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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
From the following information, calculate Operating Profit before Working Capital Changes:
| Particulars | Amount (₹) |
|---|---|
| Net Profit before Tax and Extraordinary Items | 4,47,000 |
| Depreciation on Machinery | 84,000 |
| Interest on Borrowings | 16,800 |
| Goodwill Amortised | 18,600 |
| Loss on Sale of Furniture | 18,000 |
| Premium on Redemption of Preference Shares | 6,000 |
| Gain (Profit) on Sale of Investments | 12,000 |
| Interest and Dividend Received on Investments | 27,600 |
Cash Flow from Operating Activities
| Particulars | Amount (₹) | Amount (₹) |
|---|---|---|
| Net Profit before Taxation and Extraordinary Items | 4,47,000 | |
| Items to be Added: | ||
| Depreciation on Machinery | 84,000 | |
| Loss on Sale of Furniture | 18,000 | |
| Interest on Borrowings | 16,800 | |
| Goodwill Amortised | 18,600 | 1,37,400 |
| Items to be Deducted: | ||
| Profit on Sale of Investments | (12,000) | |
| Interest and Dividend Received on Investments | (27,600) | (39,600) |
| Operating Profit before Working Capital Changes | 5,44,800 |
Note: Premium on Redemption of Preference Shares is assumed to have been paid out of the Securities Premium Reserve balance (not charged to the Statement of Profit and Loss), so it never reduced Net Profit and requires no adjustment here.
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 "T.S. Grewal Class 12 Vol 3 Chapter 5 Q.10 - Cash Flow Statement", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 5 - Cash Flow Statement.
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.
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