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Question 13 Chapter 5 of +2-B
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Table of Contents
13. Calculate Cash Flow from Operating Activities from the following:
(i) Profit form the year is Rs 7,00,000 after considering the following items:
| Particulars | Rs |
| Depreciation on Fixed Assets | 2,15,000 |
| Goodwill Amortised | 45,000 |
| Gain on Sale of Land | 50,000 |
| Appropriation of Profit towards General Reserve | 25,000 |
(ii) Following is the position of Current Assets and Current Liabilities.
| Particulars | Opening Balance (Rs) | Closing Balance (Rs) |
| Trade Payables | 50,000 | 75,000 |
| Trade Receivables | 75,000 | 60,000 |
| Prepaid Expenses | 10,000 | 18,000 |
The solution of Question 13 Chapter 4 of +2-B: –
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Cash Flow From Operating Activities | ||
| Particulars | Rs | |
| Profit as per Statement of Profit and Loss | 7,00,000 | |
| Add: Transfer to General Reserve | 60,000 | |
| Profit Before Tax and Extraordinary items | 7,60,000 | |
| Add: Depreciation on Fixed Asset | 40,000 | |
| Goodwill Amortised | 20,000 | 60,000 |
| Less: Gain on Sale of Land | 90,000 | |
| Operating Profit before Working Capital Adjustments | 7,30,000 | |
| Add: Decrease in Prepaid Expenses | 8,000 | |
| Less: Decrease in Trade Payables | 25,000 | |
| Less: Increase in Trade Receivables | 15,000 | |
| Net Cash Flows from Operating Activities | 6,98,000 | |
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Also, Check out the solved question of previous Chapters: –
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
