Question 17 Chapter 8 -Unimax Publication Class 12 Part 2 - 2021

Question 17 Chapter 8 - Unimax Publication Class 12 Part 2 - 2021

 17.calculate “cash flow from operating activities from the following information:

Statement of report and loss
for the year ended 31st march,2022

Particulars	Note no.	Amount ₹
I. revenue from operating		12,00,000
ii. other income	1	18,000
iii. total revenue		12,18,000
iv. expenses:
Cost of materials consumed		7,75,000
Employee benefit expenses		1,50,000
finance costs		45,000
depreciation and amortization expenses		82,000
other expenses	2	50,000
Total expenses		11,02,000
v. profit before tax(iii-iv)		1,16,000
Tax paid		36,000
vi. profit for the period		80,000

Notes:

(1) other income:	₹	(2) other expenses:	₹
Profit on sale of land	15,000	Loss on sale of plant	30,000
Insert received	3,000	Office expenses	20,000
	18,000		50,000

Note (3): depreciation and amortization expenses:

Depreciation	=	72,000
Goodwill written of	=	10,000
		82,000

Additional information:

	As on 31st March 2021	As on 31st March 2022
Trade receivable	1,40,000	1,64,000
Inventory	84,000	1,15,000
Trade payable	60,000	73,000
Office expenses outstanding	6,000	4,000

The solution of Question 17 Chapter 8 - Unimax Publication Class 12 Part 2-2021 : -

Cash flow from operating activities
for the year ended 31st march ,2022

		₹
Net profit before tax (note1)		1,16,000
Adjustment for non-cash and non- operating items:
Add: finance costs		45,000
Depreciation		72,000
Goodwill written off		10,000
Loss on sale of plant		30,000
		2,73,000
Less: profit on sale of land	15,000
Insert received	3,000	18,000
Operating profit before working capital change		2,55,000
Add: increase in current liabilities:
Trade payable		13,000
		2,68,000
Less: increase in current assets:
Trade receivables	24,000
Inventory	31,000
Less: decrease in current liabilities:
Outstanding exp.	2,000	57,000
Cash generated from operating activities		2,11,000
Less: tax paid		(36,000)
Net cash from operating activities		1,75,000

Note: (1) calculation of net profit before Tax:

Profit for the period	=	80,000
Add: provision for Tax (Tax paid)	=	36,000
		1,16,000

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Unimax Publication - Accountancy PSEB Class 12 - Volume I - Solution

• Chapter No. 1 – Accounting Not for Profit Organisations
• Chapter No. 2 – Partnership Accounts – I (Introduction)
• Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
• Chapter No. 4 – Partnership Accounts – III (Change in Profit sharing ratio among Existing Partners )
• Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
• Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)

Unimax Publication - Accountancy PSEB (Class 12) - Part - II - Solution

• Chapter No. 1 – Company Accounts (Share Capital)
• Chapter No. 2 – Company Accounts (Issue of Debentures)
• Chapter No. 3 – Company Accounts (Redemption of Debentures)
• Chapter No. 4 – Financial Statements of a Company
• Chapter No. 5 – Financial Statement Analysis
• Chapter No. 6 –  Tools of Financial Statement Analysis- Comparative and Common Size  
• Chapter No. 7 – Ratio Analysis
• Chapter No. 8 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2023@ Official Website of Sultan Chand Publication