Cash Flow Statement-Past question solution of Account

Particular

Amt.

Amt.

Cash flow from operating activities:

a. Cash Collection from customers:

:- Sales revenue

960000

:- Increase in debtors

(24000)

936000

b. Cash paid to suppliers

:- Cost of goods sold

(580000)

:- Increase in stock

(20000)

:- Increase in creditors

24000

(576000)

c. Cash paid to employees

:- Operating expenses

(240000)

:- Increase in salaries outstanding

8000

(232000)

d. Tax paid

:- Tax paid

(12000)

(12000)

Cash from operating expenses

116000

Cash flow from investing activities

:- Purchase of fixed assets

(85000)

:- Sales of fixed assets

80000

Cash from investing activities

(5000)

Cash flow from financial activities

:- Issue of share capital

120000

Cash from financial activities

120000

The net change in cash and cash equivalent

231000

Add: Opening cash and cash equivalent

60000

Closing cash and cash equivalent

291000

Particular

Amt.

Amt.

Cash flow from operating activities:

a. Cash Collection from customers:

:- Sales revenue

840000

:- Decrease in debtors

48000

888000

b. Cash paid to suppliers

:- Cost of goods sold

(528000)

:- Increase in stock

(48000)

:- Increase in creditors

40000

(536000)

c. Cash paid to employees

:- Administrative expenses

(120000)

:- Increase in outstanding expenses

20000

(100000)

Cash from operating expenses

252000

Cash flow from investing activities

:- Purchase of fixed assets

(384000)

:- Sales of fixed assets

84000

Cash from investing activities

(300000)

Cash flow from financial activities

:- Issue of share capital

120000

:- Redemption of 10% debenture

(60000)

:- Dividend paid

(72000)

Cash from financial activities

(12000)

The net change in cash and cash equivalent

(60000)

Add: Opening cash and cash equivalent

120000

Closing cash and cash equivalent

60000

Particular

Amt.

Amt.

Cash flow from operating activities:

a. Cash Collection from customers:

:- Sales revenue

2000000

:- Decrease in debtors

80000

2080000

b. Cash paid to suppliers

:- Cost of goods sold

(1400000)

:- Increase in stock

(20000)

:- Increase in creditors

40000

(1380000)

c. Cash paid to employees

:- Operating expenses

(400000)

:- Decrease in salaries outstanding

(10000)

:- Increase in prepaid rent

(10000)

(420000)

d. Tax paid

:- Tax paid

(30000)

(30000)

e. Interest paid

:- Interest on debenture

(20000)

(20000)

Cash from operating expenses

230000

Cash flow from investing activities

:- Purchase of office equipment

(60000)

:- Sales of office equipment

40000

:- Purchase of investment

(300000)

Cash from investing activities

(320000)

Cash flow from financial activities

:- Issue of share capital

150000

:- Redemption of 10% debenture

(80000)

:- Dividend paid

(90000)

Cash from financial activities

(20000)

The net change in cash and cash equivalent

(110000)

Add: Opening cash and cash equivalent

150000

Closing cash and cash equivalent

40000

Debit

Amount

Credit

Amount

To Closing balance of To provision for tax

30000

By Opening balance of provision for tax

30000

To Tax paid

50000

By Provision made for tax during the year

50000

80000

80000

Particular

Amt.

Amt.

Cash flow from operating activities:

a. Cash Collection from customers:

:- Sales revenue

1300000

:- Decrease in sundry debtors

110000

1410000

b. Cash paid to suppliers

:- Cost of goods sold

(700000)

:- Increase in stock

(50000)

:- Increase in creditors

50000

(700000)

c. Cash paid to employees

:- Administrative expenses

(130000)

:- Increase in outstanding expenses

20000

(110000)

Cash from operating expenses

600000

Cash flow from investing activities

:- Purchase of fixed assets

(300000)

:- Sales of office equipment

100000

Cash from investing activities

(200000)

Cash flow from financial activities

:- Issue of share capital

200000

:- Redemption of 10% debenture

(50000)

:- Dividend paid

(370000)

Cash from financial activities

(220000)

The net change in cash and cash equivalent

180000

Add: Opening cash and cash equivalent

120000

Closing cash and cash equivalent

300000

Debit

Amt.

Credit

Amt.

To opening balance

500000

By closing balance

700000

To purchase

300000

By sales

100000

800000

800000

Particular

Amt.

Amt.

