Question 15 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 15 Chapter 5 of +2-B

Question 15 Chapter 5 of +2-B

15. Calculate Cash Flow from Operating Activities from the following information.

Particulars (Rs)
Net Profit (Difference between Closing and Opening Balance of Surplus, i. e. ,Balance in Statement of Profit and Loss) 8,00,000
Final Dividend paid in the year  1,10,000
Compensation for Natural Disaster credited to Statement of Profit and Loss 75,000
Depreciation 1,50,000
Loss on Sale of Investment 30,000
Gain Profit on Sale of Land 90,000
Provision for Tax  1,10,000
Dividend Received  20,000
Decrease in Current Assets Other than Cash and Cash Equivalents 40,000
Increase in Current Liabilities 70,000
Decrease in Current Liabilities 10,000
Increase in Current Assets Other than Cash and Cash Equivalents 60,000
Income Tax Refund  10,000
Income Tax Paid 1,20,000

 

 

The solution of Question 15 Chapter 4 of +2-B: –

 


Cash Flow From Operating Activities
Particulars
Rs
Profit as per Statement of Profit and Loss   8,00,000
Add: Provision for Tax   1,10,000
Add: Proposed Dividend   1,10,000
Less: Income Tax Refund   10,000
Less: Compensation for Natural Disaster   75,000
Profit Before Tax and Extraordinary items   9,35,000
Items to be Added:   55,000
Depreciation on Plant and Machinery 1,50,000  
Add: Gain on Sale of Investments 30,000 1,80,000
Items to be Deducted:   11,15,000
Profit on Sale of Land 90,000  
Dividend Received 20,000 1,10,000
Operating Profit before Working Capital Adjustments   10,05,000
Add: Increase in Current Liabilities 70,000  
Add: Decrease in Current Assets 40,000 1,10,000
Cash Generated from Operations before tax and Extraordinary items   11,15,000
Less: Decrease in Current Liabilities 10,000  
Less: Increase in Current Assets 60,000 70,000
Cash Flow from Operating Activities after Tax   10,45,000
Less: Tax Paid   1,20,000
Cash Flow from operations after Tax   9,25,000
Add: Compensation for Natural Disaster   75,000
Add: Income Tax Refund   10,000
Net Cash Flows from Operating Activities   10,10,000


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

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