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CUET Accountancy 2025 PYQs2 June Shift 2. Free, no login required.

Financial Statements

past year questions, CUET Accountancy 2025 2 June Shift 2

Cash Flow

past year questions, Financial Statements, CUET Accountancy 2025 2 June Shift 2

Easy

Financial Statements

Cash received from the issue of debenture for a trading organization is.

Solution

✅ Correct Option: 4

Cash received from the issue of debentures represents proceeds from long-term borrowings. This directly affects the capital structure of the business by increasing the debt component.

As per AS-3 (Cash Flow Statement), cash flows must be classified into three categories:

Operating Activities → Cash flows from principal revenue-generating activities (sales, purchases, expenses)

Investing Activities → Cash flows from acquisition/disposal of long-term assets and investments

Financing Activities → Cash flows that result in changes in the size and composition of owner's capital and borrowings

Since debentures are a form of long-term borrowing, issuing debentures changes the borrowing structure of the enterprise. Any cash inflow or outflow related to raising or repaying borrowed funds falls under Financing Activity.

Other examples of financing activities include:

  • Proceeds from issuing equity shares
  • Proceeds from long-term/short-term borrowings
  • Repayment of loans
  • Payment of dividends

Therefore, cash received from issue of debentures is classified as a Financing Activity in the Cash Flow Statement.

Related questions:

2022: 23 Aug Shift 2

Which among the following are sources of cash inflow from Investing Activities ?

(A) Dividend Received from investment

(B) Cash Receipt from Disposal of shares

(C) Cash Receipt from Disposal of Fixed Assets

(D) Cash proceeds from issuing Shares and Debentures

Choose the correct answer from the options given below :

2026: 24 May Shift 1

If the net profits made during the year are Rs. 1,00,000 and the bills receivables have decreased by Rs. 10,000 and purchase of machinery is Rs.2,00,000 during the year then the cash flow from operating activities will be equal to:

2023: 20 June Shift 2

ParticularsAmount (Rs.)
Inventory at the beginning40,000
Credit Purchase1,60,000
Inventory at the end38,000
Trade payable at the beginning14,000
Trade payable at the end14,500

Cash paid for inventory is:

2023: 29 May Shift 2

C Ltd made a profit of Rs. 10,000 after charging depreciation of Rs. 2,000 on Assets, transfer to General Reserve Rs. 3,000, Written off Goodwill Rs. 700, Profit on sale of Asset Rs. 300, increase in Debtors Rs. 300, increase in creditors Rs. 600, increase in prepaid expenses Rs. 20 and decrease in outstanding expenses Rs. 200. What will be the cash from operating activities?

2025: 16 May Shift 1

Cash flow statement is part of financial statements as per The Companies Act 2013 and prepared in accordance with Accounting Standard_____.

2022: 20 July Shift 1

Calculate the amount of cash generated from operations from the following information :

Particulars(Rs.)
Profit before change in working capital2,00,000
Depreciation on plant and Machinery20,000
Gain on sale of Building10,000
Increase in trade Paybles4,500
Increase in trade Receivables3,500
Interest paid2,225
Decrease in Inventories3,750
Redemption of 10% Debentures80,000

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