Question 17 Chapter 5 of +2-B – T.S. Grewal 12 Class

Question 17 Chapter 5 of +2-B

Question 17 Chapter 5 of +2-B

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)

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

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