Question 17 Chapter 5 of +2-B
Table of Contents
17. Compute Cash Flow from Operating Activities from the following:
| Particulars | Closing Balance (Rs) | Opening Balance (Rs) |
| Surplus, i.e., Balance in Statement of Profit and Loss | 65,000 | 60,000 |
| Trade Receivables: | ||
| Debtors | 67,000 | 1,02,000 |
| Bills Receivable | 1,03,000 | 62,000 |
| General Reserve | 2,37,000 | 2,02,000 |
| Provision for Depreciation | 30,000 | 20,000 |
| Outstanding Expenses | 12,000 | 30,000 |
| Goodwill | 70,000 | 80,000 |
An asset costing 40,000 having book value of 28,000 was sold for 36,000.
The solution of Question 17 Chapter 4 of +2-B: –
Cash Flow From Operating Activities |
||
| Particulars |
Rs |
|
| Profit as per Statement of Profit and Loss | 5,000 | |
| Add: Transfer to Reserve | 35,000 | |
| Profit Before Tax and Extraordinary items | 40,000 | |
| Items to be Added: | ||
| Depreciation* | 22,000 | |
| Goodwill written off | 10,000 | 32,000 |
| Items to be Deducted: | ||
| Profit on Sale of Asset | 8,000 | |
| Operating Profit before Working Capital Adjustments | 40,000 | 64,000 |
| Less: Increase in Current Assets | ||
| Bills Receivables | 41,0000 | |
| Add : Decrease in Current Assets | ||
| Debtors | 35,000 | |
| Less: Decrease in Current Liabilities | 10,05,000 | |
| Outstanding Expenses | 18,000 | |
| Cash Generated from Operations | 40,000 | |
| Less: Tax Paid | — | |
| Net Cash Flows from Operating Activities | 40,000 | |
*Depreciation = Asset – sale of asset +Closing Balance of Provision for Depreciation – Opening Balance of Provision for Depreciation
*Depreciation =Rs 40,000 – Rs 28,000 + Rs 30,000 – Rs 20,000 = Rs 22,000
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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)
- 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
