Skip to content

During the year ended… (Class 12 Accountancy 2026, Q29a)

questionbuddy.in/q/cbse-12-accountancy-2026-67-5-1-q29a-during-year-ended-march-ltd

AccountancyCBSE Class 12 · Board exam 2026, set 67/5/1 · 1 mark · MCQ

CBSE Class 12 Accountancy 2026: question 29(a)

Set in the CBSE Class 12 board exam of 2026, paper 67/5/1, 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

During the year ended 31st March, 2025, H.P. Ltd. paid an interim dividend of ₹ 50,00,000.
From the following, choose the correct option for the purpose of preparing 'Cash Flow Statement' :

  1. (A)₹ 50,00,000 paid as interim dividend during the year will be shown as outflow of cash under financing activities and added back to net profit to calculate cash flows from operating activities.
  2. (B)₹ 50,00,000 paid as interim dividend during the year will be shown as outflow of cash under financing activities and deducted from net profit to calculate cash flows from operating activities.
  3. (C)₹ 50,00,000 paid as interim dividend during the year will be shown as cash outflow from financing activities only.
  4. (D)₹ 50,00,000 paid as interim dividend during the year will be added back to net profit to calculate cash flows from operating activities only.

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 67/5/1.

Hints

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

Hint 1

Was the dividend deducted while reaching the year-end profit balance?

Hint 2

Paying shareholders is a financing activity.

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. Interim dividend is an appropriation of profit, so it is added back to net profit to reach net profit before tax and extraordinary items in operating activities.

  2. The cash actually paid is an outflow under financing activities. Option (A).

    1 mark

Answer: (A) Outflow under financing activities and added back to net profit

Where the marks are

  • Added back to profit and shown as financing outflow (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 paper2026 board paper, set 67/5/1: 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.