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.
The solution of Question 16 Chapter 4 of +2-B: –
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 |
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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)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
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
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