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Proposed Dividend… (Class 12 Accountancy SQP 2025-26, Q29a)

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AccountancyCBSE Class 12 · Sample paper, session 2025-26 · 1 mark · MCQ

CBSE Class 12 Accountancy sample paper 2025-26: question 29(a)

From the official CBSE sample question paper for 2025-26, section B-I, question 29(a), for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q29(a) · 1 mark · MCQCash Flow Statement

Proposed Dividend for the year ended March 31, 2025 and March 31, 2024 were ₹ 2,50,000 and ₹ 2,00,000 respectively. Shareholders finalised the dividend amount at ₹ 1,80,000 during the year ended March 31, 2025 in AGM held in June-July 2024. Unclaimed dividend as at March 31, 2025 was ₹ 10,000.
Choose the correct option while preparing Cash Flow Statement for the year ended March 31, 2025:

  1. (A)Proposed Dividend added in Net Profit after tax will be ₹ 2,00,000 and outflow of Dividend paid in financing activities will be ₹ 1,90,000.
  2. (B)Proposed Dividend added in Net Profit after tax will be ₹ 2,50,000 and outflow of Dividend paid in financing activities will be ₹ 2,00,000.
  3. (C)Proposed Dividend added in Net Profit after tax will be ₹ 1,80,000 and outflow of Dividend paid in financing activities will be ₹ 1,90,000.
  4. (D)Proposed Dividend added in Net Profit after tax will be ₹ 1,80,000 and outflow of Dividend paid in financing activities will be ₹ 1,70,000.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2025-26.

Hints

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

Hint 1

Which figure did the shareholders finally approve during the year?

Hint 2

Unclaimed dividend has not left the business.

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. Dividend is recognised in the year it is approved by shareholders, so the amount added back to net profit is the dividend approved in the year: ₹ 1,80,000.

  2. Cash actually paid = 1,80,000 − 10,000 unclaimed = ₹ 1,70,000, shown as an outflow under financing activities. Option (D).

    1 mark

Answer: (D) ₹ 1,80,000 added; outflow ₹ 1,70,000

Where the marks are

  • Approved dividend added back and cash paid net of unclaimed dividend (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 2025-26: 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.