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Question 10 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021
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10.X Ltd. made a profit of 1,00,000 after charging depreciation of 20.000 on assets and a transfer to General reserve of 30,000. The goodwill written of was 7,000 and the gain on sale of machinery was 3,000. The other information available to you (changes in the value of current assets and current Liabilities) is as follow:
At the end of the year debtors showed an increase of 6,000; creditors an increase of 10,000; prepaid expenses an increase of 200; bills receivable a decrease of 3,000; bills payable a decrease of 4,000; outstanding expenses a decrease of 2,000. Ascertain the cash flow from the operating activities.
The solution of Question 10 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –
Calculation of cash flow from operating activities.
| ₹ | ||
| Profit as per profit and loss a/c | 1,00,000 | |
| Non-cash, non -operating expenses | ||
| Add: transfer to general reserve | 30,000 | |
| Depreciation | 20,000 | |
| Goodwill Written off | 7,000 | 27,000 |
| 1,57,000 | ||
| Less: non-operating income | ||
| Gain on sale of machinery | (3,000) | |
| Operating profit before working capital charges | 1,54,000 | |
| Add: increase in current liabilities | ||
| Creditors | 10,000 | |
| Decrease in current liabilities | ||
| Bills receivable | 3,000 | 13,000 |
| 1,67,000 | ||
| Less: decrease in current liabilities | ||
| Decrease in bills payable | (4,000) | |
| Decrease in outstanding expenses | (2,000) | |
| Increase in current assets | ||
| Increase in debtors | (6,000) | |
| Increase in prepaid expenses | (200) | (12,200) |
| Cash from operating activities | 1,54,800 | |
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What is the cash flow statement? why do we need to prepare?
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
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