Question 16 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 16 Chapter 5 of +2-B

Table of Contents

16. Following information is related to ABC Ltd.:

II. Other Income	1	45,000
III. Total Revenue I +II		30,45,000
IV. Expenses;
(a) Purchases of Stock-in-Trade		23,03,000
(b) Change in Inventories of Stock-in-Trade	2	-16,000
(c) Depreciation and Amortisation Expenses		1,85,000
(d) Other Expenses	3	3,29,000
Total Expenses		28,01,000
V. Profit before Tax III −IV		2,44,000
VI. Less: Provision for Tax		64,000
VII. Profit after Tax V–VI		1,80,000

Notes to Accounts: –

b Gain Profit on Sale of Plant	40,000
	45,000
2. Change in Inventories of Stock-in-Trade
Opening Inventories	2,84,000
Less: Closing Inventories	3,00,000
	-16,000
3. Other Expenses
a Office Expenses	58,000
b Selling Expenses	2,35,000
c Loss on Sale of Assets	36,000
	3,29,000

Other Information:

Trade Receivables	4,52,000	4,15,000
Office Expenses Outstanding		5,000
Selling Expenses Outstanding	25,000	22,000

Calculate Cash Flow from Operating Activities.

Cash Flow From Operating Activities
Particulars		Rs
Profit as per Statement of Profit and Loss		1,80,000
Add: Provision for Tax		64,000
Profit Before Tax and Extraordinary items		2,44,000
Items to be Added:
Loss on Sale of Assets	36,000
Depreciation and Amortisation Expenses	1,85,000	2,21,000
Items to be Deducted:		4,65,000
Dividend Received	5,000
Profit on Sale of Plant	40,000	45,000
Operating Profit before Working Capital Adjustments		4,20,000
Less: Decrease in Current Liabilities
Office Expenses Outstanding		5,000
Add: Increase in Current Liabilities		10,05,000
Trade Payables	28,000
Selling Expenses Outstanding	3,000	31,000
Less: Increase in Current Assets		11,15,000
Trade Receivables
Less: Increase in Current Assets	37,000
Trade Receivables	16,000	53,000
Cash Generated from Operations		3,93,000
Less: Tax Paid		64,000
Net Cash Flows from Operating Activities		3,29,000