Sigma Commerce Classes : Accounts & Economics (11th , 12th, B.com and CA Foundation &
CSEET)
By: Pankaj Agarwal Mob. No. 9569768862, 9598075455 (Whatsapp)
CASH FLOW STATEMENT (Prev. Year Board Questions)
SHORT ANSWER
1. While preparing cash flow statement, identify the following transactions as belonging to
Operating activities, Investing activities, Financing activities;
a) Goodwill written off
b) Interest received by a company on its investments. (ISC
2016)
2. What is meant by the term Cash Equivalents as per Accounting Standard 3?
(ISC 2017)
3. State whether the following would result in inflow, outflow or no flow of cash;
(ISC 2018)
i) Bills receivable endorsed to creditors
ii) Old vehicle written off
4. While preparing a Cash Flow Statement, identify the following transactions as belonging to
Operating Activities, Investing Activities, Financing Activities, Cash and Cash Equivalents:
(ISC 2019)
(i) Bank overdraft repaid. (ii) Purchase of Marketable Securities to be sold within 90 days.
5. State with reason whether old furniture written off would lead to inflow, outflow or no flow
of Cash and Cash Equivalents
6. Mention the accounting basis on which a Cash Flow Statement is prepared.
7. . (ISC 2023) During the year 2021-22, SM Ltd. Issued 10,000, 10% Debentures of Rs. 100
each at a discount of 10% to be redeemed after three years. The company had a balance of
Rs. 60,000 in its Securities Premium. What amount will be added under operating Activities as
discount on issue of Debentures written off in the Cash Flow Statement of SM Ltd. For the
year 2021-22 ?
(a) Rs. 10,00,000 (b) Rs. 60,000 (c) Rs. 1,00,000 (d) Rs. 40,000
8. While preparing a Cash Flow Statement of Xen Ltd., which one of the following
will NOT cause any flow of cash under its Investing activities?
(a) Purchase of office equipment for ₹ 20,000.
(b) Sale of land for ₹ 2,50,000 for cash.
(c) Purchase of 5,000, 10% Debentures of ₹ 100 each of Zoom Ltd. for cash.
(d) Issue of 3,000, 6% Debentures of ₹ 100 each to Alpha Ltd. for cash.
9. Mention whether accrued interest on investments would result in inflow, outflow or no flow of
cash
10. Mention whether the following would result in inflow, outflow or no flow of cash; (ISC 2021)
i) Interest due on debentures
ii) Purchase of goodwill
11. SP 2024
While preparing a Cash Flow Statement, which one of the following will be added to the Net
Profit for the year to get Net Profit before Tax?
(a) Sale of Plant & Machinery
(b) Interest received on Investments
(c) Increase in Trade Payables
(d) Increase in General Reserve
, LONG QUESTIONS
Q1. From the following Balance Sheet , You are required to prepare a Cash Flow Statement for
the year 2022-23. (ISC-2024)
Particulars Note 31.03.2023 31.03.2022
No.
I EQUITY AND LIABILITIES
1. Shareholder’s Funds
(a) Share Capital 4,50,000 4,00,000
(b) Reserve and Surplus 1,06,000 (20,000)
2. Non current Liabilities
Long term borrowings (15% Debentures) 6,00,000 4,00,000
3. Current Liabilities
Short term provision (Prov. For Tax) 50,000 70,000
TOTAL 12,06,000 8,50,000
II ASSETS
1. Non- Current Assets
Property, Plant & Equipment & Intangible
Assets
(i) Property, Plant & Equipment 4,80,000 7,00,000
2. Current Assets
(a) Current Investment 2,56,000 10,000
(b) Cash & Bank Balances 4,70,000 1,40,000
TOTAL 12,06,000 8,50,000
Notes to Accounts :
Particulars 31.03.2023 31.03.2022
1. Property, Plant & Equipment (P& M) 7,42,000 9,00,000
Less : Accumulated Depreciation (2,62,000) (2,00,000)
Additional Information : During the year 2022-23, the company
(a) Issued additional debentures on 1st October, 2022.
(b) Sold Plant & Machinery, the book value of which was Rs. 1,20,000 (accumulated
depreciation Rs. 38000), for Rs. 50,000
Q2. Based on the following information of Neon Ltd. Answer the questions given below in
relation to the Cash Flow Statement of the company for the year 2022-23.