Cash flow from operating activities:

a. Cash Collection from customers:

:- Sales

360000

:- Increase in debtors

(12000)

348000

b. Cash paid to suppliers

:- Cost of goods sold

(202200)

:- Increase in Inventory

(15000)

:- Increase in creditors

30000

(187200)

c. Cash paid to employees

:- Operating expenses

(60000)

(60000)

Cash from operating expenses

100800

Cash flow from investing activities

:- Purchase of machine

(105000)

:- Sales of machinery

9000

:- Sales of investment

31200

:- Building purchased

(240000)

Cash from investing activities

(304800)

Cash flow from financial activities

:- Issue of share capital with share premium (90000 + 33000)

123000

:- Issue of Long term Loan

150000

:- Dividend paid

(17400)

Cash from financial activities

255600

Net change in cash and cash equivalent

51600

Add: Opening cash and cash equivalent

201000

Closing cash and cash equivalent

252600

Particular

Amt.

Amt.

Cash flow from operating activities:

a. Cash Collection from customers:

:- Sales revenue

750000

:- Increase in debtors

(40000)

:- Decrease in Bills receivable

30000

740000

b. Cash paid to suppliers

:- Cost of goods sold

(430000)

:- Increase in Inventories

(20000)

:- Increase in creditors

20000

(430000)

c. Cash paid to employees

:- Operating expenses

(150000)

:- Decrease in salaries outstanding

(5000)

:- Increase in prepaid rent

(10000)

(165000)

d. Tax paid

:- Tax paid

(20000)

(20000)

e. Miscellaneous expenses

:- Increase Bank overdraft

20000

20000

Cash from operating expenses

145000

Cash flow from investing activities

:- Purchase of office equipment

(150000)

:- Sales of investment

50000

Cash from investing activities

(100000)

Cash flow from financial activities

:- Issue of share capital

100000

:- Redemption of 10% debenture

(100000)

:- Dividend paid

(40000)

Cash from financial activities

(40000)

Net change in cash and cash equivalent

5000

Add: Opening cash and cash equivalent

10000

Closing cash and cash equivalent

15000

Particular

Amt.

Amt.

Cash flow from operating activities:

a. Cash Collection from customers:

:- Sales

680000

:- Increase in debtors

(50000)

6300000

b. Cash paid to suppliers

:- Cost of goods sold

(420000)

:- Increase in inventory

(30000)

:- Increase in creditors

100000

(350000)

c. Cash paid to employees

:- Administrative expenses

(150000)

:- Increase in outstanding expenses

50000

(100000)

Cash from operating expenses

180000

Cash flow from investing activities

:- Purchase of fixed assets

(350000)

:- Sales of fixed assets

50000

Cash from investing activities

(300000)

Cash flow from financial activities

:- Issue of share capital

200000

:- Redemption of 10% debenture

(100000)

:- Dividend paid

(60000)

Cash from financial activities

40000

Net change in cash and cash equivalent

(80000)

Add: Opening cash and cash equivalent

120000

Closing cash and cash equivalent

40000

Particular

Amt.

Amt.

Cash flow from operating activities:

a. Cash Collection from customers:

:- Sales

840000

:- Decrease in debtors

48000

888000

b. Cash paid to suppliers

:- Cost of goods sold

(528000)

:- Increase in Inventory

(48000)

:- Increase in creditors

40000

(536000)

c. Cash paid to employees

:- Administrative expenses

(120000)

:- Increase in outstanding expenses

20000

(100000)

Cash from operating expenses

252000

Cash flow from investing activities

:- Purchase of fixed assets

(384000)

:- Sales of fixed assets

84000

Cash from investing activities

(300000)

Cash flow from financial activities

:- Issue of share capital

120000

:- Repayment of debenture

(60000)

:- Dividend paid

(72000)

Cash from financial activities

(12000)

Net change in cash and cash equivalent

(60000)

Add: Opening cash and cash equivalent

120000

Closing cash and cash equivalent

60000

Particular

Amt.

Amt.

Cash flow from operating activities:

a. Cash Collection from customers:

:- Sales

1000000

:- Increase in debtors

(15000)

:- Increase in Bills receivable

20000

1005000

b. Cash paid to suppliers

:- Cost of goods sold

(730000)

:- Increase in Inventories

(30000)

:- Increase in creditors

30000

(730000)

c. Cash paid to employees

:- Office expenses

(50000)

:- Selling expenses

(20000)

(70000)

d. Tax paid

:- Tax paid

(15000)

(15000)

Cash from operating expenses

190000

Cash flow from investing activities

:- Purchase of machinery

(160000)

:- Sales of furniture

25000

:- Decrease in investment

50000

Cash from investing activities

(85000)

Cash flow from financial activities

:- Issue of share capital with premium (100000 + 10000)

110000

:- Issue of Debenture

50000

:- Dividend paid

(10000)

Cash from financial activities

150000

Net change in cash and cash equivalent

255000

Add: Opening cash and cash equivalent

80000

Closing cash and cash equivalent

335000

Particular

Amt.

