000
Debtors 20,000 22,500
 B/P 30,000 35,000
Creditors 9,000 7,000
O/S expenses 2,000 2,200
Prepaid expenses 900 800
Accrued Income 700 850
Income received in advance 900 350
Profit made during the year -- 80,000
 (May,2019 B.com)
8) Glory co. ltd. had profits of Rs.3,60,000 for the year ended 31/03/2015 after
adjusting the following:
a) Depreciation on machinery Rs.30,000
b) Goodwill written off Rs.10,000.
c) Loss on sale of buildings Rs.5,000.
Details of current assets & current liabilities are given below:
Particulars 31/03/2016 31/03/2017
Rs. Rs.
Stock 1,40,000 1,70,000
Cash 1,30,000 1,00,000
Debtors 1,10,000 90,000
Creditors 90,000 1,00,000
O/S rent 10,000 5,000
B/P 80,000 70,000
B/R 90,000 1,10,000

From the above calculate cash flows from operating activities using indirect method.