Question 12 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021
Table of Contents
12. Ramesh and Co. indicate a profit of 1,25,000 after considering the following:
| (a) depreciation on building | ₹ 25,000 |
| (b) depreciation on plant and machinery | ₹ 45,000 |
| (c) amortization of goodwill | ₹ 20,000 |
| (d) gain on sale of machinery | ₹ 10,000 |
The current assets and current liabilities at the beginning and at the end of the year are:
| Particulars | 1-4-2021 (₹) | 31-3-2022 (₹) |
| Accounts receivable | 35,000 | 45,000 |
| Stock on hand | 75,000 | 69,000 |
| Cash on hand | 18,000 | 30,000 |
| Accounts payable | 30,000 | 32,000 |
| Expenses payable | 10,000 | 5,000 |
| Bank overdraft | 60,000 | 35,000 |
Ascertain the net cash flow from operating activities.
The solution of Question 12 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –
Calculation of cash flow from operating activities.
| ₹ | ||
| Net profit as per profit & loss A/C | 1,25,000 | |
| Add: non cash, non-operating expenses | ||
| Depreciation on building | 25,000 | |
| Depreciation on plant and machinery | 45,000 | |
| Amortization of goodwill | 20,000 | 90,000 |
| 2,15,000 | ||
| Less: non-cash, non-operating | ||
| Gain on sale of machinery | (10,000) | |
| Operating profit before Working capital charges | 2,05,000 | |
| Add: increase in current liabilities | ||
| Accounts payable | 2,000 | |
| Decrease in current assets | ||
| Stock | 6,000 | 8,000 |
| 2,13,000 | ||
| Less: decrease in current liabilities | ||
| Expenses payable | (5,000) | |
| Increase in current assets | ||
| Accounts receivable | (10,000) | (15,000) |
| Cash flow from operating activities | 1,98,000 | |
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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
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