Funds Flow Statement Practicals - MCQs with answers

Funds Flow Statement Practicals - MCQs with answers


1. The share capital of A Ltd. stood at Rs 20,00,000 in 2013 and at Rs 26 lac in 2014. As per records, the company bought asset of another company for Rs 6 lac payable in fully paid shares. These assets included Goodwill Rs 2,00,000 Machinery Rs 1, 83, 600 and Stock Rs 2,16,400. What is the fund from issue of shares?

a) Rs 2,15,600
b) Rs 2,16,400
c) Rs 2,00,000
d) None of the above

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ANSWER: b) Rs 2,16,400



2. Debentures are Rs 2,50,000 and Rs 3,50,000 in the balance sheet of 2013 and 2014. 1000 of the debentures of Rs 100 each were issued at par in 2014 of which 400 debentures were issued to a supplier for the purchase of a machine. Determine amount of issue for debentures for the purpose of funds flow statement.

a) Rs 60,000
b) Rs 40,000
c) RS 10,000
d) None of the above

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ANSWER: a) Rs 60,000



3. In the balance sheet of Praveen for 2013 and 2014, 4% debentures are Rs 5,00,000 and Rs 4,00,000, respectively. Profit on redemption of debentures in 2013 is nil while in 2014 is Rs 4,000. What is the amount of redemption for the purpose of funds flow statement?

a) Rs 96,000
b) Rs 1,04,000
c) Rs 9,00,000
d) Rs 9,04,000

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ANSWER: a) Rs 96,000



4. The balance of property at cost has been RS 20,000 and Rs 17,000 in 2013 and 2014 respectively. The profit on sale of property of Rs 2000 is credited to Capital Reserves Account. New property costing Rs 5000 bought in 2014. Determine sale of proceeds from land.

a) Rs 3000
b) Rs 10,000
c) Rs 7000
d) Rs 15,000

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ANSWER: b) Rs 10,000



5. The Balance sheet of Ram at end of 2013 and 2014 disclose investments in shares of Rs 2000 and Rs 3000, respectively. Rs 100 as pre-acquisition dividend has been credited to investments account. Determine purchase of investments.

a) RS 5000
b) Rs 1000
c) Rs 1,100
d) None of the above

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ANSWER: c) Rs 1,100



6. The balance of fixed assets of Y Ltd. at cost at the end of 2013 and 2014 were Rs 5,70,800 and Rs 6,15,300. During the year 2014 a machinery costing Rs 60,000 was sold. Determine the purchase of fixed assets.

a) Rs 1,04,500
b) Rs 1,40,500
c) Rs 1,64,500
d) None of the above

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ANSWER: a) Rs 1,04,500


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