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Statement-I… (Class 12 Accountancy SQP 2024-25, Q30)

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AccountancyCBSE Class 12 · Sample paper, session 2024-25 · 1 mark · MCQ

CBSE Class 12 Accountancy sample paper 2024-25: question 30

From the official CBSE sample question paper for 2024-25, section B-I, question 30, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q30 · 1 mark · MCQCash Flow Statement

Statement-I: ‘Shree Ltd.’ was carrying on a business of packaging in Delhi and earned good profits in the past years. The company wanted to expand its business and required additional funds. To meet its requirements the company issued equity shares of ₹30,00,000. It purchased a computerized machine of ₹20,00,000. During the current year the Net Profit of the company was ₹15,00,000. Cash flows from operating, investing and financing activities from the above transactions will be ₹15,00,000: (₹20,00,000); ₹30,00,000 respectively.
Statement-II: The patents of X Ltd. increased from ₹3,00,000 in 2021-22 to ₹3,50,000 in 2022-23. It will be taken as purchase of Patents of 50,000 and will be shown under Cash outflow from Investing Activities.

  1. (A)Both the statements are true.
  2. (B)Both the statements are false.
  3. (C)Only Statement-I is true.
  4. (D)Only Statement-II is true.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2024-25.

Hints

Open one hint at a time and try again before the next.

Hint 1

Classify each transaction as operating, investing or financing.

Hint 2

An increase in an intangible asset is taken as a purchase.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Statement I: with no other adjustments given, net profit ₹ 15,00,000 is the operating inflow, the machine ₹ 20,00,000 is an investing outflow and the share issue ₹ 30,00,000 a financing inflow. True.

  2. Statement II: an increase in patents (with no amortisation given) is treated as a purchase, an investing outflow of ₹ 50,000. True. Option (A).

    1 mark

Answer: (A) Both the statements are true.

Where the marks are

  • Classification of profit, machine purchase, share issue and patents (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Cash Flow Statement, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2024-25: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.