Amt.

Cash flow from operating activities:

a. Cash Collection from customers:

:- Sales

6000000

:- Increase in debtors

(20000)

580000

b. Cash paid to suppliers

:- Cost of goods sold

(337000)

:- Increase in Inventories

(25000)

:- Increase in creditors

50000

(312000)

c. Cash paid to employees

:- Operating expenses

(100000)

(100000)

Cash from operating expenses

168000

Cash flow from investing activities

:- Purchase of fixed assets

(575000)

:- Sales of fixed assets

15000

:- Sales of investment

52000

Cash from investing activities

(508000)

Cash flow from financial activities

:- Issue of share capital (150000 + 55000)

205000

:- Issue of 10% debenture

250000

:- Dividend paid

(29000)

Cash from financial activities

426000

Net change in cash and cash equivalent

86000

Add: Opening cash and cash equivalent

335000

Closing cash and cash equivalent

421000

Particular

Amt.

Amt.

Cash flow from operating activities:

a. Cash Collection from customers:

:- Sales

600000

:- Increase in debtors

(25000)

575000

b. Cash paid to suppliers

:- Cost of goods sold

(225000)

:- Increase in inventories

(25000)

(250000)

c. Cash paid to employees

:- Operating expenses

(250000)

:- Increase in wages outstanding

10000

:- Increase in prepaid insurance

(5000)

(245000)

d. Interest Paid

:- Interest on debenture

(10000)

(10000)

e. Tax paid

:- Tax paid

(25000)

(25000)

Cash from operating expenses

45000

Cash flow from investing activities

:- Purchase of fixed assets

(215000)

:- Sales of fixed assets

15000

Cash from investing activities

(200000)

Cash flow from financial activities

:- Issue of share capital

100000

:- Redemption of 10% debenture

(50000)

:- Issue of Long term Loan

100000

:- Dividend paid

(25000)

Cash from financial activities

125000

Net change in cash and cash equivalent

(30000)

Add: Opening cash and cash equivalent

45000

Closing cash and cash equivalent

15000

Particular

Amt.

Amt.

Cash flow from operating activities:

a. Cash Collection from customers:

:- Sales revenue

1200000

:- Decrease in debtors

40000

1240000

b. Cash paid to suppliers

:- Cost of goods sold

(800000)

:- Increase in inventories

(80000)

:- Increase in creditors

40000

:- Decrease in Bills payable

(40000)

(880000)

c. Cash paid to employees

:- Operating expenses

(160000)

(160000)

Cash from operating expenses

200000

Cash flow from investing activities

:- Purchase of machine

(400000)

:- Sales of machine

60000

:- Purchase of investment

(60000)

Cash from investing activities

(400000)

Cash flow from financial activities

:- Issue of share capital

400000

:- Redemption of 10% debenture with premium (80000 + 4000)

(84000)

:- Dividend paid

(56000)

Cash from financial activities

260000

Net change in cash and cash equivalent

60000

Add: Opening cash and cash equivalent

40000

Closing cash and cash equivalent

100000

Particular

Amt.

Amt.

Cash flow from operating activities:

a. Cash Collection from customers:

:- Sales  

630000

:- Increase in debtors

(30000)

600000

b. Cash paid to suppliers

:- Cost of goods sold

(350000)

:- Increase in stock

(35000)

:- Increase in creditors

20000

(365000)

c. Cash paid to employees

:- Operating expenses

(125000)

:- Increase in outstanding Expenses

5000

:- Decrease in prepaid insurance

5000

(115000)

Cash from operating expenses

120000

Cash flow from investing activities

:- Purchase of machinery

(195000)

:- Sales of furniture

60000

Cash from investing activities

(135000)

Cash flow from financial activities

:- Issue of share capital with premium (100000 + 10000)

110000

:- Redemption of Loan

(50000)

:- Dividend paid

(20000)

Cash from financial activities

40000

Net change in cash and cash equivalent

25000

Add: Opening cash and cash equivalent

100000

Closing cash and cash equivalent

125000

Debit

Amt.

Credit

Amt.

To opening balance

100000

By closing balance

50000

To gain on sale of furniture

10000

By sales a/c

60000

110000

110000