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

Question 17 Chapter 5 of +2-B
Question No. 17 Chapter No.5 - T.S. Grewal +2 Book Part B

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Question 17 Chapter 5 of +2-B

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17. Compute Cash Flow from Operating Activities from the following:

ParticularsClosing Balance (Rs)Opening Balance (Rs)
Surplus, i.e., Balance in Statement of Profit and Loss65,00060,000
Trade Receivables:  
Debtors67,0001,02,000
Bills Receivable1,03,00062,000
General Reserve 2,37,0002,02,000
Provision for Depreciation30,00020,000
Outstanding Expenses12,00030,000
Goodwill70,00080,000

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: –

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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 off10,00032,000
Items to be Deducted:  
Profit on Sale of Asset 8,000
Operating Profit before Working Capital Adjustments40,00064,000
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)

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)

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements

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