Class 12 Accounting Cash Flow Statement Notes and Important Questions
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Notes for Class 12 Cash Flow Statement (Accounting) are shown above.
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Important Questions
From the following information, calculate cash paid to creditors in second year.
Total Purchase: Rs. 12,00,000
1st Year: Rs. 80,000
2nd Year: Rs. 1,20,000
Following figures are taken from 2021 and 2022 balance sheet of a company.
Liabilities | 2021 | 2022 | Assets | 2021 | 2022 |
|---|---|---|---|---|---|
Creditors | 29,000 | 32,000 | Debtors | 15,000 | 10,000 |
Expenses due | 2,000 | 3,000 | Stock | 30,000 | 20,000 |
Retained earnings | 89,000 | 62,000 | Cash | 25,000 | 30,000 |
Loan | 50,000 | 68,000 | Fixed Assets | 180,000 | 195,000 |
Share capital | 80,000 | 90,000 | |||
Total | 2,50,000 | 2,55,000 | Total | 2,50,000 | 2,55,000 |
Additional information:
i) Sales: Rs. 100,000
ii) Cost of goods sold: Rs. 80,000
iii) Operating expenses (Including interest expenses Rs. 4,000) is Rs. 26,000
iv) Fixed assets purchase: Rs. 29,000
v) Cash dividend: Rs. 7,000
Required:
Cash flow statement using direct method.
The Balance Sheet and income statement of A Ltd. are given below:
Balance Sheet
Liabilities | 5th Year (Rs.) | 6th Year (Rs.) | Assets | 5th Year (Rs.) | 6th Year (Rs.) |
|---|---|---|---|---|---|
Share capital | 200,000 | 300,000 | Furniture | 200,000 | 260,000 |
Debenture | 150,000 | 130,000 | Land | 130,000 | 145,000 |
Creditors | 140,000 | 150,000 | Stock | 180,000 | 200,000 |
Bank overdraft | 120,000 | 110,000 | Debtors | 130,000 | 120,000 |
Retained earnings | 140,000 | 160,000 | Cash | 110,000 | 125,000 |
Total | 750,000 | 850,000 | Total | 750,000 | 850,000 |
Income Statement for the year ending 6th year
Items | Rs. |
|---|---|
Sales | 7,800,000 |
Less: Cost of goods sold | 6,700,000 |
Gross margin | 1,100,000 |
Less: Operating expenses | 1,040,000 |
Depreciation | 20,000 |
Premium on redemption of debenture | 1,000 |
Loss on sale of furniture (Book value Rs. 20,000) | 5,000 |
Total expenses | 1,066,000 |
Net income | 34,000 |
Other Information
a. Sale of furniture for Rs. 15,000 and purchase of furniture for Rs. 100,000
b. Dividend paid during the year: Rs. 14,000
Required:
Prepare a Cash Flow Statement using indirect method.
The Balance Sheet of a company on 31st December were given below:
Liabilities | Year I (Rs.) | Year II (Rs.) | Assets | Year I (Rs.) | Year II (Rs.) |
|---|---|---|---|---|---|
Share capital | 300,000 | 300,000 | Fixed Assets | 250,000 | 325,000 |
Retained earnings | 20,000 | 60,000 | Inventory | 10,000 | 35,000 |
Creditors | 20,000 | 30,000 | Debtors | 40,000 | 12,500 |
Expense payable | 25,000 | 17,500 | Bank balance | 65,000 | 35,000 |
Total | 365,000 | 407,500 | Total | 365,000 | 407,500 |
Additional Information:
i. Sales – Rs. 300,000
ii. Cost of goods sold – Rs. 180,000
iii. Sales of fixed assets – Rs. 25,000
iv. Purchase of fixed assets – Rs. 110,000
v. Dividend paid – Rs. 30,000
vi. Operating expense – Rs. 40,000
Required:
Cash flow statement using direct method
The two years balance sheet and other information of a company are as follows:
Particulars | Year I (Rs.) | Year II (Rs.) |
|---|---|---|
Capital | 3,80,000 | 4,95,000 |
Debentures | 1,50,000 | 90,000 |
Creditors | 30,000 | 62,500 |
Outstanding expenses | 5,000 | 7,500 |
Retained earnings | 35,000 | 35,000 |
Total | 6,00,000 | 6,90,000 |
Assets
Particulars | Year I (Rs.) | Year II (Rs.) |
|---|---|---|
Equipments | 1,50,000 | 1,35,000 |
Investments | 2,50,000 | 3,75,000 |
Stock | 75,000 | 90,000 |
Debtors | 45,000 | 70,000 |
Cash | 80,000 | 20,000 |
Total | 6,00,000 | 6,90,000 |
Additional Information:
i) Sales for the year II: Rs. 4,65,000
ii) Cost of goods sold: Rs. 2,10,000
iii) Operating expenses: Rs. 1,45,000
iv) Additional purchase of investment: Rs. 1,25,000
v) Tax paid: Rs. 35,000
vi) Equipment sold: Rs. 30,000 and purchased: Rs. 45,000
vii) Dividend paid: Rs. 45,000
Required:
Cash Flow Statement using direct method
Following Balance Sheets given as:
Liabilities | 2080 (Rs.) | 2081 (Rs.) | Assets | 2080 (Rs.) | 2081 (Rs.) |
|---|---|---|---|---|---|
Share Capital | 4,00,000 | 6,00,000 | Land | 2,00,000 | 3,00,000 |
Debenture | 2,00,000 | 1,50,000 | Plant | 3,00,000 | 5,00,000 |
Creditors | 60,000 | 40,000 | Stock | 20,000 | 18,000 |
Overdraft | 50,000 | 80,000 | Debtors | 80,000 | 32,000 |
Retained Earning | 40,000 | 90,000 | Cash | 1,50,000 | 1,10,000 |
Total | 7,50,000 | 9,60,000 | Total | 7,50,000 | 9,60,000 |
Income Statement for 2081
Particulars | Amount (Rs.) | Amount (Rs.) |
|---|---|---|
Sales | 9,00,000 | |
Less: Cost of goods sold | 5,00,000 | |
Gross Profit | 4,00,000 | |
Less: Expenses | ||
Selling & administrative expenses | 2,20,000 | |
Depreciation on plant | 80,000 | |
Premium on redemption of debenture | 30,000 | |
Total Expenses | 3,30,000 | |
Net Profit | 70,000 | |
Less: Dividend paid | 20,000 | |
Retained Earning | 50,000 |
Additional Information
Plant was sold at book value of Rs. 40,000 and a new plant was purchased for Rs. 3,20,000.
Required:
Cash Flow Statement using indirect method
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Exam
Past Question Analysis
Historical exam-pattern data from past NEB question papers — not a prediction of future questions.
6
Question Items
26
Total Marks
3
Papers Appeared In
| Year | Question Items | Marks |
|---|---|---|
| 2082 | 2 | 8 |
| 2081 | 2 | 9 |
| 2080 | 2 | 9 |
Also appears in 4 model questions (not counted above — model sets aren't actual NEB exam history).
This page covers Cash Flow Statement, chapter 6 of 15 in the Class 12 Accounting syllabus set by the National Examination Board (NEB). 10 important questions for this chapter are available, each with a full solution.
For subjects like this one, examiners tend to reuse similar question patterns year to year — comparing this chapter's important questions against recent old NEB papers is one of the more efficient ways to revise.