Question 13 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 13 Chapter 5 of +2-B

Question 13 Chapter 5 of +2-B

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: –

 


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


Thanks, Please Like and share with your friends  

Comment if you have any question.

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)

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

2 Book 3 min 225x300 - Question 13 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.