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

Question 16 Chapter 5 of +2-B

Question 16 Chapter 5 of +2-B

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

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