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

Question 15 Chapter 5 of +2-B
Question No. 15 Chapter No.5 - T.S. Grewal +2 Book Part B

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Question 15 Chapter 5 of +2-B

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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 Loss75,000
Depreciation1,50,000
Loss on Sale of Investment30,000
Gain Profit on Sale of Land90,000
Provision for Tax 1,10,000
Dividend Received 20,000
Decrease in Current Assets Other than Cash and Cash Equivalents40,000
Increase in Current Liabilities70,000
Decrease in Current Liabilities10,000
Increase in Current Assets Other than Cash and Cash Equivalents60,000
Income Tax Refund 10,000
Income Tax Paid1,20,000

 

 

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

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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 Machinery1,50,000 
Add: Gain on Sale of Investments30,0001,80,000
Items to be Deducted: 11,15,000
Profit on Sale of Land90,000 
Dividend Received20,0001,10,000
Operating Profit before Working Capital Adjustments 10,05,000
Add: Increase in Current Liabilities70,000 
Add: Decrease in Current Assets40,0001,10,000
Cash Generated from Operations before tax and Extraordinary items 11,15,000
Less: Decrease in Current Liabilities10,000 
Less: Increase in Current Assets60,00070,000
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)

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

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