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.

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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