Advertisement

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

Question 14 Chapter 5 of +2-B
Question No. 14. Chapter No.5 - T.S. Grewal +2 Book Part B

Advertisement

Question 14 Chapter 5 of +2-B

Advertisement

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:

Particulars31st March,2019 (Rs)31st March, 2018 (Rs)
Inventories 1,15,0001,25,000
Trade Receivables1,50,0001,10,000
Prepaid Expenses20,0006,000
Trade Payables1,10,00080,000
Provision for Tax20,00015,000

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: –

Advertisement-X

 


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 Payables30,000 
Add: Inventories10,00040,000
  6,85,000
Add: Trade Receivables40,000 
Add: Prepaid Expenses14,00054,000
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


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)

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)

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements

Advertisement

Advertisement

error: Content is protected !!