Question 14 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 14 Chapter 5 of +2-B

Question 14 Chapter 5 of +2-B

14. Grand Hospitality Ltd., reported Net Profit after Tax of Rs 6,40,000 for the year ended 31st March, 2019. The relevant extract from Balance Sheet as at 31st March, 2019 is:

Particulars 31st March,2019 (Rs) 31st March, 2018 (Rs)
Inventories  1,15,000 1,25,000
Trade Receivables 1,50,000 1,10,000
Prepaid Expenses 20,000 6,000
Trade Payables 1,10,000 80,000
Provision for Tax 20,000 15,000

Depreciation charged on Plant and Machinery Rs 55,000, insurance claim received Rs 50,000, gain profit on sale of investment Rs 20,000 appeared in the Statement of Profit and Loss for the year ended 31st March, 2019. Calculate Cash Flow from Operating Activities

 

The solution of Question 14 Chapter 4 of +2-B: –

 


Cash Flow From Operating Activities
Particulars
Rs
Profit as per Statement of Profit and Loss   6,40,000
Add: Provision for Tax   20,000
Less : Extraordinary Item    
Insurance Claim   50,000
Profit Before Tax and Extraordinary items   6,10,000
Add: Depreciation on Plant and Machinery   55,000
    6,65,000
Add: Gain on Sale of Investments   20,000
Operating Profit before Working Capital Adjustments   6,45,000
Add: Trade Payables 30,000  
Add: Inventories 10,000 40,000
    6,85,000
Add: Trade Receivables 40,000  
Add: Prepaid Expenses 14,000 54,000
Cash Generated from Operations before tax and Extraordinary items   6,31,000
Less: Tax Paid   15,000
Cash Flow from Operating Activities after Tax   6,16,000
Insurance Claim   50,000
Net Cash Flows from Operating Activities   50,000


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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)

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 14 Chapter 5 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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