(ISC-2024)
Particulars 31.03.2023 31.03.2022
CSEET)
By: Pankaj Agarwal Mob. No. 9569768862, 9598075455 (Whatsapp)
CASH FLOW STATEMENT (Prev. Year Board Questions)
SHORT ANSWER
1. While preparing cash flow statement, identify the following transactions as belonging to
Operating activities, Investing activities, Financing activities;
a) Goodwill written off
b) Interest received by a company on its investments. (ISC
2016)
2. What is meant by the term Cash Equivalents as per Accounting Standard 3?
(ISC 2017)
3. State whether the following would result in inflow, outflow or no flow of cash;
(ISC 2018)
i) Bills receivable endorsed to creditors
ii) Old vehicle written off
4. While preparing a Cash Flow Statement, identify the following transactions as belonging to
Operating Activities, Investing Activities, Financing Activities, Cash and Cash Equivalents:
(ISC 2019)
(i) Bank overdraft repaid. (ii) Purchase of Marketable Securities to be sold within 90 days.
5. State with reason whether old furniture written off would lead to inflow, outflow or no flow
of Cash and Cash Equivalents
6. Mention the accounting basis on which a Cash Flow Statement is prepared.
7. . (ISC 2023) During the year 2021-22, SM Ltd. Issued 10,000, 10% Debentures of Rs. 100
each at a discount of 10% to be redeemed after three years. The company had a balance of
Rs. 60,000 in its Securities Premium. What amount will be added under operating Activities as
discount on issue of Debentures written off in the Cash Flow Statement of SM Ltd. For the
year 2021-22 ?
(a) Rs. 10,00,000 (b) Rs. 60,000 (c) Rs. 1,00,000 (d) Rs. 40,000
8. While preparing a Cash Flow Statement of Xen Ltd., which one of the following
will NOT cause any flow of cash under its Investing activities?
(a) Purchase of office equipment for ₹ 20,000.
(b) Sale of land for ₹ 2,50,000 for cash.
(c) Purchase of 5,000, 10% Debentures of ₹ 100 each of Zoom Ltd. for cash.
(d) Issue of 3,000, 6% Debentures of ₹ 100 each to Alpha Ltd. for cash.
9. Mention whether accrued interest on investments would result in inflow, outflow or no flow of
cash
10. Mention whether the following would result in inflow, outflow or no flow of cash; (ISC 2021)
i) Interest due on debentures
ii) Purchase of goodwill
11. SP 2024
While preparing a Cash Flow Statement, which one of the following will be added to the Net
Profit for the year to get Net Profit before Tax?
(a) Sale of Plant & Machinery
(b) Interest received on Investments
(c) Increase in Trade Payables
(d) Increase in General Reserve
, LONG QUESTIONS
Q1. From the following Balance Sheet , You are required to prepare a Cash Flow Statement for
the year 2022-23. (ISC-2024)
Particulars Note 31.03.2023 31.03.2022
No.
I EQUITY AND LIABILITIES
1. Shareholder’s Funds
(a) Share Capital 4,50,000 4,00,000
(b) Reserve and Surplus 1,06,000 (20,000)
2. Non current Liabilities
Long term borrowings (15% Debentures) 6,00,000 4,00,000
3. Current Liabilities
Short term provision (Prov. For Tax) 50,000 70,000
TOTAL 12,06,000 8,50,000
II ASSETS
1. Non- Current Assets
Property, Plant & Equipment & Intangible
Assets
(i) Property, Plant & Equipment 4,80,000 7,00,000
2. Current Assets
(a) Current Investment 2,56,000 10,000
(b) Cash & Bank Balances 4,70,000 1,40,000
TOTAL 12,06,000 8,50,000
Notes to Accounts :
Particulars 31.03.2023 31.03.2022
1. Property, Plant & Equipment (P& M) 7,42,000 9,00,000
Less : Accumulated Depreciation (2,62,000) (2,00,000)
Additional Information : During the year 2022-23, the company
(a) Issued additional debentures on 1st October, 2022.
(b) Sold Plant & Machinery, the book value of which was Rs. 1,20,000 (accumulated
depreciation Rs. 38000), for Rs. 50,000
Q2. Based on the following information of Neon Ltd. Answer the questions given below in
relation to the Cash Flow Statement of the company for the year 2022-23.
(ISC-2024)
Particulars 31.03.2023 31.03.2022
