Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Advertisement
Advertisement
Advertisement
Advertisement
Question 21 Chapter 5 of +2-B
Indirect Method
21. (Cash Flow from Operating Activities/Proposed dividend for Previous Year) From the following statement calculate cash generated from operating activities :
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDING 31ST MARCH, 2018
| Particular | ₹ | ₹ |
| Revenue earned-Gross Profit | 85,000 | |
| Add: Other Incomes | ||
| Profit on sale of machinery | 5,000 | |
| Dividend received | 3,000 | |
| Commission accrued | 4,000 | |
| Income tax refund | 6,000 | 18,000 |
| Total Income | 1,03,000 | |
| Less : Expenses incurred to earn revenue | ||
| Salaries | 10,000 | |
| Rent | 5,000 | |
| Depreciation | 20,000 | |
| Loss on sale of Building | 5,000 | |
| Goodwill amortized | 8,000 | |
| Proposed dividend for the previous year | 10,000 | |
| Provision for Income tax | 21,000 | 79,000 |
| Net Profit | 24,000 |
Cash Flow from Operating Activities
| Particulars |
Rs |
|
|---|---|---|
| Net Profit as per Statement of Profit and Loss | 24,000 | |
| Add Non-operating items : | ||
| Proposed dividend for the previous year | 10,000 | |
| Provision for taxation | 15,000 | 25,000 |
| 49,000 | ||
| Add Non-Cash Items : | ||
| Depreciation | 20,000 | |
| Loss on sale of the building | 5,000 | |
| Goodwill amortized | 8,000 | 33,000 |
| 82,000 | ||
| Less: Non-Operating Incomes: | ||
| Profit on sale of machinery | 5,000 | |
| Dividend received | 3,000 | |
| Commission Accrued | 4,000 | (12,000) |
| Cash generated from Operating Activities | 70,000 | |
| Less: Tax Paid | (15,000) | |
| Cash Flow from Operating activities | 55,000 | |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 21 Chapter 5 of +2-B - USHA Publication 12 Class", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to USHA Publication Part 2 volume I.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "Question 21 Chapter 5 of +2-B - USHA Publication 12 Class" instantly.
12 February 2023
28 April 2023
